What are the key factors to consider when allocating resources for a new strategic initiative?

An additional and very important question to answer at this stage is "what could be the unintended consequences?" For example you could target some important cost reduction but going too far on this could negatively impact quality and customer satisfaction. Besides a key measure focused on the main objective, I like to pick an opposing one to make sure that achievement of the objective does not come at the cost of something else that is important. One key measure for the main effort and one balancing measure to avoid unintended consequences.

💡 In my experience, clarity on initiative scope is paramount. Yet, the depth beneath requires equally strategic insights. 🔍 Stakeholder Buy-in Ensure stakeholders understand and support the initiative; their backing impacts success or failure. 📈 Clear Boundaries Set distinct scope boundaries for streamlined focus and resource efficiency. 🛠 Scope Adaptability While clarity is crucial, flexibility is vital. Adapt scope as circumstances change. 🌟 Define Success Identify success early, including milestones for tracking progress. 📌 In conclusion, while defining scope and objectives, nuanced considerations ensure an initiative's alignment, relevance, and eventual success.

Timing, urgency, opportunity costs and also people’s strengths. All of these things are important in making informed decisions.

Consider looking at resource abundance. Sometimes, organizations have untapped or underutilized resources that can be redirected toward new strategic initiatives. It's essential to think creatively and identify hidden assets or talents within your organization that can be leveraged to support your initiative. Emphasizing resource abundance can lead to innovative solutions and cost-effective strategies that might be overlooked when only considering limitations.

One useful way to look at this problem is via "horizons" (mentioned in many articles by McKinsey Consulting). You need to balance the resources to deliver against the short, medium and long objectives. Companies like google and Dentsu are often said to allocate resources (people, investment etc) according to 70/20/10. In practice this means 70% of resources are working on achieving outcomes in the current year, 20% working on activities which will build and deliver outcomes in the subsequent year, and 10% on longer term or more speculative initiatives compatible with the company's overall vision and strategy. The horizons and 70/20/10 is a useful framework to help balance risks and opportunities over time.

Embrace calculated risks as opportunities for growth and innovation. Sometimes, a willingness to take strategic risks can lead to breakthroughs and competitive advantages that conservative resource allocation might miss. While planning is essential, being too risk-averse can stifle creativity and limit your organization's ability to adapt to changing market dynamics. Balance is crucial; find the sweet spot between prudent resource allocation and calculated risk-taking to drive meaningful progress.

To get input and buy-in of the team, prior to quarterly strategy meetings, I used to ask the senior management team to send me their top-3 issues to address. This gives some wonderful insights on what the key issues of the organization are. Then, once the senior team has settled on a few quarterly strategic priorities (objectives, measures and one person responsible for each priority), we would get the next layer of management in. We would present the strategic priorities to them and ask them to come up with their top-3 activities that would contribute to the strategic priorities. The member of senior management responsible for reach priority would coordinate to ensure teams were formed and that there would be a coherent approach.

What worked well for us was creating a project space where all initiatives and steps were listed, together with the expected completion dates. Partial completion was also tracked. The rule was that the project board should always be up to date and that every member of the team was aware of the latest updates prior to the weekly meeting. That way weekly meetings can be focused on resolving blocking points that involve multiple people and adjusting the plans where necessary.

Also, consider **timing**. Is this the right moment for the initiative? Look at potential **market shifts** or **competitor actions**. Keep an eye on the **flexibility** to adapt as needed. Remember, clear **communication** throughout your organization is essential to rally support and ensure everyone understands the initiative's importance.