Great projects don’t happen by accident. They start with a solid resource plan. This is especially true nowadays—managing project resources is more nuanced than ever.

Leaders in professional services need to handle routine tasks while adapting to all the changes coming their way. Technological advancements, shifting organizational structures, and dynamic customer needs complicate resource planning. 

This guide includes five simple steps to help you build a resource plan. It combines a hands-on resource planning example and insights to help you take on your project resource planning requirements for future projects.

What Is the Main Purpose of Resource Planning?

Resource planning plays an important role in professional services firms. It makes sure everything comes together as it should. Here’s why a comprehensive and practical resource plan is so important:

• Thoughtful resource planning reduces burnout and raises productivity by ensuring employees and tools are used where they’re needed most. Burnout is a significant issue across industries, with SHRM reporting that burned-out employees are nearly three times more likely to quit. Resource planning helps keep it at bay by balancing workloads.
• It keeps costs under control and drives profitability. Managing the “cost to serve” is critical in professional services. Many firms struggle with hidden inefficiencies because they don’t track these costs well. A solid resource plan cuts waste and aligns your project budget with your needs. It makes quality a priority without overspending.
• Resource planning helps team members meet project goals. Projects need the right people, tools, and materials to deliver client results. Poor resource planning will only get in the way, leading to delays, missed deadlines, and low-quality work. Good resource planning goes a long way in keeping clients happy.
• It makes forecasting easier and prevents last-minute problems. Anticipating resource needs is a common challenge in professional services. Firms risk understaffing or overcommitting without a proper resource plan. Planning ahead ensures that future projects are fully resourced and ready for new opportunities.
• A resource plan trims excess spending and improves workflows. Inefficiencies like idle time, overproduction, and outdated processes will only slow operations. Resource planning eliminates these issues. It helps you get the most out of your effort and every resource.
• Good resource planning leads to better decisions. It provides transparent data on resource use. Leaders can detect any inefficiencies that may be in the way and reallocate talent where necessary. They can also invest in better tools to improve performance. This oversight that comes with resource planning can take different forms. Gemba walks, for example, involve observing work processes directly in the field.

Professional services firms can’t afford to miss resource planning. There are far too many moving parts to keep track of. Every detail matters, and the stakes are high when working with clients. Effective resource planning lays the groundwork for sustainable growth.

What Is an Example of Resource Planning?

The resource planning process lines up the right resources: people, tools, and time. Resource plans aim to ensure everyone has what they need to deliver solutions to clients.

And resource allocation is the glue that holds it all together. It involves assigning resources to tasks based on skills, resource pool, availability, and project requirements.

Take DRA Global, a global engineering and project delivery company that reshaped how they managed resources.

The Challenge

DRA Global runs over 150 projects every year with 4,500 employees spread across 17 offices. However, its professional services operations were chaotic.

Tracking hours, reimbursing expenses, and billing clients relied on clunky, disconnected processes—most of which were manual. This made it challenging to understand costs and slowed decision-making.

The Solution

DRA Global rolled out Upland PSA to combat this problem. Upland PSA centralized timesheet entries and expense management, simplifying approval workflows company-wide. Integrations with HR, payroll, and ERP systems automatically provide a near real-time view of project costs. With access to more accurate data about resources, projects, and costs, DRA Global can be more strategic about its resource planning process for forecasting, budgeting, and bidding on future projects. 

What Changed?

• Payroll, expense reimbursements, and invoicing became quicker and less stressful.
• Regional rules like holidays and taxes were built into the system, making it more adaptable.
• Centralized data meant teams across departments could collaborate easily.
• Consistent processes brought their global teams onto the same page.
• Real-time analytics helped managers identify project risks early.
• Faster insights meant decisions were made quicker.
• Automating tasks cuts down on manual work and saves on labor costs.
• Using a cloud-based system also saved money on hardware.

DRA Global’s approach shows how a solid resource plan can turn things around. It delivered various benefits to the company, from saving them time to cutting costs and improving team collaboration. 

How Do You Create a Resource Plan?

