Support: Allocation

When we are endeavouring to support growth, one of our significant challenges is the allocation of resources. I mean this in its broadest context, that is not only financial but also people, time, and focus.

“Never underrate the importance of asset allocation.” Wise words from John C. Bogle; it’s very important. The frustration here can be the want to grow, and even the ability to do so, yet being constrained through a lack of resource, be it people, tech, systems, capabilities, or finance.

What we want is the allocation of resources in the places that will drive growth and deliver effectively. If we get this right, then growth can be smooth. If we get this wrong, then we will constrain the organisation and growth will be limited, if not static.

Investing resources into areas that drive growth should always be an imperative. If they get starved of resources, even in difficult times, it can compound any performance issues.

The principle here is that regardless of wealth, resources are ultimately limited. The allocation of resources whether it's finance or people needs to be thought through for best benefit.

It's a bit like a pie and needs to be distributed appropriately. We must think through and review effectiveness continually. The irony is that if we do this well, ultimately the pie grows. By the way, don't that don't tell that to a socialist. They think the pie is fixed. It’s not. But I digress.

So often I see organisations that come under pressure and the response is to cut costs. Now it is not unreasonable to look at costs, and to ensure that the organisation is lean and not spending in areas that are not adding value. However, the axe is not your friend and wholesale cutting of resources, to an arbitrary percentage, is a blunt instrument that will ultimately cause your organisation to decline. But, if you are frugal in the areas that don't drive growth and invest strongly in the people, processes and products that do drive growth, you will do well.

Can you identify three key areas that drive growth? Take a moment and jot them down; are you investing enough in those areas? Where you invest today will determine what fruit you reap tomorrow. So, allocation of resources is a significant factor to support growth initiatives and equip your business for breakthrough.