{"id":3157,"date":"2025-07-11T00:00:10","date_gmt":"2025-07-11T00:00:10","guid":{"rendered":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/?p=3157"},"modified":"2026-02-04T07:02:15","modified_gmt":"2026-02-04T07:02:15","slug":"optimize-resource-utilization","status":"publish","type":"blog","link":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/optimize-resource-utilization\/","title":{"rendered":"How to Optimize Resource Utilization in 7 Effective Steps?"},"content":{"rendered":"<p>The <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/using-the-resource-based-view-strategy-for-competitive-advantage\/\" target=\"_blank\" rel=\"noopener noreferrer\">efficient utilization<\/a> of people in a business is the key to profitability and business sustainability. It is a no brainer that every business endeavors to maximize the <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/track-resource-utilization\/\" target=\"_blank\" rel=\"noopener noreferrer\">profitable utilization of their resources<\/a>, the biggest investment of most businesses.<\/p>\n<p>This article would help you understand the limitations of <strong>legacy systems<\/strong> used for the improvement of resource utilization and how a modern <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/the-complete-glossary-of-resource-or-workforce-planning-scheduling-and-management\/\" target=\"_blank\" rel=\"noopener noreferrer\">resource management<\/a> solution will assist your business move resources proactively from non-profitable work to profitable work and maximize overall billable utilization.<\/p>\n<p><a href=\"https:\/\/www.saviom.com\/resource-management-software\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-21279 size-full lazyload\" data-src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/wp-content\/uploads\/2021\/03\/eliminate-suboptimal-resource-utilization-improve-productivity-banner.png\" alt=\"Banner showing eliminate suboptimal resource utilization and improve productivity with resource management software\" width=\"1195\" height=\"450\" data-srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-content\/uploads\/2021\/03\/eliminate-suboptimal-resource-utilization-improve-productivity-banner.png 1195w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-content\/uploads\/2021\/03\/eliminate-suboptimal-resource-utilization-improve-productivity-banner-300x113.png 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-content\/uploads\/2021\/03\/eliminate-suboptimal-resource-utilization-improve-productivity-banner-1024x386.png 1024w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-content\/uploads\/2021\/03\/eliminate-suboptimal-resource-utilization-improve-productivity-banner-768x289.png 768w\" data-sizes=\"(max-width: 1195px) 100vw, 1195px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1195px; --smush-placeholder-aspect-ratio: 1195\/450;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-21279 size-full\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/wp-content\/uploads\/2021\/03\/eliminate-suboptimal-resource-utilization-improve-productivity-banner.png\" alt=\"Banner showing eliminate suboptimal resource utilization and improve productivity with resource management software\" width=\"1195\" height=\"450\" srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-content\/uploads\/2021\/03\/eliminate-suboptimal-resource-utilization-improve-productivity-banner.png 1195w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-content\/uploads\/2021\/03\/eliminate-suboptimal-resource-utilization-improve-productivity-banner-300x113.png 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-content\/uploads\/2021\/03\/eliminate-suboptimal-resource-utilization-improve-productivity-banner-1024x386.png 1024w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-content\/uploads\/2021\/03\/eliminate-suboptimal-resource-utilization-improve-productivity-banner-768x289.png 768w\" sizes=\"(max-width: 1195px) 100vw, 1195px\" \/><\/noscript><\/a><\/p>\n<h2 id=\"1\" class=\"target\">Legacy Systems Currently Used by Businesses<\/h2>\n<p>Most of the businesses are fighting against the challenges of the 2020s with the systems developed in the 1990s. It is a <strong>bitter fact<\/strong> irrespective of the market size, share, or reputation of these businesses. Some Examples of the legacy systems are:<\/p>\n<ul>\n<li><a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/what-should-you-not-use-spreadsheets-for\/\" target=\"_blank\" rel=\"noopener noreferrer\">Silos of spreadsheets<\/a> built with macros<\/li>\n<li>Home-grown half-baked systems<\/li>\n<li>Windows-based systems of the 1990s<\/li>\n<li>Entry-level <a href=\"https:\/\/www.saviom.com\/resource-management-software\/essentials-of-resource-management-software.html\" target=\"_blank\" rel=\"noopener noreferrer\">resource scheduling software<\/a><\/li>\n<\/ul>\n<p>These are either outdated or simplistic solutions not designed to address the modern-day challenges of a business.<\/p>\n<h2 id=\"2\" class=\"target\">How Legacy Systems Fail to Improve Profitable Resource Utilization?