Strategic resource allocation

Articles

Strategic resource allocation

01/10/2014

Many organisations allocate resources (and funding) according to past protocol or possibly treat all requests equally which meet a particular performance criteria e.g. return on investment.

Strategic resource allocation requires strategic decisions on where budget and resources are allocated. This will invariably make some people unhappy – but that is what strategic planning does.

Strategic resource allocation typically includes sorting requests into 3 categories:

  • Future superiour performance e.g. earnings / benefits
  • Medium-term benefits
  • Immediate benefits (BOTTOM)

Remember, if you don’t change resource allocation then no change in strategic direction can or will take place.

This type of change is often; difficult, unpopular with many people or departments within the organisation, and likely to be resisted by many stakeholders at various levels.

It takes leadership and strength to persevere with strategic plans which have painful transition implications.

Developing and implementing strategies can only be the responsibility of line managers. This does not mean that we should do away with planning staff or departments. Rather, it means their output can only be an input to top management. It is top management’s responsibility to weigh strategic issues, apply judgement, and make strategic decisions.

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