1,741 Debunking Centralization in Multifamily: The Real Focus on Organizational Design

In this video, I discuss a common misconception about the multifamily industry: centralization.

I was inspired by a riveting debate between Moshe Crane and Michael DiMella during a live LinkedIn event hosted by Chris Arnold.

Here's why the term "centralization" is misapplied and what we should focus on instead.

Centralization, by definition, is about command and control, concentrating decision-making power in the hands of a few.

This is far from what we're aiming for in the multifamily space. What we're really discussing is organizational design.

This involves optimizing roles, responsibilities, and processes, often utilizing technology to enhance efficiency.

Revenue management systems like LRO exemplify this shift.

While some argue for guardrails, the essence is in how these systems distribute labor and manage tasks—often through AI.

Imagine AI not just assigning tasks but dynamically orchestrating every move based on real-time data. This isn't just futuristic; it's happening now.

The key takeaway? Let's redefine our vocabulary.

Move away from "centralization" and embrace "organizational design."

This shift in terminology aligns better with our goals and helps us communicate more effectively within our industry.

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