How Do You Prioritize Initiatives When Resources Are Limited?
To help you prioritize initiatives when resources are limited, we asked business leaders and CEOs for their best strategies. From considering broader resource types to aligning with core objectives, here are the top eleven insights these leaders shared on effective prioritization.
- Consider Broader Resource Types
- Review ROI on Efforts
- Focus on Greatest Impact
- Evaluate Long-Term Benefits
- Prioritize Profitable Services
- Perfect Core Product First
- Focus on Client Benefits
- Align with Strategic Goals
- Kindle Creativity with Constraints
- Examine Data for Prioritization
- Align with Core Objectives
Consider Broader Resource Types
It's so important to think about resources more broadly than you're used to. Obviously, cash is king, but what about access, people, and time? All three are valuable alternatives that don't fit quite so neatly on a budgetary line.
So, when I'm looking to prioritize initiatives on a shoestring, I'm creating an equation that considers every tool at my disposal and thinking outside the box about what that means.
A great example is advertising. When I was starting Bemana, money was tight, and traditional marketing strategies seemed out of reach. I sat on my hands for a few weeks until it occurred to me that, while I don't have tons of funding, I do have a very creative team, plus a few artistic friends. We put together a campaign ourselves, leaning into the amateur aesthetic. It felt real and genuine, and what we saved on creation went toward carefully selected limited distribution. The approach paid off big-time.
So don't write off your more exciting initiatives just because you're stretched thin. Instead, expand your consideration of what a resource is.
Review ROI on Efforts
I constantly review the return on investment (ROI) on each revenue-generating effort. I take a look at the time being spent, the money being invested, and the revenue generated from each. In addition, I am always active in seeking new ways of generating revenue as well as being willing to stop using old ways which are no longer productive. An example of this is learning how to adapt AI techniques into my marketing efforts. Furthermore, I look at new income streams, such as podcasting, that would supplement my marketing efforts. I find it extremely important to pay attention to these metrics in order to keep my business viable and profitable.
Focus on Greatest Impact
As someone who's navigated resource constraints in various projects, I've learned that prioritizing initiatives requires a thoughtful and adaptable approach. For me, it's about focusing on the initiatives that drive the greatest impact while being mindful of our limitations. I assess each initiative's potential return on investment, scalability, and alignment with our core objectives. I also consider the urgency and deadlines associated with each initiative, and communicate closely with my team and stakeholders to ensure everyone is aligned. By taking a strategic and nuanced approach to prioritization, I've been able to drive growth and innovation even in challenging resource environments.
Evaluate Long-Term Benefits
As a tech CEO, when resources are limited, my strategy hinges on the 'long-term gain' approach. This is about evaluating the potential long-term benefits of each initiative. One instance, we had to decide between hiring a brand consultant or investing in new customer service software. Although the branding would have potentially increased our short-term visibility, improving our customer service would ensure lasting customer satisfaction and reduce the churn rate. So, we opted for the customer service software, taking a step toward long-term company sustainability.
Prioritize Profitable Services
As the co-owner of Bonsai Builders, a construction company in Massachusetts, resources are always limited, and prioritization is key. An example is when the economy suffered during the recession in 2008; revenue declined, and we had to make tough choices. We reduced employee hours, let go of our office lease, and focused on our most profitable services: kitchen and bathroom renovations. These decisions, though difficult, allowed us to survive until the economy recovered.
Now we look for new growth opportunities that leverage our expertise, like recently offering property management for commercial clients. This generates more revenue from existing clients without major investment. Every decision requires weighing costs and rewards. We try to prioritize long-term success and stability. The most exciting choices aren't always right. I have to balance vision and practicality, focusing on details and strategy.
Keeping close relationships with vendors and suppliers has been key. We've worked with many for over a decade, so if issues arise, they help minimize delays. Flexibility is also important. Older homes often reveal hidden problems, so we build in buffers for time and cost. When delays happen, we explore alternatives to keep moving, like adjusting materials or design. With the right team, timely decisions, and flexibility, we steer complexities and complete projects on time and budget.
Perfect Core Product First
Prioritizing initiatives with limited resources requires a clear understanding of both immediate needs and long-term goals. At Sartoro, when we first launched, we faced the challenge of limited funds but had big ambitions. We decided to focus on perfecting our core product: custom suits. Instead of spreading ourselves thin with various offerings, we honed in on ensuring every suit met our high standards of quality and fit.
For example, we invested in advanced fabric technology and streamlined our manufacturing process to ensure efficiency and cost-effectiveness. This focus allowed us to build a solid reputation and customer base, setting a strong foundation for future expansion. Prioritizing what directly impacts customer satisfaction and business sustainability proved crucial in those early stages.
