Strategic resource allocation

 

Why is resource allocation important?

Effective resource allocation helps you to:

- Optimise the use of resources: it ensures that your resources are used in a way that provides maximum benefit and efficiency.

- Avoid budget overruns: By carefully monitoring and planning for resource use, you can avoid budget overruns.

- Prioritise key actions: It helps you prioritise the most critical actions and projects necessary to achieve your objectives.

 

 

Steps for Resource Allocation

 

1. Identify resource needs: Start by clearly identifying the resources needed to implement your planned actions. These could be human, financial, technical or other resources.

2. Estimate costs: Estimate the costs of each resource needed. This can include salaries, purchases, equipment and other expenses.

3. Prioritise resource use: Evaluate and prioritise which actions and projects are most critical and should have the highest priority for resource allocation.

4. Create a resource plan: Develop a detailed resource plan that shows how resources will be allocated over time. This could be a schedule of hiring, spending or other resource withdrawals.

5. Budgeting: Build resource costs into your budget to ensure you have sufficient funds to carry out your planned actions.

6. Responsibility and monitoring: Assign responsible people or teams to monitor and manage the resource allocation. They should be responsible for ensuring that resources are used effectively.

Read more about communication in business planning...

 

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Example: Resource allocation

 

Let's use an example to illustrate resource allocation. Suppose you are planning to develop and launch a new mobile app.

- Resource 1: Developers and designers for the app (staff).

- Resource 2: Budget for development and marketing.

- Resource 3: Technical equipment and software for app development (materials).

- Resource 4: Marketing team to promote the app (staff).

 

By identifying and planning for resource needs, you can allocate the budget, hire the right staff and ensure you have the technical equipment needed to complete the project.

Summary

Resource allocation is crucial to the successful implementation of your plan. By identifying, prioritising and allocating resources strategically, you can optimise the use of your available funds and increase the chances of achieving your objectives. In the next chapter, we will explore risk management and how you can address potential obstacles and challenges in the planning process.