{"id":1957,"date":"2021-05-04T00:00:35","date_gmt":"2021-05-04T00:00:35","guid":{"rendered":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/?p=1957"},"modified":"2023-12-20T20:17:19","modified_gmt":"2023-12-20T20:17:19","slug":"pmo-resource-management-challenges-need-know","status":"publish","type":"post","link":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/pmo-resource-management-challenges-need-know\/","title":{"rendered":"PMO resource management challenges: What you need to know"},"content":{"rendered":"

Today\u2019s hyper-competitive era is driven by knowledge-intensive enterprises<\/strong>. Thus, managing and leveraging the talent pool<\/a> is the essence of your project-driven organization<\/strong>. These employees are not just a cost; they are human capital<\/strong>– an investment that should be managed and regulated with utmost diligence.<\/p>\n

However, it\u2019s not feasible to do so without a central governance structure. This is when a Project Management Office (PMO)<\/a> comes into the picture.<\/p>\n

A PMO<\/a> is the nerve-center<\/strong> of an organization that propels the projects to the finish line within time and budget. With a solid framework in place, PMO takes care of all the nitty-gritty pertaining to the projects.<\/span><\/p>\n

Naturally, this task presents umpteen challenges before the successful execution of the deliverables takes place. The challenges or roadblocks<\/strong> can be in the form of the inability to form an organized workflow, communication gaps<\/strong> between different managerial bodies, etc. One of the most prominent challenges that can surface and impact the project catastrophically is resource management<\/a>.<\/p>\n

In fact, according to the recent Center for Business Practices (CBP)<\/a> research, \u201cResource management challenges are the top issues faced in project management today.\u201d<\/strong><\/em><\/p>\n

This article emphasizes all the potential bottlenecks that come through a PMO\u2019s way while managing resources<\/a>.<\/p>\n

\"Resolve<\/a>
\nBut before we delve into the details, let\u2019s have a glimpse of other challenges PMO encounters,<\/p>\n

The challenges faced by PMO<\/h2>\n

Setting up a PMO demands significant investment<\/strong>, due to which many firms and decision-makers are skeptical. So the foremost challenge project managers<\/a> face is getting the executive buy-in<\/strong>. Convincing the stakeholders to form a definitive body that can serve as a value center in the long haul is daunting.<\/p>\n

The next hurdle in their way comes in the form of program and<\/strong> project prioritization<\/a>. When you are just taking the initial steps, every project seems feasible to execute. Of course, that\u2019s not the case. This only happens because of a missing<\/strong> project selection criterion<\/a> in place.<\/p>\n

For instance,<\/strong> you have two projects in the pipeline<\/strong>, one that offers significant ROI and another that is not high in revenue but adds value and other intangible benefits. Now, given a choice, every manager will have a different perspective and prioritize accordingly. This may, however, create chaos as the decision is based on intuition and personal experience rather than exact numbers.<\/p>\n

A PMO<\/strong> can overcome this challenge by developing an organized framework<\/a> to select the project. A classic example<\/strong> is integrating a cost-benefit analysis<\/a> to make a decision based on facts and figures. Once this is tackled, the next stage is project<\/strong> planning <\/a>and execution<\/strong> based on priority. This is when the managers face an ordeal in finding the right resource, forming realistic schedules, etc.<\/p>\n

\"Project<\/a><\/p>\n

The question is, why is project resource management<\/a> given so much weightage in deciding the PMO\u2019s success?<\/p>\n

The importance of resource management in PMO<\/h2>\n

A PMO is a focal point<\/a> that is responsible for every project and its successful delivery. It handles the execution of multiple projects<\/a> at once. Let\u2019s take an example;<\/strong> three independent digital marketing projects are going on in your firm. All of these projects demand a senior data analyst.<\/p>\n

However, you only have one data analyst whose schedule is thinly stretched and is unavailable to take up the job. What would you do? If you keep all the projects going in parallel, you end up burning out the employee, or if you prioritize only one project, the others will come to a halt. Only if you had taken a systematic approach<\/strong> and foreseen this could you take charge of the situation with diligent planning<\/a> in advance<\/strong>.<\/p>\n

