Resources

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Resources are needed in order to perform Activities and support Capabilities. Resources can be financial, human, time, etc in nature. Capabilities are always supported by a Resource of some kind. Activities always require Resources to be conducted. To state that you have a Capability but not have the Resource that supports it, means that the Capability does not exist.

Resources can represent both physical and intellectual subjects. For example a patent is an intellectual property that would be a Resource that might support some Capability or Activity. A set of 50 computers on the other hand, is a physical Resource that might be used to support several Activities. To use the example of an HTML coding project. The employee that can code in HTML is the human Resource that provides the Capability to code in HTML. A computer is provided as a Resource that the employee utilizes to perform the Activity. Human Resource (HTML Capability) + Resource (Computer) = Performance of Activity. You could go a step further and provide time as a Resource as well. Human Resource (HTML Capability) + Resource (Computer) + Resource (3 Months) = Performance of Activity

Let’s return to Jack and Jill. Now that we have determined three major Activitiesand their required Capabilities, we can look at what Resources are required.

The Activities, Required Capabilities, and Required Resources are as follows.

Activity 1: Set up and tear down table and chairs for lemonade stand each day.

Required Capability: Someone strong enough to set up and tear down table and chairs each day.

Required Resources: Person strong enough to lift 25 lbs.

Activity 2: Purchase ingredients to produce 15 gallons of lemonade. “15 gallons of lemonade will result in $50 of profit at the planned price point”

Required Capability: None. This is an expenditure of monetary Resources.

Required Resources: $50

Activity 3: Manufacture fresh lemonade in 1 gallon batches each morning.

Required Capability: Very basic ability to read and follow simple recipes.

Required Resources: Literate person with basic experience with the kitchen.

Activity 4: Sell the lemonade.

Required Capability: Basic arithmetic skills that would allow basic addition and subtraction.

Required Resources: Someone who has passed the 3rd grade.

 

Now that Jack and Jill have determined what Resources are required, they can review whether or not they have these Resources, and if not how to possibly acquire them. Let’s say that Jack and Jill did not have $50 to purchase the ingredients. They could examine some options such as borrowing the money, perhaps buying a smaller amount of ingredients at the beginning, etc.

Let’s go over the examples from the previous section and determine which Resources will be required for the listed Activities and Capabilities. Remember that time is an essential Resource for almost every Activity. Time is limited and therefore the allocation of time is the allocation of a limited Resource. If you have two employees that work 40 hours a week each, then you have 80 hours a week to work with.

Example 1 OBJ: Bill will start and operate a wine bar in Toledo, Ohio. He will specialize in providing the largest selection of California varieties, which are underrepresented in the area. He will make at least $80,000 a year in profit from his wine bar.

Course of Action A: Bill will start and manage an independent wine bar under a brand he develops.

Activities:

1. Develop relationships with suppliers

Required Capabilities: Social skills.

Required Resources: A person with social skills and time. “Bill might already have these, in which case he could be the Resource”

2. Scout out potential locations for the wine bar

Required Capabilities: None.

Required Resources: Person to scout out the locations and time.

3. Build a social media presence through website development and other platforms

Required Capabilities: Computer literacy, website design skills, internet marketing competence.

Required Resources: Person or company with extensive experience designing and developing websites. Money if outsourcing this work.

 

Example 2 OBJ: Kevin will build a decorative two story shed in the backyard of his house. It will have at least 100 square feet of space upstairs for storage which will reduce the clutter in the house.

Course of Action B: Kevin will hire the services of a carpenter to work on the shed.

Activities:

1. Seek out carpenters that are able to do the work.

Required Capabilities: None.

Required Resources: Time

2. Make decisions as far as design and layout go.

Required Capabilities: None.

Required Resources: Time

3. Agree on a price with the carpenter.

Required Capabilities: None.

Required Resources: Time

 

Example 3 OBJ: Abigail will organize a fundraising dinner for the Doe family. The dinner will be prepared by a local restaurateur and there will be fun and games for everyone. The fundraiser will raise at least $10,000 for the Doe family.

Course of Action A: Abigail will gather a small group which will undertake all preparations.

Activities:

1. Recruit members for the planning and prep group.

Required Capabilities: Social skills, leadership.

