After all, an organization’s talent pool is the success driver of the firm. Hence, they must tap into their maximum potential while maintaining the resource health index.

The pertinent question is, how can one simultaneously maintain a healthy resource index, ensure project quality and minimize costs?

Resource optimization is the ideal technique or strategy to do so. From preventing over or underutilization of the workforce to reducing resource costs and ensuring competent allocation to enhancing profit margins, this strategy can help elevate overall business efficiency.

This article highlights the essential aspects and best practices of resource optimization. Let’s begin by defining the term,

What is resource optimization in project management?

Resource optimization is a management practice or strategy to boost employee productivity, efficiency, and performance within a project-based organization.

To achieve these goals, it comprises processes such as planning, forecasting, allocating, and scheduling available resources and utilizing them intelligently to meet the organization’s objectives. Resources can be human, equipment, facilities, finance, etc.

The ultimate goal of resource optimization is to leverage the employees’ maximum potential to improve business profitability.

Resource managers use different techniques to optimize the workforce and balance their schedules. The following section explains these techniques in detail:

What are the resource optimization techniques?

Resource managers implement resource optimization techniques depending on the nature of a project. We have explained the most prominent ones:

Resource leveling

Resource leveling is implemented on projects with flexible timelines where the start and end dates can be re-adjusted based on the critical resource’s availability and schedule.

For example, suppose a web developer is unavailable to work on a website revamp project before the stipulated deadline. In that case, managers can communicate with the stakeholders and adjust the project timeline. This helps to prevent overallocation and reduces the risk of employee burnout.

Resource smoothing

Resource smoothing in project management, also known as Time Constrained Scheduling, is used when the project is time sensitive. If a resource is overwhelmed, managers adjust the float tasks and redistribute the workload or add additional resources without affecting the critical path.

For instance, a project’s float task requires 80 hours, and the resource is allocated 10 hours of work every day. However, since there is room for flexibility, managers can assign the same resource for 8 hours and ten days or schedule a junior resource. This helps ease the employee’s schedule without hampering the deadline.

Modeling and simulation

Modeling and simulation is a technique that assists managers in building multiple scenarios in a sandbox environment. Managers can then analyze and compare the outcomes of each scenario and select the best-fit resource plan, and prioritize projects. It enables them to prevent potential bottlenecks and protect profit margins.

For example, suppose there is a pipeline project with a certain probability of approval. In that case, managers can form different resource mixes, modify the utilization, evaluate the impact on the project’s timeline and budget, and select the best possible outcome before applying it to the resource plan.

These are significant resource optimization techniques that help boost workforce productivity and prevent burnout.

However, optimization is not restricted to avoiding overutilization; it goes beyond and optimizes the workforce in terms of cost, capability, location, etc.

With an understanding of the difference between resource leveling vs. resource smoothing vs. modeling and simulation, the following section discusses the five major categories of resource optimization.

What are the different types of resource optimization?

Resources can be optimized at different levels, such as capability, cost, utilization, location, and season to ensure profitability and successful project delivery.

Let’s look at each one of the process optimization techniques in detail,

Capability Optimization

According to Gallup, “Utilizing the skills and strengths of employees regularly improves their engagement by six times.”

The focal point of capability optimization is the competent allocation of resources to appropriate tasks while fulfilling the project demands. In other words, allocation optimization pertains to fulfilling every skill and competency requirement of the projects, bridging an existing capacity gap, and future-proofing the workforce to beat market volatility.

To ensure successful project delivery, it encapsulates resourcing treatments such as upskilling, training, hiring, out-rotation/backfill, etc. Additionally, it helps avoid allocating over or under-skilled employees to projects, thus ensuring quality delivery.

Cost Optimization

After estimating the resource required, the project budget is analyzed, and the cost-effective employees are identified across the organization while keeping quality in mind. It also includes forming an appropriate resource mix to avoid cost escalations and proactively allocating resources to prevent last-minute firefighting and billing loss. All these processes constitute resource cost optimization.

It facilitates managers to procure resources with the right experience level and cost to control the project financials.

Utilization Optimization

Utilization optimization prevents managers from over or underutilizing the resources and ascertaining uniform workload distribution. Instead, before allocating or scheduling the tasks, managers can view the resource’s schedules, understand their availability, and book accordingly.

If a resource is overbooked, they can apply techniques such as leveling and smoothing to prevent burnout. Managers can also forecast and mobilize resources from non-billable to billable or strategic work to enhance productivity.

Location Optimization

Location optimization enables managers to hire or allocate resources from suitable locations based on the project’s requirements, keeping the skillset, cost, and other constraints in mind.

It increases in-person interaction between the client and delivery team and creates better coordination as respective personnel can meet at their convenience to discuss issues and find solutions quickly.

Seasonal Optimization

The professional services industry has seasonal peaks and troughs when demand and services substantially increase or decrease. During the peak period, the organizations can increase their consultants’ charge-out and employee utilization rates and improve profits for the firms.

During the trough period, the organization can reduce the charge-out rate to attract and retain clients. They can also implement training and upskilling programs to futureproof the workforce. In both situations, managers are well-equipped to increase revenue and promote the employees’ work-life balance, thus, minimizing stress and burnout.

So far, we have understood the techniques and types of resource optimization. Now, it’s time to know how it benefits the organization.

What are the major resource optimization challenges?

Resource optimization comes with its fair share of challenges. Some common challenges include:

Resource constraints

The resource constraints, such as unavailability of niche resources, unplanned attrition, employee absenteeism, etc., can pose a challenge when optimizing their allocation and utilization. When resources are scarce, it becomes crucial to prioritize and allocate them effectively to maximize their utilization.

Solution: Managers must prioritize resources based on their criticality and impact on overall project objectives. Moreover, resource leveling can help firms minimize the pitfalls of staff shortage and ensure smooth project execution.

Complex resource dependencies

In project-based organizations, resources often have interdependencies, where the optimal allocation of one resource may affect the performance or availability of others. Managing these dependencies and finding the right balance can be challenging.

Solution: The best way to handle this situation is to conduct a thorough analysis to account for all resource interdependencies and develop strategies to manage them effectively.

Evolving project and resource requirements

Resource optimization must account for dynamic factors such as changing market demands, customer preferences, or project requirements. Adapting resource allocation strategies to meet evolving needs requires flexibility. However, most firms struggle to manage these evolving needs.

Solution: The key here is to stay agile and adaptable to meet changing demands. Implementing a well-defined resource planning framework can help organizations align resources with changing requirements. Moreover, they can develop training & development programs to upskill the workforce and optimize resource utilization.

Lack of real-time visibility

Lack of real-time visibility into resource metrics, such as capacity, availability, utilization, etc., can impede effective optimization efforts. When there is no centralized visibility, it makes it difficult for managers to make informed decisions.

Solution: Organizations must invest in robust resource management software as it will enable them to create a single source of truth. The tool is equipped with advanced reports and analytics that provide real-time insights into critical KPIs.

Inability to balance short-term and long-term goals

Resource optimization involves finding a balance between short-term goals, such as cost reduction, and long-term objectives, such as innovation and growth. Striking the right balance can be extremely tricky.

Solution: Managers must carefully frame resource optimization strategies that align with long-term strategic objectives. A cost-benefit analysis can help them evaluate the impact of resource allocation decisions on both short-term efficiency and long-term growth. Based on the outcome, they can implement effective optimization techniques.

Market uncertainties and risks

Resource optimization can involve uncertainty and risk factors, such as market volatility, regulatory changes, or technology disruptions. Mitigating risks and developing contingency plans becomes essential to ensure resource optimization remains adaptable and resilient.

Solution: Organizations must conduct risk assessments to identify potential disruptions and develop contingency plans. They must leverage scenario planning techniques to account for uncertainty and mitigate risks.

Difficulty in implementing and monitoring changes

Successfully implementing and monitoring resource optimization strategies requires planning, coordination, and ongoing evaluation. Without effective implementation and monitoring mechanisms, the desired optimization outcomes cannot be achieved.

Solution: A comprehensive implementation plan can help organizations monitor and evaluate resource utilization and performance against set targets. They can continuously review and adjust resource allocation strategies based on feedback and results.

With proactive planning, organizations can mitigate these challenges to achieve success. Next, we learn about the advantages of resource optimization.

How does resource optimization benefit an organization?

Resource optimization focuses on improving workforce performance and productivity at the granular level to ensure successful project delivery. It offers myriad benefits to the organization. The most prominent ones are listed below:

Improves employee productivity

Resource optimization ensures that the right resources are allocated to the right project based on their competencies and interest. By tracking the utilization levels, managers also prevent the risks of employees being under/overutilized. Moreover, they also ascertain that no over or under-skilled employee is working on the given tasks.