This proactive planning<\/strong> ensures every project runs smoothly and has the right talent while keeping the resources\u2019 health<\/strong> in check. That\u2019s what makes resource management an incumbent process of a value-centric PMO<\/a>. If not done efficiently, it can have severe repercussions on the project\u2019s overall health<\/strong>.<\/p>\n

\"The<\/a><\/p>\n

Here is the list of consequences you might encounter,<\/p>\n

How does poor resource management impact the project\u2019s progress?<\/h2>\n

What is poor<\/strong> resource management? The inability to meet the project resource demand<\/strong> before its onset, suboptimal utilization of the workforce, inadequacy in<\/strong> allocation, and scheduling are amongst many other practices that constitute poor resource management.<\/p>\n

All this cumulatively influences the project\u2019s course<\/strong> and strategic vision<\/strong> in the long run. For instance<\/strong>, assigning a less experienced resource<\/strong> to a critical task will delay the timeline<\/strong>. Similarly, if you allocate multiple projects<\/strong> to one highly specialized employee, he\/she might juggle between the deadlines, which will eventually lower productivity. This scenario will also result in a declined project\u2019s performance and quality.<\/p>\n

Only if the project\u2019s resource demand was taken care of during the planning stage and the workforce\u2019s schedule<\/strong> and roles were analyzed meticulously<\/strong> could this be avoided. This is how inefficiency in<\/strong> managing resources can create havoc in project management.<\/p>\n

It\u2019s now time to take a deep dive into resource-centric challenges,<\/p>\n

What are the resource management challenges PMO encounters?<\/h2>\n

Most of the resource management challenges<\/strong> stem from not having dedicated software in place. Organizations are expanding their horizons and dispersing across geographical boundaries, and employees from different locations cohesively work on one project.<\/p>\n

Of course, it\u2019s not feasible for a manager<\/strong> to keep a tab on every resource and their performance<\/strong> manually when separated by distance and time zones. A tool can solve these issues, but the firms who don\u2019t implement the tool or sometimes don\u2019t use it the right way face many hurdles.<\/p>\n

Here is the list,<\/p>\n

Lack of visibility into project resource demand<\/h3>\n

The PMO\u2019s primary responsibility is to ascertain that every project is executed with due diligence and the quality is at par to meet the client\u2019s expectations<\/strong>. To do that, one must know what skillset and how many resources are required in advance. Otherwise, last-minute firefighting<\/strong> can lead to wrongful hiring<\/strong> and affect the project\u2019s quality and output.<\/p>\n

However, PMOs often lack clarity on the project resource demand<\/strong>, leading to eleventh-hour hurdles and further delays. The previous example<\/strong> of digital marketing projects needing the same resource at the same time and managers were in the dark until the last hour is a prime example of this predicament.<\/p>\n

\"How<\/a><\/p>\n

Sub-optimal resource allocation due to siloed data<\/h3>\n

The most crucial step in project planning<\/strong> is allocating the right resource<\/a> to the right task.<\/p>\n

But, as mentioned earlier, the PMOs that don\u2019t invest in an intuitive solution<\/strong> rely on cumbersome spreadsheets<\/a> to maintain the resource-data repository.<\/span><\/p>\n

The drawback of these traditional tools is that they don\u2019t update data in real-time<\/strong>. So managers won\u2019t know who is available or who is booked on another task. In fact, this might even lead to double-bookings causing<\/strong> overallocation<\/a> of work. Thus, sub-optimal allocation<\/strong> due to the absence of centralized data inventory is a real challenge for PMOs.<\/p>\n

Inadequate resource utilization because of poor prioritization<\/h3>\n

Supposedly, you have four projects in the pipeline<\/a> and have to fulfill the resource demand accordingly. One project<\/strong> aligns with your strategic goal and brings ROI, another does not offer tangible benefits but adds value, one does not add value, and one\u2019s resource demand is not aligned with your talent pool\u2019s expertise. Naturally, the priority should be the one that is strategically aligned and brings ROI<\/strong>.<\/p>\n

