Resource Allocation & Strategy – Some Ideas

I teach ‘strategic management’ apart from ‘entrepreneurship’. Invariably the topic of ‘what is the most important activity of a strategist’ within the company, comes up. Without doubt, it seems to me, it is ‘resource allocation’. It involves making choices and decisions, both of which require considerable thought. Both of these look easy to people from outside, and they are the most difficult when seen through the eyes of the strategist.

So, when I saw this article from McKinsey & Co, I could not but share it with my students and colleagues. I am now sharing it here too:


It speaks of how dynamism in resource allocation can improve performance. It also suggest four principles to follow in this activity:

  1. Go Granular
  2. Focus on value creation
  3. Overcome biases
  4. Be agile

Though most of the article speaks directly to the managers / strategists of large companies, there are numerous insights for small and medium businesses too.

Happy Reading and Happy Thinking!

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