Resource management can make or break professional services firms. With the industry projected to surpass USD 10.17 trillion by 2031 and grow 6.4% annually through 2032, firms are investing more in resources to stay ahead. Yet, many firms are in over their heads with resource management.

Common mistakes like poor strategic planning, misallocating staff, or overloading professional services teams can add up. Overspending on overtime and last-minute purchases can quickly send projects over budget.

Here are common resource management mistakes firms often make and how to sidestep them. Addressing these issues head-on can boost productivity, keep your team on course, and help maintain a competitive edge in a growing industry.

Common Mistakes That Occur in Resource Management

Managing resources is no easy feat, and getting it wrong can cost you. Poor resource management techniques and planning often lead to delays, burnout, and budget overruns.

1. Not Clearly Defining What You Need

Throwing darts blindfolded isn’t wise. However, many professional services firms are doing just that with their resource management. They struggle to define what they need and waste resources, including the specific resources required, the required resources, and quality benchmarks.

As a result, project managers often scramble to find the right resources when projects start. They’re simply flying blind without clear resource requirements. As a result, resources get wasted, budgets are overshot, and clients are left frustrated. When firms don’t define their needs upfront, they face challenges that could easily be avoided. 

This is especially true when it comes to talent – which is the most valuable resource in professional services. The RMI found that only 60% of companies have a solid skills database for accurate resource planning. This is concerning, especially since 92% of people use technology to store skills-related data. 

When you rely on resource management software like Upand PSA, you reduce the risk of gaps. It helps you clearly outline and document your resource requirements to meet project demands. Overall, Upland PSA takes the guesswork out of resource management. 

2. Not Taking Project Risks Seriously

Risk management is often overlooked. Many organizations grapple with combining risk management and resource management.

This is a problem. If you don’t catch potential risks early on, they can snowball into bigger issues and get in the way of successful project completion.

These are some common resource management risks to keep on your professional services radar. 

• Resource shortages slow progress when there aren’t enough team members or materials.
• Skills gaps happen when team members don’t have the right abilities for specific project tasks.
• Overloading staff with too many tasks leads to burnout and reduced productivity.
• Underutilization wastes time and resources when team members or equipment aren’t fully engaged.
• Resource conflicts cause delays when multiple projects need the same resources.
• Dependency on key individuals disrupts timelines if critical team members aren’t available.

Upland PSA simplifies risk analysis. It can help you assess risks early on and develop resource management strategies to mitigate them. This preventive action avoids reactive measures when issues crop up. 

3. Wasting Time with Inefficient Resource Allocation

If you notice that some employees are overloaded while others have too much downtime, you might be dealing with resource misallocation. 

This means you’re using too much capital and labor for the output you produce. It’s a common resource management mistake–companies often pour too many resources into some areas while ignoring others. This is an issue in professional services, where misallocated resources get in the way of client satisfaction. 

When professional services teams don’t focus on the right tasks, it creates a ripple effect. Projects lag behind schedule, quality suffers, and clients start to feel undervalued. 

For example, if a team member skilled in data analysis gets stuck with administrative tasks, your resource management might suffer. Meanwhile, another employee with a lighter workload could handle those admin duties instead. 

This misallocation delays project deliverables and prevents clients from getting timely insights. As a result, client satisfaction and trust in the firm suffer. Engagement can also drop when team members aren’t playing to their strengths.

Don’t let this happen to you. McKinsey found that 83% of executives believe allocating resources is key to reaching their goals. Poor resource allocation impedes growth. That’s where Upland PSA comes in. It helps you match the right people with the right skills to the right tasks. 

4. Skipping a Resource Management Plan

You can’t play it by ear in resource management – every project needs a solid plan. Your teams and projects will likely fall apart without one. A Deltek report reveals that 49% of agency leaders want to hire talent but struggle with resource planning.

As a result, huge projects fail because they lack the appropriate resources to succeed. They also lack a clear picture of who’s doing what and how resources are used.

This is an issue in professional services. Skipping a plan leaves white space in the project, which leads to poor execution and missed deadlines. More visibility into resources is needed to make matters better. Clients start to take notice – subpar deliverables make them doubt the firm’s ability to meet their needs. 

Upland PSA makes it easy with tools to create and manage a clear resource management plan. This keeps your team organized and laser-focused on achieving results. 

5. Failing to Keep Up with Changing Business Needs

Keeping up with changing business needs is a challenge that dates back to the late 1940s. The pressure is on, and businesses are expected to adjust quickly. 

The market is always in flux, and client expectations are changing. Standing still won’t get you anywhere but lead to inefficiencies and missed opportunities. 

Take the COVID-19 pandemic, for example. Businesses had to pivot quickly, and they learned the importance of being flexible in resource management.

