A value-driven resource management<\/a> is designed to help a business reduce project resource cost<\/a>, increase billable\/strategic utilization, beat market volatility and more. It can potentially become a key component of business profitability and sustainability. <\/span><\/p>\n This article would help you understand how a value-driven resource management<\/a> can become a major game-changer for the PMO<\/strong> and become a profit centre<\/strong> for the business.<\/p>\n Traditionally a PMO<\/a> is seen as an administrative group<\/strong> setting up the project management<\/a> standards and generating management reports. But in the last few years, a PMO has started evolving into a value centre<\/strong>. In this journey, modern resource management has become a key player. It can potentially deliver these values to the business.<\/p>\n These benefits might sound unreal. But they are definitely achievable by a modern resource management solution<\/a><\/strong>.<\/p>\n These are the capabilities<\/a> of a value-driven resource management solution<\/strong>, which can help a business reduce overall project resource cost by 10-30%<\/a>.<\/p>\n Minimize under\/over skilled resources on projects<\/strong>: Both over and under-skilled resources increase the cost of the project. A modern resource management solution<\/strong> can help in identifying and allocating the right person<\/a><\/strong> with the right level of skill and experience.<\/p>\n Utilize cost-efficient global and local resources<\/strong>: An enterprise-level resource management solution<\/strong> can help you in allocating the right mix of local and global resources<\/strong> to the project. It can reduce resource cost significantly.<\/p>\n Minimize last-minute hiring cost and compromises<\/strong>: With proper resource capacity planning<\/a>, one can forecast the future resource requirements<\/strong> and be proactive in acquiring the right resources at the right cost ahead of time.<\/p>\n Minimize hiring\/firing wastage<\/strong>: Resource forecasting<\/strong> can help in identifying resource shortage ahead of time<\/strong> so that the internal staffs can be retrained or hire consultant or freelancer resources for short durations. It reduces unnecessary wastage due to hiring and firing.<\/p>\n Minimize Project Onboarding and Offboarding Time<\/strong>: An efficient and accurate resource planning<\/a> and forecasting<\/strong> can help a PMO minimize onboarding and offboarding time.<\/p>\n Maximizing billable utilization<\/a><\/strong> of resources in a professional service<\/a> business<\/strong> is the key to profitability and sustainability<\/strong>. Similarly, maximizing strategic utilization<\/strong> of the resources is key to achieve the strategic goal of the business.<\/p>\n Improving billable and strategic resource utilization<\/a><\/strong> requires deep foresight into the overall utilization of resources<\/a><\/strong>. It is challenging work, especially in a matrix organization with a continually changing resource demand. But a modern resource management solution<\/strong> can help you get a real-time foresight<\/a> into future resource utilization<\/strong>. So that corrective actions can be taken ahead of time.<\/p>\n Market volatility<\/a><\/strong> in the last few years is continuously impacting the viability of every business. A smart resource capacity planning<\/a> process<\/strong> can help you forecast a shortage or excesses of the resources and help you take proactive action<\/strong>.<\/p>\n Bridge Resource Shortage Proactively<\/strong><\/p>\n Forward Plan and Utilize Excess Resources<\/strong><\/p>\n In a matrix organization structure<\/strong>, it may be challenging to acquire a particular skilled resource in one location compared to others. With an enterprise resource management solution<\/a>, a PMO can easily identify the person with the right competencies<\/strong> and utilize him\/her in any part of the world. At the same time, a high skilled person also can be used to provide training<\/a> and to a person on the bench.<\/p>\n A value-driven resource management solution<\/strong> provides end-to-end work management<\/strong> along with collaboration<\/a><\/strong> to ensure that employees are working productively onsite and remotely. This solution can help a business:<\/p>\n Resource management<\/a><\/strong> has evolved a lot during the last few years. Matured businesses have adopted well-developed and defined practices<\/strong> to get the best value out of their enterprise resources. Following are the best practices<\/a> adopted across the industries.<\/p>\n Enterprise Resource Scheduling: Replace Silos with a Single Plan<\/strong> Workforce Optimization: Allocate Right Resource to the Right Project <\/strong> Resource Utilization Forecasting: Maximize Billable and Strategic Utilisation<\/strong> Resource Capacity Planning: Minimize Shortfall or Excesses of Resources<\/strong> Pipeline Project Management: Forecast Proactively for Future Projects<\/strong> End-to-End Project Forecasting: Gain Real-Time Foresight into the Future<\/strong> Team Collaboration: Streamline Communication and Reduce Chaos<\/strong> Resource Modelling: Simulate and Improve Decision Making<\/strong> Business Intelligence: Real-Time Multi-Dimensional Data Analysis<\/strong> Even though the fundamental principles of resource management<\/a><\/strong> may be the same, but every business has a set of unique requirements for the software. It depends upon the industry and type of business. So, selecting the right resource management tool<\/strong> is a complex process that requires a number of careful considerations.<\/p>\n Following are some of these criteria that can be used to evaluate the right resource management software<\/a>: –<\/p>\n User Interface and User Experience<\/strong> Manages Complexity of Matrix Organization Structure<\/strong> Needs to be Configurable, Expandability and Scalable<\/strong> Capability to Reduce Resource Cost<\/strong> Provides Real-Time Business Intelligence<\/strong> Integrates with Other Legacy Systems<\/strong> Provides High Return on Investment<\/strong>![\"Transform](\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2020\/09\/MicrosoftTeams-image-1.jpg\")
