Here is a guide to understanding all the types of resources a business or organization may possess, the key areas of focus that need oversight, and strategies for managing each.
The types of resources a business has will naturally vary depending on the business itself and its size. A business may have some or all of these and more. Therefore, here is a general listing of the most commonly found resources for an average business.
-Finances: Critical to launch, operation, growth, and payroll. Includes both operating capital and credit.
-Labor: Employees, contractors, and interns.
-Equipment: Specialized tools, software, and/or machines.
-Management: Essential to achieving business goals.
-Expertise: Consultants for a wide variety of business problems and expanding business.
-Land: Can be refined to suit a business’s needs, providing growth.
-Energy: Gasoline, diesel, heating, electricity. An important part of expenses and expansion.
-Time: A resource some companies overlook, but one that holds critical value and should always be considered alongside other resources.
Sub-groups of the above categories require special focus and management, according to WP ERP. These are only a few of the important subcategories that require focus depending on the type of business.
-Human resources: Teams that manage and recruit employees, as well as focus on training, payroll, benefits, labor regulations, safety, and staff motivation.
-Inventory management: Controlling and optimizing inventory of products or operational resources.
-Digital assets management: Availability and viability of media and data for daily operation.
-IT service management: Keeping technology equipment and assets operational (sometimes handled by third parties).
-Facility management (for large organizations): Could encompass everything from building and grounds management, security, and more (sometimes handled by third parties).
Focusing your organization’s efforts on managing your business’s resources more effectively pays dividends in a variety of ways, improving costs, profits, productivity, workplace satisfaction, and employee retention, according to Grantham University.
Key benefits include:
-Lowering costs: Managing resource allocation saves and reduces the need for additional management and administrative efforts and costs.
-Improved profitability: Making teams more efficient and productive reduces overtime and lowers overhead costs.
-Increased productivity: Making your teams more efficient means getting more done using fewer resources. As productivity goes up, so does profitability, while costs go down.
-Decreasing burnout: Burnout is often the result of inefficiency which has created a situation where employees are overworking. When resources are used efficiently, more gets done with less effort.
-Reduced conflicts in the workplace: Poorly managed resources can frustrate workers who don’t have what they need when they need it. This can lead to conflict between staff. Word-of-mouth can spread and affect the culture of the entire company. Efficient management makes sure these resource gaps do not occur.