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What are company resources and how they can best be managed

A good company resource management strategy allows you to increase productivity while minimizing waste.

Company resources and processes

Every company, in order to be stable and long-lasting, must be founded on certain pillars that aim to give it a structure capable of surviving over time.

One of these pillars is made up of the company's resources, an indispensable and essential element for a company. But what are they?

“Resources are an organization’s assets and are thus the basic building blocks of the organization.”

Resources, in fact, represent all the elements over which the organization acts directly (internal resources), but also those over which it does not have immediate control (external resources).

A concept closely linked to that of resources are processes. A business process is an activity or set of activities that can accomplish a specific organizational goal. Business processes should have purposeful goals, be as specific as possible and have consistent outcomes.

In a company, it is therefore necessary to establish a good management of resources, both internal and external, together with the creation of a structure for processes, without which they would not be exploited to the full.

Company resources: typologies

Resources are the essential pillars of business strategy and can be classified into two basic categories:

- Tangible business resources: include all physical and financial resources that can be shown on the company's balance sheet, as they are easily quantifiable and measurable.

- Intangible corporate resources: everything related to technology and production methods, innovation capabilities, access to information, but also reputation and corporate culture, customer loyalty and stakeholder relations, elements that are more difficult to measure.

Among the latter, corporate human resources are particularly relevant: they are closely linked to the people who make up an organization, and are represented by individual skills, communication and collaboration abilities, staff motivation, etc.

Intangible resources are therefore more difficult to cultivate and put to good use, which is why it is essential to know how to optimize them in order to gain a competitive advantage.

Corporate waste

A good management of resources and processes can avoid wasting time and money. But very often the strategies that are put in place are not properly structured to avoid them, entering a vicious cycle made of losses from which it is difficult to exit. In order to avoid this, it is important to know which are the main causes of wastage of resources within the company, to avoid incurring these management errors. 

1. Synchronization

A company in which internal and external processes are synchronized can optimize time and minimize loss.

Often, however, this does not happen, and a single slowdown in a process or department means that others involved are unable to proceed with their tasks, leading to a lengthening of time which, in turn, will cause other interruptions. 

These delays are wasteful, both in time, as employees will have to cease work while waiting for other divisions, and in money, as they will not be able to fulfill their tasks quickly and focus on other activities.

In fact, the fluidity of processes allows you to get the most out of your resources, increasing productivity and profits.

2. Processes

Closely linked to synchronisation are the processes, i.e. the various pieces that need to be coordinated to make the enterprise “machine” work.

It is necessary to pay attention to the flow of these processes in order to understand if there are avoidable slowdowns and how to solve them.

This is where you can find out why synchronisation is not happening and which processes are causing problems.

This monitoring must take place periodically because the creation of a workflow involves the organisation of many aspects and takes into account many elements, sometimes unpredictable, which only with constant analysis can avoid becoming delays and, consequently, losses of time and resources.

3. Technology

One of the main reasons why employees leave is because they work in an uninspiring environment: backward procedures, outdated technology and frustration with the tools available that do not allow them to meet their objectives.

In fact, some companies do not invest cyclically in innovation, thinking that it is not necessary to increase existing technologies or acquire new ones.

This is because they do not see the potential of having up-to-date tools:

  • With IT progress, increasingly combined with artificial intelligence, it is possible to eliminate time-consuming daily tasks from employees by handing them over to machines. This allows staff to channel all their energy into higher value-added tasks, without having to juggle repetitive and uninspiring tasks;

  • Innovative technology allows employees to work in the best possible conditions, eliminating their frustration at wasted time and increasing their satisfaction.

 4. Resolution speed

As we have seen in the previous points, it is essential to establish a strategy for resource management. Sometimes, however, constant analysis and monitoring is not enough to avoid waste.

For this reason, it is important to have a rapid resolution capacity: to detect the problem in the shortest possible time, having shared procedures that allow timely and coordinated action between the various figures involved.

A problem is often unpredictable. What can be foreseen is the process of solving it in the shortest possible time.

Being aware of what the most common business wastes may be, allows every company to put in place strategies to avoid them or to act promptly if they arise. 

A company's productivity is not only determined by the profits it makes, but also by all the wasted time and resources it manages to avoid.

Read more on: How to use Knowledge Management to reduce business costs and How to increase productivity and reduce waste with a KMS.