<\/a><\/p>\nHow Value-Driven Resource Management can be a Game Changer for the PMO?<\/h2>\n
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<\/a><\/p>\nReduce Overall Project Resource Cost by 10-30 %<\/h3>\n
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<\/a><\/p>\nIncrease Billable and Strategic Utilization by 10-20%<\/h3>\n
Futureproof Your Workforce Against Market Volatility<\/h3>\n
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Leverage the Skills of Resources Across Matrix Org. Structure<\/h3>\n
Improve Employee Communication and Productivity<\/h3>\n
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<\/a><\/p>\nBest Practices of Enterprise Resource Management Software<\/h2>\n
\nReplace silos of spreadsheets<\/a> or home-grown tools<\/strong> with a single real-time resource plan across the whole enterprise. Establish a single source of truth about resource allocations<\/a> to the projects or non-project work such as BAU, Support, admin, operation, and more.<\/p>\n
\nIdentify cost-effective competent resources<\/strong> with a click of a button across a matrixed organization structure so that the right resource can be allocated to the right project at the right time at the right cost.<\/p>\n
\nGet foresight into the future utilization of resources<\/strong> with real-time forecasting<\/a><\/strong> and analyze how effective they are. Accordingly, move employees from non-billable work to billable or strategic work. Improvement in effective utilization<\/strong> has a direct impact on the profitability of the business,<\/p>\n![\"Workforce](\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2021\/02\/Resource-Forecasting-Guide-for-Project-Managers-Read-More-Post-1.png\")
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\nForecast shortfall and excesses of resources<\/strong> ahead of time by identifying the gap between resource capacity against demand<\/a><\/strong>. Accordingly build strategies to bridge this capacity gap by juggling around project timelines, retrain current employees or hire a contingent workforce.<\/p>\n
\nForward plan resource requirements<\/a><\/strong> for future or pipeline projects. Start identifying and acquiring cost-efficient competent resources ahead of time. Avoid last-minute hiring<\/strong> and reduces the overall cost of the project.<\/p>\n![\"How](\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2020\/06\/4-easy-steps.png\")
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\nResource supply and demand<\/a> scenario<\/strong> change fast in almost every business. So, it is critical to have a real-time forecasting capability<\/strong> and get an early warning<\/strong> at every stage of the project life cycle. It helps in early decision making and take corrective actions proactively.<\/p>\n
\nEnable team collaboration<\/strong> with the modern-day solution. It can seamlessly bring remotely distributed team<\/a> on a single platform<\/strong>. Minimize waiting period and complete task efficiently in a lesser period.<\/p>\n
\nUse what-if analysis<\/strong> to get the best possible project resourcing<\/a> outcome<\/strong> within the existing constraints. It helps you in moving around the project\u2019s timelines based on priorities and put low-priority projects on hold.<\/p>\n
\nGet real-time business intelligence<\/a><\/strong> for dynamically changing business scenarios. Do multi-dimensional analysis as per the specific requirements of stakeholders and get a granular view of data with configurable filters.<\/p>\n![\"Why](\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2019\/03\/10-Best-Practices-of-Resource-post.png\")
<\/a><\/p>\nHow to Select a Resource Management Software<\/h2>\n
\nAn essential part of software selection is that the end-user of the product likes user interface and can navigate through the system effortlessly without going thru too many clicks.<\/p>\n
\nMatrixed organization<\/strong> structure has multiple reporting lines making resource identification, allocation<\/a>, utilization very hard. So, the software should be capable of overcoming challenges of such complexities and manage resource efficiently<\/a><\/strong> and take care of the needs of different stakeholders.<\/p>\n
\nThe software should be highly configurable<\/strong> to meet the specific needs of the business without compromise so that the business would have a competitive edge<\/a><\/strong> against the rivals. The software should also be expandable and scalable<\/strong> as per the growing needs of the business.<\/p>\n
\nResource management software<\/strong> should help your business to do multi-dimensional forecasting<\/a><\/strong> so that the business can get real-time business intelligence<\/a> to improve business performance, profitability, and productivity.<\/p>\n
\nResource demand<\/a><\/strong> changes every minute in real life. So, it is crucial to have real-time business intelligence<\/a><\/strong>, i.e. reports, analytics, and dashboards. It enables the management taking decisions based on the latest information<\/p>\n
\nMost businesses have already invested in enterprise-level systems. They hold quite a bit of data required by a resource management solution, i.e., resource profile, competencies, project detail, etc. So, the resource management system<\/a><\/strong> must integrate seamlessly<\/a><\/strong> with existing applications.<\/p>\n
\nSelect a tool that provides a high return on investment<\/strong> in a short time. It should be possible to have a small phase of implementation without lots of investment so that the risk of investment and change management can be minimized.<\/p>\n
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