Thank you for joining the Craig Groeschel Leadership Podcast!
In this episode, let’s talk about four common allocation mistakes leaders often make, and how we can avoid those mistakes to invest our resources the right way.
1. Static resource allocation. One way people describe insanity is “doing the same thing all the time but expecting a different result.” In this case, we’re talking about investing capital in the same way, or following the same budget processes, or allocating time identically and expecting the outcome to change. Automobile innovator Henry Ford said it this way: “If you always do what you’ve always done, you will always get what you’ve always got.”
Instead, we want to strive to be fluid when it comes to allocating resources. To put it in simple terms, we have to move resources away from what’s not working and start moving them toward what is working.
If you don’t have momentum, create some. What areas could you invest in that could yield the largest returns?
2. Under-resourcing an area of your business. Chances are sky-high that you have some opportunity or person in your organization that could have a big return if you redeployed more or better resources in that direction. Look objectively, identify those opportunities or people, and pour into them!
3. Over-resourcing an area of your business. By the same token, you can encounter problems when you put too many resources toward a project or program. More is not always better—in fact, it’s often worse! We’ve talked before in this podcast about how innovation often happens where time and resources are limited and how the most important resource strategy is developing people and growing their capacity.
From time to time, do a cost-benefit analysis. Very simply, ask: How much additional return do we realize from additional resources invested?
4. Being too risk-averse. Safe bets are a good foundation to build on, but at some point, to get a big win, you’re going to have to swing hard. You have to create space to take those risks. One of the most important tools of resource allocation is this: Create margin!
You have limited resources—only so much time, money, energy, and people that you can direct. Remember, we have to stop thinking in terms of spending our resources. We have to invest them:
- Invest your time in the places that create the desired return.
- Invest your finances in places that accomplish your vision.
- Help empower your people to win. When they win, you win.
When you start doing this, you are one step closer to becoming the leader that others love to follow.
Remember, you don’t have to know it all to be a great leader! Be yourself. People would rather follow a leader who is always real than one who is always right.
Here's an exercise you can do to grow as a leader—ask your team these questions:
- Where do you see momentum (or potential momentum) in your organization? What resources (people, money, energy) can you shift to fan that flame?
- What theory or idea do you have that could be a game-changer for your organization? Is it worth putting resources behind a “bet-the-farm” idea?
FIVE FAVORITE EPISODES
Catch up with some of the best Craig Groeschel Leadership Podcast episodes. Craig chose his five favorite episodes—head to www.life.church/favoritefive listen to them and get the show notes.
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