I will often say that there is no set formula for something: there is no one correct method. There are, however, plenty of incorrect ways to do things. Resource Audits are no exception.
Here are some common mistakes made when performing a resource audit.
Looking only at revenue
Revenue is nothing but a number. Without its proper context, any information you take from it is pure assumption.
Revenue has to be considered alongside costs to the business, growth initiatives, new expenses, strategic goals and more. The way money flows in and out of your business is telling you a story. Listen to the story to make sound decisions going forward.
Assuming 40 hours a week
Your employees – and you yourself – are not working on your craft for 40 hours a week.
There is time spent in meetings, recaps, data management, training, corrections or planning. When you are deciding what to expect of peoples’ time, bear in mind all the responsibilities placed on your employees’ shoulders.
Managing job titles
Consider your workforce and expected tasks based on roles, not just job titles. Job titles are for business cards, but output is created by well-defined roles and expectations.
You may have a list of job titles covered in your org chart, but are people aware of their preferred plan of action, the company goals and available resources? Always think in terms of outputs, in other words: why is this person here.
Non Strategic Decisions
Your resource audit should tell you what strategies you can and should pursue. At each stage of your audit, pause and ask yourself what is the story, and what does it inform. Data does nothing on its own, rather it is a tool for us to utilize.