When employees work on projects that align with their skill set and availability, they will not be stressed or burnt out, eventually boosting their productivity.

Facilitates task prioritization

During the project planning stage, managers implement the critical path method to identify the most critical tasks of the project. Once that is done, they can prioritize the tasks better.

If the resources are overwhelmed, managers can adjust their schedules or bring in more resources to finish critical tasks first. This ascertains the completion of tasks in chronological order based on urgency.

Enables competent resource allocation

As discussed earlier, capability optimization enables you to allocate the right resource to the right task with relevant experience and competencies. This helps avoid assigning over or under-skilled employees to projects.

Managers also leverage the shared services model to allocate inter-departmental resources to suitable projects at the right cost. It allows them to align the project demands with the skillset and maintain quality.

Prevents employee burnout and disengagement

The overutilization of resources will result in stress and burnout due to excessive workload. On the other hand, when employees are underutilized, they will be disengaged as their skill set is not appropriately leveraged.

By implementing resource utilization optimization, managers ensure the uniform distribution of workload. As a result, it enhances performance, boosts productivity, and prevents burnout or disengagement.

Helps form the right mix of resources

Most often, niche skilled critical resources are allocated to numerous projects at times beyond their capacity, while less experienced employees are constantly working on non-billable tasks or on the bench.

Resource optimization allows organizations to form the right mix of senior and junior resources. This will help reduce the workload of critical resources and enable non-critical resources to gain more hands-on experience and diversify their skill set. Moreover, cost optimization helps them form the right blend of contingent and permanent workforce to prevent unnecessary overhead costs.

Reduces resourcing costs

As mentioned earlier, resource capability optimization ensures that the right resource is allocated to the right project, thereby avoiding the deployment of under-skilled or over-skilled resources.

Moreover, it allows one to identify and allocate cost-effective global resources and skilled junior resources instead of expensive senior resources to control the costs. Resource optimization also entails proactively allocating the employees and the last-minute hiring costs.

Helps future-proof workforce

Organizations have seasonal peaks and throughs throughout the year, and during the trough period, they implement training and upskilling programs for resources.

In addition to diversifying the skillset, they technically prepare the resources to take on multi-faceted projects in the upcoming seasons. This helps them futureproof the workforce and maintain a competitive advantage.

Now that the benefits are clear let’s look at the effective ways to implement resource optimization.

What are the best practices for efficient resource optimization?

Resource optimization ensures optimal workforce utilization and helps enhance business efficiency. Therefore, building the right optimization strategy is imperative to achieve the same.

Here are seven best practices you can follow:

Estimate project resource requirements in advance

The estimation of project resource requirements is the first step in resource optimization. The project managers first identify and determine the total number of required resources and the corresponding competencies and skill set. Once the resource estimation is complete, the project managers can raise resource requests using the resource management tool.

This gives enough lead time for resource managers to ensure the availability of suitable resources and implement measures in case of shortages or excesses. To bridge the gap, they can apply appropriate strategies such as training and hiring a permanent or contingent workforce. This will ensure competent resource allocation to projects and maximize productivity.

Understand resource availability and capacity before scheduling

Once resource managers identify and allocate resources to the project, the project managers need to schedule them for specific tasks. While doing so, they need to ensure that resources are not under/overloaded with work against their capacity.

For example, project managers can share the workload with another resource (keeping the costs in mind) if a particular resource has worked beyond their capacity. This will ensure uniform workload distribution and prevent employee burnout and disengagement.

Implement out-rotation and backfill strategy to fill critical roles

Out-rotation and backfill strategies can help in capability optimization, especially when there is a shortage of niche skilled critical resources. For example, an IT project requires a data modeler. But there is only one such niche-skilled resource across the organization working on another project and, thus, unavailable.

In this case, if the second project has reached the completion stage, managers can coordinate and out-rotate the data modeler to the new project. Additionally, they can use another resource who has met the prerequisites for this role as a backfill to finish the job. This will ensure that both projects’ progress is not hampered and that they are completed within the estimated time and quality.

Monitor and track employee performance in real-time

Sub-optimal resource utilization can negatively impact workforce performance and the project’s progress. Thus, the onus is on managers to monitor their utilization in real-time and course correct in case of discrepancies.

They can implement a resource management tool that provides real-time utilization reports of the entire resource pool. Managers can proactively implement corrective measures if a resource is over or underutilized or if someone is spending more time on non-billable work. Moreover, forecast vs. actual utilization reports help managers to evaluate the gap in planned or estimated hours versus the actual time spent on work. In case of variance, they can understand the root cause and rectify it accordingly.

Empower resources to take up projects of interest

When employees are allocated to similar tasks, the work becomes monotonous and starts lowering productivity. This can hamper their overall growth and result in unplanned absenteeism and high attrition. Therefore, organizations can go the extra mile and allow their workforce to choose projects of their interests.

Using the resource management tool, managers can publish open positions mentioning project requirements which will be notified to resources. Then, they can consider candidates’ interests and skill sets during allocation. Since employees choose projects of interest, they will show full commitment, reflecting their high performance.

Use cost-effective global resources as appropriate

Leveraging the skills of cost-effective global resources is an excellent way to optimize project costs. Managers can control project costs without compromising quality.

Since the resource management tool provides visibility of employees based at different locations, their skills, charge-out rate, etc., managers can identify and allocate cost-effective global resources from low-cost locations. This helps maintain the project’s financial health without compromising quality and prevents budget overruns.

Implement training and upskilling to future-ready the workforce

Organizations can facilitate training and upskilling programs for the employees during the seasonal trough and futureproof them effectively. In addition, they can provide shadowing and on-the-job training opportunities to level up their expertise before a particular project begins. This will give them hands-on experience, prepare them for future endeavors, and help reduce the workload of critical resources.

Managers can access resource profiles and future project demands using the resource management tool to identify skills gaps. They can then formulate a development plan that aligns with the resources’ career goals and company objectives. This will reduce external hiring, help build a future-ready workforce, and ensure maximum productivity.

Conclusion

Resource optimization allows organizations to tap into the maximum workforce potential and enhance business efficiency. Using the abovementioned techniques, an organization can allocate the right resources to the right project, ensure optimal utilization and increase engagement and productivity. In addition, they can ensure profitability and sustainability by pairing them with the right resource management software.

So, what resource optimization techniques do you follow?

The Glossary

The SAVIOM Solution

SAVIOM is the market leader in providing highly configurable and robust solutions for managing and planning your workforce. With 20 years of experience, it has a presence in many countries. Many Fortune 500 companies are currently using and have benefited from this product. SAVIOM also provides tools for resource management, project portfolio management, and professional service automation. The workforce planning software can be configured for any industry, and it helps solve short-term resourcing problems.

The above growth is attributed to several macroeconomic factors, such as the increasing complexity of tax regulations, globalization, increased financial frauds and risk awareness, etc. Therefore, there is a growing demand for audit and accounting services as companies worldwide strive to protect their profit margins and stay ahead of the competition.

However, audit & accounting firms face numerous resourcing challenges, such as skill gaps, inability to meet seasonal demands, unplanned attrition, etc. That’s why effective resource planning is the need of the hour to future-proof and optimize the audit and accounting workforce.

This blog discusses the various steps you can implement to create an efficient resource planning in audit and accounting firms.

But first, let’s understand the benefits.

Significance of resource planning in the audit and accounting sector

Resources are the crux of audit and accounting service firms since they generate revenue by charging their clients for the consultants’ expertise and time. Therefore, firms need an efficient resource plan to maximize the billable utilization of their skilled personnel and improve profitability.

Since this sector experiences seasonal fluctuations, resource planning enables firms to meet the sudden rise and fall in demand by comparing the project requirements against capacity. Additionally, it helps bridge the skill gaps in advance, ensuring consultants’ availability before the project’s onset, thus eliminating last-minute firefighting.

In addition, efficient resource planning helps managers create the right mix of permanent and contingent audit and accounting personnel. For example, an upcoming assignment requires a forensic auditor to evaluate a firm’s financial records and collect evidence for legal proceedings. With efficient resource planning, managers can easily deploy a contingent forensic auditor depending on the duration of the assignment, minimizing project resourcing costs.

Overall, resource planning is critical for audit and accounting firms to identify and allocate competent personnel to projects at the right time and cost and deliver high-quality services to clients. In addition, it helps firms to stay competitive in a rapidly changing market and adapt to new challenges and opportunities.

Given the significance of resource planning in the accounting and auditing industry, the following are the best strategies to make it efficient.