Creating a resource plan involves organizing and managing all the resources needed to achieve your project goals. Here’s how to build one:

1. Clarify the Project Scope and Goals

Start by defining your project’s objectives, deliverables, and timeline. This will help clarify project requirements so you understand the requirements and resources required to deliver projects well. It will also help you prevent underestimating or overestimating your project’s needs.

2. List and Assign Resources

Make a detailed list of everything the project requires, such as:

• Include team members’ roles and skills. Make sure to consider availability and expertise.
• Identify the tools, software, equipment, or other technology essential to completing tasks.
• Account for consumables, raw materials, or physical components.
• Capture financial details, from salaries to material costs.
• To create a realistic timeline, map out task durations and organize work into manageable phases.

Your resource plan should include key details like contact information and location. Remember, the more detailed your list, the less time you’ll spend searching for information later.

Once you’ve identified the entire project scope and resources needed, match resources to specific project tasks. Be strategic—align people based on their skills and availability. If you need help, scheduling a meeting with your team members can clarify individual abilities and capacity.

Thoughtful preparation avoids assigning tasks to someone who lacks the required training or bandwidth. It’s also a chance for team members to collaborate and share the load where it makes sense. Just make sure to distribute tasks evenly and avoid overloading individuals or creating gaps in the workflow.

3. Create a Resource Schedule

Build a timeline that shows when and where each resource will be used. Include key milestones, due dates, and deadlines. Consider using a resource calendar to help you track working hours, company holidays, and planned time off. 

Align your resource planning with your project’s milestones and the time it will take to need resources. This will help you schedule resources, avoid resource shortages, and keep things moving in the right direction. Projects rarely go as planned, so building contingencies into your resource plan is essential.

Adding the project schedule and budget buffers allows you to handle unexpected issues that will inevitably come your way. This could be anything from unplanned absences to equipment failures. You want to deal with them head-on so they don’t get in the way of your project. 

4. Create and Manage the Budget

Managing resources starts with managing costs. Without a clear budget, allocating resources, staying in control, or avoiding surprises is hard. Focus on the main costs when resource planning:

• Salaries and contract labor
• Materials and supplies
• Rent and utilities
• Travel expenses

These expenses can add up quickly. Focus on your margins to rates. Understanding your rate structure and margins for specific staff members and/or services you offer will give you a solid base for resource planning.

Last, always include a buffer for unexpected costs when resource planning. Emergencies or price changes can and will disrupt your plans. Past project data can help you refine estimates and identify trends for more intelligent decisions.

5. Stay on Top of Resource Capacity Planning

Change is a constant in professional services. In the last few years alone, 9 out of 10 organizations have faced a disruption. That’s why you need to monitor how resources are being used closely. Things can change at a moment’s notice in this industry.

Look for overbooked employees or unused equipment. Keep assignments flexible as projects change. Remember that a resource plan isn’t set in stone. Regular check-ins with the project manager will align your resource planning with shifting needs.

Keep an eye on the issue log, performance metrics, and milestones to find areas for improvement. Update the resource utilization plan so it stays accurate and effective. Remember, regular updates help you manage resources wisely throughout the project. Reviewing the resource utilization plan often lets you catch issues early and stay in control.

Leverage Resource Planning Tools

Let a tool with resource planning software and management capabilities do the heavy lifting. Solutions like Upland PSA help professional services firms get a handle on resource planning by:

• Matching team members to tasks based on skills and availability.
• Forecasting future resource needs.
• Tracking billable hours and overall effort.
• Monitoring performance and capacity in real-time.

Build a comprehensive resource plan with Upland PSA. Bring clarity to your whole project management workflow.

Common Mistakes in Resource Planning

Resource planning efforts can go sideways quickly. These common mistakes can waste time, money, and effort.

1. Relying on Spreadsheets or Legacy Tools

Did you know 95% of spreadsheets contain errors? They aren’t built for complex resource planning. Relying on manual data entry and outdated tools is an invitation for errors.

