Major Logistics Owner Operator Revamps Operating Platform
Leading U.S. Industrial Owner/Operator Poised for Growth Post Acquisition
Project Overview
A leading logistics owner-operator engaged RealFoundations to define a future-state operating platform framework to support their latest acquisition. The new portfolio acquisition marked one of the largest private real estate transactions to date, which effectively doubled the size of the portfolio. During the acquisition, RealFoundations worked with the management team to examine the current-state operating model (including the roles of the parent company and outsourced service providers) to identify enhancement opportunities and position the company for success and future growth.
Challenges
- Portfolio acquisition presented a doubling of AUM,
- Acquisition timeline required accelerated organizational changes and decisions,
- Minimal documentation of processes, roles and responsibilities,
- Large backlog of improvement projects distracting from day-to-day operations,
- Pace of AUM and organizational growth pose complications for establishing benchmarks for back-office work,
- Extensive recent hiring presented challenges with cohesion and created many new working relationships, and
- ERP system required optimization and formal data governance processes.
Value-Add Solutions
The approach RealFoundations led to the design of a scalable, future-state operating model covered:
- Documenting the current-state operating platform in terms of defining critical work, resources, tools and information,
- Identifying current-state pain points—where components of the operating platform were ineffective, inefficient or overly risky,
- Evaluating the management, sourcing and scalability of all primary functions,
- Developing future-state operating model component alternatives and comparisons to industry peers,
- Facilitating the definition of strategic design criteria to guide organizational decisions and prioritize initiatives, and
- Outlining a go-forward roadmap – identifying and sequencing the initiatives necessary to implement the future-state operating platform, with high-level estimates of associated costs.
Realized Benefits
Immediate benefits to the client included:
- A clearly articulated future-state design goals and required scalability to position the enterprise for future growth,
- A framework for implementing a sound, future-state operating model to support rapid growth,
- Timely decision support to frame real-time deliberation of staffing choices and organizational redesign efforts,
- Benchmark of operational metrics and leading practices to peers in the industry,
- Estimation of impacts of primary organizational design alternatives,
- Identification and prioritization of critical functions, staffing and information improvement initiatives, and
- Implementation of tools to forecast operating model impacts of additional growth and portfolio complexity.
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About RealFoundations
RealFoundations (RF) is the world’s foremost professional services firm focused solely on the real estate industry. Through our delivery of Management Consulting and Managed Services, we help companies that develop, own, operate, service or invest in real estate make better, more profitable decisions. We are proud partners to over 500 real estate companies around the globe, providing accelerated solutions that solve some of real estate’s most complex challenges. We Make Real Estate Run Better.