Best practices to implement a resource plan in audit and accounting firms

Robust resource planning is the backbone of every project since it redefines business efficiency and helps unlock the workforce’s full potential.

Here’s how you can implement an effective resource plan.

Forecast and bridge capacity gaps of consultants for pipeline assignments

Most accounting/audit projects have a shorter timeline, and usually, practitioners work on multiple projects simultaneously. Therefore, consulting managers in audit and accounting firms must plan the pipeline assignments by analyzing the resource requirements. They must also implement suitable measures proactively to bridge the capacity vs. demand gap.

For example, a pipeline audit assignment needs five auditors to complete the tasks successfully. If the manager has ten available auditors, they can bring forward other projects for the extra five auditors or sell their capacity at a discounted rate. Alternatively, if they only have three auditors, a shortfall of two employees can be resolved with internal channels like implementing out rotation and backfill strategy or training/upskilling. If needed, managers can also request HR to initiate project-specific or skill-based hiring to avoid last-minute firefighting.

Identify and allocate cost-effective audit/accounting personnel to projects

Since the accounting sector often utilizes high-cost specialized resources such as actuaries and tax analysts, it is significant to consider the overall resourcing budget while planning to protect the profit margins. In addition, resource planning enables firms to identify cost-effective auditors/accountants with skills matching project requirements once they receive a resource request.

For example- instead of assigning a senior advisory lead to evaluate business transactions, managers can identify and allocate a skilled junior counterpart for the same. It will significantly reduce the resourcing cost, ensuring successful project delivery within the budget. In addition, they should have a sufficient lead time for carrying out planned hiring activities and create an optimum resource mix preventing budget overruns.

Create the right mix of permanent and contingent audit/accounting staff

The demands for specific skills, such as tax advisory, consultants, etc., witness a surge during the financial year-end. Based on the project nature, firms can form a blended workforce to meet these sudden peaks. During this period, contingent workforce can provide additional support to permanent resources or offer specialized services, allowing firms to fulfill client demands more effectively.

For example, an auditing/accounting firm bags a short-term project on filing client’s tax returns and forms. Here, the managers can allocate a freelancer tax analyst and complete the project within the budget. On the other hand, firms can recruit full-time employees for long-term projects, such as the annual auditing for an insurance company for the next 7 years. This will enable organizations to achieve their goals by keeping costs in check, boosting profitability and sustainability.

Set utilization targets for accounting consultants and track them periodically

As mentioned above, audit and accounting firms usually depend on external and internal resources for project delivery. However, if the utilization targets for the accounting employees are not well-defined, it creates operational inefficiencies and low productivity. Therefore, firms need to set utilization targets for permanent and contingent staff to ensure maximum billability.

For instance, the utilization target of permanent consultants can be set around 70 – 80 % of their capacity so that they can be involved in billable and other important non-billable tasks. On the contrary, an on-demand resource’s utilization rate can be set close to 100% because they are usually hired to perform a specialized function for the short term. These measures ensure that both internal and on-demand audit and accounting staff are optimally utilized. In addition, managers should track their utilization levels periodically and implement measures to prevent under/over-utilization.

Implement training and upskilling programs on a regular basis

The rapid emergence of technologies, such as AI, ML, Blockchain, etc., has made it mandatory for accounts/auditors to stay abreast with the latest skills and technology.

A survey reveals that “57% of accountants find technology literacy the most critical additional skill for future employees in this field.”

For this, accounting managers can formulate several training/upskilling programs, IDPs, etc., to align the workforce’s skills with the latest trends. For instance, CAs can be trained in data analytics, which will help them generate financial reports quickly and accurately using multiple data like revenue, expenses, and account budgets.

They can also implement other learning methods, such as peer-to-peer coaching, job shadowing, etc., for the audit and accounting staff. It will prepare them to take up multi-faceted projects in the future and diversify their portfolios. Further, these initiatives will help bridge existing skill gaps, and improve performance, enabling the firms to stay relevant in the digital age.

Facilitate succession planning for critical consultants.

Research reveals- 94 percent of employers report that succession plan has a positive impact on their employees’ engagement.

If critical resources, such as senior auditors, accounts officers, partners, etc., suddenly retire or resign, the projects can derail in the absence of succession planning. It, in turn, can cause revenue losses and negatively impact client experiences for accounting service organizations. To avert this situation, firms can leverage effective resource planning to review key accounting/auditing roles and resources.

Consulting managers can also track the performance of every consultant to identify the ones to be considered for promotion to senior/strategic positions. Moreover, they can also upskill and train the audit and accounting staff to take up higher roles. In addition, it enhances the level of engagement of audit and accounting personnel since they are more focused and eager to take on critical responsibilities. This way, effective succession planning ensures smooth role transition and business continuation.

Empower auditors/accountants to choose the project of their interest

A study reveals- “1 in 3 professionals reveal that boredom is the primary reason to leave their jobs.”

The above stats hold true for the audit and accounting sectors as well. Most accounting professionals work on similar projects that become monotonous over time, affecting their engagement and productivity. To avoid this, managers can give employees the choice to work on assignments matching their interests by publishing open positions with relevant project details periodically.

This would enable audit and accounting employees to show interest and apply for suitable open positions. Managers can then choose the best-fit consultants for the projects. By working on the projects of their interest, professionals will be more motivated, enhancing their performance. Furthermore, it will increase autonomy and help with their career trajectory, resulting in improved retention.

Now that the strategies are understood, let’s know how an advanced resource management solution will help streamline the resource planning process.

How can a modern ERM tool streamline resource planning in audit and accounting firms?

Advanced resource management software provides efficient resource planning capabilities that help audit and accounting firms utilize their resources optimally.

Here’s how-

• It offers 360-degree visibility into audit and accounting projects/non-project activities such as BAU/admin, leaves, etc. Besides, the software helps maintain up-to-date competency and skill information that facilitates the competent allocation of consultants.
• The multidimensional sorting feature, along with advanced filters, helps managers uniformly distribute the employees according to the work requirements.
• Moreover, the forecast vs. actual and utilization reports helps accounting supervisors implement corrective measures and eliminate under/over utilization. It also helps them mobilize skilled accountants from non-billable or admin/BAU work to billable or high-priority projects.
• The modeling and simulation technique enables accounting managers to create and compare various project scenarios and determine the best-fit resource plan.
• The accounting/audit managers can use the open seat feature of the tool to publish various open positions. It will empower auditors/accountants to choose projects of their interest, thus improving engagement and productivity.
• Further, the tool’s collaboration feature helps managers share the lesson-learned reports after completing the project. This report can be referred to by others while working on similar audit/accounting projects and improve resource planning and cost estimations.

This way, modern resource management software can help streamline resource planning in audit and accounting firms.

The Bottom Line

“Planning is bringing the future into the present so that you can do something about it now.” ― Alan Lakein, author

Rightly said, it is essential for audit and accounting firms to create an effective resource plan. It will help unleash the maximum potential of resources and increase their productivity and engagement. However, it is only possible when organizations use robust ERM software to identify and mitigate bottlenecks early. It will help optimize and futureproof the audit & accounting workforce against market volatility, ensuring profitability and sustainability.

So, what’s your strategy to streamline your firm’s resource planning?

The SAVIOM Solution

SAVIOM is the market leader in offering the most powerful and configurable solution for managing your enterprise resources effectively and efficiently. With over 20 years of experience, this Australian-based MNC has created its global presence across 50 countries and helped more than 100 customers achieve their business goals. SAVIOM also has highly customizable products for project portfolio management, professional service automation, and workforce planning software based on business requirements.

The impressive growth of the IT industry can be attributed to numerous factors, such as technological advancements, a growing gig economy, low-cost open-source alternatives, and tax advantages. Moreover, due to the rapid adoption of emerging technologies, the global demand for advanced technical skills has skyrocketed.

So, how can IT firms meet these ever-evolving market demands?

They must implement measures to holistically optimize their existing labor pool and mitigate talent gaps to stay afloat in a hypercompetitive market.

It will help reduce resourcing costs, ensure competent allocation, and enhance business efficiency.

This blog sheds light on the significance of resource optimization and the best strategies to optimize the IT workforce.

But before that, let’s start with the basics.

Significance of resource optimization in IT firms

Resource optimization is the efficient management of business resources to maximize organizational productivity and performance. It helps IT resource managers tap into their workforce’s maximum potential and improve profitability.

Most IT firms leverage two types of optimization techniques depending on the nature of the projects. They are: resource leveling and resource smoothing.

Resource leveling is applied to flexible projects where timelines can be adjusted according to resources’ availability and schedule. For example, let’s assume a senior solution architect is unavailable to work on a project due to ongoing commitments. Since the project has a flexible timeline, the manager can communicate with the stakeholders and change the initiation date to ensure the availability of this critical resource.