While spreadsheets may seem simple, they often lack the precision required for demanding projects. Modern tools with resource planning features, like Upland PSA, offer automated processes, real-time updates, and fewer chances for error.

2. Planning Without Full Visibility

Failing to plan around skills and availability turns minor issues into big delays. For example, assigning a senior consultant to data entry wastes their expertise and slows progress.

However, poor resource utilization and allocation don’t just affect project timelines—they impact the bottom line. According to SPI’s research, even a 4% increase in billable utilization can add $1.6 million in revenue for a 100-person professional services firm.

It’s clear why real-time tools like Upland PSA are so valuable. They allow you to match resources to tasks, cut waste, and more.

3. Poor Forecasting

Harvard notes that only 35% of projects are completed successfully. And subpar forecasting is a common cause. In professional services, this often means scrambling to find last-minute hires or rushing project timelines to meet client demands.

Teams can overload staff or leave critical skill gaps without accurate predictions of resource needs. This not only affects project execution and quality but also puts client relationships at risk. Tools like Upland PSA, with reliable forecasting, provide the visibility needed to anticipate future demands and avoid these challenges.

4. Weak Capacity Resource Planning

Even with high utilization, resource capacity gaps can still show up. Pushing people too hard leads to burnout and costly mistakes. Effective resource capacity planning allows you to balance workloads and meet project demands without stretching your team too thin.

5. Poor Bench Management

Bench time, when employees aren’t assigned to billable tasks, can hurt the bottom line. That downtime becomes wasted potential without a plan. Strategic bench and resource management plans can change that. Use this time for upskilling, internal projects, or preparing for client work. It helps cut idle costs and keep your team productive.

6. Mishandling Complex Planning

Failing to resource plan is planning to fail in professional services. This industry relies on efficient resource allocation, especially when clients’ needs are complex. When resource planning is poorly executed, resources are wasted, and project goals are missed.

Things can go wrong quickly when teams aren’t aligned. For example, marketing might launch a campaign without consulting IT, causing system overloads, delays, and disruptions. Teams need to review and adjust resource plans based on demand. This oversight helps project managers avoid bottlenecks.

Data-driven tools, like Upland PSA, simplify even the most difficult projects. Nothing slips through the cracks. Automating data and centralizing information makes previously unmanageable projects manageable.

7. Communication Gaps

Unsurprisingly, LinkedIn’s 2024 report named communication skills the most in-demand for the second year. Resource planning, along with a myriad of other processes in professional services, relies on clear communication.

When team members don’t communicate well, progress slows, and inefficiencies grow. Real-time solutions like Upland PSA keep everyone aligned, share updates quickly, and help prevent problems before they escalate. As the saying goes, a problem shared is a problem halved.

8. Overusing Resources

Running resources at 100% utilization might seem like a good way to get more done, but it’s risky. Overworked team members are more likely to make mistakes and lose focus. 

Deloitte’s Workplace Burnout Survey reveals that 91% of professionals say stress or frustration negatively impacts the quality of their work. Even small amounts of stress can have a significant effect on productivity.

The survey also reveals that nearly half of millennials have quit a job because of burnout, showing how serious the consequences can be. Interestingly, 87% of professionals are passionate about their jobs, yet 64% report feeling stressed often. This challenges the idea that passionate employees are immune to burnout.

Experts recommend keeping utilization under 80% to avoid burnout and maintain performance. This allows room for creativity, rest, and training—essential elements for any team.

Get Resource Planning Right with Upland PSA

A solid resource plan helps keep your team members’ heads above water. With AI, shifting company structures, and growing demands for faster, cost-efficient results, professional services teams are under more pressure than ever.

Efficient resource planning, data-driven decisions, and aligning the right resources with the right projects are no longer optional—they’re essential.

That’s where Upland PSA steps in. It takes the guesswork out of resource planning – you can easily assign the best people with the right skills. You can also track workloads to energize your team members and monitor billable hours to forecast revenue accurately.

Don’t let resource management become a pain point. Upland PSA makes it easier to keep everything running efficiently. Explore Upland PSA today.