Situation 09 · Site footprint
The knowledge risk sits on no balance sheet.
The geographic distribution is a product of history: expensive, exposed, with knowledge concentrated in single locations. There is no balance sheet item for that risk.
The sites are to be reviewed, and at the end there is a number. In the mandate this is called a site concept or footprint optimization.
The problem underneath is that floor space, rent and personnel costs appear on every balance sheet and the concentration of knowledge in single locations on none. The most expensive risk in the decision is the only one without a line item.
The site concept stays necessary. It only needs the distribution of knowledge down to the individual position — then the site risk is a number and not a hunch.
Which site carries what — and which knowledge is lost before it is secured?
Cost, risk and access to talent in one calculation. No site decision that overlooks a knowledge risk.