Defining a Business Tool

Each business will need to develop criteria so as to identify which tools are to be monitored and
therefore controlled to ensure that time and effort is devoted to managing the proper and important
tools. Obviously, a mobile phone supplied to a salesperson will need to be monitored and controlled to
ensure that all costs are consistent with business activity. However, the mobile of the business owner is
probably immune from such controls. A mobile phone may be on a contract and have a purchase price
of zero, while a stapler to fix paper together may cost a few hundred dollars

There are several criteria than may be used to identify and classify a business tool, and most businesses
will use a combination of these criteria to establish the classification of an individual tool. Once
identified, the tools need to be considered as a group and it is logical to provide a name for the list that
recognizes the importance of the group. Possible names could be:

Portable and Attractive Tool:

 This states that the item is portable and probably does not have a fixed location. It also states
they are attractive, meaning they could be a target for theft or excessive use

Significant Small Items:

 This is very similar as the items are small so they can be easily lost and they are significant to
the business

Significant Small Tools.

 Regardless of the group name that is identified, it is important to note that the tools:
 Represent an investment to the business
 Require control as their use or loss can represent a significant cost to the business
 Will generally require training to prevent damage to the user or the business
 Are attractive in terms of cost and can be attractive to a potential thief
 Are often portable so they are susceptible to damage and loss as a direct result of their
portability and the exact location of a tool at any time may not be known.

One criteria may be the asset value; another could be the usage cost. Mobile telephones can be very
inexpensive to buy – or are even sometimes free – but the cost of calls or internet charges can be
frightening.

Another can be the portability of the asset. Mobile phones and portable computers are small and easily
mislaid or concealed. A computer monitor can also be very expensive but it is not very portable or easily
removed as they are often secured in place or fixed to the computer which makes quick removal a
challenge. Therefore, monitors may be excluded from the tool list because they do not present a risk.

Another can be the training necessary to use the tool efficiently and safely. Although most tools require
some training, the tools in this group often have a wide range of functions and capabilities so that some
level of training is mandatory. In some cases, some level of training is required to be able to commence
item usage