Alternatively, resource smoothing is applied to time-sensitive projects where float tasks are accommodated by redistributing work or adding more resources without changing the critical path or project timeline. For instance, another project has float tasks of 50 hours. However, the five IT consultants assigned to the project can work for 8 hours per day. Therefore, the manager can give the extra workload to a junior resource or two interns to maintain the deadline.

In addition, resource optimization improves productivity by ensuring competency-based allocation of resources across the IT organization. This helps to reduce resourcing costs as it prevents under or over-skilled employees from being assigned to projects. It also enables managers to monitor and adjust utilization levels by prioritizing critical project tasks first. Furthermore, these techniques allow supervisors to ensure even work distribution, thereby minimizing employee burnout and disengagement.

Now that we understand the basics of resource optimization, let’s delve deeper into the strategies to optimize the IT workforce.

Strategies to effectively optimize IT resources

Like in any other industry, resources are the most significant asset of an IT firm. Therefore, optimizing them guarantees better productivity and profitability.

Enlisted below are the best strategies for resource optimization:

Forecast and bridge demand gaps of IT consultants in advance

To optimize their resources, IT organizations need to forecast the demand for IT personnel required for project completion in terms of number, skills, and competencies. This gives them sufficient lead time to implement suitable treatments to mitigate the excess/shortfalls of resources. It includes initiating training/upskilling for existing employees, using out-rotation and backfilling strategy, or undertaking planned hiring.

Additionally, with complete visibility of resource demand, project managers can maintain the right band mix of IT professionals for every assignment. For example, the project manager needs four software developers for an IT systems development project. By creating the right mix of senior and junior software developers in this team, managers can control the project cost and ensure high-quality deliverables

Build a blended workforce model for a robust talent pipeline

To safeguard their economic interests against volatile conditions, IT organizations must build a blended workforce of permanent and contingent personnel. By leveraging competent on-demand consultants, managers can optimize the workload of critical permanent resources. Furthermore, depending on the demand, IT firms can initiate either project or talent-specific hiring to build a robust talent pipeline. This ensures they are equipped with the right people with the right competencies to take on future projects.

For example, an IT firm requires a cloud security analyst for a short-term cloud computing services assignment. Since they didn’t have the requisite skill in-house, the company decided to outsource the task to a contingent resource from a vendor organization. Doing this helped them reduce resourcing costs and deliver the project successfully. Additionally, they choose to absorb the analyst into the team with the hope of deploying their niche skill sets in pipeline projects, thereby building a talent pipeline for future prospects.

Consider IT consultants’ availability & vacation before allocation

IT project managers need to have a comprehensive view of consultants’ schedules to leverage them optimally. It helps them assign projects based on overall resource availability, including sick leaves, vacation days, and paid time off. Failure to manage and track consultant schedules can lead to project delays and resource over allocation. Furthermore, in the absence of competent personnel, the PM may be forced to allocate critical tasks to under-skilled resources, hampering the quality of operational output.

That’s why managers need to review and monitor resource schedules in real time before assigning them to various ongoing and future projects. For example, the technical lead analyzed the schedule of the two network engineers and found that one of them would be on leave for the next 15 days. As a result, he decides to assign the new project to the other available staff. Thus, the tech lead ensures that the project starts and finishes within the stipulated timeframe through efficient allocation.

Leverage onshore/offsite/nearshore model as per project demand

Depending on the nature of the project, IT organizations must appropriately leverage onshore/offshore/nearshore models. It’s common for IT firms to develop delivery centers on offshore/nearshore locations to provide cost-effective client support services.

Consequently, applying the right model enables them to deploy low-cost global IT consultants and reduce resourcing costs.

For example, an IT company with an extensive USA-based clientele undertakes a corporate restructuring to increase business efficiency and minimize overheads. First, they set up their IT software development services in an onshore facility in Austin, Texas, due to its favorable tax climate. Next, they open a nearshore base in Mexico for back-end services, and finally, they build offshore customer service operations in India. By leveraging the onshore/offshore/nearshore model intelligently, the firm can reduce operational costs and improve revenue.

Monitor and track IT personnel’s utilization levels periodically

“According to a report, IT attrition rate stood at around 25.2% in 2022.”

The IT industry faces high attrition rates, and one reason for this is sub-optimal resource utilization. When IT employees are overloaded, it triggers work-related stress and burnout. In contrast, underutilized IT resources can become disengaged and unproductive, resulting in unplanned attrition. Therefore, managers must regularly monitor and track their utilization levels and administer corrective treatments to address this issue before it adversely affects their performance.

For example, a project manager identifies that some consultants of their 10-member IT infrastructure management team are working 30% above their capacity. So, the supervisor decides to reduce their workload by distributing it among the rest of the teammates. Thus, by optimizing the team, the company will be able to deliver the project on time and within budget.

Manage and maintain an optimal bench strength

The standardized practice of maintaining a bench in the IT industry is to avoid the risk of project delays due to the non-availability of resources. Additionally, an optimal bench strength enables these organizations to minimize last-minute firefighting for competent consultants. Furthermore, it helps the firm manage uncertainties such as last-minute changes in the project scope, unplanned attrition, and sudden ramp-up activities.

For example, an app development project in the execution stage loses a front-end developer and UI designer as they suddenly resign. Fortunately, the project manager was able to replace them with two benched resources who had the appropriate skills and competencies to perform the required tasks. In conclusion, having a bench enabled the firm to keep the project on track, prevent billable losses, and meet client expectations.

Provide suitable training opportunities as a part of IDP

Due to rapidly evolving technological advancements, technical abilities have short shelf lives. As a result, IT companies must regularly upgrade their employees’ skills and competencies. By investing in appropriate training and IDP (Individual Development Plan), firms can equip their resources with diverse skill sets and the latest industry knowledge. Additionally, IDP enables consultants to develop their professional careers further.

For example, a group of software developers in an IT consultancy firm are proficient in programming languages such as C++, JAVA, PHP, and Python. However, to optimize their capabilities, the company decides to train them in new languages, such as SWIFT, Apache Groovy, and GO. Furthermore, by diversifying the resource competencies, the company can deploy them to new projects and maximize its billability. Therefore, suitable training and L&D initiatives can help the company create an advanced talent pool and improve its profitability.

Empower IT consultants to choose projects of interest

When IT consultants continuously work on similar projects, it leads to monotony and lowered productivity. Moreover, in the long run, it can obstruct organizational growth as it often results in employee absenteeism and unplanned attrition. Hence, IT firms must empower their employees to choose projects of interest.

“A study showed that employee empowerment increases engagement among workers, making them 21% more profitable.”

Additionally, it enables consultants to become proactive in their own career development, thereby improving their performance and lowering the chances of turnover. For instance, there is a network configuration project for which the PM requires a network administrator. So, they can publish the vacancy along with the necessary project details and competencies and allow interested candidates to apply for this position. Then, the PM can select the best-fit resource after reviewing the applications. Such an incentive allows IT employees to display their abilities and take on more challenging assignments, thereby improving their engagement.

Encourage IT employees to acquire multiple skills

Since IT companies work on multiple projects of varying complexity, they require a diverse portfolio of skill sets to accomplish their goals. Moreover, technical competencies are prone to obsolescence due to constant tech advancements. As a result, IT firms must encourage their employees to acquire multiple skills in order to build a highly flexible workforce.

Multi-skilled consultants can be deployed beyond their primary roles and across teams or departments, and they help firms to be more responsive to dynamic business needs. For example, an IT business analyst with aspirations to become a product manager can be given appropriate training to upskill their capabilities. In addition, the company can prepare the employee to become the next product manager as part of its succession planning. Therefore, by facilitating multi-skilling opportunities, IT organizations can equip employees to take on diverse roles and expand their portfolios.

Now that we know the best strategies for resource optimization let’s understand how resource management software can help achieve these optimization techniques.

How can resource management software help optimize the IT workforce?

Optimizing resources is essential for IT organizations to stay profitable and sustain themselves in volatile market conditions. Advanced resource management software can help these companies maximize the IT workforce’s potential. Here’s how:

• The tool’s enterprise-wide visibility and advanced filters provide insights into critical professional attributes such as supply, demand, allocation, skills, location, cost, etc., helping managers ensure competent allocation to various IT projects.
• The forecasting and capacity planning capabilities enable IT project managers to identify skill gaps and take corrective measures such as training, IDP, multi-skilling, etc.
• Various real-time reports, such as forecast vs. actuals, capacity vs. demand, color-coded heatmaps, project vacancy, etc., help track metrics such as resource utilization and financial variance. Furthermore, it provides insights that allow managers to optimize resources by capability, cost, utilization, and location.
• The open seat features empower IT employees to show their interest in projects, thereby improving their engagement and productivity.
• The tool’s What-if analysis facility allows project managers to come up with the best solution in a resource-constraint environment. Therefore, it helps them optimally utilize their resources to deliver projects successfully.

