Resource management is the practice of planning, scheduling, and allocating what is needed to complete a project or program. These elements can be people, money, or technology without which a given initiative will not move forward.
Good resource management will ensure that the right tools are available when they are needed to enable employees to perform at their best. When done correctly, it will allow you to allocate resources to achieve the greatest possible organizational value.
Resources are essential elements for your organization to achieve its goals. Without them, it is not possible to complete your tasks and projects, nor to analyze which tools will be necessary to carry out these actions.
In this article, we will explain the importance of good resource management, as well as provide tips for you to improve this management within your company. Let’s go!
Benefits of a Resource Management Plan
Proper resource management provides your organization with the stability it needs to make the most of its potential. You must monitor which resources are being applied in your daily operations to avoid over- or under-utilization.
As a result of achieving this balance, your company will have greater control, profitability, and efficiency in its operations. Other benefits of having a good resource management plan include:
- More harmonious relationships between teams and departments
- Easier to find problems before they occur (or avoid them altogether)
- Greater agility, with an expanded ability to change direction quickly in the event of unexpected changes
- Efficient use of employees, finances, technology, and physical space
On the other hand, the lack of a good resource management plan can be costly. According to research by the Project Management Institute, 21% of projects fail because of limited or overloaded resources.
These are the main negative points caused by the lack of correct resource management:
- Teams that are more overburdened with higher workloads and need to work longer hours than normal to achieve their goals
- workflows and the emergence of financial strains that can result in serious financial problems
- Teams, individuals, and the organization can face complications and setbacks on several fronts of their operation
- Drop in performance of the team, department or even the company as a whole
How to improve project resource management
Managing resources well is crucial to the success of projects. Initiatives without the necessary resources at the right time are likely to face problems with deadlines, quality, and budget.
In this section, we’ll look at six essential processes to ensure your project has the tools it needs at the right time and place.
1. Plan resource management
It is essential to define how to estimate, acquire, manage, and utilize physical and personnel resources. The Resource Management Plan should specify who will hire or allocate the necessary people and who will authorize purchases or rentals of equipment and space.
This process must ensure sufficient resources throughout the project execution, considering possible shortages or competition with other projects.
The Project Management Institute (PMI) PMBOK guide recommends creating a Team Designation Charter at this stage. This document should include team values, communication guidelines, criteria and processes for decision-making, conflict resolution, meeting guidelines, and team agreements.
2. Estimate activity resources
In this step, you will identify which resources will be needed for each activity—and in what quantities. Specify the type, quantity, and characteristics of the human resources, materials, equipment, and supplies needed for the project.
This is something that can be done periodically throughout the project as needed. To perform this task, the list of activities and their attributes must be available.
In other words, the WBS (Work Breakdown Structure) must be ready, which makes it easier to understand the project and determine its needs. Using a project management tool like SoftExpert Project makes consulting the WBS and producing estimates easier and more accurate.
When making estimates, it is important to consider the company’s environmental factors, location and availability of resources, team skills, organizational culture, previous estimation data, and market conditions.
3. Acquire the necessary resources
Obtain team members, facilities, equipment, materials, supplies, and other resources needed for the project. Those who already belong to the company or human resources department make up the internal resource pool.
It is crucial to negotiate and schedule with the areas involved to avoid conflicts. The project manager may not have direct control over resources, even internal ones. Anything that is not available within the organization must be identified by suppliers, priced, and formalized in contracts (or definitively acquired).
For successful resource acquisition, it is essential to have information about existing resources. This includes availability, skill levels, and experience.
Using an integrated tool such as SoftExpert Competence makes it easier to select the right human resources. You also need to consider the organizational structure and geographic location. Depending on the activity, it may be necessary to form virtual teams.
4. Develop the team
Managing resources includes assessing skills gaps in your team and working to close them. Outsourcing can meet specific needs, but it’s important to consider future demands and applicability across concurrent projects.
Don’t just focus on project goals. Teams with developed skills and motivated employees tend to have lower turnover rates. This preserves accumulated knowledge and experience.
5. Manage the team
The project manager must motivate the team in a collaborative and inspiring environment. Constantly monitor the team’s development, provide feedback and make changes to optimize performance.
Conflict resolution requires special attention as it can affect the team environment and climate. Celebrate and reward good results or achievements throughout the project.
Underperformers need more support. Challenge high-performing members to keep them motivated and set an example.
6. Control resources
The resources needed for the project must be available at the right time, in the right quantity, and in the right place. They must be released as soon as they are no longer needed.
Resource control must occur throughout the project life cycle, ensuring that practice matches what was planned. If there are discrepancies in the use of tools, corrective actions must be taken quickly to avoid impacts on the project’s progress. Reports generated by solutions such as SoftExpert Project significantly help in controlling and managing resources.
Conclusion
Efficient resource management is essential to the success of any project or organization. Proper resource management not only optimizes the use of capital, time and people, but also promotes a more agile and adaptable operation.
Companies that invest in implementing well-structured resource management ensure greater control over their operations and, consequently, better results. By applying the strategies discussed, your company will be able to identify gaps, adjust resource allocation according to needs and, above all, create an organizational culture that values planning and preventing unforeseen events.
Resource management is a key element in sustaining a company’s sustainable growth and ensuring its competitiveness in the market. Success is in your hands: invest in tools, processes and team training so that all resources are always at the service of achieving the best possible results.
Looking for more efficiency and compliance in your operations? Our experts can help you identify the best strategies for your company with SoftExpert solutions. Talk to us today!
