Resource, Asset, or Liability?

Resource, Asset, or Liability?

A couple weeks ago we posted a simple little Poll on LinkedIn. We asked the very simple question for corporate managers and leaders:

"Do you consider the workforce as Assets, or Liabilities?"

That poll itself was part of a bigger statement -- When a person, place or thing is considered an ASSET, we invest in the maintenance and continuous improvement of that thing, because it is an asset. Liabilities on the other hand, are expense spending, we do not "throw good money after bad."

One unexpected reply we received on the poll came in from the renowned Mr. Ted Lister.

Ted's "Modest Proposal" suggests that there is more to this line of questioning than the simple Human Asset or Human Liability, (attitude/decision), at the corporate board table.

Ted gives us quite a lot to chew on here, if the content gets you thinking, please share those thoughts in the comments.

Warning -- Views presented here will not be compatible with some current social ideals, models, and understandings.

Such is the nature of any Philosophical Discussion.


Ted Lister is a performance and change management trainer and coach. Copyright 2005? www.listermanagement.com


Human Resource, Human Asset, Human Liability

My training and coaching business provides me the opportunity of associating with human resources from a variety of industry sectors, both during direct work assignments and in my travels.

During one of my trips I began to consider the possibility that human resources is a label that fits only a portion of a company’s employees.

Let me explain my theory with the following illustrative story.?

On a recent trip to Miami I boarded a small plane for a 10-minute flight from my island home to the mainland airport.

Upon entering the plane I was greeted by a tired employee busily conversing with her counterpart. The two were complaining about their employer’s incompetence, which made me quite uncomfortable.

Do you think I’ll fly that carrier again?

Not if I can help it.

If the carrier’s employees don’t protect the company image, how can I expect them to protect me?

I don’t consider these employees human resources; I consider them human liabilities.

My flight from the mainland airport to Miami with a different carrier proved to be more comforting.

During the flight I asked a flight attendant if she could please find me a blanket.

After five minutes of searching she came back empty-handed and apologizing, “I’m sorry sir, but we only have a limited number of blankets on board, and they’re all being used.”

“That’s fine”, I replied, and placed my seatback in the reclined position and nodded off to sleep. When I awoke my senses were surprised by the feel and scent of a female flight attendant’s overcoat covering me.

Do you think I’ll fly that carrier again?

You bet I will.

Not only will I fly with that airline, I’ll recommend it to everyone.

Not because a flight attendant was kind enough to see to my comfort, but because that company obviously employs human assets.

People who add value to a company. People who not only protect it, but improve it.

Why is it that everything a company either owns — i.e., production assets, capital and inventory — or has the benefit of?— i.e., market share or branding image — is labeled an asset, yet the people (employees) are labeled resources?

The plane I am sitting on is a physical asset.

The fuel is a resource.

It may be that the company considers employees resources because they perform a resource function; however, every employee has the opportunity to perform at a level of excellence, increase profits through efficiency, or increase market share through effectiveness.

Now, companies can argue that personalities play a role in attitude, and that determines into which category an employee fits.

I certainly wouldn’t argue against that.

We know personalities vary from person to person, from day to day.

Some people just aren’t happy with their job status.

Some people hate going to work, dislike their jobs, are unhappy with the compensation, and are motivated only by weekends off.

Is more money the answer?

No. I’ve been paid very well for some work assignments I’ve accepted. The ones that gave me the most satisfaction were not the highest paying ones but the ones where I was recognized for my performance.

In my experienced opinion, a pacesetter company, a company focused on asset and resource performance excellence, should recognize my theory as an opportunity and make it their first step in reaching for performance excellence.

This means the company must begin a management of change initiative to improve asset performance.

Assets, in this case, being of the human class.

Pacesetter companies have found that any improvement to human performance results in an equal or greater improvement in company assets such as production.

There is also the added benefit of satisfaction that spills over to the employee’s personal life, making work life that much more productive.

Personally, my employment history includes a position in which I was a human liability (I didn’t always treat company property with respect), another in which I was a human resource (assembly line production with no quality control opportunity), and finally a position in which I am a human asset (providing individuals and businesses a substantial return for investment dollars in the area of performance and change management training and coaching).?

So where do you begin?

Well, think of it like this: If a vehicle is an asset to a company and fuel is a resource, wouldn’t it make sense that if an employee were an asset to the company, then education would be the resource?

Education and involvement.

If you want to turn human liabilities into human resources and human resources into human assets, you need to educate them and involve them in the business.