To summarize, these functionalities help improve resource efficiency in the IT industry.

Final Thoughts

An evolving business landscape and global competition have made it difficult for IT organizations to make a profit. Furthermore, pertinent resourcing challenges have added to the woes of these companies. However, by leveraging the IT workforce intelligently, these firms can proactively tackle resource-related bottlenecks and future-proof their business.

Good optimization techniques combined with advanced resource management software can help IT firms bring out the best of their talent pool and prevent resource constraints from adversely impacting the company’s financial health.

The SAVIOM Solution

SAVIOM is the market leader in offering the most powerful and configurable solution for managing your enterprise resources effectively and efficiently. With over 20 years of experience, this Australian-based MNC has created its global presence across 50 countries and helped more than 100 customers achieve their business goals. SAVIOM also has highly customizable products for project portfolio management, professional service automation, and workforce planning software based on business requirements.

As a result, accounting firms must build an efficient and future-ready workforce to keep up with these changing trends and prosper in the hypercompetitive market.

However, building an optimized workforce while ensuring every assignment is delivered successfully is easier said than done.

Most audit and accounting businesses worldwide are dealing with issues such as talent shortage, miscommunication between sales and delivery teams, reliance on inefficient tools for consultant scheduling, and sub-optimal resource utilization, among others.

Therefore, the pertinent question is, how to address these resourcing challenges in accounting & auditing firms and optimize the workforce?

This informative article addresses and highlights various resource optimization measures within this industry. But before we get there, let’s begin with the basics-

How do auditing and accounting firm function?

Auditing and accounting are critical components of any business’s financial operations and record-keeping activities. Their duties and objectives, however, are distinct. While accounting encompasses everything, including the flow of money from the organization to the company’s management, auditing is a more specialized function.

Accounting firms’ primary functions are keeping an accurate record of financial transactions, keeping a journal of expenditures, and so on. The most fundamental accounting function is data recording and adhering to compliance requirements.

Auditing function examines a company’s operations to ensure that its financial statements and records accurately reflect its business status. It also includes assessing a company’s health and safety provisions, IT security and helps make decisions accordingly.

The firms may also offer advisory services covering a broad spectrum of areas, including advising clients on improving their business performance, rearranging their corporate structure, or dealing with risks they face, etc.

Now that we have established the auditing and accounting firms’ functions, let’s look at some of the critical roles in the industry.

Key resources in the Accounting Industry

• Chief Financial Officer (CFO) – The CFO is a C-Level Executive responsible for overseeing and managing your business’s various financial aspects. The CFO is concerned with the company’s long-term success, ROI (return on investment), resources, and direct investment.
• Accountants – The accountant in the firm is responsible for performing and overseeing the essential, day-to-day functions of the company’s accounting department. This includes accounts receivable, accounts payable, tax preparation and payment, payroll, internal accounting, and operations.
• Bookkeeper – The bookkeeper is responsible for the daily performance of the accounting department’s basic operations. This includes creating and maintaining invoices, preparing checks, processing stop payments, filing, and keeping a record of documents.
• Auditors – The primary goal of the auditors is to identify potential risk areas for a company, such as mismanagement, fraud, and other discrepancies. Companies hire these types of professionals to avoid legal and financial problems.
• Tax Executives – They do tax planning and preparation for individuals, estates, trusts, and small enterprises and research uncommon tax issues. In addition, they prepare tax returns, research tax questions, and counsel clients on tax issues.
• Consultants – They are responsible for internal and operational control procedures, budgets, analyses of projects or departments, and a variety of particular-purpose studies. They also supervise consulting assignments within client organizations.

Now that we’ve established the functions of the critical roles let’s look at the significance of resource optimization in the accounting industry.

Significance of resource optimization in Auditing and Accounting Firms

As mentioned earlier, audit and accounting firms operate in a highly competitive and volatile global market. As a result, they face some of the most pressing challenges, such as skill shortages, cost pressure due to global competition, suboptimal resource utilization, unplanned attrition, burnout issues, and so on.

Resource optimization is the ideal technique or strategy to combat these challenges effectively and efficiently. Managers can perform gap analysis by assessing current workforce capabilities and future staffing needs. Accordingly, they can take course-corrective measures and continuously match supply with the demand. This ensures optimum consultant utilization and improve business profitability.

For instance, accounting managers can adopt the resource leveling techniques for the projects with flexible timelines and adjust the start and end date according to the consultant’s availability. On the other hand, for time-sensitive projects, managers can pull in more consultants and redistribute the booked resources’ schedule.

This way, the tasks can be accomplished without deviating from the timeline. It will also improve employee morale and reduce burnout rates, resulting in higher profit margins, cash flow, and overall business efficiency.

Given the importance of optimization, let’s examine the best ways to practice these resource optimization strategies in the audit and accounting sectors.

7 strategies to optimize resources in the Audit and Accounting Industry

Resource optimization techniques are critical in the audit and accounting sector to ensure optimal staff utilization and improve business efficiency.

Here is an overview of the same –

Forecast and bridge the capacity gap of consultants in advance

Due to a lack of foresight into future audit and accounting projects, organizations often fail to identify the resource demand for consultants with their corresponding competencies and skill sets. This often translates to skill shortages leading to last-minute firefighting for competent resources, cost overruns, project delays, and compromised deliverables.

In this case, managers should proactively foresee the demand of current and pipeline projects and implement resourcing measures to bridge the capacity vs. demand gap. Managers can either undertake planned hiring or devise a training and upskilling program if there is a shortage of accountants or auditors. This way, organizations can avoid last-minute firefighting for consultants, avoid cost escalations, reduce overall risks, and maximize productivity.

Evaluate consultant’s availability & vacation before allocation

An accounting consultancy firm often juggles various projects, especially during the peak season, such as fiscal year-end. Therefore, managing and tracking consultants’ overall availability for events such as sick leave, time off, and public holidays is crucial. Failure to do so may result in resource’s overallocation or project delays. Furthermore, if the project is handed over to a less competent resource, it results in project delays and sub-par quality of deliverables.

Therefore, tracking their availability in real-time is critical before allocating consultants to projects. This will ensure that the right consultant is allocated to the right project at the right time. Further, this reinforces the organization’s ability to deploy appropriate resources to suitable projects at the right time and cost. It ensures profitable client engagement and optimal utilization of the accounting staff.

Monitor and track audit & accounting personnel’s utilization levels periodically

In a profession where accuracy and attention to detail are essential, an under/overutilized workforce can damage the firm’s profitability if left unregulated. At times, managers overlook the utilization of the audit and accounting staff when resources are engaged in a non-billable task. As a result, this leads to a significant decrease in productive utilization, reducing overall profitability.

Tracking the team’s utilization rate periodically will reveal whether the team is over/underwhelmed with the workload. In addition, monitoring the utilization rates will help you re-plan and reassign tasks if needed. Both overutilization and underutilization can have adverse effects on the project. By defining appropriate variables to measure billable utilization and improving resource allocation, one will be better prepared for future projects.

Cross-train audit & accounting staff to combat resource planning bottlenecks

Like any other industry, accounting & audit projects may encounter sudden unplanned absenteeism from critical resources owing to illness, resignation, vacation, or a family emergency. As a result, it can create a bottleneck, delaying subsequent dependent tasks. To address such unforeseen circumstances, it is imperative to have a skilled, competent, and adaptable workforce ready to step up when a staff member is absent.

Implementing cross-training programs will help accounting personnel comprehend the department’s broader business operations, utilize their skills in different fields of operation, and work on multi-faceted projects. This will reduce the monotony of the job and ultimately boost productivity, and foster collaboration.

Implement resource optimization techniques during seasonal fluctuations

Projects in audit and accounting firms are seasonal, with a noticeable surge in workforce demand for auditors, accountants, and tax analysts, among others, throughout the year. However, these organizations are often ill-equipped to meet these sporadic spikes. This results in an overworked and demoralized workforce and substandard deliverables, causing a loss of billable projects and clientele.

Managers can address this issue by implementing optimization techniques to manage these seasonal demands effectively. If the timeline is flexible, one can implement resource leveling to adjust the start and end dates and balance the workload of resources. If the project timeline is too rigid, additional staff can be pulled in to assist with task execution. This will reduce workload and increase profitability.

