Why Resource Management is Important

Resource Management is doing more with less. It is about effectively planning the optimal utilization of your resources to increase efficiency.

Give The Art of Resource Management a read to understand it in depth.

Why does it matter?

Simply put, it prevents the wastage of resources and time.

A proper plan ensures project success within the deadline, using minimal resources.

It is complex and not a one man’s job. But a resource planning tool can be a solution to that problem.

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There are many reasons why a project fails. Whether due to poor management or limited resources. One of our team members Sophy missed her deadline.

• Change in priorities
• Change in project objectives
• Inaccurate requirements gathering
• Inadequate vision or goal
• Poor communication

Because Resources Matter

Being a project manager you need to value each employee. By managing them properly you prevent resource overload, employee burnout, unwanted stress & anxiety.

Make sure you have a robust task breakdown structure that your team understands and is comfortable with. Ensure the key components of task assignments are well defined. E.g.

• Assigned to
• Task priority
• Estimated hours
• Due dates
• Expected outcomes
• Value of expected outcomes

Remember, the right resource for the task can save your time and money and exponentially reduce risks.

Resource allocation is equally important as resource availability.

If a resource is spread out too thin, then you can distribute the tasks.

Time bound projects are effective, but you need to keep in mind the estimated hours your resources need to produce their best.

Rushing a task can lead to sub-standard results which lead to extended deadlines because there will be repeated do-overs.

It does not mean micro-managing. You need to give your employees some breathing space.

“If you want creative workers, give them enough time to play.” – John Cleese

You can teach your resources the skills, but the way you treat them is what makes them stay.

Being aware of their workload, allocating tasks, and understanding their skills will pay you in the long run and boost employee retention.

Time Your Success

Monitoring your team’s performance helps you understand the capacity of each resource,

You will know which employee is keeping up with the schedule and who is struggling.

If a task takes more than the estimated time you can distribute it.

If you are worried about missed deadlines then time tracking tools can keep you updated on the project progress.

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Projects are time-sensitive. And time management software can provide you with time-tracking data. You can use it to do what is necessary to complete a project.

Scheduling tasks is an integral part. Having the time tracking data in hand can help you schedule upcoming tasks smoothly.

Promote transparency within the team

“Out of all Projects that fail, 29% fail due to poor communication.”

When you are working on multiple projects, there are many project managers. And miscommunication is unavoidable. Resources suffer from task overload and deadlines are often missed.

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But Resource Management promotes transparency. The seamless collaboration supports cross-departmental interaction. It helps you get rid of misunderstandings and information silos.

Calculate future performance

Inadequate resource forecasting is also a contributing factor for project failure.

“18% of the projects fail, due to clumsy forecasting among other reasons.”

Day-to-day tasks matter, but thinking of the big picture is also important. Time and Resource Management is crucial. It determines who is working on the task, and makes sure the deadline is met.

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By monitoring the resources you gain insights into optimizing your resource productivity. In the long run, this helps with Project Forecasting.

Monitoring the resources and their performance gives you an idea of whether you want to take on new projects or continue with the existing ones.

If your resources have completed their existing projects on time you can take on new projects.

Getting an overview of what is going on in your organization is beneficial. When you know the variables involved, you get better visibility through which you can increase the efficiency of your team.

Increase in quality and quantity

An insight into the resource availability, resource allocation, and resource utilization helps you determine the overall productivity of your team.

Resource Management Tools reduce the time taken to track the progress of your team. Thus saving valuable time which can be used for new projects.

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More time on hand means more projects on the table. This is a win for you and your team.

But you also shouldn’t bite off more than you can chew. Do not set unrealistic deadlines and do not over-promise. There is no bigger shame than letting down a client.

You can learn and grow

Even though you do not meet your deadlines and fail to deliver a project there is still a thing or two you can learn from it.

If you are using Resource Management Software, you can easily track the problems and try to fix them.

Resource Management is an infinite set of permutations and combinations. A project manager needs to be intuitive to try all sorts of possible combinations to complete a project.

10 Reasons Why Resource Management is Important?

1. Optimizing Resource Allocation: Effective resource management helps in allocating resources (human, financial, equipment, etc.) efficiently across projects or tasks. This prevents underutilization or over allocation of resources, ensuring that every resource is used effectively.
2. Meeting Project Deadlines: Proper resource management ensures that the right resources are available at the right time. This minimizes delays and helps in meeting project deadlines promptly.
3. Cost Control: Resource management helps in controlling costs by preventing unnecessary spending on overhiring or underutilization of resources. It ensures that resources are used judiciously to maximize ROI.
4. Enhancing Productivity: By ensuring that resources are properly allocated and utilized, resource management enhances overall productivity. It helps in getting more output with the available resources.
5. Risk Management: Efficient resource management reduces the risks associated with resource shortages or unexpected changes. It allows for proactive planning to mitigate risks and disruptions.
6. Improved Decision Making: With proper resource management, decision-makers have real-time visibility into resource availability and utilization. This facilitates informed decision-making regarding resource allocation and project planning.
7. Team Collaboration and Communication: Resource management promotes better collaboration among teams by ensuring clear communication about resource needs and availability. It minimizes conflicts over resource allocation.
8. Quality Control: Adequate resource management ensures that projects receive the necessary expertise and tools required to maintain high-quality standards. It prevents compromising quality due to resource constraints.
9. Adaptability and Scalability: Effective resource management enables organizations to adapt to changing project requirements and scale operations as needed. It supports growth and diversification strategies.
10. Sustainability: Resource management promotes sustainability by reducing wastage of resources and optimizing their usage. It aligns with environmental and ethical considerations by minimizing resource depletion and maximizing efficiency.

A robust Resource Management Tool can increase your profitability and build your brand name. Orangescrum shows you how to use your resources intelligently.

Know the top 7 resource management best practices to successfully manage your assets and deliver projects.