Usefulness as Criterion for Increasing Productivity

The uncertainty of the external environment contributes to the fact that the result of an enterprise’s activity can be considered randomly. Therefore, the negative influence of the external environment should be minimized. The diversification is considered as a traditional method for solving a task, emphasizing the difficulty of choosing between equivalent projects. In this context, the authors propose to use the utility function, which characterizes a relationship between possible options for action and the utility level that is achieved by the enterprise. The work schematically presents a process of forming the final results of an enterprise. The authors argue that the expected final result of a portfolio of projects is a linear combination of the expected final results of individual projects with coefficients equal to the cost weights of these projects in the portfolio. It is not advisable to compare the usefulness of the final result with the amount of profit, but rather the indicator of the rate of return on capital should be used. Based on the findings obtained, the authors propose to use the quadratic formula of the utility function and depict its data graphically. A possibility is demonstrated to choose a resource allocation option that would correspond to the optimal size of productivity. The authors propose to calculate the marginal utility of each project and distribute capital between them until a situation is reached in which each project will be characterized by the same marginal utility, and the organization structure will have the maximum productivity.