Keep your consultants updated about the latest tax laws and policies regularly

Compliance monitoring is a quality assurance test that forms the crux of an accounting firm’s functions. Therefore, through formal training, accounting and auditing firms must ensure that their consultants stay updated with the latest developments, such as new, revised, or withdrawn regulations.

With this accurate information, the audit and accounting firm can help their future clients to respond to changes strategically rather than reactively. Also, prepare their customers to improve the effectiveness of their company’s policies and procedures. As a result, the accounting system, processes, and consultant’s performance will improve significantly.

Create the right mix of permanent and contingent workforce

During the financial year-end, an accounting consultancy firm often faces high demands for accountants, tax analysts, budget analysts, etc. If your company lacks the right mix of skilled workforce, it will result in loss of business opportunities, client dissatisfaction, hamper market reputation, and reduced profitability.

To combat this, managers should first analyze the nature of the project and then create the right balance of permanent and contingent consultants. This will significantly reduce the workload of critical permanent resources. They can also leverage a competent resource with a lower charge-out rate as long as the quality of the deliverables isn’t compromised. This will help keep resourcing costs in check, ensure deadlines are met, and keep the project budget under control.

Now that we’ve discussed effective ways to optimize audit and accounting firm resources, let’s look at how resource management software can help.

How can resource management software help in workforce optimization?

From the previous sections, it is evident that workforce optimization is a significant function that audit and accounting firms must implement. An advanced resource management solution can be a one-stop solution to plan, forecast, and build an optimized workforce.

The tool provides 360-degree visibility into the resource pool of audit and accounting firms and helps centralize information on a single platform.

The resource forecasting feature can identify resource demand ahead of time. This enables one to take suitable measures to bridge the demand vs. capacity gap, reducing resource shortages in the accounting and auditing firm and streamlining resource allocation.

Further, the tool provides the forecast vs. actual utilization reports and heatmaps, which give insights if a resource is being over- or underutilized. Accordingly, accounting managers can implement corrective measures and optimize utilization rates.

Moreover, using the modeling and simulation technique within the tool enable managers to arrive at the best possible outcome, and juggle resources across projects. Lastly, the tool provides real-time business intelligence reports with actionable insights to strengthen your decision-making process.

In a nutshell, resource management software can be a game-changer in optimizing the audit and accounting workforce.

Conclusion

Maintaining a large talent pool of highly skilled accounting and auditing consultants can be difficult in an industry that relies heavily on knowledge and experience. As a result, managers frequently face resource constraints, particularly in multi-project environments.

However, by combining the aforementioned resource optimization strategies with robust resource management software, auditing and accounting firms can ensure successful project delivery.

So, how do you optimize resources in your audit & accounting firm?

The Glossary

The SAVIOM Solution

SAVIOM is the market leader in offering the most powerful and configurable solutions for managing enterprise resources efficiently and effectively. Having more than 20 years of experience, this Australian-based MNC has a global presence in over 50 countries. It is also popular with more than 100 customers and helps them achieve their business goals. SAVIOM also has products for project portfolio management, professional service automation, and workforce planning software which can be easily customized as per business requirements.

However, if you still rely on cumbersome spreadsheets for project planning, you will lose out on real-time updates due to disparate data. Once you miss a deadline, the entire project can get derailed. It will lead to unsuccessful project delivery and also adversely affect the company’s bottom line.

As per Gallup, only 2.5% of companies successfully deliver 100% of their projects.

So, what can you do?

A visual overview of the project schedule can save you from these unwanted outcomes. It can show when a task will end, what the task dependencies are, and which resource is working on what task. This is where a Gantt Chart is helpful. It depicts the overall project roadmap with resource schedules on a single platform in real-time.

In this blog, we shall discuss Gantt charts’ various benefits and how they help in optimizing resources.

But first, let’s start with the definition.

What is a Gantt Chart?

A Gantt chart is a type of bar chart that illustrates the project schedule in detail. It is a visual representation of the project tasks/activities displayed along with the duration and milestones. It typically outlines all the tasks in the project systematically, shows the task interdependencies and the current schedule of those tasks.

A Gantt chart comprises a task list with a horizontal bar that can slide forward or back to capture each task’s durations. It eases a project manager’s workload by representing progress made against the resource(s) explicitly assigned to execute and complete it.

It was first conceived by Polish engineer-cum-economist Karol Adameicki in 1896, who called it the harmonogram. But it was largely unknown as it was written in Polish.

American engineer Henry Gantt’s version of the activity schedule eventually took off, inspiring an entire range of software suites to embed the Gantt chart component.

Now that we know what Gantt charts are, let’s understand the importance of this tool.

What is the importance of a Gantt Chart?

A Gantt chart equips you with a visual representation of each task to oversee the big picture of any project. You can use it to schedule, assign, and track project tasks from initiation to completion. It also lets you monitor the project progress and take necessary actions when needed. By recording your project’s tasks systematically against estimated completion dates, you’ll know which competencies within your project teams will be leveraged to smoothen out the workload.

As the project moves forward, a Gantt chart adjusts accordingly and provides a real-time updated project schedule to keep everyone informed of the progress.

Let’s acknowledge all the benefits that Gantt charts provide.

Benefits of Gantt Charts in Project Delivery

To provide a clearer view of why Gantt charts are so important in project management, here is a rundown of all the benefits of using them,

Eases visual depiction of interdependent tasks

In a project, almost all tasks are related to one another. For example, if ‘Task A’ does not get completed, you cannot start ‘Task B,’ and if ‘Tasks A and B’ don’t get completed, you can’t begin ‘Task C.’ Interdependencies along the project’s critical path are inevitable and very hard to manage.

You can easily handle these situations with the Gantt chart. These charts are used for documenting a project’s interlinked activities, dependencies, and scheduled duration. It also allows for schedule adjustments in case of occurrence of the following events:

• If a task starts earlier or later than expected.
• Critical tasks are running in parallel.
• If interlinked dependencies require the same (or different) quantity and quality of resources.
• If preceding tasks risk delaying the commencement of succeeding tasks.

These charts let you determine how resources can be shared optimally across multiple inflight projects. You can schedule them in a way that they don’t impact the critical tasks.

Therefore, the more you see, the better you can rearrange and accommodate in-tray tasks into the schedule.

Provides seamless project team collaboration

Gantt charts provide crystal clear communication. These charts incorporate resource timesheets against tasks to which individual staff has been allocated. This way, project teams are informed of each others’ efforts with a rundown of pending tasks, running or completed. It also eliminates the need for having a separate communication tool.

It also provides information on those tasks with extended timelines and tasks finished on time or ahead of schedule. The team’s availability, competencies, and utilization rates all add up to ensure no single staff is over or underutilized during the project.

Moreover, it prevents unnecessary rework or errors, with mission-critical work being assigned only to the right personnel. No task would risk overlapping or delaying succeeding work. It matches the existing resources and their capabilities such that their competencies are optimally utilized.

Measures project performance

Project managers often face difficulty in delivering complex projects within the deadline, and at times, they become overwhelmed. A Gantt chart helps improve time management. As you have a clear view of the timeline’s tasks, you can efficiently allocate time between the tasks and have a clear focus.

A striking advantage of using a Gantt chart is that it lets you measure the project’s progress and performance based on the number of milestones reached. It also measures whether the milestones were achieved before, after, or within the proposed date.

With a list of project milestones in hand, you can note the skill sets that helped in the overall task execution strategy. This makes it easier to plan for future projects while incentivizing performances and retain highly qualified resources for the long run.

Provides real-time scheduling data

A Gantt chart is used for tracking project schedules, thus ensuring high-priority and mission-critical tasks aren’t sidetracked. Your teams can then focus and collaborate to get the job completed. This stems from the fact that it lists tasks by their time sensitivity and criticality to let project managers create a priority log objectively.

Simply put, only when you see all scheduled tasks will you know if you’ve accounted for the project’s constraints in their entirety.

With real-time scheduling data, you prevent the risk of leaving lengthy and complex tasks for the last. More importantly, you can re-assess the availability of your resource pool if their schedule gets compromised due to market volatility or any other circumstances. The easy drag and drop feature of Gantt charts help you develop efficient scheduling.

These charts also allow you to record adjusted timelines following a task finishing earlier or later than estimated.

For example, if a specific tasks’ efforts are estimated to take five days but finish in 3 days instead, the next activity can be pushed up the queue to be worked on an earlier start date.

Generates resource utilization heatmaps

With Gantt charts, you can allocate the right resources to the right tasks as you have complete visibility of the whole process. The benefit of Gantt charts here is that they display a list of resource profiles by their quantity, location, relevant experience, capabilities, and competencies. You can view which tasks they’re on and prevent scheduling conflicts ahead of the curve.

