What Is Resource Management Process?
Resource management is the process of planning, scheduling, and managing resources. Specific resources, such as people, equipment, materials, and capital, are needed to complete a task or project.
Resource management focuses on ensuring the right resources are available, avoiding conflicts, and controlling costs. A project manager or resource manager typically handles the resource management process. Resource management delivers project success and promotes a healthier workplace when done well.
What Is an Example of Resource Management?
The resource management process shifts with each project. Resource management in professional services revolves around talent, finances, and time.
For example, a consulting firm might assign experts to key tasks, plan meetings and deadlines, and budget for travel and software. The goal is to ensure the project hits its goals.
This example illustrates how one-way resource management can function. However, the approach depends on the project requirements and resource management tools at your disposal.
For example, resource management in project management might involve managing inventory for construction projects and adjusting schedules for any delays.
Why is Resource Management Important?
Resource management is an important process for any business. That is why one in ten businesses are focused on using their resources more efficiently. Solid resource management drives growth.
It’s especially key for professional services. According to Prosymmetry’s State of Resource Management, 29% of efforts go into managing resources effectively in consulting. Auditing is not far behind, with 26% of their resources dedicated to it.
It is easy to see why. Project and resource management has proven to:
- Cut down on waste and extra costs
- Keep projects on schedule
- Stay within budget
- Help businesses grow
- Deliver quality work
- Balance workloads to prevent overwork
- Build trust with clients
- Match resources to project needs
- Improve planning for future projects
- Adjust to changing demands
Useful resource utilization means using every asset to reach your project and resource management goals. It helps you get the most out of what you have.
What Are the Five Types of Resource Management?
Resource management is a broad term for the methods used to handle and optimize people, money, time, technology, and physical assets. Each type of resource management focuses on making the most of a valuable resource. It also comes with its own resource management techniques.
Human Resource Management (HRM)
A human-centered approach to resource management is key. This means putting people in roles that play to their strengths and creating a positive work environment. Human resources take care of this by recruiting, hiring, training, and evaluating to make sure everyone is playing to their strengths.
Human capital is more important than ever. The talent competition is heating up and 50% of organizations expect it to get even more challenging. However, 36% of HR leaders feel their human resource management process and strategies are not hitting the mark, especially in professional services.
Upland PSA can help manage human resources. It pairs skills with projects, manages schedules, and tracks revenue. Plus, it prevents burnout by balancing team workloads.
Financial Resource Management (FRM)
Keeping a tight grip on cash flow and working capital is essential for businesses. FRM does just that. It ensures your team has the financial resources needed to grow and invest in opportunities. Smart FRM is also more important than ever, with competition increasing.
Upland PSA takes the complexity out of financial management. It gives you real-time insights into your financial resources and accurate project accounting. Say goodbye to revenue leaks and invoicing problems. Keep your profit margins strong with global support and automated forecasts.
Inventory and Equipment Management
Only 43% of small businesses actively track their inventory, surprisingly. Even more, 21% do not monitor their stock at all. This can lead to problems like stockouts and equipment downtime for industries like manufacturing and retail.
Proper inventory and equipment resource management helps avoid these issues. It ensures you have the right stock levels and working equipment when you need them most. There are four main methods businesses rely on to manage the inventory resource management process:
- Just-in-Time (JIT): Keeps inventory low but can struggle with sudden demand spikes.
- Materials Requirement Planning (MRP): This relies on sales forecasts, but inaccuracies can be problematic.
- Economic Order Quantity (EOQ): Finds the optimal order size and ideal for steady demand.
- Days Sales of Inventory (DSI): Measures how quickly inventory turns into sales.
IT Management
IT resource management covers all your technology bases—hardware, software, and IT staff. It is focused on making sure these resources are acquired, maintained, and used efficiently. IT management also handles data quality, security, and compliance.
However, IT projects often struggle. Only 0.5% are truly successful, according to McKinsey. While 59% of projects stay within budget and 47% finish on time, only one in 200 hits all the goals. Many projects also exceed their budgets by 75% and run late by 46%. Some even overshot costs by up to 700%.
Effective IT resource management meets these challenges head-on. Businesses can get the most out of their technology by handling project resources intelligently and fixing issues early on.
Time Management
Did you know the average worker spends 51% of their day on unnecessary tasks? Time management aims to fix that. It is focused on setting clear goals, scheduling project tasks, and keeping track of project progress.
Upland PSA takes the guesswork out of time management. It automates approvals and tracks entries, so you can create accurate invoices and see project costs. You can also manage everything on the go and integrate smoothly with financial systems.
What Are the 5 Steps for Resource Management?
Effective resource management is always in motion. It’s an ongoing process that runs throughout a project lifecycle, from planning to completion. However, there are five key steps that any resource manager or project manager should follow.
