If you knew how to optimize all the resources at your disposal, where could your business be in one year? The difference between this year and next could be monumental if you learn how to optimize your extrinsic resources. Resource management helps companies meet their largest organizational goals more quickly.
In any business, leaders have access to three extrinsic resources: people, technology, and capital. Leaders must ensure that their teams use these resources to generate the highest return on investment by executing on a firm’s highest priorities.
Properly managing these three extrinsic resources is the most concrete way to effectively pursue any company goal.
Understanding the Execution Process
If you’re following Arootah’s Execution Process, this is where you put your plan into action. You work alongside your team to make progress toward completing your organization’s goal. (In the Arootah Success Formula, the Execution Process is Step 6. In Steps 1-5, you’re strictly preparing for the Execution Process).
As a leader, it’s your responsibility to oversee this part of the process and make sure your team executes the plan correctly and efficiently. By misusing resources during this process however, leaders can derail the plan. That’s why it’s important to have an understanding of the resources at your disposal.
At any given time, there are four intrinsic resources available to you:
- Time
- Energy
- Discipline
- Focus
There are also three extrinsic resources available to you:
- Human Resources
- Technology
- Capitol
You can read more about managing the four intrinsic resources here, so let’s take a look at your organization’s three extrinsic resources.
1. Human Resources
Having the best plan in the world doesn’t amount to anything without the right people to execute it. It’s crucial you have proper talent acquisition and retention processes to attract and retain top talent to help your business succeed. Your people are more valuable than any other resource in your organization.
It’s critical to invest the necessary time and energy into sourcing, interviewing, scoring, reviewing, compensating, training, and wellness in your firm’s human resource process, since the return on these investments is enormous.
Moreover, it’s imperative you build and support a positive workplace culture in which your employees can thrive and successfully execute goals. As you’re assembling your team, consider how each member can contribute to the culture of the organization.
If you haven’t already, make sure your organization is well versed in human resource management so you can remain as competitive as possible with the talent you attract; this is imperative, given the challenges and competitive job market brought forth by the Great Resignation.
2. Technology
The importance of technology as a resource is indisputable. If you aren’t focused on technology as a part of your business, you may find yourself out of business soon as you’ll be at a severe disadvantage among your competitors.
Here are some of the ways technology benefits all facets of an organization:
Leveraging technology to capitalize on even one of these benefits can have a huge impact on your organization. For example, improving efficiency could save hours, days, or years in some processes. This, in turn, allows you to grow faster and set bigger goals.
Oftentimes, organizations struggle to implement new technologies in their operations due to complex learning and onboarding processes. Onboarding an entire organization to new software programs or processes can require a lot of time, but the payoff is well worth it.
Have a growth mindset about implementing technology in the workplace in new ways. After all, we have technology to thank for many of the positive changes in the modern workplace.
Technology however also has one major downside: distraction. The result of distraction is the loss of focus—and focus is another valuable intrinsic resource. So use technology, don’t let technology use you.
3. Capital
Capital is the most obvious extrinsic resource that comes to mind when leaders think about resource management. Many times, it’s the only one they think about, at least in terms of the return on investment.
In essence, capital is the money organizations utilize to purchase the aforementioned resources, though it can also refer to a company’s or individual’s various assets, such as equipment. It’s critical organizations use financial control processes and audits to manage capital.
Moreover, capital held by a company should be used to work for the company. One of the most responsible ways organizations can manage capital is by frequently investing back into the company.
Since most leaders primarily focus on capital, your clients and employees will pay careful attention to how your organization uses it. Don’t let financial neglect or wastefulness taint the relationships your company needs to thrive.
The Bottom Line
Properly managing these three extrinsic resources is the most concrete way to effectively pursue any company goal.
Setting big goals for a company is exciting and energizing, but it comes with a lot of responsibility. Many people will be invested in the outcome of these goals, so it’s important leaders manage the resources available to them to the best of their ability.
If you’re a leader looking to improve your management skills, download our free ebook, The 10 Step Arootah Success Formula. It breaks down our formula into 10 easy steps to help you and your company achieve your biggest goals.
What are you going to focus on managing well for your upcoming goals? Let us know us in the comments!
Sources:
https://www.inc.com/
https://www.chargespot.com/workspaces/ways-technology-reshaped-modern-workplace/