With a resource utilization heatmap, you’ll retrieve instant insights on billable utilization. It lets you improvise future schedules created on a Gantt chart. The heatmaps are color-coded, and each color depicts the utilization rate of the resources. For instance, a green-colored heatmap shows that a resource has a 100-105% utilization rate, optimally utilized. In contrast, an orange-colored heatmap shows that a resource has a utilization rate of over 105%, which is over-utilized. Depending on that, resources are then shared or re-deployed based on their availability and ability to complete tasks efficiently.

Moreover, based on the heatmap, you can conduct resource leveling to free up over-utilized resources. You can extend the slack deadline as per the overwhelmed resource’s schedule. You can even bring in an under-utilized resource as a helping hand. That way, you can use the resources at an optimal level.

Improves data-driven decision-making

Gantt charts let you see things with a lot more clarity. As you can instantly see the progress of tasks, it helps you and the team members to develop a better understanding of how things are going in the project. It summarizes the complex data into simple information that helps in effective decision-making.

Gantt charts highlight essential tasks on a critical path. You can identify the tasks that have more impact on the project’s success and make decisions accordingly. Also, You will know what is working and what needs to be changed to achieve the goals. This not only brings more lucidity but the data-driven analysis also helps bring accountability.

How resource optimization can be done with Gantt Charts

Gantt charts help managers develop a graphical illustration of the schedules that help plan, coordinate, and track resources as per the tasks involved in the process. It allows them to utilize the resources at an optimal rate.

Here is how project managers can use Gantt charts to ensure resource optimization:

Create a WBS and identify task dependencies

The work breakdown decomposes project activities into several smaller components. You’ll also see the resources needed.

You can document all known activities to determine which tasks are mutually exclusive or interlinked. This way, you’ll estimate the timeframe of the activity schedule and determine the ones that overlap or remain independent of the chain’s preceding activities. You can evaluate milestones at every stage and prioritize tasks based on the critical timeline.

Complete the Gantt Chart along with the critical path tasks

The critical path is the sequence of tasks that must be completed to make the project successful. A task is considered critical if:

• It has no slack/float.
• It has start and end dates that cannot be delayed.

The critical path identifies essential deadlines and the activities which must be completed on time. It helps in defining task duration and the whole project timeline. To identify essential path tasks, project managers use the critical path method (CPM) algorithm.

The critical path method includes:

• Identifying tasks and their interdependencies.
• Estimating project duration
• Identifying critical path tasks
• Planning and scheduling necessary activities

Classify tasks with slacks

Float or slack defines how much a task can be delayed without impacting the project schedule. Calculating the float can help you distribute resources more effectively.
Critical path analysis detects all of the critical and non-critical tasks involved in the project. It helps define the amount of float or slack time associated with each to arrive at a reasonable overall deadline. Moreover, it enables you to define and optimize resource schedules.

Prioritize experienced resources to critical path tasks

After defining the critical path, you gain insight into which tasks should be prioritized. Based on that, you can allocate the necessary resources. You can deploy resources based on their experience and capacity. That way, you can balance your team’s workloads while avoiding the under or over-utilization of resources.

You can allocate critical path tasks to resources that are more experienced and would not require much guidance. On the other hand, you can assign the tasks with slacks to less experienced resources. Also, the resources can be appropriately managed and utilized to their full potential, ultimately increasing their productivity.

Deliver projects using an optimal number of resources

Gantt chart ensures that you achieve the optimization of project resources with balanced scheduling and workload management. You can perform leveling or smoothing based on the time sensitivity of projects to ensure optimal resource health index. It enhances the overall performance of the project team, resulting in the timely delivery of projects.

Conclusion

Gantt charts have been in existence for hundreds of years and have served several thousands of projects. There’s a simple reason for its popularity; it visually depicts time-sensitive tasks, activities, and events to get the project delivered in the shortest duration possible.

The Gantt chart has interested experienced and newly qualified project professionals alike. Given that the right resources prevent cost overruns and delays, playing around with a Gantt chart template gives you a fair idea of how resource and project schedules should stick to the plan.

It’s time to watch your projects come alive with Saviom Enterprise Resource Management’s Gantt scheduler.

SAVIOM Solution

SAVIOM has over 20 years of experience helping multinational clients manage their resources efficiently and effectively. With over 20 years of experience, this Australian-based MNC has a global presence across 50 countries and has helped 100+ clients meet their specific business goals. Saviom also provides tools for project portfolio management, professional service automation, and workforce planning software. So, SAVIOM can help your business to establish an efficient system geared towards your specific business challenges.

They can implement the right optimization technique to achieve this while ascertaining that the critical tasks of high-priority projects are accomplished first. This allows them to prioritize the tasks in the right order of importance and get work done without affecting the resources’ health index.

Optimizing resources is, therefore, a vital link between maintaining the workload and regulating the project tasks.

This article emphasizes how resource optimization can streamline the task management process.

Before we delve into the details, let us first get the basics right,

What is resource optimization?

Resource optimization is a comprehensive technique that aligns the project implementation and completion dates with resource availability. It is a holistic approach that promotes employee productivity, organizes task prioritization, and ultimately prevents employee burnout. 

Given how it strikes the right balance between efficient resource and project management, resource optimization is widely accepted and used by project managers. 

Here is a brief description of the two major processes used to optimize resource:

What are the resource optimization techniques used?

Managers can form a balanced project resource schedule in two ways. For one, they can adjust the project deadline according to the critical resource’s capacity and availability. For two, they can pull in more resources to get an extra set of hands or redistribute the booked resources’ schedule to accomplish the tasks without deviating from the timeline.

These two techniques are known as: 

• Resource leveling
• Resource smoothing

• Resource Leveling 

According to the Project Management Body of Knowledge (PMBOK) Guide, resource leveling is defined as ‘A technique in which start and finish dates are adjusted based on resource constraints to balance the demand for resources with the available supply.’

In this case, project deadlines are flexible, and hence managers have the liberty to move around the timeline to match the resources’ schedule. An ideal example is a research project, where the project timeline is adjustable. 

• Resource Smoothing 

Resource smoothing is also known as time-constrained scheduling (TCS). As the name suggests, it is used when project deadlines are stringent and cannot be adjusted. Thus, while designing the schedules, project managers assess the resources’ workload. If they are prone to overutilization, managers redistribute their workload or pull in additional resources to balance it out. 

Unlike resource leveling, resource smoothing has a restricted project deadline. A banking project is a prime example of resource smoothing as managers cannot move the end dates at any cost. 

Now that the concept of resource optimization is understood let’s get a clear picture of task management and its importance,

What is task management and its importance

Every project is a conglomerate of several subdivided tasks where-in each holds a weightage on the overall project’s success. 

Defining each task’s timeline and prioritizing them based on their importance and interdependency is known as task management.

Monitoring and tracking the progress of these tasks is also a vital component of the project planning process. 

In a nutshell, task management is a subset of the project management process where every task’s lifecycle is diligently managed and evaluated. It plays a very crucial role in taking the project to the finish line.

The Work Breakdown Structure, which lays the foundation of a project, is the first stage of task management. After subdividing the project into several steps and further into small chunks of tasks, managers meticulously analyze every task and its impact on the overall project. Based on that, they organize them and state the required competencies and number of resources to execute them. 

Post scheduling, the project begins, and the next step is to track the performance and progress. The WBS works as the planned value, and the actual time and cost spent on the tasks are compared against it. In case of any discrepancies, the decision-makers form an action plan to course correct and eliminate further hurdles. 

All these steps form the cumulative process of task management. Thus, it is an incumbent project management technique without which it is likely to come to a grinding halt. 

The main question is, how are resource optimization and task management interwoven? 

Here is how, 

How does resource optimization streamline task management?

As discussed earlier, giving precedence to critical tasks due to resource constraints is at the crux of resource optimization. Task management focuses on the same aspect, and resource optimization catalyzes this process before project initiation, which further helps in smooth execution and delivery.  

Here are five ways how it boosts task management: 

Facilitates prioritization of tasks

Let’s suppose you are working on an app development project, and you require a coder, designer, writer, and tester to accomplish the tasks. However, you realize the coder does not have the bandwidth to take up the task at the planning stage. Since coding is the first and most important step to begin app development, you can’t move forward. 

What would you do? 

If the timeline is not restricted, you adjust the dates around the resource’s availability and begin the project. In this case, the first step is to form the critical path method (CPM). It is a roadmap that depicts the most vital tasks of the project, and managers focus on accomplishing them first. This is an instance where resource leveling is used to avoid overwhelming the critical resource. While doing so, the CPM also orders the tasks chronologically based on their urgency. So it’s a win-win for both the processes where resource optimization facilitates task management.