- Define Project Objectives
Start by outlining your project’s goals and objectives. Make sure they’re specific, achievable, and in line with your overall vision. Then, set specific deadlines and deliverables.
For instance, if you are managing a resource plan for a marketing campaign, your objectives might include assigning tasks to team members, meeting deadlines, and tracking the budget to reduce costs by 10%.
- Plan and Budget
Next, map out your resource management plan and project timeline. Take time to break down your objectives into actionable steps and schedule them.
Create a detailed budget that covers costs for project resources, salaries, and other expenses. This helps you stay on budget and keeps your project moving forward as planned.
Remember, smart resource planning is non-negotiable, especially if you are a resource manager. Setting up a resource management plan and budget ahead of time will help you sidestep project delays and make sure you have what you need to reach your goals.
- Identify Necessary Resources
It’s challenging to predict all your resource requirements. However, do your best to determine how much time, money, and workforce you will need and when. Pinpoint the specific technical skills, resource requirements, equipment, and resource availability that your project requires.
Be realistic about what you need. This will help you avoid falling into the trap of overpromising and underdelivering. 58% of businesses do not have a defined list of skills for their roles and 44% of project managers see a lack of resources as a top challenge.
Resource management software can help here. Upland PSA simplifies resource forecasting by helping you find the exact skills you need to complete project tasks. It keeps your skills list fresh and gives you insights to make smart staffing and project decisions.
- Allocate Resources
The heart of resource planning is putting the right people on the right project tasks. Though it might sound simple, this can be quite a challenge. In fact, 41% of businesses still struggle with visibility into available resources.
The key to resource allocation is to understand your team member’s strengths and limitations. Avoid overloading anyone and keep the work quality high.
Upland PSA simplifies your resource scheduling and resource allocation by clearly indicating who is available and what they can handle. This ensures you always have the right people on board.
- Monitor and Follow Up
The job is not finished once project tasks are assigned. Make sure to keep an eye on project progress along the way. Watch metrics like billable hours and try to get a clear picture of future revenue. This ongoing monitoring helps you stay within budget and on top of things.
Resource Management Challenges
Resource management comes with its own set of challenges. Even top resource manager professionals find forecasting, planning, and resource allocation tough. Watch out for these resource constraints if you are building a resource management plan.
Lack of Visibility into Team Member’s Availability
Not knowing who’s available and what skills your team has can hold up planning and get in the way of your project’s success. Upland PSA helps you avoid this. It makes it easy to see your team members’ availability and skills, so you can match the right people to the right projects.
Managing Resources Across Multiple Projects
According to HBR, there are some upsides to balancing several projects. However, we all know it can be challenging to juggle everything at once.
For example, if you are coordinating a marketing campaign while simultaneously launching a new product, you might struggle to assign your designers and writers without overloading them. Upland PSA helps you stay on top of it all by ensuring you are using the right resources efficiently.
Overlooking Resource Capacity Planning
If you do not pay attention to your team’s full resource capacity, you could end up with overworked members or underutilized resources. Skipping those check-ins on their capabilities means you might push them too hard or let some resources go to waste.
This may lead to high turnovers. To avoid this, enlist the help of Upland PSA. It tracks workloads and adjusts assignments to keep things balanced and avoid burnout.
Skill and Capability Gaps
Having available resources is not enough. They need the right skills. Filling roles with people who lack the necessary skills can cause project delays and drive costs up. Upland PSA helps you bridge this gap. It finds the skills and certifications you need and matches them with your project team’s requirements.
Resource Hogging
Some team members might take more project resources than they need. This leaves others short and affects performance and morale. Upland PSA spots these imbalances and helps create a fairer approach to resource allocation. It tracks how well resources are used and makes sure they are distributed fairly.
Unrealistic Deadlines and Expectations
Overly ambitious deadlines can throw even the best teams off track. They create unnecessary pressure and hurt quality. Upland PSA helps you set realistic deadlines by showing your team members’ capacity and the project’s needs. This way, you can balance the workload and keep standards high.
Poor Communication and Collaboration
Communication issues can lead to mistakes and stress, especially in remote setups. When team members cannot align their goals and tasks, it just adds to the chaos. Upland PSA improves communication by sharing key performance indicators and keeping everyone on the same page.
Resource Management: Looking Ahead
Resource management is shifting gears. Companies are paying more attention to their people and adjusting to flexible work setups.
They are using real-time data to make smarter decisions and integrate systems for a better overview. Sustainability is also climbing up the resource management priority list.
Upland PSA is helping businesses handle these changes. It simplifies resource management by providing real-time insights into availability, skills, and demand. You can assign the right resources to the right projects. Book a demo.
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