Quote of the Day
I was almost a sorry witness of his doings, knowing that just a little theory and calculation would save him 90 percent of the labor.
— Tesla about Edison
I am often asked to evaluate the focus of my team's efforts relative to company's priorities. There are different ways of expressing these priorities – one common approach is to look at how your group resources are allocated relative to the Ansoff matrix (Figure 1).
Technology firms are usually focused on developing products that expand their firm's Total Addressable Market (TAM), and it is important to ensure that your labor allocations reflect that priority. On the Ansoff matrix, diversification reflects new products for new markets.
Figure 2 shows how I approached the problem in Excel. For each employee, I load the employees workload allocation per the four Ansoff categories. I then compute a weighted-average allocation for my total group.
Rather than go through the equations, it is easier just to include the spreadsheet.
While this is as simple problem to solve, it is a common type of management math problem.