Resource Management Best Practice 4 – Ongoing Assessment of the Market Availability of Strategic Resources
Market changes can make once plentiful resources scarce. The recent retirement eligibility of Baby Boomer generation workers and the relatively small size of the follow-on Generation X workforce represents one example of a market change that is creating a shortage of experienced workers in many industries. While this change could be readily anticipated, others such as government sponsored large scale infrastructure projects which consume significant quantities of materials, heavy equipment, and personnel are less predictable. Thus, it is important for organizations to identify needed strategic resources and assess their market availability on an ongoing basis.[wcm_restrict plans=”40873, 25542, 25653″]
Ongoing assessment of resource availability should be performed for those personnel, material, equipment, and financial resources required to perform operationally significant activities and achieve strategic goals. Some examples include:
Operationally Significant Activities
- major facility overhauls
- peek production periods
Strategic Goals
- asset construction
- new product development
- service line or offering expansion
Some market factors to consider for each resource type include:
Personnel
- number of individuals available within the workforce possessing the required knowledge and skills
- pipeline health including:
- projected number of workforce entrants
- availability of uniquely skilled recent military veterans
- training availability including internal training programs, trade schools, and colleges and universities
- entrant interest and fit with the organization and industry
- market opportunities enticing existing worker attrition
- demand for critical personnel resources by other organizations and industries in both the near and long-term
Material
- existing and projected material demand within the local, regional, and global marketplace
- existing and projected material supply within the local, regional, and global marketplace
- lead times for strategic materials and trends
- pricing of strategic materials and trends
Equipment
- existing and projected equipment demand within the local, regional, and global marketplace
- existing and projected equipment availability within the local, regional, and global marketplace
- pricing of strategic equipment (purchase and lease) and trends
Financial
- existing and projected competition for capital resources
- existing and projected credit availability
- cost of credit and trends
Final Thought…
It is often helpful to first identify potential sources of competing resource demand. Be creative. Demand for your company’s needed resources will originate from other companies in other industries and in today’s global marketplace, from other countries as well. Likewise, don’t forget to include global sourcing when assessing the resource supply.
Availability of critical resources often dictates an initiative’s viability. As such, consider creating externally focused performance measures to monitor supply and demand of strategic resources with action triggers defined to initiate further analysis or other decision-making.[/wcm_restrict][wcm_nonmember plans=”40873, 25542, 25653″]
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Additional Resources
Trade associations and industry groups are often a good source of refined information regarding resource availability. Many provide Congressional testimony and make other public presentations; making this valuable information publicly available. Remember, other industries competing for like resources may be supported by similar organizations providing a view on these resources also. Consider these data sources especially if no industry specific studies are available.
Absent this refined information, a wealth of raw data can be obtained from government sources such as:
- FedStats – www.FedStats.gov
- Bureau of Labor Statistics – www.BLS.gov
- US Census Bureau – www.Census.gov
- Bureau of Economic Analysis – www.BEA.gov