On top of that, the ongoing skill gaps—driven by declining birth rates and changing workforce dynamics—show how important it is to be adaptable. This is especially true in professional services, where you can’t afford to stand still. Professional services rely on specialized skills and expertise to deliver results. 

Upland PSA helps you bend without breaking. You can easily adjust resources in real-time to stay competitive. It helps you closely monitor resources to prevent shortages and optimize performance. 

6. Getting Resource Forecasting Wrong

Accurate forecasting helps you steer clear of resource shortages and last-minute scrambles. That’s why 62% of businesses see the value in automatically forecasting skills gaps, according to Prosymmetry. However, it isn’t easy. 

On top of that, the RMI discovered that 88% of resource management issues stem from poor forecasting. The result? Significant slowdowns and increased costs. This is a real issue in professional services, where clients expect the whole package. They expect the quality to be high, deadlines to be met, and costs to be kept in check. 

Upland PSA steps in here. It analyzes resource forecasting by looking at historical data and current workloads. This data-driven decision-making approach to resource management helps you understand your current and future projects’ resource needs.

7. Overlooking Resource Performance Metrics

You can’t improve what you don’t measure. Too often, professional services firms overlook resource performance metrics and KPIs, thinking they take too much time or that they can manage projects without them. They then encounter missed project deadlines, budget overruns, and stalled projects.

Metrics and KPIs like resource capacity utilization, project completion rates, and employee productivity offer valuable insight into what’s working and what isn’t. Professional services need this oversight. Firms miss key resource management opportunities without it. 

Upland PSA provides clear KPIs to help you track resource performance. Regular reviews and analytics make it easy to spot areas for improvement. That way, you can adjust resources on the go. 

8. Lack of Visibility Across Projects

Prosymmetry found that 56% of organizations say their resource management tools are scattered. While this can work for some, most find it creates a lack of visibility across projects. 

When professional services teams work in silos, misunderstandings and resource management bottlenecks can easily crop up. They often end up duplicating work or missing important tasks. 

Prioritizing becomes a struggle without clear insight into resources and workloads. These challenges erode client satisfaction. Teamwork and good communication are key to keeping the firm’s reputation strong.

Upland PSA brings everything together. Its centralized platform helps you track resource allocation and workload across projects. Clearing up resource management visibility issues means teams can work together effectively. 

9. Forgetting to Gather Feedback from Resources and Clients

Resource management isn’t a solo effort. It relies on a steady stream of input from team members and clients. However, many organizations ignore feedback. 

This kind of oversight takes a toll on resource management and project success. Engaging with your team and clients shows you value their opinions, which has several benefits. You improve job satisfaction and strengthen team morale and commitment to your projects.

Research by Gallup backs this up. It tells us that strong communication and feedback loops lead to better dynamics and improved outcomes. So, do your best to make sure everyone feels heard. Great professional services come from strong client ties. When clients trust you, relationships are stickier, and profits increase. 

10. Neglecting Tech Implementation

Many companies recognize the value of resource management technology. According to RMI, 92% of respondents use tools to manage skills-related data. However, most still wrestle with implementation, which leads to errors and poor resource allocation.

Upland PSA offers tools that simplify resource planning, tracking, and forecasting. Organizations can reduce manual errors and optimize resources by automating these tasks. 

Teams can focus on strategic initiatives instead of getting lost in administrative tasks. This approach helps everyone work smarter – not harder.  Professional services teams can focus on delivering client value instead of being weighted down by routine tasks.

11. Choosing the Wrong Resources to Assign

Choosing the wrong resources can derail even the best-laid plans. Poor selection often leads to project failure and wasted resources. 

Upland PSA helps address this gap by maintaining an updated employee skills and resource availability overview. This information allows managers to assign the right resources to the right projects. 

Implementing resource management techniques and a strong resource management system is essential for avoiding the common pitfalls of poor resource selection. Professional services firms can deliver better results when the right people and tools match client needs.

Get the most out of your organization’s resources and see better results by leveraging resource management software tools like Upland PSA.

12. Overcommitting Resources 

Planning with 100% capacity typically backfires. Employees can’t always work at total capacity, and overcommitting resources is a recipe for burnout. Unfortunately, many professional service organizations find themselves in this situation. 

When employees are stretched too thin, productivity plummets, and the quality of work suffers. Professional services teams struggle to meet deadlines and get stuck in a cycle of stress. This can lead to higher turnover and costly mistakes, ultimately hurting client satisfaction. 

Fortunately, Upland PSA offers a solution by encouraging realistic resource planning and levelling. It takes necessary breaks and other commitments into account. With this insight, your team can maintain a sustainable workload. 

13. Ignoring Project Dependencies

In the resource management process, it’s essential to understand that the whole is greater than the sum of its parts.

