Find out how the Resource Allocation Manager manages the distribution and management of resources within a company. Find out how they ensure that resources are used efficiently.
Resource allocation is a crucial element of project management. With limited resources available, poor choices can lead to increased expenditure and delivery delays, which can irritate customers. Unfortunately, it’s easier than you think to make the wrong decision.
Managers have a lot to do when it comes to allocating resources. People with seniority and skills exist. A budget is in place. Time is available. Taken separately, all these resources seem manageable, but that’s just the theory. In practice, these resources lead to dependency, are affected by unforeseen circumstances and eventually run out.
In this blog, we’ll look at the difficulties faced by resource allocators in project management, and suggest some solutions.
What is the role of a resource allocation manager?
Organizational managers are responsible for a wide range of tasks. On a day-to-day basis, they supervise the work of their staff, draw up plans, interact with the various stakeholders and carry out a multitude of other management tasks. For each of these responsibilities, the manager must play a certain role, which requires a particular set of skills.
Decision-making, information gathering and processing, and interpersonal and informational responsibilities all involve interaction with colleagues.
The main responsibility of a resource allocation manager is to ensure that resources are used effectively and efficiently, and that their distribution optimizes the organization’s overall productivity and profitability. This may involve choosing which activities or projects to prioritize, allocating resources to different teams or departments, and ensuring that resources are used in the least costly way possible.
There are many methods of resource allocation, and the one chosen depends on the type of organization and the resources being managed. For example, in a manufacturing company, the resource allocation manager will be responsible for determining how to use equipment and raw materials in the most efficient way possible, whereas in a service organization, the focus will be on the optimal use of human and financial resources.
The need to reconcile resource allocation with the demands and objectives of the many stakeholders within the organization is a crucial element of resource management. This may involve balancing the demands of several teams or departments with those of customers, investors and other stakeholders.
Any successful business needs to be able to allocate its resources effectively to ensure that they are used as efficiently and effectively as possible, and that the organization can achieve its goals and objectives on time and within budget.
So who is empowered to allocate resources?
The project manager is generally responsible for organizing and allocating resources, particularly in small and medium-sized companies. However, in larger companies, resource allocation may be overseen by entire departments, and some companies have the option of employing a resource manager. Resource managers manage the resources of several projects at once, unlike project managers, who are responsible for the projects they are actively working on.
It’s also important to note that a manager can assign resources to tasks and projects in two ways:
Project distribution
In this case, you assign each team member to a particular project. If you’re not sure what tasks you need to accomplish, this approach will work.
See How to allocate resources to projects for some recommended reading.
Assigning tasks
When you have assignments that can be immediately delegated to your team, such as a customer’s list of requirements that can be turned into tasks, this type of resource allocation occurs.
How does project resource allocation work?
The role of resource manager encompasses a whole range of responsibilities, all aimed at optimizing company processes. As resource allocator, the manager’s mission is to allocate resources in such a way as to optimize the organization’s productivity and inventiveness. This means determining project needs and allocating resources within the company’s budget and schedule. The resource allocation process, which includes the following steps (which can also be used as guidelines), is the responsibility of a manager playing the role of resource manager:
Organizing the task
To allocate resources effectively, the project manager needs to know what needs to be done on the project. He must assign tasks to the project, set objectives and designate control points.
Collect data by responding to these requests:
- What is the project deadline? How much time have you allocated to each project task?
- What skills are required to complete each task? Who is this person in your team?
- Which tasks depend on which others?
Determine the resources needed to accomplish each task.
Draw up a list of available resources
Financing is, of course, the most obvious resource to allocate. But “resources” are not limited to financial assets. Essentially, it’s everything you need to get the job done. For simplicity’s sake, all resources can be divided into two categories:
- material resources. These are tangible resources, such as money, personnel, machines, software, raw materials, buildings and physical space.
- non-tangible assets. These are intangible resources, such as ideas, time, talent and intellectual property.
Examine the availability of resources
Not only are resources scarce, they are often non-existent. When it comes to people and time, the situation is particularly difficult. That’s why, when allocating resources, it’s important to ensure that they are available.
- Will anyone be taking a vacation?
- Who works part-time?
And don’t forget that sick leave is always a possibility and difficult to predict.
Be prepared to replace someone with the required skills if they are not available. If no one else in the area has the necessary skills, you can call in a contractor or self-employed worker.
This can also happen if there aren’t many team members with the required expertise. If a project is not urgent, you can always call in a contractor or put it on hold.
There are many reasons why someone may not be available. Company priorities are subject to change. To minimize surprises, the best thing to do in every scenario is to assess availability in advance.
Allocate work
Make sure the team members you assign have the necessary skills. As a senior manager, you may not always know who does what and who has the right skills. In this case, consult the team leaders.
In addition, it’s essential that project managers delegate tasks with professionalism and objectivity. Don’t entrust complicated tasks to inexperienced friends or beginners. It will backfire.
Consider the possibility that some of your staff may also be working on numerous projects. This means they won’t be able to give your work their full attention, so you may need to hire extra help.
Choosing a resource allocation tool
Software called resource allocation tool, often known as a resource management tool, helps project managers plan, allocate and control resources, as well as generate reports and track progress. Software solutions, as opposed to spreadsheet files, promote transparency by enabling managers to automatically monitor their team members’ schedules in real time.
Finding the right resources for each job and ensuring that no-one is left on the sidelines are two major benefits of using resource allocation tools. In this way, projects can be completed on time and on budget. Although resource allocation software is very useful, many companies continue to track projects manually using spreadsheets, often basing their judgments on contextual factors.
