Resource allocation decisions are pervasive in companies, from top to bottom.
At the top of the organization, formal processes drive decisions: strategy, capital planning, budgeting, and the like all focus on how best to allocate resources.
And at the individual level, we are all involved in a continuous stream of decisions about how we allocate our time and attention: Which task to I focus on? Which email do I open first? Should I finish what I’m doing or start something new?
Like all complex dynamic systems, organizations are driven by energy. And these resource allocation decisions channel our energies and efforts to produce and change. When people are making decisions in a collectively coherent way the organization maximizes progress.
The 10 Principles For Transformational Coherency
- Manage for the win
- Concentrate your effort
- Validate that people understand your strategic priorities
- Focus on executability
- Stop generating unproductive complexity
- Organize decisions around constrained resources that produce goals
- Identify simple rules that maximize throughput value
- Ensure people know what they need to know to make a good decision
- Document, measure, learn, improve
- De-risk the transformation
De-risk Your Transformation