Key takeaways
- Project resource management covers planning, allocating and managing resources throughout the project lifecycle.
- Effective planning helps prevent shortages, over-allocation, delays and unnecessary costs.
- Capacity planning and prioritisation help balance competing resource demands.
- Levelling and smoothing can help manage workloads and make better use of available capacity.
- Project resource management is ongoing, requiring regular monitoring and adjustment as project needs change.
Resource management is a critical aspect of project (and programme) management. It involves planning, scheduling, and allocating resources effectively to ensure that projects are completed on time, within budget, and to the satisfaction of stakeholders.
While resource management is the broader discipline, resource allocation is one part of it – covering the assignment and management of resources to support delivery. Effective resource management also considers capacity, availability and potential shortages throughout the project lifecycle.
The success of a project depends on how well project managers manage the resources they have available. Resource management is important for project managers because it helps ensure that the project is completed on time and within budget.
In this article, we will discuss why resource management is so important for project managers.
Table of Contents
Why is project resource management so critical to project success?
What are the key steps in resource planning?
Project resource management techniques
Frequently asked questions
Why is project resource management so critical to project success?
Efficient Use of Resources
Resource management ensures that resources are allocated efficiently.
By having a clear understanding of what resources are needed and when they are needed, project managers can ensure that they are not wasting resources on tasks that are not essential to the project. They can also avoid situations where resources are overused, which can lead to burnout and decreased productivity – and the delays to come with these problems.
Cost Management
Resource management is critical for managing project costs.
By effectively managing resources, project managers can mitigate one of the many risks that can cause projects to go over budget. They can identify the most cost-effective way to complete a project and avoid unnecessary spending on resources that are not required.
Read our guide on avoiding project budget overruns
Time Management
Resource management helps project managers to manage the project schedule time effectively.
By having a clear understanding of the resources required, project managers can make sure that the right resources are in place to deliver the planned tasks. This increases the likelihood of the project meeting deadlines and avoiding delays that could result in missed opportunities or increased costs.
Resource Allocation
Resource management allows project managers to allocate resources effectively.
By having a clear understanding of the skills and availability of resources, project managers can assign tasks to the most appropriate team members. This ensures that the right resources are used for the right tasks, resulting in higher productivity and better outcomes.
It is useful to distinguish resource allocation from task allocation. Task allocation is about assigning specific tasks to team members; resource allocation is broader and can include people, financial resources, equipment and materials across the project.
Risk Management
Resource management is an essential part of risk management. There are several strands to this.
By identifying the resources required and knowing the resources available, the project manager can identify where there may be potential bottle necks or gaps, and therefore put the mitigating strategies in place to avoid these risks.
Resources with the right skills and experience will help the project manager identify risks to delivery, as well as providing him with the expertise to mitigate (or even avoid) risks and issues.
Where resources are shared across projects and programmes, competing demands can also create resource conflicts or over-allocation. Capacity planning helps identify these pressures before they affect delivery.
Read our guide to effective risk visualisation
Stakeholder Management
Resource management also plays a vital role in stakeholder management.
By having a clear understanding of the resources required for each task, project managers can set realistic expectations for stakeholders. This enables them to manage stakeholder expectations effectively and ensure that they are satisfied with the project outcomes.
Read our practical guide to stakeholder management
Quality
Resource management also supports quality by ensuring that projects have the skills, tools, materials and capacity needed to deliver work to the required standard.
What are the key steps in resource planning?
Identify what resources are required
The first step in resource management is to identify the resources that are needed to complete the project. This includes both human resources and material resources.
For people, the project manager will need to identify the skills required as well as the timescales.
A Work Breakdown Structure (WBS) can help by breaking the project into manageable components and making the resource requirements for each component clearer.
Plan when the resources are required
The resources need to be scheduled so that they are available when they are needed. This involves creating a schedule for the project and making sure that the resources are available when they are needed.
Capacity planning can be used to compare resource demand with available capacity, helping project managers identify shortages or over-allocation and set realistic timelines.
Request the resources
Once the resources are identified and the plan is in place, the project manager will have to work with the owners of the resource pools to get the right resources in place.
Due to availability of resources (holidays, other project work, BAU activities, etc.), there may be iterations of steps 1 to 3 before the final allocation of resources is agreed. Where several projects require the same resources, prioritisation may be needed to resolve competing demands.