I don’t mean that they need to be partners or major shareholders, only that they understand the nature of your business.

Human resources should know how you make your money, why you make money, who benefits and what it means in the overall scheme of things.

Many employees don’t even know the difference between profits and revenues.

Some don’t understand market share and competition.

Most don’t understand what a common vision and mission can do to make a business successful.

Many have never managed a business, written a business plan, been responsible for meeting a payroll, or lost a major contract; but every human knows what it feels like to be an asset.

To benefit someone.

To be recognized for their contributions.

Changing the sign above the Human Resource Department to read Human Asset Department would be a radical, first step toward enhanced employee performance.

Will anyone take the challenge?

I’m not so sure. It is a rather far-reaching movement, with potential risks of stupidity and fear of failure. Nevertheless, I think companies should quietly tempt this ideal theory and begin the process of change toward asset and resource performance excellence.

The first one to succeed might just find themselves at the very top of the heap, and there to stay.

Human Liability

·??Revenue generator at very low profit margin

·??May be positioned at any level of the organization

·??Requires more leadership and management time and effort

·??Talks poorly about the company to other employees

·??Talks poorly about the company to outsiders

·??Thinks he or she can do the job of boss or manager better

·??Discourages customers from continuing business by their negative attitude and actions

·??Wages greater than return on investment

·??Overall protection of company assets is dangerously low – assets are abused

·??Doesn’t follow company policy

·??Quite often does not know roles and responsibilities

·??Does not know company Vision Statement

·??Does not understand Department Mission

·??Asks for training but shows no improvement

·??Performance is measured annually

·??Difficult and costly to deal with in terms of termination and severance

·??Owns no shares in the company

Human Resource

·??Revenue generator at acceptable profit margin

·??Typically positioned as shop-floor or first level management of the organization

·??Understands position’s roles and responsibilities

·??Requires less leadership and management time and effort

·??Wages less than or equal to return on investment

·??Often not interested in seeking a better position

·??Overall protection of company assets is secure – assets are used, not abused

·??Can be replaced relatively easily if he or she resigns

·??Generally thankful for the position

·??Adheres to company polices

·??May know company Vision Statement

·??May understand Department Mission

·??Takes advantage of company training

·??Performance is measured regularly by output quantity and quality based on roles and responsibilities

·??May own shares in the company

Human Asset

·??Profit generator, both financial and market share

·??May be anyone at any level of the organization

·??Requires very little leadership or management time and effort

·??Typically creates own roles and responsibilities

·??Speaks highly of the company to other employees and outsiders

·??Wages less than return on investment

·??Overall protection of company assets is highly regarded – assets are kept in good operational and repair condition

·??Seeks better positions

·??Knows the company Vision Statement because they most likely helped create it

·??Understands completely their Department Mission

·??Measures own performance based on Mission - promise to deliver output measurement of quality and quantity (service or product)

·??Upgrades self at their own expense

·??Most likely to become a partner or major shareholder

Rashid Mahmood ???? ?????

???&???, ?????????????, ??????, Water & Power | Strategic Planning | Operational Leadership | Financial Management | Team Development | Risk Management | Project | Global Corporate Assurance | Turnarounds | Shutdowns

2 年

Thanks for sharing STO Champions Interesting topic of a journey from Human resource to Asset & wonder if a #HR consultant in our circle can add value to it with HR folks feedback ?1- Any improvement to human performance results in an equal or greater improvement in company assets? 2 - Human Resource Department to read Human Asset Department

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Mathieu BAUMGARTH

STOPS / STO: Shutdown Turnarounds & Outages + STrategic Operations (ST-OPS) Management / CEO-Président

2 年

VRIO analysis > RBV (Resources Based View) > DC & AC (acronym transcription? Read literature or ask STOPS in pm) Human being will remain human. With its weaknesses but its permanent and unpredictable potential of ingenuity &/or love that allows him talk with gods. Strange to qualify it a resource or an asset. Like if a human analysis can submit its view throught the first perspective of a company’s one. An organisation embodies by law, fashioned a person by law. If you do not mind to be alienated keep comparing humans as a resource or an asset. Or accept to be so. If not, maybe would it open another way of making business. Like if dynamic could be a process. Like life, providence, Nature could be confined in a box. Haha.

Benita Lee

Helping multinationals navigate the ever-changing international landscape of regulations & risk management in trade compliance

2 年

There's a difference, now I see!! They are not always assets.

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