When you understand your goals and constraints on realizing the goal, resource allocation becomes much easier.
The key question becomes how to use the constrained resource most effectively. How do you maximize the value of the throughput?
High-quality decisions can be made using simple decision rules. In practice, you often need three types of decision rules: boundary, prioritization, and stopping rules.
- Boundary rules help you decide whether something is in scope or out of scope.
- Prioritization rules help you rank alternatives based on criteria defined by the rule.
- Stopping rules help you decide when to stop something that is already underway.
These rules are not one size fits all rules. They need to be contextually relevant and incorporate both the local context and the global objectives.
Crafting these rules is an iterative process that involves people who understand the local context, supported by coaches who help provide more global context.