But, due to a missing<\/strong> framework<\/a> to select the projects, you prioritize the one you see first, i.e., the one which is not beneficial at all and end up scheduling the resources<\/a>. In this case, neither the firm is benefitted from the project nor are the resource\u2019s skills utilized in the right place. Thus, a substandard system to precede projects<\/strong> leads to inadequate<\/strong> resource utilization<\/a>.<\/p>\n

\"What<\/a><\/p>\n

Unorganized resource requisition workflow<\/h3>\n

A resource manager<\/strong> receives countless<\/strong> resource requests<\/a> in a day from project managers. They often fulfill the request on a \u2018first come, first serve basis\u2019<\/strong> instead of completing the demand for the high-priority projects. This happens when PMO does not follow an organized resource requisition workflow<\/strong>.<\/p>\n

This can even lead to internal conflicts<\/strong> and ego clashes<\/strong> between two managers. Moreover, the projects that require immediate attention are sidetracked, and the ones that are not time-sensitive and could be prolonged are executed first. An absence of this workflow<\/strong> can impact the bottom line<\/strong> negatively.<\/p>\n

Inability to future-proof the workforce against evolving demands<\/h3>\n

The current market is evolving as we breathe. The prominence of novel technology<\/strong> and business trends<\/a> demands innovation<\/strong> and out-of-the-box expertise. The onus is on managers to stay ahead of the curve and stay abreast with the upcoming innovations and skillset. It will allow their existing<\/strong> workforce to be future-ready <\/a>with technology trends.<\/p>\n

For instance<\/strong>, you have hired two software engineers<\/strong> who master java-based coding. But the current market demands<\/strong> someone fluent in R and Python. Since you didn\u2019t foresee this, your resources would become a liability, and eventually, you will have to get rid of them. If you had foresight into the future market opportunities<\/strong> and demands, you could train<\/a> or upskill<\/strong> the same talent. This inability to future-proof the existing workforce can lead to unplanned attrition<\/a>, increased overhead costs, benched resources,<\/strong> and so on.<\/p>\n

\"Comprehensive<\/a><\/p>\n

Lowered productivity due to lack of insight into various metrics<\/h3>\n

Imagine you are managing a project<\/strong> only to realize towards the end that the cost has exceeded the budget<\/strong> and the timeline is delayed. What would be your first thought? Naturally, if you had seen this coming, you would have taken the right action in time. The fact is managers can stay updated in real-time<\/strong> about any resource metric<\/strong> starting from availability<\/a> to<\/strong> utilization<\/a> using the tool to control the project lifecycle<\/strong>.<\/p>\n

Those who do not invest in this solution<\/strong> fail to get these instant updates that compromise quality and cause delays. For example<\/strong>, you schedule a resource<\/a> for a specific task. But, you are unaware that he\/she is booked already, which implies you overallocated him\/her<\/strong>. Since the resource\u2019s schedule is stretched thinly, he\/she will be unproductive and eventually burned out<\/strong> due to longer working hours and so on.<\/p>\n

Ineffective bench management without accurate forecasting<\/h3>\n

An ideal PMO<\/strong> aims to significantly minimize the bench time<\/strong> to ensure their human capital generates enough revenue or adds value rather than idling. To achieve this, one must stay ahead of the schedules<\/strong> and know which resource is likely to end up on the bench.<\/p>\n

However, many PMOs still struggle<\/strong> to get accurate predictions<\/strong> and rely on mere guesstimations. This is because they don\u2019t have an advanced forecasting solution<\/a> in place.<\/p>\n

Due to inaccurate predictions or lack of foresight into bench reports<\/strong>, some employees end up spending more time than stipulated on the bench. It eats up from the firm\u2019s revenue and wastes resources\u2019 valuable skills and time.<\/span><\/p>\n

These are some of the challenges a PMO faces<\/strong>, which can negatively impact the projects\u2019 health<\/strong> and even defeat the purpose of a value-centric PMO<\/strong>.<\/p>\n

To minimize this catastrophe, managers must implement the<\/strong> right resource management software<\/a> and follow the best practices<\/a> to achieve exceptional results.<\/p>\n

\"Top<\/a><\/p>\n

In conclusion, here are some tips and tricks to overcome these hurdles,<\/p>\n

Takeaway tips to combat these challenges<\/h2>\n