Resource allocation is necessary for your organization to choose the best possible resource for the project and manage work accordingly. Under or overutilization of machinery, employees and other resources is a growing concern. Project managers overseeing different projects can use this to their advantage. Sadly, not many project managers realize this as of now.
Only 26 percent of all companies in recent research confessed to using resource management circles. At the same time, it was found that 60 percent of all projects failed to achieve completion within their budgets, while only 50 percent of all projects were able to finish on time.
If this is the same in your company, you can definitely learn about resource allocation and planning as a whole. The transition to proper resource planning will help unlock new potential and open new doors.
Project management is a difficult role to manage. Resource allocation is necessary for success in the project management niche and can help managers efficiently manage resources and make contingency plans for when resources run scarce.
Common Challenges in Resource Allocation
Resource management and allocation are always known to be plagued with several challenges and complications that project managers need to be aware of at all times. Some of these challenges include:
Client Changes
As a project manager, you might know just how changes to the project and the scope can affect the delivery of goods and resources. Resource allocation suffers the same challenge. Changes in clients can significantly damage your resource allocation plan and lead to flaws within it. A monthly planner to prepare for resource demand can help you manage transitions as they happen.
Actual Availability of Resources
If you are starting a new project in your organization, you can pretty much avail almost any resource available to you and your organization. However, problems will arise if your organization is running multiple projects at one time and the resources are already being utilized in one place. It is during such situations that you may face the challenge of constrained resources.
Project Uncertainties
Even if you tick all the boxes and prepare for all possible events while starting your project, certain uncertainties can disrupt your plans. You might think you have everything covered after agreeing on the timeline, the scope and the budget, but there are always certain areas that require time and attention from you.
Resource management is one such area that requires you to prepare for project uncertainties and shift resources according to consumer demand.
How to Allocate Resources
Having discussed the challenges, we now move to just how organizations can allocate resources within an organization.
Know Your Project and Team
The very first step to take for successful resource allocation is to know the project in full, along with the team members tasked with working on the project. Once you know the scope of the project and the resource that is available to you, you can easily assign different team members to the project.
Do not forget the importance of looking at the big picture here. When you allocate resources, you should necessarily run your eyes through the schedules made by other project managers. In organizations with multiple project managers, each project manager should go through the additional step of checking the schedule for all other members. Doing so will help you know just who is free right now and where they’re free.
Additionally, you should know just when your team members have applied for days off and what you can do to manage their requirements during the period they have applied for time off. Any national holidays that take place during the project should also be notified and understood.
Know and Study Possible Risks Early
If you want your resource allocation measures to be successful, it is highly necessary to talk about and uncover risks as soon as possible. As a project manager, you need to be well aware of the risks surrounding your project. It is best that you build your knowledge up early before it is too late.
Understanding risks early in the process allow you to build a mitigation strategy and minimize the potential damages it can cause. Overviewing risks before they happen can help you find alternatives and come up with strategies that can work in the long run.
Keep Track of the Projects
Resource allocation is also about improving the efficiency of your team members and managing their utility. You should manage the utilization of your team members as part of your resource allocation measure.
This can be done by measuring the overall resource utilization. You need to start by tracking the workload of your team. You can easily spot employees and the work that they do on resource allocation software solutions. You can check the resource allocation for employees through the simple formula below:
Resource utilization = Busy time / Available time
This formula will help you identify just how much free time your team has on their hands and whether they are available for the entire duration of the project. Chances are that your employees would either be overutilized or underutilized. You should pay heed to these metrics and take action to do what you can here.
Following the right processes and techniques, organizations and project managers can simplify the resource allocation process. Resource allocation helps avoid a lack of visibility and ensures that all members are fully utilized. Having read this guide, you can incorporate the technique in your own firm for better results.