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Understanding Resources and Capabilities

As a business consultant, we talk and build a strategy for companies every day. We take on, what some people would call boring, the tasks of systems and processes inside of companies. Having a well built and structured strategy is arguably one of the most critical tasks inside of a company. Without it, a company will struggle to identify where it is going. Inside of a strategy is the extremely important discussion surrounding resources and capabilities.

Resources

What do you have around you that you can use to achieve the outcome you want. This is a simple explanation of resources. Your ability to use these resources is considered your resourcefulness. Just because you don’t have the resources does not mean you cannot find them, become resourceful.

Capabilities

How are you able to perform? Such a simple explanation, but fits. How you perform is your capability. Capabilities have many levels in life, but the better you become at increasing your capabilities, typically the more wisdom you have in your reality of life.

Corporate Strategy Consulting | Understanding Resources and Capabilities

Business Resources and Capabilities

Businesses take on many variations of what they trade to others in return for payment to make a potential profit. No matter what these businesses conduct day-to-day, its resources and capabilities either make transactions easy or difficult. The more experience they have, then the easier the transaction and the less experience they have, then the more difficult the transaction. Owners and leaders alike should be extremely aware of the resources and capabilities that they have. In a world where technology is changing at a rapid pace, the business should be listing all resources and capabilities and making changes when needed. The business resources should be considered internal and external people that they can call on to help with tasks. Then the capabilities of the business are how they use the resources to complete tasks.

Personal Resources and Capabilities

Often, we go into business and are astonished at the conversations we have with staff around resources and capabilities. So many staff go to work with no direction, just a task list that they must compete. No one around them directing them on where to go, who they can call on, and how to achieve high-level results. Just wandering aimlessly. What they are never told or encouraged on, is that the level of resources and capabilities that they have only made the business better.

So why do companies not work with staff on this simple thing? Constantly being reactive instead of proactive. But we will save this proactive vs reactive discussion for later! For now, let’s break down a personal resource and capability.

Personal Resources

A person needs to take inventory of what they have around them. People, businesses, schooling, books, articles, journals, and so on. If there is something missing in your bucket of resources, make a list of it and begin to research how you fill that bucket. This is being resourceful!

Personal Capabilities

What did someone else hire you for? If you, an entrepreneur or employee does not make a difference in your capability to perform. Someone had trust in you at one point and now relies on your ability to do as they have asked you to do. So how do you increase your capabilities is through experience. This experience can be learned through books or experiences. We suggest a combination of both where possible. Your work experience and book learning should always be in a seesaw battle with each other. As your work experience grows beyond your book-learned experience, then you need to search for more schooling. As your schooling grows, then you need to search for more work experience that matches your schooling. Always in seesaw!

Use the resources and capabilities around you to succeed, and when you lack one or the other, level up your skill. We spend so much time on this discussion with the businesses that we work with, so if you are looking for more help in this avenue of business and personal life, feel free to reach out to us at Future to Now Consulting.