NATIONAL ASSOCIATION OF REAL ESTATE INVESTMENT MANAGERS
22
BUSINESS
CYCLES
Present Human Capital
Opportunities And Challenges:
Optimizing for the future requires critical evaluation of
the most recent cycle. This includes not only how firms
reacted in 2008 -2009, but also how they've performed
since. The following analysis, based on discussions
with executive decision makers in all aspects of real
estate investment management, considers work force
optimization, how to protect investors, and manage
clients and costs more effectively throughout
the business cycle.
Organizational structure is always a complex puzzle of people,
process, and skill requirements, but if one looks at a problem,
not from the perspective of replacing someone, or expanding
a department, but rather looking for force multipliers and ways
to creatively cross silos, investment managers can create true
resiliency for the eventual downturn. Isolation and rigid silos are
neither flexible, nor economical. Force multipliers may help your
firm thrive no matter what happens in the market.
For example, some strategic leaders have taken advantage
of the critical skills and knowledge of real estate economics
(including research and in some cases transaction management),
salesmanship, relationship management, effective and thoughtful
communications and intellectual curiosity to merge roles which
cross all aspects of sales, marketing and client servicing. By
including the high level understanding of real estate economics
and performance management/performance attribution in the
client facing team, they have reduced the distraction for investment
professionals. By using client facing professionals in these roles,
product management is enhanced as client feedback tends to be
less self-serving and more indicative of investor interests rather than
justifying growth in the area of expertise of the portfolio manager
currently sitting with the client.
By Steven N. Schrenzel
Global COO for The Taplow Group,
SA and Managing Director, North
America for Taplow
