Strategies for Innovative Resource & Liability Management | Innovation Management
Organizations maintain and manage many different kinds of resources. Managing them can get complicated, considering all of their components and the potential risks that they bring. Not only do they have to be allocated properly, but there need to be safety nets set in place for potential mistakes and legal consequences.
Resource management must be innovative enough to maximize efficiency and account for liabilities. In 2019 this includes technology such as automation and cloud systems. These allow for fewer mistakes and better organization.
Resources differ among businesses, but there are a few that are commonly used across the board. These can typically be divided into three categories: human, fiscal, and physical. Seeing as innovation is closely connected to a business’s core objectives, resource management methods should be creatively optimized for the bottom line.
Human Resources
Human resources refer to the individuals who make up a workforce. Out of all three resource types, they are the easiest to utilize the tactic of resource leveling with. “Resource leveling” is a term that describes interchanging resources across departments and projects to make up for a lack of productivity in specific areas. The need for this points to the biggest cause of liability within human resources: human error. Modern technology has offered some of the best solutions to human error.
Currently, automation is easing the busywork for a lot of labor jobs. While there is concern around these jobs being destroyed by automation, the technology is actually projected to create around 133 million new jobs, which vastly outnumbers the amount it will erase. With the use of automation, laborers are able to worry less about minor aspects of their operational processes and focus more on results.
Cloud systems have made the line of communication and workflow between managers and their employees more efficient and less prone to mistakes. Systems like Google Suite allow files to be worked on by managers and employees alike, all at the same time. Similarly, document management systems allow businesses to organize documents so they are not easily misplaced.
Regarding the cloud, consider how files are easily transferred across project management systems nowadays. A similar approach can be accomplished within expertise outsourcing. For instance, imagine a hypothetical retail company in need of unique software for internal operations. Using the cloud, they can contract and collaborate with third-party software developers in real time. This communication will allow them to squash mistakes in the programming quickly.
Fiscal Resources
Fiscal resources consist of time and money. They are what make all operations possible. Unfortunately, they can be very limited. Though “resource planning” is often spoken of in terms of human and physical resources, it has a stark place within the fiscal realm as well.
Automated systems and equipment save a tremendous amount of time within a project by completing tasks previously done by human resources. As a result, they could save money as well — operation costs may increase with the time spent on them. This further helps to save money, since busywork can sometimes take time away from obtaining the best results.
How does automation prevent liability in terms of fiscal resources? Primarily, it does this by allowing companies to better deliver on their promises. Improving upon product deficiencies and meeting contractual obligations is more easily achieved with automation because it allows for the economical use of fiscal resources.
The money used to fund business operations, hire new laborers, and cover losses all falls under finances. In addition to its benefits for human resources, automation has helped the division and management of a company’s funds as well. A real-world example of this is found in how human resource information systems automate payments.
Physical Resources
The land or property a business operates on, the equipment they use, and the energy required to make it all happen may be referred to as physical resources. They are the tools by which a day’s objectives are met. Like all resources, technology has made them easier to use and eliminated the amount of problems that previously surrounded them.
If you’re paying for space, the most innovative thing you can do is find a way to use all of it to your greatest advantage so none of it is wasted. However, your premises may carry a lot of liabilities specific to it. If somebody is hurt on your property, the liability falls on renters — not landowners:
When it comes to Premises Liability, as a general rule, landowners (or occupiers of land, such as the operator of a grocery store on leased land) have a duty to maintain and keep their property in a reasonably safe condition to avoid injuring those who are on the property.
In other words, every customer that steps foot inside your place of work is your responsibility.
Business operations could not be completed without the proper mechanical tools such as machinery and product materials. Automated equipment can prevent risk and liability in a number of ways. For instance, a lot of new technology may be programmed to start and shut down at certain times, decreasing the likelihood of worker injury due to operating less. But if the equipment is faulty, the probability of a mistake will go up.
Energy
Few resources are more wasted than energy. Equipment and property both take energy to work, but to be most efficient, they require careful energy calculations. Before automation, this was a matter of manual assessment. With automation, the amount of energy used is more consistent, accounting for less waste.
It’s recommended that even the safest and most efficient companies safeguard against workplace liability (which largely results from misuse of physical resources) by getting liability coverage. Ensuring these resources are safe, closely monitored, and protected by insurance will prevent potential lawsuits.
Resource and liability management starts with allocating resources carefully. The age of innovation has allowed professionals to allocate and use these resources more efficiently. This can be done through automation and other forms of technology, which also alleviates risks. Strategizing innovative ways to manage resources and risks will further help to avoid legal complications.
About the author
Noah Rue is a writer, a digital nomad, an ESL teacher, and an all around good dude, if he doesn’t say so himself.