Solid project management adds approximately 20% to the budget of any given project, but it can make the difference between success or failure. Allocating the correct resources and funding for each project at the right time is immensely vital to project management teams.
Achieving the greatest organizational value for a project requires planning, scheduling, and the correct allocation of money, people, and technology. This is known as resource management, and resource management software is designed to address several issues faced by project managers.
Effective resource management is about balancing all aspects of projects, while also moving at a pace that incorporates changes. This means that project leaders seeking success must balance mandates with capacity, as they prioritize, plan, and schedule projects.
Planning has changed from a static approach to an agile one, and recent surveys and studies show that remote and hybrid work has a high potential for productivity. According to a January 2021 PwC US Remote Work Survey, a third of employees (34%) and nearly half (52%) of employers feel productivity has risen as a result of prolonged working from home during the pandemic.
Poor Resource Management Comes At a Cost
Resource mismanagement can lead to inefficiencies during projects, meaning that resources like time, money, and teams are spread too thin.
The consequences are that the workforce must put in longer hours, teams aren’t assigned according to their skillsets, the project faces shortages of materials and equipment, and everyone faces pressure to meet tight deadlines. This leads to the likelihood of errors occurring, and unnecessary expenses are incurred as everyone scrambles to make purchases, often from more expensive vendors. The result, over-spending on project budgets which equates to wasted money, roughly $2 trillion annually, according to PMI.
Meeting the Future with Resource Management Software
Resource management has evolved quickly, keeping pace with all the technological advancements driven by the Internet of Things, AI, and machine learning. That means that resource managers today can move away from the older manual methods and spreadsheets preferred just a decade ago.
Best Project Management Software:
The trends shaping resource management software are exciting:
One of the primary reasons for project failure is attributed to inadequate forecasting by 25% of PMOs. Since about 38% of organizations also state that they don’t, or rarely use, resource management, then a more efficient approach is called for.
The new approach is to use available data-driven information to make intelligent predictions based on past performances and the availability of several resources, including skills.
Allocating resources intelligently
Using collaborative workflows is based on the needs of a project and the skills of the available workforce. Sometimes skills look better on paper than in real life, leading to wrong skill allocations. Automation allows the criteria required to be placed into software, and when requests are submitted, the best candidates are assigned for tasks.
Creating a system that allows self-reporting and attesting of skills provides instant team member knowledge within the project, including their professional certifications, industry knowledge, technology, and tools. Some of the skills growing in importance for workforces are communication, leadership, and flexibility, yet these skills are hard to measure. Software that uses data-driven technology catalogs both measurable skills and immeasurable skills, allowing project managers to quickly allocate the right person to handle the job.
Increasingly, task-based management is becoming less important in situations, with the focus now being mostly placed on effective resource management. Resource management is about having the right people on a project at the right time, allowing teams to meet deadlines for task completion. Increasingly, software uses technology to offer a visual representation of resources on demand. This provides managers with faster insights and the ability to make instant, intelligent decisions based on data about the resource pool.
Resource management is evolving, but at the same time, its demands stay the same. Today’s software is designed to leverage several issues related to managing people and money, the two most important resources for the success of all project portfolio management teams. Machine learning and AI are helping to meet the challenges of resource management in every industry. Deciding on which resource management software offers the best resources may take some research, but they offer streamlined benefits that maximize the productivity and profits of every project.