Benefits of resource management
Ultimate Guide to Resource Management – Chapter 5
For project and resource based organizations, effective resource management can have immense benefits. However resource management can be a tricky problem to crack.
Using resource management software can go a long way to making the job easier.
The rewards for getting resource management right are significant. Organization cite benefits including increased growth-related spending, costs cutting and improved margins.
Free up resources to work on valuable projects
It is no longer sufficient to review upcoming projects every six months or so. High performing organizations are constantly re-evaluating their portfolio to ensure their resources are working on the right projects.
By connecting your resource allocation plans to your strategic priorities it becomes easier to validate if your resources are still working on the most valuable projects.
Good resource management enables the organization to constantly validate the decisions it makes about resource allocation and spot opportunities for moving resources onto higher value work.
Better forecast your required capacity and capabilities
Capacity is the headcount requirements of your organization and capabilities are the types of skills you need.
Being able to forecast these means you can develop better recruitment plans and make clearer decisions about what projects you are able to do.
The capacity of the organization is clear
A major reason for project failure is that organizations over estimate their ability to deliver work given the resources they have.
Without a clear vision of all the work you are doing (project and non project work) it is too easy to over commit resources.
Good resource management gives you the tools to validate you have sufficient capacity and skills within your organization to do work being requested.
If we take a look at the portfolio in Kelloo below we can clearly see we do not have sufficient capacity to take on the data center project.
Look after your resources
It is often the resources who bear the brunt of poor resources management. Organizations commit to projects that are under resourced and make promises to customers that can’t possibly be met with the resources available.
This all leads to stressed resources who are more likely to burnout.
Good resource management gives you the tools to better manage the utilization of your resources.
This can include spotting individual resources who are constantly in demand (pinch points) and roles that have high levels of utilization.
For example, Kelloo show resource utilization inline with the resource plan so you can easily see the impact of plan changes on your resources.
Other benefits of resource management
1. Obtain a realistic view of both demand and capacity to deliver.
2. Manage and prioritize work requests and set appropriate expectations to stakeholders.
3. Identify accurate resource availability.
4. Put the right resources on the right work at the right time.
5. Understand what roles you need to hire.
6. Increase and improve communication between project and resource managers and team members.
7. Spot problems earlier in the process.
8. Provide fair and objective methods to prioritize work.
9. Ensure demand is balanced against capacity to deliver.