Addressing New Market Opportunities Mid-Year
When a new market opportunity arises that seems more promising than current investments, organizations need to decide how to reallocate resources to explore this potential. This article discusses the best approach to take when all existing teams are busy with their current projects.
Exam Question
Midway through your fiscal year, a new market opportunity arises that appears to have more potential than many existing investments. You find the money to fund it, but all the teams are busy working on existing projects. What should you do?
(choose the best answer)
A. Stop existing investments that have not demonstrated value to free capacity and explore the new opportunity.
B. Form a team with part-time members from existing teams to work on the new opportunity.
C. Hire contractors to form a new team to work on the new opportunity.
D. Form a team by recruiting outside the organization to work on the new opportunity.
Correct Answer
A. Stop existing investments that have not demonstrated value to free capacity and explore the new opportunity.
Explanation
Correct Answer
A. Stop existing investments that have not demonstrated value to free capacity and explore the new opportunity:
This approach ensures that resources are reallocated to the most promising opportunities. By halting investments in projects that have not shown value, you free up capacity within your existing teams to focus on the new, potentially high-value market opportunity. This method leverages the existing knowledge and experience of your teams, which can accelerate the exploration and development of the new opportunity.
Why the Other Options Are Less Effective
B. Form a team with part-time members from existing teams to work on the new opportunity:
Forming a part-time team can lead to divided attention and lower productivity. Members working part-time on the new opportunity may not be able to give it the focus it needs to succeed, leading to suboptimal results.
C. Hire contractors to form a new team to work on the new opportunity:
While hiring contractors can provide additional capacity, they may lack the contextual knowledge and integration within the existing organizational culture and processes. This can slow down the progress and increase the risk of misalignment with organizational goals.
D. Form a team by recruiting outside the organization to work on the new opportunity:
Recruiting a new team externally can be time-consuming and may not immediately yield the desired results. New hires will require onboarding and integration time, which could delay the exploration of the new opportunity.
Benefits of Stopping Existing Investments to Free Capacity
- Focus on High-Value Opportunities: Redirecting resources from low-value investments ensures that the most promising opportunities receive the attention they need.
- Leveraging Existing Expertise: Utilizing existing teams who are already familiar with the organization’s goals and processes can accelerate progress.
- Efficient Resource Allocation: Ensures that resources are not wasted on projects that are not delivering value.
- Agility and Adaptability: Demonstrates the organization’s ability to pivot and adapt to new opportunities, which is a key principle of Agile approaches.
EBM Framework Insights
Current Value (CV): Reallocating resources to more promising opportunities can help maximize the current value delivered to customers.
Unrealized Value (UV): Exploring new opportunities can uncover and capture unrealized value in the market.
Ability to Innovate (A2I): Redirecting resources to high-potential projects fosters innovation and continuous improvement.
Time to Market (T2M): Utilizing existing teams can reduce the time to market for new opportunities by leveraging their experience and efficiency.
Relevance to the PAL-EBM Exam
Understanding how to effectively reallocate resources in response to new opportunities is crucial for the PAL-EBM exam. This knowledge demonstrates the ability to apply Agile principles and the EBM framework to optimize resource allocation, enhance innovation, and drive continuous improvement.
Key Takeaways
- Stopping low-value investments to explore new opportunities ensures efficient resource allocation.
- Leveraging existing teams accelerates progress and enhances the likelihood of success.
- Hiring contractors or forming part-time teams may lead to suboptimal results due to lack of focus or contextual knowledge.
- Agile organizations must be adaptable and willing to pivot in response to new opportunities.
Conclusion
When a new market opportunity arises that appears more promising than current investments, the best approach is to stop existing investments that have not demonstrated value to free capacity and explore the new opportunity. This strategy ensures efficient resource allocation, leverages existing expertise, and aligns with Agile principles. For more information on preparing for the PAL-EBM exam, visit our Professional Agile Leadership PAL-EBM™ Exam Prep.
