Resource Allocation: Your Job as a CEO

Resource allocation can mean different things to different people. Talking with CEOs of printing businesses, I define resource allocation as controlling the purse strings in deploying resources across the business. That includes staffing, capital expenditures, market direction, and operational excellence. Clarifying questions that should be asked are what goals they are trying to achieve and what problems are they trying to solve. And one more question: How is the current approach working?

Making sure that they have the right people in the right seats is critical in any endeavor. Taking a cue from the Entrepreneurial Operating System (EOS), does the staff “get it, want it, and have the capacity for it.” This applies to all levels of the organization chart. Making the right hiring decisions is crucial for any business to achieve its goals. It has a direct impact on the culture of the organization. It affects the customer experience, as well as the operational effectiveness of the organization. So yes, making sure they have the right people in place is one of the key responsibilities a leader has.

The printing industry continues to be a transformative, fast-paced business. The advances in equipment, technology, and workflow solutions continue to accelerate. Operating a sustainable, profitable business is key in being able to fuel the checkbook so that capital investments can be made to stay in the race. Deciding which direction to invest in — and when — are critical decisions a CEO must make to fulfill the needs of the enterprise and the customer base.

Leading organizations don’t leave their market direction to chance. Experience has shown that the top performing businesses are very intentional in the types of customers they attract, and the work that they produce. They have come a long way from merely telling the sales team to just “bring work in and we’ll find a way to make money with it.”

Operational excellence is table stakes today for meeting customer expectations, and for delivering shareholder value. Driving down operational costs while increasing the reliability of the operation requires a different tool set than in the past. It’s much more about building workflows that make sense for their operation and reducing the redundant steps and bottlenecks. Making sure that the enterprise has the required technology and the people who know how to use it is top of mind for leading CEOs today.

Resource allocation — what does it mean to you? As a leader, you influence the overall direction of the business by allocating — or not allocating — resources across the enterprise. Have your priorities in order, and make sure that your team is in place and fully engaged in making your business the best that it can be. Just an idea, what do you think?

Mike Philie can help validate what’s working and what may need to change in your business. Changing the trajectory of a business is difficult to do while simultaneously operating the core competencies. Mike provides strategy and insight to owners and CEOs in the Graphic Communications Industry by providing direct and realistic advice, not being afraid to voice the unpopular opinion and helping leaders navigate change through a common sense and practical approach. Learn more at www.philiegroup.com, LinkedIn or email at mphilie@philiegroup.com.