Rationalization Objectives
It is important that the organization clearly defines and communicates the objectives of its rationalization strategies.
An example of a clear statement of objectives is:
"To rationalize and dispose of asset stocks in the most appropriate manner to provide the best future benefits to the organization, its customers and other stakeholders by:
- Deriving the best value for the asset, or
- Reducing future liabilities and risks to the business, or
- Reducing future recurrent costs (eg operations, administration and maintenance), or
- Reducing future capital commitments (eg renewals or life extensions)."