Reserves are common in military applications, but largely unknown in the business world outside of things like financial reserves and reserve capacities. Despite the fact that they are not commonly considered in the business world, they are of great importance, for the whole concept of reserves is based on the premise that it is impossible to predict the future with accuracy. Very simply put, this means that your estimate of the resources you need for any project will probably be wrong—and normally wrong on the low side. If you want to be able to deal successfully with the uncertainty associated with the future, you must have the flexibility provided by reserves.

Reserves are forces or assets deliberately withheld until there is a critical juncture in a campaign or business opportunity; at which point they are committed in order to have a dramatic impact on the strategic outcome of whatever it is that you are trying to do. You commit reserves to make a fundamental change in a situation.

Think about a situation where you have an advertising budget in reserve. If you parcel it out over the course of a year by putting an occasional ad in a newspaper or magazine, you are not likely to see big results. On the other hand, if you put it all against a Super Bowl ad, you might get a spectacular return.

The most difficult aspect may be mindset; businesses tend to be so fixated on cost, that there is an automatic assumption that anyone not working at 100% or more of their capacity is not earning their pay. However, the cost of not having people or other resources to commit when opportunity presents itself is likely to be significantly higher than the amount saved by not having reserves.

Reserves can be such things as capital, people, or knowledge. You can create them by delaying projects; shifting resources; outsourcing work; creating joint ventures; affiliates, or other alliances; through acquisitions, or by re-rolling individuals or groups. It really is limited only by your imagination. The key point is the shift in thinking that must take place.

You can use reserves to reinforce success or to check failure. Which you choose depends on your mindset. Do you see problems, or do you see opportunities?

When you commit reserves, consider seriously doing it en masse to make a big difference. Few things have been as ineffective as piecemeal commitment. Go for it when the opportunity arises!

Unless you are certain that you can perfectly predict the future, you should develop an organization structure or a business plan that allows you to maintain and commit reserves with ease. Likewise, you should develop a mindset in advance about whether you are more comfortable with using reserves to capitalize on opportunity, or to deal with setbacks.