The Power Of The Minimum Allocation Of Resources Principle
Recently we wrote about The Power of Abundance Mentality and The Power of Scarcity Mentality. In this article we will examine the power of a minimum allocation of resources.
The Minimum Allocation of Resources Principle is an approach to resource management that every effective and efficient manager understands. The principle suggests that the minimum number of resources that are required to accomplish desired results is usually the proper amount to allocate. This principle is not universally true but, in most situations, it is the most effective and efficient course of action.
At one time or another every church must deal with tight budgets, rising costs, rapid change and increasing obsolescence. These realities heighten the importance of church managers applying the Minimum Allocation Principle to every commitment of resources. It helps church managers reduce risk, be better stewards of God’s resources, increase likelihood of success, and get the most out of the resources under their direction.
The Minimum Allocation of Resources Principle should be a routine part of the church manager’s planning process. It involves planning because the minimum number of resources required in a given situation is not always obvious. The key question to ask and to research before allocating resources is, “What is the minimum number of resources needed to reach the desired objective?” Keep in mind that the minimum amount required is not always the cheapest alternative. Lawn chairs in the church lobby is probably not a good idea. But for example, a church may choose to invest in high end cameras and screens for greater clarity, higher quality and a longer life span. Cheaper alternatives, though less costly, wouldn’t accomplish these objectives.
Here are some common applications of the Minimum Allocation of Resources Principle in the local church.
- Renting or leasing versus buying.
- Temporary or part time staff versus increasing permanent staff.
- Outsourcing versus in house.
- Pilot testing before full implementation of a new program, process, or curriculum.
- Trial period before full commitment of resources to a new venture or purchase.
- Incremental steps or phasing in a new approach.
- Computer simulation before committing resources to a project.
Understanding and routinely applying The Minimum Allocation of Resources Principle is the hallmark of an accomplished manager. Why? It provides maximum flexibility, increases effectiveness and efficiency, yields helpful information that can keep you from making a misallocation of resources, and allows for modification or discontinuation without risking additional resources if things aren’t working out as planned.
Posted on June 21, 2022