Resource Audit

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Introduction

Resource audit is an internal strategic analysis technique used to understand the current state of an organisation's resources and competencies. It helps to identify what the organisation currently has that we can build on and what are the areas that it needs to improve upon. Broadly these resources are categorised into two groups - tangible or hard and intangible or soft. The tangible resources comprise physical, financial and human assets, whereas the intangible competencies include the intellectual capital and brand equity.

As the name suggests, the resource audit technique can be used as a check list in taking stock of the hard and soft aspects of the organisation's resources. These range from the buildings and financial assets to intellectual capital and brand equity. An important tip is note down both the positive aspects (i.e., strengths) and negative aspects (i.e., weaknesses) under each of the categories.

Given below is the list of the resources under the relevant categories:

Physical
- Buildings, Land
- Stock, Equipment
- Materials
Financial
- Cash flow
- Credit
Human
- Staff, roles and responsibilities
- Expertise and experience
Know-how
- Trade marks and copyrights
- Intellectual property
Reputation
- Brand awareness and brand equity
- Goodwill in the market and among customers

Purpose

To take stock of the resources and competencies within the organisation, so that we can identify areas that can be used as our strengths and also those that need to be improved.

Stake holders

Senior management, Executives, Board of directors

Context

Use the Resource Audit analysis technique to take stock of the resources and competencies within the organisation. The strengths and weaknesses that you identify for the internal resources will help you in the SWOT Analysis technique.