Focus on Client Benefits
I prioritize initiatives by focusing on what benefits our clients and our business the most. First, I look at each project's potential impact. I ask myself which one will improve safety or make clients happier. For instance, with limited resources, we had to decide between upgrading our software or starting a new marketing campaign. I chose to upgrade the software because it would improve our service and make us work better. This decision worked well, leading to happier clients and more referrals. Prioritizing based on value helps us use our resources wisely.
Align with Strategic Goals
When resources are limited, we prioritize initiatives by focusing on customer needs and aligning with our strategic goals. We assess potential projects based on their ability to drive value for our customers and contribute to our long-term vision. An example of this approach is when we prioritized the development of a new feature that streamlined lab workflows based on direct feedback from our users, which resulted in improved efficiency and customer satisfaction, ultimately driving higher adoption rates of our software.
Kindle Creativity with Constraints
“When resources are limited, creativity is kindled," a principle that has guided my decision-making in periods of constraint. As a business leader, my first step in prioritizing initiatives under resource limitations is clearly defining the strategic objectives that align with our long-term vision. We then evaluate each initiative based on its potential impact on these objectives, prioritizing those that promise the greatest return on investment.
We also employ a 'test and learn' agile approach, starting with small-scale pilots to validate the effectiveness of an initiative before fully committing resources. An example of this approach in action was during a budget cut when we needed to decide between several marketing campaigns. We prioritized a project that was initially smaller in scope but had significant potential for scaling up based on early results. This project revealed new avenues for growth that we hadn't considered, effectively turning a limitation into an opportunity.
Examine Data for Prioritization
As the CEO of a company that heavily relies on data analysis, my approach always begins with examining the data. We intersect pain points and needs with our target objectives and available resources, regardless of how extensive or limited they may be (kind of a triage). To facilitate this, we have developed an internal tool that leverages AI to analyze millions of data points. Additionally, we incorporate prioritization frameworks like Kano, MoSCoW, Eisenhower, and others, but we have also built our own automated tool for this purpose.
The key to success, however, often comes down to swift, high-impact actions. I think that among all the resources a business can have, the most critical one is human resources. No strategy will succeed if the team is not capable. Therefore, having a great CTO or PM and at least one outstanding team leader is essential. With a strong team, even a mediocre strategy can succeed.
For example, we once worked on a service-design project for a restaurant that had invested heavily in its ambiance and décor, believing that these were the issues affecting their business, despite the excellent quality of their food. As 'mystery shoppers,' we identified some issues with the ambiance, such as inappropriate and loud music and overly bright lighting. However, the primary problem was the long wait times for food.
Upon investigating, we found that the chef was not effectively supervising the kitchen staff. The chef focused on a single dish while the rest of the team lacked guidance, leading to delays. Our solution was straightforward: replace the chef, address the minor ambiance issues, and launch a high-impact social media campaign to broaden their customer base, even if it slightly diminished their 'exclusivity' aura.
As a result, the restaurant significantly increased its revenue with a relatively small investment, simply by choosing the right leadership.
Align with Core Objectives
As a business leader, prioritizing initiatives when resources are limited is both a strategic and a practical challenge. The key is to align initiatives with the organization’s core objectives and to make decisions based on both short-term needs and long-term goals.
One approach I use is to categorize initiatives based on their potential impact and the effort required. This can be visualized in a matrix with 'Impact' on one axis and 'Effort' on the other. Initiatives that fall into the 'High Impact, Low Effort' quadrant are prioritized first because they provide the greatest return on investment with the least resource expenditure. Initiatives in the 'High Impact, High Effort' quadrant are also prioritized but may require phasing or additional resource planning. Those in the 'Low Impact, High Effort' category are often deferred or eliminated.
For example, at Mindfull Marketing + PR, we faced a situation where we had to choose between investing in a major rebranding effort or expanding our digital marketing services. Both were important, but we had limited resources. To prioritize, we looked at which initiative would deliver the most immediate value to our clients and our bottom line.
We determined that expanding our digital marketing services would not only meet an urgent demand from our clients but also position us for long-term growth. By phasing in the rebranding effort, we could still achieve it without sacrificing the opportunity to expand our services. This decision allowed us to grow our client base and strengthen our market position, which in turn provided the revenue needed to complete the rebranding initiative later.
Ultimately, the decision-making process involved assessing the potential impact on our clients, the financial implications, and how each initiative aligned with our long-term strategic goals. It’s important to be flexible and ready to adjust priorities as new information and resources become available.