<\/h2>\n<p>Following are the <strong>limitations of legacy systems<\/strong> hindering the process of maximizing profitable resource utilization:<\/p>\n<ul>\n<li>Unable to provide visibility of enterprise-wide <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/how-to-measure-resource-capacity-and-demand\/\" target=\"_blank\" rel=\"noopener noreferrer\">resource demand<\/a><\/li>\n<li>Unable to address complexities of matrix organization structure<\/li>\n<li>Unable to provide resource forecasting and capacity planning<\/li>\n<li>Unable to provide multi-dimensional forecasting of profitable utilization<\/li>\n<\/ul>\n<p><strong>Read More: <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/resource-forecasting-guide-for-project-managers\/\" target=\"_blank\" rel=\"noopener\">What is Resource Forecasting? An Ultimate Guide for Project Managers<\/a><\/strong><\/p>\n<h2 id=\"3\" class=\"target\">How Can Efficient Resource Management Technique Maximize Profitable Utilization?<\/h2>\n<p>Improving <strong>profitable resource utilization<\/strong> requires foresight into the overall utilization of resources. So that corrective actions can be taken ahead of time. But, <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/resource-forecasting-guide-for-project-managers\/\" target=\"_blank\" rel=\"noopener noreferrer\">forecasting resource utilization<\/a> is a daunting task, especially in a matrix organization with constantly changing resource demand.<\/p>\n<p>The following steps are required to forecast profitable utilization and proactively take corrective actions to improvise it.<\/p>\n<ol>\n<li>Forecast resource demand<\/li>\n<li>Forecast resource capacity<\/li>\n<li>Forecast profitable and overall utilization<\/li>\n<li>Move resources from non-profitable work to profitable<\/li>\n<li>Market and sell excess capacity ahead of time<\/li>\n<li>Build <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/the-business-benefits-of-a-contingent-workforce-today\/\" target=\"_blank\" rel=\"noopener noreferrer\">On-Demand Workforce<\/a><\/li>\n<li>Analysing Forecasted vs. Actual Profitable Utilization<\/li>\n<\/ol>\n<p>The above processes are quite involved and complex. Modern <a href=\"https:\/\/www.saviom.com\/resource-management-software\/\" target=\"_blank\" rel=\"noopener noreferrer\">resource management software<\/a> can automate these processes and provide you with <strong>real-time information<\/strong> to improve profitable utilization.<\/p>\n<p><strong>Read More: <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/resource-management-a-comprehensive-handbook-for-project-managers\/\" target=\"_blank\" rel=\"noopener\">Resource Management: A Comprehensive Handbook for Project Managers<\/a><\/strong><\/p>\n<h3>Forecast resource demand<\/h3>\n<p>It is critical for a business to track all types of resource demand created by current work or <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/4-steps-perfect-project-pipeline-management-strategy\/\" target=\"_blank\" rel=\"noopener noreferrer\">future pipeline work<\/a>. It includes <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/how-to-measure-resource-capacity-and-demand\/\" target=\"_blank\" rel=\"noopener noreferrer\">resource demand<\/a> coming from the following sources<\/p>\n<ul>\n<li>Current projects under progress and past projects on hold.<\/li>\n<li>Non-project activities like BAU, support, admin, operational, etc.<\/li>\n<li>Future projects in the sales opportunity pipeline.<\/li>\n<li>Future internal projects in the approval pipeline.<\/li>\n<li>Future vacations, training, holidays, etc.<\/li>\n<\/ul>\n<h3>Forecast resource capacity<\/h3>\n<p>Forecasting <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/5-best-practices-better-capacity-management\/\" target=\"_blank\" rel=\"noopener noreferrer\">resource capacity<\/a> means calculating the total number of standard hours an individual is available to work in the future. As per employers, arrangement Resource capacity calculation needs to account for:<\/p>\n<ul>\n<li>Every type of employee, i.e., full time permanent, contractors, casuals, part-timers, etc.<\/li>\n<li>Employees leaving in future due to contract completion or resignation<\/li>\n<li>Employees planned to join as new recruitment<\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.saviom.com\/ebook-registration\/?callFor=EBOOK&amp;ActionType=BDEBOOK&amp;ArticalTitle=the-comprehensive-guide-to-resource-capacity-planning\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-21280 size-full lazyload\" data-src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/wp-content\/uploads\/2021\/03\/resource-capacity-planning-guide-banner-saviom.jpg\" alt=\"Banner showing comprehensive guide to resource capacity planning\" width=\"1024\" height=\"394\" data-srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-content\/uploads\/2021\/03\/resource-capacity-planning-guide-banner-saviom.jpg 1024w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-content\/uploads\/2021\/03\/resource-capacity-planning-guide-banner-saviom-300x115.jpg 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-content\/uploads\/2021\/03\/resource-capacity-planning-guide-banner-saviom-768x296.jpg 768w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/394;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-21280 size-full\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/wp-content\/uploads\/2021\/03\/resource-capacity-planning-guide-banner-saviom.jpg\" alt=\"Banner showing comprehensive guide to resource capacity planning\" width=\"1024\" height=\"394\" srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-content\/uploads\/2021\/03\/resource-capacity-planning-guide-banner-saviom.jpg 1024w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-content\/uploads\/2021\/03\/resource-capacity-planning-guide-banner-saviom-300x115.jpg 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-content\/uploads\/2021\/03\/resource-capacity-planning-guide-banner-saviom-768x296.jpg 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/noscript><\/a><\/p>\n<h3>Forecast overall and profitable resource utilization<\/h3>\n<p>Forecasting overall resource utilization is the ratio between the total <strong>demand forecast<\/strong> and total <strong>resource capacity<\/strong>. Similarly, forecasting <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/track-resource-utilization\/\" target=\"_blank\" rel=\"noopener noreferrer\">profitable resource utilization<\/a> is the ratio between profitable demand forecast and total resource capacity. These utilizations are mostly measured in percentages.