How do you manage resource allocation?

March 23, 2025 by Mike Manazir – (4-5 minutes)

The Brick Chronicles
Mastering the Art of Resource Allocation

Sarah Thompson, CEO of Baxter’s Bricks, leaned against the conference table, her arms crossed with a knowing smile. The leadership team had gathered for their quarterly strategy session, but Sarah had just thrown them a curve ball.

“We’ve been operating like a buffet,” she said, scanning the room. “We load up on projects, spread ourselves too thin, and then wonder why nothing gets finished efficiently.” Rick Nelson, the COO, raised an eyebrow. “So, what’s the alternative?” Sarah smirked. “A chef’s table—focused, intentional, and delivering excellence on what matters most.”

The room went silent. They knew what was coming: a hard look at how Baxter’s Bricks managed its resources.

Who Does It Well… and Who Doesn’t? – Sarah had done her homework. Companies like Toyota excelled at resource allocation, employing lean management principles that ensured every dollar and hour was maximized. On the flip side, there were companies drowning in inefficiency—ones where priorities shifted daily, projects stalled from lack of bandwidth, and budgets hemorrhaged due to poor planning.

“We’re aiming for Toyota,” Sarah said, “not a chaotic kitchen where every chef grabs ingredients at random.” Rick grumbled. “So, no more ‘just wing it’ approach?” Sarah shot him a look. “Not if we want to scale smartly.”

The Plan: From Over-committed to Optimized – Sarah introduced a new framework called the Three-Tier Investment Model:

  • Critical Priorities: These were the non-negotiables—projects directly tied to revenue growth, operational efficiency, and long-term sustainability.
  • Strategic Bets: These initiatives had potential but required controlled investments and clear milestones to validate their success.
  • Nice-to-Haves: Everything else. If it wasn’t tied to a clear return on investment, it had to wait.

She assigned Rick and Tom Jenkins (Environmental Impact Manager) to a newly formed Resource Allocation Committee (RAC). Their job? To ensure every project had clear objectives, resource needs, and expected outcomes before it got the green light.

Lisa from HR chimed in, “Does this mean we’ll have to say ‘no’ more often?”

Sarah nodded. “Or ‘not yet.’ We’re going to stop confusing activity with progress.”

The Key Ingredients for Smart Resource Allocation – To make this work, Sarah and her team outlined three core principles:

  • Clear Prioritization: Every team had to categorize their projects using the Three-Tier Investment Model. If it wasn’t a critical priority or a strategic bet, it wouldn’t make the cut.
  • Agile Adjustments: Resource needs would be reviewed monthly. If a project was under performing, resources would be reallocated—no more sinking costs into failing initiatives.
  • Empowered Decision-Making: Leaders at all levels were given autonomy within their budgets. They had to think like business owners, ensuring every dollar and hour spent aligned with company goals.

Rick sighed. “So, no more pet projects that go nowhere?”

Sarah grinned. “Not unless you want to fund them out of your own paycheck.”

What Changed? – Within six months, the impact was undeniable:

  • Faster Execution: Projects that once dragged on for a year were now completed in six months.
  • Higher Profit Margins: The company reduced wasteful spending by 18%, redirecting those funds into high-impact initiatives.
  • Stronger Employee Engagement: Teams felt more focused, knowing their work directly contributed to the company’s success.

Even Rick had to admit, “Okay, maybe this ‘chef’s table’ thing isn’t so bad.”

Final Thought – If you’re leading a team, take a page from Sarah’s playbook: Focus on what matters, cut what doesn’t, and give your team the tools to make smarter decisions. Because at the end of the day, excellence isn’t about doing more—it’s about doing what matters most. But, don’t make these decisions in a vacuum – from the top down. Instead, invest your team in your process optimization and desired results.

The key is in not spending time, but in investing it.

-Stephen R. Covey

Lead from your heart. Lead to Win.

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