For project and resource based organizations, effective resource management can have immense benefits.
The rewards for getting resource management right are significant. They can include reduced costs, happier people and improved project delivery.
Resources are probably the biggest cost to your organization and can have the biggest impact on your project outcomes.
So look after your resources and they will look after you.
Read on to learn some of the benefits of resource management and why it’s important your organization gets it right.
1. Better forecast your required resource levels and skills mix
Without an idea of what resources and skills you need over the coming months you are shooting in the dark. A resource forecast will show you the gaps between what resources and skills you have now and what you need to hire to get your projects done.
You can build a simple resource forecast in a spreadsheet if you have a handful of resources and projects. As you grow, consider using resource forecasting software.
2. The capacity of the organization is clear and transparent
Organizations constantly over estimate their ability to deliver work given the resources they have.
I see this time and time again. The sales team wins a new project, and the CIO commits to delivering it. Committing to new projects and when they can happen are made on gut feelings rather than hard facts.
Resource management software gives you insight into your organization’s capability to deliver on projects – and to say “no, we can’t do that project by then”.
3. Ensure resources are working on the most valuable projects
High performing organizations re-evaluate their portfolio regularly to ensure their resources are working on the right projects.
They do this by reviewing how their resources are allocated against their strategic priorities.
This simple step makes it easy to validate if your resources are still working on the right projects and spot opportunities for moving resources onto higher value work.
4. Better utilized resources = happier resources
It is often the resources who bear the brunt of poor resource management.
Organizations commit to projects that are under resourced and make promises to customers that can’t be met with the resources available.
This leads to stressed resources who are more likely to burnout.
But there is an answer – keep track and report on your utilization and capacity.
This help you spot resources who are constantly in demand (pinch points) and roles that have high levels of utilization.
For example, Kelloo shows resource utilization in line with the resource plan so you can easily see the impact of plan changes on your resources.
5. Reduce project costs
Resource management is the process of utilizing resources efficiently and effectively. Using the right resource on the right project can have a huge impact on a project’s ROI.
Here is how resource management can help cut project costs:
- Less last minute hiring of expensive contract or temporary staff.
- Spot opportunities for using lower cost resources on projects.
- Better utilization of staff means resources have less slack time on projects.
Kelloo's resource management tools
Resource planning, forecasting and reporting in one place. We help you get the most from your projects and people.
6. React better to changes
Urgent work requests come in, priorities change and people leave. Resource management helps you understand the impact of changes and how you can reallocate resources, adjust resource levels and shift project timelines to keep things on track.
7. Let project managers plan projects and resource managers plan resources
Often overlooked, but one of the biggest benefits to resource management is separating resource management from project management.
- Project Managers operate at a project-level. They are responsible for getting projects completed by the project team.
- Resource Managers operate at an organization level. They are responsible for ensuring there are enough resources to complete all the projects that need to be done.
Companies usually start to notice the impact of poor resource management when they grow.
In a small organization, it’s possible for project managers to also perform the resource management activities such as working out who should be allocated to what project and hiring needs.
But when there are more projects, resources and more PMs, it’s a good time to introduce a resource manager to your team.