What prevents large organisations from extracting full value from declining assets?
Photo: Josh Appel

What prevents large organisations from extracting full value from declining assets?

?We know that the oil, gas and metals cycle will eventually turn, and market prices will trend lower again. Many assets will appear to be unprofitable, sold to smaller companies, and then continue to make money. Large organisations typically need to make a few big (correct) decisions yearly and execute well. But when the assets are late in their productive life, the strategy needs to change, typically towards making many small decisions quickly. It requires harnessing the ingenuity of all employees and aligning decision-making towards a shared goal. With proper guidance, larger organisations can make these changes on specific assets, providing that they adjust their management beliefs. The article here shows what needs to change to improve the productivity of these declining assets dramatically.

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