What's the Most Valuable Asset in Any Business
There's one thing that all businesses have in common: They all possess one asset that is more valuable than any of their other assets.
The skillful utilization of this most valuable--and usually most expensive--asset is a critical requirement for managers at all levels of the organization.
In fact, regardless of the size of a business, most people agree that the effective and efficient management of this asset is one of the primary determinants of the success or failure of any business.
So, what is this mysterious asset hiding in plain sight in any business?
This mysterious business asset is the human resources of an organization.
A firm's human resources is its most valued and usually its most expensive asset. It follows then that organizations should be very concerned about how they utilize this valuable asset. Click To Tweet
What is a Skills Inventory?
Since a firm's human resources are its most valuable asset, managers need every tool they can find to properly leverage the skills and abilities of employees. One tool that managers can use is a skills inventory.
The use of a skills inventory can be invaluable for meeting a firm's goals and objectives and for making better management and human resource decisions.
So, what is a skills inventory?
A skills inventory summarizes the skills, education, and experiences of current employees. Depending on the size and complexity of a business, the process for preparing a skills inventory will vary.
Some businesses use commercial software. Other firms use database programs. Some small businesses use simple worksheets or even a paper based system to prepare the skills inventory.
Whatever the method, if done correctly a skills inventory will provide a collective business inventory of the skills, knowledge, and real-world experience that a firm's workforce possesses.
With a current skills inventory, the management team can identify any gaps that exist between the skills, knowledge and experience that the company has in its existing employee workforce versus what the company needs to meet current and future business needs.
This skills inventory information can then be used by managers for improved decision making in several areas including the following:
- Hiring staff that better meet the current and future needs of the various business units;
- Assigning the right employees to the right functions;
- Staffing internal project teams with the best talent to ensure organizational success;
- Targeting training and development efforts to alleviate existing skill gaps;
- Identifying key employees to develop for future business needs;
- Developing an internal talent channel to replace key employees and managers that depart from the organization;
- Developing a workforce plan for the future strategic needs of the business;
As these areas show, a skills inventory is a valuable tool. It does have some continuing maintenance requirements however.
Managers should implement a process for regular updating of the skills inventory. The employee skills, knowledge, and experiences will change over time as the normal processes of attrition, staffing, and training and development occur. Since a skills inventory is a snapshot of the organization at a certain period of time, a static inventory will lose its value eventually if it is never updated.
A skills inventory is a simple tool for the manager's toolbox that is also very versatile and valuable if done and used correctly. It can be a valuable tool for meeting the firm's goals and objectives and making better management and human resource decisions.
YOU'VE GOT A GOOD TEAM: HERE'S HOW TO KEEP THEM!
12 Steps to Improve Your Leadership Effectiveness
Now that you have skilled employees working for you your ability to use them effectively will primarily depend on your leadership skills. If you can't lead them effectively it will be hard to keep them. A proven way to lead others effectively is to incorporate the best practices of successful leaders into your own leadership style. This book with its accompanying workbook can help you to utilize the great skills of the team of employees you worked so hard to find. Available in ebook and paperback formats.