Teams that are new to the resource allocation process tend to face challenges in identifying and deploying the best resources effectively. And without it, bottlenecks and setbacks may arise, negatively impacting the project's outcome.
Project managers dedicate a significant part of their day to assigning project resources and adjusting tasks as changes occur, ensuring the timely delivery of projects. A well-designed resource allocation strategy ensures that the best resources are deployed where they are most needed, maximizing the project's success.
Resource allocation in project management is about identifying available resources for the project, whether that includes the team, tools, or budget. Dividing resources effectively ensures that the impact of project resources is maximized while prioritizing the team's larger goals.
Unfortunately, effective resource allocation is a challenge many project managers still face, with over 60 percent of resources being poorly directed in ways that do not support the businesses' goals. Therefore, the responsibility lies with the project manager to ensure the best use of available resources within the project schedule.
Steps to Allocate Resources in Project Management
Jumping straight into resource allocation is a recipe for confusion. Therefore, the first step is to identify the top-priority projects that are predicted to increase the profitability of your organization.
Look for projects that spotlight the business' core objectives and guarantee big returns. At this stage, project managers should define the project objectives, deliverables, timelines, and stakeholders to find out which project will provide the biggest return on investment.
Here's an example of how a marketing agency can allocate resources effectively:
Steps | Description | Example | |
Identify High-Priority Projects | Determine projects which can have a significant impact on the firm's core objectives | Project 1: Digital Advertising Campaign | Project 2: Social Media Campaign for Product Launch |
Define Project Scope | Outline each project's objectives, deliverables, and timelines | Project 1 deliverables and timelines: 10 targeted ads – 5 months | Project 2 deliverables and timelines: 15 targeted ads – 4 months |
Prioritize Key Projects | Prioritize the project that aligns most with the agency's strategic goals or based on their urgency | Project 1 will require five months and show results after five months Project 2 will require four months and start showing results after the first month | |
Project 2 should be prioritized first on account of its higher ROI | |||
After establishing priorities, the next step is to identify the resources necessary for each project phase. Estimating these resources for each task allows teams to plan proactively. Depending on the project's needs, resources may include skilled personnel, technical tools, training materials, and budgets.
If resources are not available when required, they can delay the project timeline and may affect the bottom line. Preemptive planning helps teams identify any potential constraints or limitations and bypass them, ensuring a streamlined project delivery process.
This step involves carefully considering the stakeholders' availability, skills, and project budget to ensure everything is aligned. For instance, the most skilled teams and stakeholders should be assigned to the most demanding and important tasks or projects.
Moreover, project managers should also remember that over-committing people who already have a stacked schedule can cause delays and work quality issues. The goal of this stage is to distribute your resources in a way that optimizes productivity and ensures a balanced workflow.
Project managers can also use resource management software to plan and allocate resources to a specific project or task, considering the team members' expertise, skills, and availability.
Pro Tip: When assigning resources, seize the opportunity to allocate people to projects that spark their interest. It can improve overall project performance.
No matter how well a project is planned or how well resources are aligned, things can change in real time. As a project manager, it's important to remember that resource allocation is an ongoing process that requires continuous adjustments.
Some team members might be overloaded with ad-hoc tasks, while others may unexpectedly have available time and capacity, or certain equipment may be sitting unused. This is why project managers should regularly monitor and adjust their resource utilization plans to ensure that no assets are being overburdened or underutilized.
Unexpected challenges, such as delays in prior project phases or emergency leave for key team members, can impact progress. Quickly identifying and addressing these issues minimizes their effect on the project's outcome.
Review the resource allocation process to identify what went well and where improvements are needed. This stage is about comparing the initial plan to the project's actual performance, taking into account any adjustments made along the way, and assessing how those decisions impacted outcomes.
This evaluation and optimization should focus on both the strengths and areas for improvement in the allocation process, ensuring project managers get better insights for future projects.
Project managers can follow various strategies to create an optimal resource allocation plan. Here are some examples of resource allocation practices that can help streamline your project performance.
Critical Path Method
A critical path is a roadmap to the project's successful execution, as this strategy time-boxes each stage of the project, keeping it on schedule. The critical path in a project plan identifies the shortest possible timeline needed to finish the project. Project managers can use Gantt Charts to map out project dependencies and visually identify the critical path.
Resource Leveling
This method involves addressing resource over-allocation by allowing project managers to adjust the project schedule, including starting and ending dates. Resource leveling is based on resource availability, and it reduces the risk of overburdening the team.
A variety of project management tools are available, including a feature called 'Workload Chart'. This feature enables project managers to visualize over-allocation and modify tasks accordingly.
Resource Smoothing
Resource smoothing helps optimize resource demand while keeping the project within its timeline. Project managers can establish custom fields and reports to track resource utilization, ensuring it stays within target limits.
Resource allocation goes beyond basic task management and sets your project up for success from the start. It is a strategic approach that ensures tasks are aligned with the available resources, leading to a smoother workflow.
Effective resource allocation demands a thorough understanding of the project's scope and consideration of resource availability. It also requires the ability to anticipate potential changes that could impact the timeline and budget.
Project management software like Asana, Wrike, and ClickUp offer all the essential features to handle the complexities of resource allocation. Using a powerful platform can make a meaningful impact on the project's outcome.