ABSTRACT

The resource allocation process is built on the premise that strategy execution is achieved by a series of resource commitments. Joseph Bower proposed the Resource Allocation Process as an approach for organisations to realise strategy by having the bottom-up initiatives of front-line and middle managers compete for scarce corporate resources and top management attention in order to survive and make it through to realisation. The key steps in the resource allocation process are as follows: clarify strategic priorities for every part of the organisation, encourage the emergence of bottom-up initiatives, shepherd initiative leaders from powerful stakeholders who may derail them, and be vigilant and intervene to resolve conflicts, fight inertia and accelerate delivery of critical initiatives. Most organisations using the Resource Allocation Process will usually have an already established top-down Resource Allocation Process. Truly disruptive ideas can at first seem absurd and are therefore likely to get sidelined by the top-down Resource Allocation Process.