Abstract: A system and method are disclosed for optimizing allocation of an entity's resources based on an existing set of the entity's geographical service territories, wherein each territory includes both existing and potential customers. A plurality of territory-selection criteria are established and existing and potential customer data are compiled for each of the entity's existing territories. Customer data are quantified, and an overall rating indicative of the relative level of compliance between each existing territory's customer data and the territory-selection criteria is calculated. Based on the magnitude of the average overall rating for all existing territories, the geographical boundaries of at least one of the entity's existing territories are reconfigured to generate a new set of territories in such a way as to reduce the average rating.