Modelul de Alocare a Resurselor / Resource Allocation Model

The Resource Allocation Model maximizes the payout from a company’s portfolio of activities, products and services. This implies assessing the risk of current and prospective growth strategies, identifying alternatives of greater value and managing resources based on different business priorities and strategic & operational investments.

Resource Management and Process Governance

A proper resource management system sustains a company’s strategic priorities and its portfolio management decisions through challenging the business assumptions in critical areas of activities and allocating resources to their best use.

The implementation of our approach to resource allocation implies assessing the risk of current and prospective growth strategies, identifying alternatives of greater value and managing resources between different business priorities. It combines the returns from the company’s portfolio of activities, products and services with the governance framework of consistent management, cohesive policies, guidance, processes and decision rights for functional levels and responsibility cost/profit centres.

Expertise and Tools

Our project focuses on three main priorities:
1. Track performance to manage resources

  • Integrated Management Information: is information relevant, integrated and focused on the decisions made at each level of the organization?
  • Risk assessment criteria for strategic and tactical initiatives: are they relevant for the actual business context?
  • Resource allocation model: is it based on strategic objectives and the best possible outcomes?

2. Improve business processes

  • Fix/remove current processes;
  • Build missing ones;

3. Ensure governance and discipline in strategy execution

Methodology and Benefits

The following key activities are part of our approach to developing and implementing the Resource Allocation Model:

  • Diagnose of current systems and practices for allocating resources by key strategic priorities;
  • Analyse and agree what is needed on each level of organization in terms of information, data for better decision making;
  • Reshape, redefine or create new processes;
  • Agree the criteria on how to measure the return and expected results in conjunction to business portfolio activities, initiatives and resources allocation model;
  • Set-up financial and non-financial KPIs;
  • Select and implement appropriate mechanics: frequency, granularity, materiality thresholds;
  • Integrate the process in decision-making: target setting, margin investment and pricing, structural investment, growth or turnaround initiatives;
  • Monitor and communicate the results;
  • Train and transfer knowledge to company’s key users (controllers, finance and business managers);
  • Institutionalize the best practices for continuous improvement and focus on change.