Reinventing Project Management: The Diamond Approach to Successful Growth and Innovation by Aaron J. Shenhar & Dov Dvir

Reinventing Project Management: The Diamond Approach to Successful Growth and Innovation by Aaron J. Shenhar & Dov Dvir

Author:Aaron J. Shenhar & Dov Dvir [Shenhar]
Language: eng
Format: epub
ISBN: 9781422163474
Publisher: Harvard Business Review Press
Published: 2007-08-14T04:00:00+00:00


Step 2: Allocate Resources Among the Cells

The next step is to allocate the company’s (or business unit’s) resources to each group of projects based on the company’s strategic goals and policy. The policy may depend on the expected benefits and value from each group, the timing of the decision, the environment, industry trends, and the company’s competitive position and life-cycle stage. It will also greatly depend on the company’s strategic plans. For example, if the company is growing, it will allocate a higher portion to the strategic–external cell; if it is consolidating and reducing costs, perhaps the internal–operational part will get a bigger share. If managers first allocate resources to groups, each project competes only with other projects in the same group. The selection is now much easier, because apples and oranges do not compete.



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