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Valuing Your Assets Appropriately

Writer's picture: Erika AndresenErika Andresen

Part of business continuity is figuring out what your most important processes are for operations - to keep things running, even at a reduced rate, to always be continuous and making money.


Another possibly nuanced and overlooked aspect is determining what your biggest asset is and protecting it as the highest priority.


This can be easy for some. If you manufacture a product, it would seem that the manufacturing process is the most important operation but also your most valuable asset is the machine that makes the product, or maybe, even, one of the raw materials. In some cases, you can lose all the inventory you already have because - although the cost isn't great to bear - you can always make more. You can see here that we are taking apart the entire manufacturing operation to see what truly is the most important aspect of the operation and securing that thing piece by piece. Because you'll also need materials for making more product. One thing has now exploded into many.


With manufacturing, it is easy, be it with a machine or even with your hands if you are an artist. The principles are the same in how they are applied and how you think about them, you just need to change the "what".


But let me change it up for you. What if you are a non-profit with a mission? Every business has a mission statement (or they should) - if it's to make the most delicious cupcakes, we figure out how you'll always be at least making cupcakes. Some variations may need to happen due to a world-wide shortage of an ingredient, but you are prepared for that and have a close-as-possible alternative ingredient to replace it. But if your mission is to feed those suffering from food insecurity...we need to examine it a little.


I'm sorry MANNA Food Bank has become such a lightning rod of a case study, I truly am. Hopefully it won't be for naught and they will take action for next time and inspire others who haven't created a plan yet. This is a good example of how operations can vary from the asset. What's the most important operational aspect to feeding those who are food insecure? Getting and delivering food. Assets involved: trucking and warehouse for storage.


But are the trucks and warehouse the most valuable assets? They aren't creating a product and they are essentially a delivery service. However, they are nothing and mission fail if they don't have food to deliver. Imagine if my mission is to clothe the homeless and I have storage and a car, but no clothes. You can always figure out a way to get the food to the people, but at least have the food.


I saw MANNA trucks moved to higher ground the morning before Helene. The trucks were empty. The food was left inside the warehouse - moved to a higher shelf but that was no match for the flood that was coming.


When you are rushed to make a decision, you don't have the ability to see the playing field appropriately, especially if you've never experienced it before, never had to think about it before. You may accidentally leave your most valuable asset exposed.



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