Required Resources: A person with social and leadership skills. Time. “Again Abigail most likely has these qualities and as such would be the Resource”

2. Delegate responsibilities to members of the planning and prep group.

Required Capabilities: Leadership.

Required Resources: A person with leadership skills. Time.

3. Monitor performance and make adjustments as needed.

Required Capabilities: Management skills.

Required Resources: A person with management skills. Time.

 

Example 4 OBJ: Susan will manage a project to improve productivity by at least 5% in the company. The project will focus on introducing soft improvements which require minimal resources to implement.

Course of Action A: The project will introduce new incentives to reward higher productivity.

Activities:

1. Work with Human Resources and Executives to determine what Resources are available for this initiative.

Required Capabilities: Interpersonal communication skills, social skills.

Required Resources: A person with interpersonal communication and social skills. Time.

2. Determine criteria for new incentives.

Required Capabilities: Analytical skills.

Required Resources: A person with analytical skills. Time.

3. Develop implementation plans throughout the organization.

Required Capabilities: Organization skills, interpersonal communication skills.

Required Resources: A person with organization skills and interpersonal communication skills. Time.

 

Example 5 OBJ: The average student test scores will improve by a total of 10%, from 76% to 86%, over the next three years.

Course of Action B: The course will be redesigned so that more time is spent on traditionally weak areas.

Activities:

1. Examine the course and scout out weak points.

Required Capabilities: Analytical skills.

Required Resources: Person with analytical skills.

2. Do comparative analysis to determine how those weak points are addressed in more successful classes.

Required Capabilities: Analytical skills.

Required Resources: Person with analytical skills.

3. Redesign the course structure as needed based on Activities 1 and 2.

Required Capabilities: Analytical skills, education.

Required Resources: Person with analytical skills and a background in education.

 

Example 6 OBJ: ACME will be the lowest cost provider of computer services in Dayton.

Course of Action B: ACME will focus on maintenance agreements and other long term relationships to keep prices low.

Activities:

1. Determine which customers are candidates for the proposed maintenance agreement program.

Required Capabilities: Analytical skills.

Required Resources: Person with analytical skills.

2. Meet with customers and reach agreement with them.

Required Capabilities: Marketing, sales, legal, understanding of computer services, contracting.

Required Resources: People with skills in marketing, sales, legal, IT, and contracting. Time.

3. Scale back and close out higher cost/lower margin customers.

Required Capabilities: Social skills.

Required Resources: People with social skills. Time.

 

Example 7 OBJ: The Jaguars will win at least 8 games this year.

Course of Action B: The Jaguars will focus on improving their preseason training.

Activities:

1. Discuss adjustments with school administration and teachers to ensure it does not disrupt other goals.

Required Capabilities: Social skills, interpersonal communication skills, negotiation.

Required Resources: Person with social skills, interpersonal communication skills, and negotiation skills. Time

2. Increase the number of sessions in the summer from 2 per week to 3 per week.

Required Capabilities: None

Required Resources: Time.

3. Introduce new summer home training regimen for players.

Required Capabilities: Leadership, Communication skills, physical training skills.

Required Resources: PT specialist, person with leadership and communication skills.

 

Example 8 OBJ: Scott will ensure that the team continues to produce 50 widgets per week and keep the quality scores above 95%.

Course of Action A: Scott will retain the previous methods and processes practiced by the team.

Activities:

1. Have meetings with staff to ensure that management and culture align closely with that of the previous management.

Required Capabilities: Interpersonal communication skills, management, leadership.

Required Resources: Person with interpersonal communication skills, management skills, and leadership skills. Time

2. Monitor performance to ensure production and quality remain consistent.

Required Capabilities: Analytical skills, management, leadership.

Required Resources: Person with analytical skills, management skills, and leadership skills.

3. Make adjustments or changes as necessary to maintain previous production metrics.

Required Capabilities: Management, leadership.

Required Resources: Person with management and leadership skills.

 

While this is a very simple and broad view of the required Resources, it illustrates how they make Activities possible. Each Activity and Capability needs to be directly linked and supported by Resources. After you have determined the required Resources you can see which ones you currently possess and which have to be acquired or recruited.

The next section focuses on the Environment which influences every segment of the Strategic Planning dimension of the Luffy Framework.

 

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