<\/p>\n<h3>Corrective Actions: Move resources from non-profitable work to profitable<\/h3>\n<p>Once there is <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/track-resource-utilization\/\" target=\"_blank\" rel=\"noopener noreferrer\">foresight into overall utilization<\/a>, it is only a matter of <strong>mobilizing resources<\/strong> from non-profitable or low-priority projects to the profitable or high-priority projects by resource managers.<\/p>\n<h3>Corrective Actions: Market and sell excess capacity ahead of time<\/h3>\n<p>Similarly, <a href=\"https:\/\/www.saviom.com\/ebook\/the-holy-grail-of-resource-management-demand-forecasting-and-capacity-planning.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">forecasting capacity vs. profitable demand<\/a> provides foresight into the <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/understanding-resource-availability-within-project-management\/\" target=\"_blank\" rel=\"noopener noreferrer\">excess available<\/a> resources that can potentially go wasted. This wastage can be avoided by<\/p>\n<ul>\n<li>Bringing forward future profitable projects<\/li>\n<li>Selling resource time aggressively<\/li>\n<li>Restructuring capacity in different areas<\/li>\n<\/ul>\n<p><strong>Read More: <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/what-is-resource-planning-and-why-is-it-important\/\" target=\"_blank\" rel=\"noopener\">What is Resource Planning, and Why is it Important in Project Management?<\/a><\/strong><\/p>\n<h3>Corrective Actions: Build On-Demand Workforce<\/h3>\n<p><span class=\"quote-style\">Nowadays, it is critical for a business to have an <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/the-business-benefits-of-a-contingent-workforce-today\/\" target=\"_blank\" rel=\"noopener noreferrer\">on-demand workforce<\/a> consisting of contractors, casuals, part-timers, freelancers, etc.<\/span><br \/>\nThis type of workforce helps in meeting the temporary shortage of resources without any permanent overhead cost or hiring\/firing costs.<\/p>\n<h3>Analysing Forecasted vs. Actual Profitable Utilization<\/h3>\n<p>It is critical to compare actual profitable utilization against the forecast on a regular basis. It helps in identifying the gap and the reasons behind it so that the overall forecasting process can be improved to achieve a <strong>higher degree of accuracy<\/strong> in estimation.<\/p>\n<h2 id=\"4\" class=\"target\">The Glossary<\/h2>\n<p><strong>Read More: <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/blog\/the-complete-glossary-of-resource-or-workforce-planning-scheduling-and-management\/\" target=\"_blank\" rel=\"noopener\">Glossary of Resource Workforce Planning, Scheduling and Management<\/a><\/strong><\/p>\n<h2 id=\"5\" class=\"target\">The SAVIOM Solution<\/h2>\n<p>SAVIOM is the market leader in offering the most powerful and configurable solutions for<a href=\"https:\/\/www.saviom.com\/resource-management-software\/\" target=\"_blank\" rel=\"noopener noreferrer\"> managing enterprise resources effectively<\/a>. Having more than 20 years of experience this Australia based MNC has established its global presence across 50+ countries and has helped top global companies address their business needs. SAVIOM also provides tools for project portfolio management, professional service automations and <a href=\"https:\/\/www.saviom.com\/workforce-management-software\/\" target=\"_blank\" rel=\"noopener noreferrer\">workforce planning software<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Improve resource utilization to boost productivity, maximize project profitability, and drive business efficiency. Explore our blog to understand how to make the most of your resources.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","template":"","categories":[1],"tags":[],"coauthors":[161],"_links":{"self":[{"href":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-json\/wp\/v2\/blog\/3157"}],"collection":[{"href":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-json\/wp\/v2\/blog"}],"about":[{"href":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-json\/wp\/v2\/types\/blog"}],"author":[{"embeddable":true,"href":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-json\/wp\/v2\/comments?post=3157"}],"wp:attachment":[{"href":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-json\/wp\/v2\/media?parent=3157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-json\/wp\/v2\/categories?post=3157"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-json\/wp\/v2\/tags?post=3157"},{"taxonomy":"author","embeddable":true,"href":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:7000\/resources\/wp-json\/wp\/v2\/coauthors?post=3157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}