Needham, Mass.–More than half the respondents (58 percent) identify growing the business as their top business challenge and getting the work done with fewer resources as the most daunting operational challenge adjusting today’s business landscape, according to t
he Resolve Technology’s 2010 Operational Challenges Survey.
Eric Forman, CEO of Resolve Technology, tells MHN, “The focus of the survey was to see how changes in the economy and the financial well being of companies are forcing firms to make changes in strategies.”
In line with the need to grow the business, leasing is ranked as the leading business priority both before and after the financial crisis, although it is considered a much higher priority post‐crisis than pre-crisis. About 65 percent of respondents see leasing as critical following the crisis compared to 28 percent prior to the crisis.
Since the onset of the financial crisis, priorities have shifted from managing acquisitions to managing debt and liquidity. Over half of the respondents see debt management (55 percent) and cash management (53 percent) as critical business functions today, while only 14 percent and 19 percent respectively viewed these as critical prior to the crisis.
“This focus on debt and cash management really stood out,” explains Forman. “We did not realize that it was at the top of the charts for everyone. This is extremely telling. Another big issue was maintaining the morale, which is extremely hard to do when people are getting laid off and are facing salary cuts.”
Other challenges for 2010 include reducing operational costs, maintaining investor confidence, minimizing exposure to troubled tenants, and ensuring compliance with lender requirements.
Forman says the survey was sent out to a wide range of real estate companies with questions on how their focus has changed. “As a company, we are going through the same challenges, so I am not surprised by the findings,” Forman says.