Resource Allocation Framework
"You have limited resources — capital, people, time, attention — and more opportunities than you can fund. Every dollar spent on growth is a dollar not spent on survival. Every bet on a new market is a bet not placed on your core. How do you allocate resources when trade-offs are mandatory and the wrong split can kill the company?"
A complete resource allocation plan with: current allocation diagnostic (where your 100 units actually go), strategic posture selection (Pacific Salmon / Atlantic Salmon / Mast Year), return-ranked opportunity list, innovation portfolio balance (Core / Adjacent / Transformational), reallocation triggers, and mandatory recovery schedule.
When to use this
When making annual or quarterly budget allocation decisions, when multiple business units or initiatives compete for capital, when preparing for funding rounds, when responding to market shifts, when deciding between growth investment and profitability, or when sensing that your current allocation doesn't match your environment.
The process
Apply the 100-Unit Constraint
Questions to answer
How to do this
What you'll have when done
- 100-unit allocation map: exact percentage in Survival / Growth / Profitability
- Expense classification for every line item using the decision tree
- Sustainability assessment: are you spending more than 100 units (funded by burning reserves or debt)?
- Hidden costs revealed: expenses classified as growth that are actually survival
Select Your Strategic Posture
Questions to answer
How to do this
What you'll have when done
- Environment mortality diagnosis: High / Moderate / Low
- Strategic posture selection: Pacific Salmon (all-in) / Atlantic Salmon (balanced)
- Target allocation ratios: specific percentages for Survival / Growth / Profitability
- Posture-environment mismatch assessment: are you running the wrong strategy for your environment?
Plan Mast Year Cycles
Questions to answer
How to do this
What you'll have when done
- Mast year trigger dashboard: status of all five indicators
- Mast year decision: Execute now / Build reserves / Force recovery
- Surge allocation plan with specific budget shifts
- Mandatory recovery timeline: when to shift back to balanced allocation
- Exhaustion warning indicators: signals that you've been in mast year too long
Rank Opportunities by Return
Questions to answer
How to do this
What you'll have when done
- Return-ranked opportunity list: every investment option sorted by risk-adjusted return
- Capital flow map: which units generate cash, which consume it, and what the implicit transfer prices are
- Kill list: projects below hurdle rate that should be defunded regardless of history
- Reallocation plan: specific capital movements from lower-return to higher-return uses
Diversify the Innovation Portfolio
Questions to answer
How to do this
What you'll have when done
- Innovation portfolio classification: every project mapped to Core / Adjacent / Transformational
- Current ratio vs. target ratio with specific gap analysis
- Quarterly rebalancing plan: how to shift allocation gradually
- Category-specific success metrics: different KPIs for core (efficiency), adjacent (market validation), and transformational (learning rate)
Set Reallocation Triggers and Review Cadence
Questions to answer
How to do this
What you'll have when done
- Reallocation trigger matrix: specific conditions and response actions for each trigger type
- Quarterly review calendar with accountable owners
- Drift measurement: current allocation vs. target with variance analysis
- Courage list: the reallocation decisions everyone knows are needed but no one has made
See it in action: Amazon
Adapt to your context
industryVariations
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