Portfolio resource management
Ultimate Guide to Resource Management – Chapter 7
Resource management forms a cornerstone in the portfolio management process.
However, increasingly organizations are bringing resource management to the fore in the portfolio management process.
This is driven by the fact that resources are often the most expensive part of an organizations moving parts and require strong focus to make the most of them.
Portfolio resource management includes processes to help forecast resource needs, allocate resources to the right projects and to inform the organization about their ability to execute current or prospective projects given resource constraints.
Portfolio resource management takes a high level broad view of the organizations resources and how they may be best deployed to meet the organization’s needs.
For effective portfolio resource management organizations need accurate information about:
- Current resource capacities. The resources they have to hand and their skills.
- Project priorities. A prioritized list of projects is required to ensure that resources are being allocated to the right projects.
- Current resource allocations. Which resources are currently working on which projects.
- Resource forecasts. Expected resource needs for projects in the pipeline.
Traditional PPM (project portfolio management tools) have a strong focus on project execution and selection but a weak capability around resource management.
Whereas traditional resource management tools have a focus on managing utilization and time reporting.
Only tools like Kelloo gives you a tool that truly allows you to align priorities, resources and allocations across a multi project portfolio.
A key part of portfolio management involves selecting the right projects for the organization to execute. There are many factors involved in selecting the portfolio of projects appropriate for the organization such as value, strategic alignment. However one of the key factors is resource.
Portfolios by their very nature involve many competing projects and initiatives all seeking resource. Portfolio resource management allows us to step back and treat resources as a strategic asset.
Key to this is managing resources holistically as resources are often shared across projects.