The benefits of resource allocation techniques are obvious:
- Resources are easily visible. Resources are instantly visible to you. For example, you can quickly monitor a team member’s sick leave using the app and assign a replacement with the required qualifications.
- No conflicts with resources. Double-booking a resource wastes time and money. When you double-book the same resource for the same date, the resource allocation tools point this out.
- People are assigned to workflows based on their skills. In the absence of a tool, you could assign people to workflows based on their reliability rather than their skill level. Conversely, a dedicated application helps you avoid making this mistake by clearly indicating whether the person is competent for a given job.
Keeping pace
A resource allocation manager may be faced with a number of unforeseen changes as the project progresses. You may discover that the scope of the project has changed, that you’ve overloaded your staff, or that bottlenecks are causing resources to run out. Whatever the case, you need to remain adaptable and ready to make adjustments. Redistributing resources can create opportunities, so it’s not always a bad thing.
Distribute resources appropriately
Please complete the following information:
- Talk to your group. Inform each of them of the change and its effects on them individually. Don’t put too much pressure on your teammates. Find someone else to complete the task if the person whose talents match yours is working on another project. Otherwise, wait until the person has finished his or her other project.
- Evaluate the project you’re working on. Evaluation is an excellent opportunity to learn from your mistakes.
- Examine the project: were there any delays? How did the group manage the assignments? Were team members overloaded with work? What can be improved in the future?
It goes without saying that the integration of data extracted from the resource allocation software simplifies evaluations.
How can resource allocators succeed?
Resource allocation has many blind spots. While resource allocation may seem simple in theory, it is undeniably difficult in practice. A manager must take into account a series of factors that will influence the progress of a project if it is to be successful.
We have drawn up a few guidelines that should help managers to allocate resources correctly:
1) As soon as you notice a change, don’t put things off.
Although never definitive, plans are extremely important. In all likelihood, you’ll have to redistribute your resources.
For example, your customer may suddenly decide to add extra functionality and features. You’ll then have to hand the project over to other developers, and you’ll have to find out where to find them if you don’t have enough talent of your own.
But know when to say no. A change in demand, usually involving financial and time constraints, can often lead to a shift in project scope. Any new request means a change in the scope of the project, requiring more resources. So don’t over-promise if resources are limited.
2) Optimize your use of project resources
Many things need to happen in the right order, so you need to be aware of this and plan accordingly. For example, confirm that the resources you book for your project can start working on their part as soon as they are booked; otherwise, it will be a waste of time and money if they have to wait for other people to finish their work before they can start.
A back-up plan should always be put in place, and excessive dependence on a single resource should be avoided wherever possible.
When allocating resources, don’t focus on just one aspect of the business. Consider the project as a whole. The use of sick leave by a team member is just as important.
3) Monitor time actually spent on projects
Time must be well managed. If you don’t keep track of time, your staff may take a week to complete a task that only takes a day. So keep an eye on the workload your teams actually devote to projects.
When estimating the duration of each project activity, remember that human beings are living beings who take breaks to have a coffee and interact with their colleagues. They are paid for this time, even if it doesn’t immediately advance the business. This is non-billable time for your company.
Think about how you use your human resources. This will help you accurately estimate the time needed for each task.
4) Plan frequent checks
Decide on a specific time to check your resources. Check that no one has been overloaded with work. Talk to your staff to find out what’s really going on and if they’re having problems. Once again, resource allocation software would be very useful.
Your work process will continually improve if resource allocation is regularly reviewed.
5) Know the skills of the resources available to you
To improve resource allocation, find out about your staff’s skills and background. Create a profile for each employee in your organization. The more information you have, the easier it will be to assign the right staff to the right tasks.
Having a consolidated resource pool with information on employee capabilities and skill levels is highly beneficial. For example, a tool like Teambook enables you to search for resources according to skill level, location or any other attribute entered as a tag in the user file.
6) Avoid over- or under-letting
Over-allocating means assigning an excessive amount of work. As human capabilities are more difficult to quantify than financial or other resources, this is particularly true where human resources are concerned. When a person is given too many tasks or projects, stress levels rise, performance declines and, in some situations, attrition occurs. Check out our article on this subject.
And don’t forget that it’s not possible to work at full capacity all the time: in addition to working directly on the project, your staff will also have to perform administrative tasks and check e-mails, which will take time. A rule of thumb is that 80% of your time should be spent on projects, with the remaining 20% used for other work-related tasks.
7) Take note of your staff’s seniority
The people with the most valuable experience and skills on your team are known as “MVPs”. Hiring them can be expensive, but it usually pays off, as they outperform average employees and often save the organization money.
These “MVPs” should be allocated to the highest-priority initiatives, such as those likely to generate significant benefits or which are essential for long-term strategic planning.
Conversely, be cautious about entrusting experienced staff with tasks that do not require their specialist knowledge. This will increase expenses without necessarily improving the project.
Finally, when allocating resources, avoid assigning junior staff who are not qualified to carry out a particular task. Costs may be reduced, but the quality of their work may be compromised. What’s more, they are likely to have difficulty meeting deadlines.
8) Regularly review resource allocation
Don’t hesitate to reallocate resources when you identify areas where this would yield better results.
An effective project manager must devote a great deal of effort to resource allocation. Make sure you use resource allocation tools, plan ahead and conduct thorough studies of the current situation to avoid getting lost. This will enable you to allocate resources more successfully and devote more time to other managerial responsibilities.
