The Benefits & Importance of Resource Management

By Mrugesh Panchal,

The Benefits & Importance of Resource Management

What is Resource Management?

Resource Management is the process of regulating and allocating the right resources to business projects to maximize efficiency. A resource can be described as anything needed to execute a task. Resources include skill sets of employees, software, facilities, assets, equipment, and more. A resource manager is a person responsible for the optimal and sustainable utilization of all project resources.

Resource Management includes planning, scheduling and allocating the resources to the right project at the right time and cost. A good Resource Management plan maximizes profitability for the project. The rationale behind the science of Resource Management is to minimize waste and ensure that high priority tasks have the resources they need at the right time.

 

Components of Resource Management

Resource Management can be broken down into five components or tasks. For the efficient management of resources, the parts of Resource Management should be executed in tandem with the project’s lifecycle.

Components of Resource Management

Here is a look at the five components of Resource Management

1. Scheduling

Resource Scheduling refers to the identification and allocation of the available resources to different tasks in a project. This allocation may be for a short time or the entire duration of the project.

2. Utilization

Resource utilization refers to the resource capacity utilized for a project task against availability. This is a key performance indicator for a project. In terms of human resources, this may be understood as the time spent by an employee on a project task vis-à-vis the total number of man-hours available in the project.

3. Forecasting

Resource Managers need to forecast resource utilization levels. Forecasting helps managers anticipate additional capacity that they need for pipeline projects or any under-utilization of resources that may occur in future.

4. Planning

Resource Planning Capacity is a critical component of the management of resources. Resource capacity planning focuses on analyzing the demand for resources versus the availability of resources. It aims to bridge the capacity and demand gap ahead of the curve.

5. Reporting

The final component of Resource Management is the analysis of Resource Management data to find actionable insights. Business intelligence and reporting for resourcing in management are essential to enhance Resource Managers decision-making abilities.

Efficient scheduling of resources is an on-going process. All components of Resource Management call for a precision-driven approach. To thrive in a dynamically competitive environment, Resource Managers opt for innovative technological applications such as Quickscrum that allow you to get a bird’s eye view of your project.

Do you want to Schedule and Utilize your Resources in the using the Best Practises?

Importance of Resource Management

Resource Management stems from the need for optimization and efficiency. In simple words, Resource Management is an aspect of project management that is focused on doing more with less. Wastage of resources can be fatal in business; therefore, every project needs effective Resource Management.

Here’s why Resource Management is vital for the success of a project –

  • A Resource capacity plan is a roadmap for a project. The resource plan is prepared according to the project’s delivery timelines and helps keep the project on track.
  • Experienced project managers know that effective Resource Management lays the foundation of a successful project.
  • Resource Management helps the project managers set realistic expectations for the project deliverables among clients and other stakeholders.
  • Resource Management helps the project manager accurately estimate project costs and profit margins.
  • Resource Management offers improved insight into actual project costs and overall profitability of the project.
  • Project managers can prevent over-working or under-utilizing their human resources with the help of effective Resource Management. This leads to increased employee satisfaction.
  • Optimal utilization of resources to prevent over-burdening and at the same time ensuring that the company makes the most of the resources they have – is an essential aspect of Resource Management.
  • Hiring decisions taken based on Resource Management analysis are usually in the benefit of the project.
  • A successful Resource Management plan can be treated as a fool-proof formula for future projects.

Quickscrum offers efficient insights on speeds, leakages and distribution of resources that can be conducive to good Resource Management in an organization.

 

Benefits of Resource Management

Resource Management plays an essential role in helping project managers improve profitability levels, streamline costs and eliminate waste.

Benefits of Resource Management

The benefits of Resource Management are listed below –

1. Optimal Utilization of Resources

Resource Management aims to find a balance between maximizing the productivity of your available resources while avoiding over-utilization. Resource Management ensures high productivity and at the same time, prevents overworking for any employee.

2. Avoid Unforeseen Challenges & Conflicts

Developing an understanding of the available resources beforehand helps avoid unforeseen challenges. Project managers can identify problems ahead of time. Resource conflicts can also be avoided with the help of Resource Management.

3. Improve Project Delivery

Research has shown that projects with clear Resource Management plans are more likely to be successful. It reduces costs and increases margins while fulfilling stakeholder expectations.

4. Enhanced ROI

Project managers always strive to enhance a project’s ROI. Resource Management has a cumulative effect on the lifecycle of the project to increase overall profits. Management resources can improve ROI by reducing costs, increasing product quality, or through repeat business from a satisfied client.

5. Transparency

Effective Resource Management gives management visibility into your team’s bandwidth. Resource Managers ensure maximum utilization of human resources while communicating any extra capacity they may have to the project manager.

 

Best Practices in Resource Management

Management of resources is a crucial aspect of project management. Following are some Resource Management best practices recommended by experienced Resource Managers that can help you cinch a project management success –

1. Identify and focus on the resources in short supply

  • Remember the 80/20 rule. 80% of the productivity in a project comes from 20% of the resources.
  • Focus on these constrained resources and plan around their availability, to prevent delays and bottlenecks.

2. Adopt an objective approach for task prioritization

  • Develop a process to quantify and evaluate the tasks that need to be prioritized.
  • The process should be agreed upon and understood by all members of the project management team.
  • Identify unplanned tasks that can create hidden delays by encroaching upon your capacity.

3. Agility to Change

  • Resource Management begins with the formulation of a resource capacity plan. But the circumstances may change for the project.
  • Adopting a standard approach regardless of the technological developments, changes in market needs or change in management strategy may prove fatal for the project.

4. Get Expert Advice

  • Every organization is unique and every project has its hits and misses. To tackle unforeseen resource management challenges, it is useful to get advice from an external expert.
  • Talk to our custom success manager to know specific resource management best practices that can work for your project. Book a demo with our expert to discuss & guide you to implement what’s best for your project.

Today’s organizations endeavour to drive innovation within their constrained resources. Resource Management integrates planning, strategy, and delivery to utilize the resources available to help achieve better results and higher performance in the project.

Do you want to Schedule and Utilize your Resources in the using the Best Practises?