The challenge of resource allocation is determining where the resources will bring the most value, how much money and talent to redistribute, and how to put those shifts effectively into action.
I recently listened to a CEO client lament his company’s low growth and the difficulty in shifting resources from a mature business to new fast-growing ones. The challenge he faced is all too common: unit presidents protective of legacy businesses, strenuously arguing that reducing resources would endanger the company’s biggest cash cows.