Every task depends on one another, and those dependencies dictate the overall flow of a project. Ignoring or underestimating them will get you in trouble. You’ll run into resource management bottlenecks that slow everything down. 

For instance, 72% of professional services businesses track overtime hours. This often shows the fallout from poorly managed dependencies. Employees put in extra hours when you don’t allocate resources well. This drives up non-billable hours, which you want to keep at bay in professional services. 

Upland PSA helps visualize these dependencies, making it easier for professional services teams to understand how tasks are interconnected. 

14. Micromanaging Your Team

Micromanagement kills productivity. Resource management is about getting the most from your team, and hovering over them gets in the way. 

Many professional services firms fall into the trap of over-monitoring aspects like timesheets. When employees feel scrutinized, they might manipulate their reports, which can affect the accuracy of their data and create a toxic work environment. 

Relying on status indicators like “available” or “idle” can give a false sense of productivity. This can lead managers to set unrealistic expectations, overwhelming the team. 

Then there’s ‘sign-off stalking’—when managers get too caught up in counting approvals, they miss the bigger picture. This often pushes employees to focus on quick wins instead of the tasks that matter.

Professional services rely on collaboration. As firms expand globally, they need to integrate diverse teams and systems. Collaboration helps them do this. It also helps team members share specialized knowledge. When teams know how to communicate, they’re in a better position to 

Remember, letting go is key to growth. Trust your team, and you’ll build a more positive and productive atmosphere.

15. Not Keeping Everyone on the Same Page

When communication breaks down, teams can easily overlook important tasks. Nearly nine out of 10 employees say poor collaboration is a major cause of resource management failures.

Discussing weekly or bi-weekly goals regularly can help keep resource management on track. Research shows that teams engaging in these conversations are nearly three times more likely to feel confident about reaching their targets than those discussing quarterly goals.

Managers who hold one-on-one meetings also see positive results. They are 1.5 times more likely to retain their teams over six months. These meetings help build trust and clarify things, making employees feel valued. 

Remember, great service starts from within. When employees feel supported, they engage more, leading to better client interactions and stronger relationships.

Using tools like Upland PSA strengthens transparency around your business objectives. When teams understand why they matter, they’re more likely to achieve tangible results. Clear communication is one of the most important resource management strategies. It’s the key to keep everyone aligned and motivated.

What Is Poor Resource Management in Professional Services?

Poor resource management occurs when firms fail to fully use their limited resources—like time, money, and people—which often leads to missed deadlines and lower profits. As a result, professional services firms struggle to keep their heads above water, and this has only gotten more difficult with growing competition and the shifting market. 

What Is the Problem of Resource Management in Professional Services?

The main issue with resource management is finding the right balance between upcoming projects and available resources. Common challenges include overloading staff, mismanaging finances, and struggling with capacity planning. 

Interestingly, top-performing firms are 43% more likely to have standardized processes for handling new requests. Firms run into inefficiencies that hurt overall performance without a solid structure. 

What Is an Example of Resource Management in Professional Services?

An example of resource management in professional services could be an architectural firm that assigns architects skilled in sustainable design to a green building project. The goal is to ensure their skills are used well, resulting in an eco-friendly design that meets client expectations. 

How Does Poor Resource Management Impact Your Professional Services Company?

Professional services rely on client relationships, and subpar resource management can hinder that. When professional services teams waste time and resources, they miss opportunities and underutilize skills. 

According to a report from Aberdeen, firms that lack resource visibility frequently misallocate their workforce. As a result, team members focus on the wrong tasks, and their skills aren’t used well. Projects fall behind, and clients take notice. Over time, it can shake their confidence and damage your reputation. 

How Can You Overcome Poor Resource Management in Professional Services?

Improving poor resource management starts with better capacity planning, resource allocation and resource utilization. This comes down to the tools you rely on. 

A tool like Upland PSA helps by bringing resource management under one roof. It allows you to assign the right people with the right skills to the right projects, making delivering results for your clients easier. 

It’s clear why 77% of top-performing organizations rely on PSA solutions like Upland PSA, according to Workday. You can’t overcome poor resource management alone. A reliable tool will help you care for clients and raise service quality.

Make Every Resource Count with Upland PSA

Effective resource management adds real value. It cuts project costs, ensures timely delivery, and keeps employees happy. Unfortunately, professional services aren’t fully taking advantage of it yet. 

Many firms are still stuck in outdated resource management processes, which leads to wasted time and frustrated teams. In addition, RMI found that internal training for resource managers is declining, meaning organizations need to invest in tools like Upland PSA.

Upland PSA turns resource management into second nature. It automates tasks and provides real-time insights to help balance workloads and forecast needs.

Teams collaborate more effectively, and common mistakes are avoided. The result? Better resource efficiency and consistent, high-quality results. Check out our blog to see how you can make strides in resource management with Upland PSA.