Ensures timely delivery of projects

Considering the same example here, let’s assume you have a set deadline for the project, but your coder is working 10hrs a day for a week, i.e., 2 hours more than the standard working hours. This indicates that he/she is overallocated and is prone to burnout which can lower productivity. Now, one option is to analyze how many hours the task requires. If it needs 60 hours to finish and can be completed in 10 days, you can redistribute the workload and book him/her for 6 hours each day. 

The second option is to hire two less-experienced or cost-effective global resources to lend a helping hand to the critical performer. These steps optimize the resource schedules and ensure that no resources experience fatigue. At the same time, it ensures the project is completed on time one way or the other. This allows managers to stick to the documented plan and finish tasks as projected. 

Enables Seamless Resource scheduling 

After all the tasks are detailed and their skill demand in the WBS, the next step is to find the competent resource, study their availability, and allocate them work. This is known as resource scheduling. However, managers optimize the workload before booking the employees for future tasks. It allows them to keep a check on the resources’ health index and productivity.  

Thus, resource optimization rules out overworked employees’ possibilities and lowered productivity, eventually eliminating probable delays and budget overruns. All this collectively makes resource scheduling a breeze since all the corrective measures and permutation and combination occur before forming the final project resource schedules. 

Increases transparency and eliminates discrepancies

Resource optimization promotes formulating a precise Critical Path Method, a definitive framework that portrays all the critical tasks in the right order. This document, along with the WBS, is accessible to all the stakeholders, managers, and the team. With the advent of technology, firms are equipping intuitive project management tools to allow automated updates in real-time. For example, if you mobilize a resource’s schedule on your scheduler, it will be reflected in everyone’s system instantaneously. 

This encourages a transparent culture across the enterprise and keeps everyone in the loop. When each member is informed of the project’s progress, it minimizes the room for discrepancies and promotes smooth collaboration. Being a task and interdependency-intensive process, efficient task management banks on these factors. Moreover, when employees’ well-being is taken into account, it eases the process of project delivery. 

Prevents employee burnout 

A Deloitte survey revealed that 77% of the workforce has experienced burnout at their current workplace. 

Thus, the motive to balance out workloads is to ensure employee’s mental and physical well-being. If your resources are not at their best, it will also project on your task performance and deteriorate the quality. Therefore, project managers are responsible for ensuring that every resource and their skill are utilized maximally while keeping their work distribution under control. 

If one task is not at par with the quality standard, it will have a domino effect on the following ones. Thus, managers deploy resource optimization before loading the workforce. It allows seamless performance and elevates productivity which leads to a successful task management process. 

Final thoughts

Optimization techniques and task management co-survive symbiotically in the project resource management realm. The ways mentioned above shed light on how resource optimization can rationalize the overall task management of a project. It allows employees to perform at the best of their capabilities and do justice to each given task. 

In the employee-driven era, resources’ health holds the center stage. Thus managers must put an extra effort to ensure optimal utilization. If you couple both these processes, you will successfully ascertain a quality project delivery and sail through the volatile and competitive market. 

Have you given a thought to implement resource optimization already?

The SAVIOM Solution

SAVIOM is the market leader in providing an Enterprise Resource Capacity Planning solution. With over 20 years of experience leading the market, Saviom is actively used by over 15 highly-esteemed global companies worldwide. The tools within the suite include project portfolio management, professional service automation, and workforce planning software. It also entails supporting solutions to schedule equipment and assets seamlessly. Re-engineer operational efficiency with a system shaped around your business!

Customer experience has garnered quite some attention with ever-increasing competition. Now, it’s not just the products and services that are competitive differentiators but, a customer’s experience across their entire journey with the brand is a real deal. This can only be achieved when your resources are well-trained to address every customer’s needs and requirements.

The efficient management of a large talent pool is necessary to maintain quality standards and to increase productivity. A business that takes an active interest in bettering or upping their customer experience stands a better chance of winning a legion of followers, who can advertise and promote your brand favorably.

Let’s understand how resource management can help you maximize customer’s satisfaction:

Why leverage resource management?

Managing resources in an organization helps you boost performance and productivity on high-priority work. After all, they are the backbone of your enterprise. Following certain resource management practices enables you to help them grow professionally and also increase the profitability of your business. This has benefitted enterprises in several aspects from reducing resourcing costs to increasing billable utilization.

Here are some ways to improve customer experience

Allocation of right resources

Whether it’s about giving a demo of a product, or providing regular maintenance or resolving some technical issues; every task requires a certain set of skills. In order to maintain the quality and standard of work, it is essential for managers to deploy the right resources to the right job to maintain the quality of work. This ensures that competent resources are catering to the right customers which enhances their experience thereby increasing profitability.

However, it’s not as easy as it looks. Several factors can cause resource availability to fluctuate, such as time-off requests, recurring work, personal emergencies, attrition, and ongoing training. A line manager has to stay aware of resources competencies and their availability. With technological wonders, this has become easier. A sophisticated resource management software that can give you complete visibility of various resource attributes is an ideal solution to accomplish this task. This also keeps you from over-allocating or under-allocating tasks to the resources which later prevents burnouts or bench-time.

Forecasting volume

Being proactive to meet the future demands of an organization is a necessity in an ever-growing competitive industry. It’ is imperative to take corrective actions ahead of time to avoid any roadblocks in the future. Forecasting resource demands well in advance strengthens resource management strategies. When you are aware of your resource’s availability ahead of the curve, it’s easier to plan pipeline projects and bridge the capacity versus the demand gap.

With technology getting smarter day by day, there are concerns about using it right. This is where resource planning templates come in handy. While limited, it mimics the basic functionalities of a more sophisticated resource management tool and serves as a test environment for you to track inflight tasks and the resources that are assigned to them. Strategic resource management provides you information on both project and resource vacancies which simplifies the search for the right skills for time-sensitive work. If you assign a low or high skilled work, it costs more and eats up precious time, both of which are counter-productive to fielding customer queries and resolving them. Moreover, you can cater to future customer demands or requests based on predicted call volumes and book the right resources for the same.

Collaborative dynamics

Collaboration at the workplace is a sign of efficiency as it brings out the best in two or more individuals working together. Efficiency is a crucial aspect of an organization to drive productivity and performance. Team collaboration gives you an opportunity to learn from your teammate’s positive and negative outcomes. Not only that, it keeps you from deviating from your set targets as work is allocated to those who can deliver it on time. You can improvise on your problem-solving approach when varied minds and skillset work together.

Talking about customer experience, when there’s a unified platform to collaborate with employees and understand their bandwidth, work can be distributed evenly. This ensures that customer’s issues are addressed and resolved on time. When teams are working in a coalition, customer insights can be shared via a common platform that can help employees meet their expectations. Furthermore, it also breaks silos within departments and brings together people to resolve the issues.

Scheduling

Employees prefer to plan ahead of time to strategize their schedules and manage time accordingly. Scheduling their tasks in advance keeps them informed and does not take them off guard. You get complete visibility of your talent pool and tasks assigned to them. This helps you streamline project management or customer calls which fastens the service and improves their experience.

It is time-consuming when you have to assign a recurring task to an employee again and again. To avoid this, using advanced resource scheduling dashboards can help you allocate a recurrent task all at once. For instance, a particular employee or customer representative has to cater to the maintenance of the product every month. A resource manager can book him, or her for the same by just one tap! Besides this, it also enables you to allocate them for a repetitive task. Hence, timely delivery of customer services increases customer loyalty and turns the tide in your favor.

AI-based training

AI has permeated every industry today. From data collection and processing in the marketing department to on-boarding in the HR department, AI has transformed every industry and holds value in saving costs and time tremendously. With the emergence of innovations every day, keeping your resources informed and training them to stay updated is of utmost importance. Besides reinventing your organization, it will also improve the everyday experiences of customers by analyzing the data.

As far as the benefits go, AI is helpful to managers in arranging training sessions for employees who lack certain skills or need polishing for their existing ones. There are virtual learning sessions that can be arranged for employees to boost their performance. This not only strengthens their profile but also help your business grow.

The Takeaway

Improved customer experiences help businesses to stand out in the industry. After all, no matter how attractive your pricing is, and how useful your product is, what counts is your approach to bettering the customer experience. Polling them for feedback lets you improve and release a product in the future that they’ll be likely to want. To keep them for a long haul, it’s necessary to cater to their requirements and satisfy them with commendable services. This can only be achieved when your workforce is organized and well-trained. Using advanced tools, you can manage these resources well to boost their performances which in turn will reflect in customer experience.