Managing the resources
The resources need to be managed throughout the project life cycle. Changes to the project (scope, timelines, costs, issues etc.) and changes to resource availability (illness, other resource demands, etc) can impact on the resource plan. To make sure that resources are being used effectively, the project manager will have to cycle through the resource planning steps on a regular basis.
This includes monitoring utilisation and reallocating resources when circumstances change. Resource levelling can help address over-allocation by adjusting the timing or allocation of work; resource smoothing can reduce fluctuations in resource demand within available float.
At the end of the project, reviewing resource performance and capturing lessons learned can improve resource planning on future projects.
Is PM3 right for you?
If you’re looking for a practical way to improve project resource management across your organisation, PM3 could help. Watch the video below to see how it works and whether it could be a good fit for your team.
Project resource management is a complex process, but it is essential for the success of any project. By properly managing resources, project managers can avoid costly overruns and delays, and ensure that the project team is properly staffed and that all resources are being used effectively.
Because resource management involves balancing demand, capacity, availability and priorities, visibility of resource information is particularly valuable when resources are shared across projects and programmes.
Tools such as PM3 provide the technologies to support project managers and resource pool owners in the planning, allocation and management of resources.
Project resource management techniques
Effective resource management requires more than simply identifying and allocating resources. Project managers also need to understand available capacity, manage competing demands and adjust resource use as project circumstances change. The following techniques can help project managers make better use of the resources available to them.
Capacity planning
Capacity planning involves comparing the resources required to deliver planned work with the capacity available. This helps project managers identify potential resource shortages or over-allocation before they affect delivery.
Capacity planning is particularly important where resources are shared across several projects or programmes. Understanding when particular skills or resources will be required can help project managers set realistic timelines and identify potential constraints early.
Resource levelling
Resource levelling is used when resource demand exceeds available capacity. It involves adjusting the timing or allocation of activities to create a more manageable workload and avoid over-allocation.
For example, activities may need to be rescheduled or resources moved between activities where the same people are required by several tasks at the same time. Resource levelling can help prevent excessive workloads and reduce the risk of delays caused by resource constraints.
Resource smoothing
Resource smoothing aims to reduce fluctuations in resource demand while maintaining the overall project completion date. It works by adjusting activities within their available float – the amount of time an activity can be delayed without affecting the project’s overall timeline.
Resource smoothing can therefore help create a more consistent workload without changing the project’s critical completion date. Unlike resource levelling, it works within the flexibility already available in the project schedule.
Prioritisation
When resources are limited, project managers need to determine which activities should receive resources first. Prioritisation helps ensure that scarce resources are directed towards the work that is most important to project or organisational objectives.
This may involve considering factors such as critical milestones, dependencies, delivery commitments and the relative importance of competing projects. At programme level, prioritisation can also help resolve situations where several projects require the same specialist resources at the same time.
Using these techniques together can help project managers balance resource demand with available capacity, respond to changing circumstances and make informed decisions about where resources will have the greatest impact.
Conclusion
In conclusion, resource management is critical for project managers because it enables them to allocate resources effectively, manage costs and time, allocate resources, manage risks, and manage stakeholder expectations.
Effective resource management can make the difference between a successful project and a failed one. Therefore, project managers must make resource management a priority to ensure that their projects are completed successfully.
The key is to treat resource management as an ongoing process: understand demand and capacity, secure the right resources, monitor their use, and adjust allocations as the project and wider programme environment changes.
Frequently Asked Questions
What is resource management in project management?
Resource management is the process of planning, scheduling, allocating and managing the resources needed to deliver a project. It includes understanding resource requirements, availability and capacity throughout the project lifecycle.
Why is project resource management important?
Effective resource management helps projects use resources efficiently, control costs, meet deadlines and manage risks. It also helps project managers avoid resource shortages and over-allocation that could affect delivery.
What is the difference between resource allocation and task allocation?
Task allocation involves assigning specific tasks to team members based on their skills and availability. Resource allocation is broader and covers the distribution of people, equipment, materials and other resources across a project.
What is capacity planning in project management?
Capacity planning involves comparing the resources required for planned work with the capacity available. It helps identify potential shortages or over-allocation and is particularly useful when resources are shared across multiple projects or programmes.
What is resource levelling?
Resource levelling is a technique used to balance resource demand and avoid over-allocation. It may involve changing the timing or allocation of activities so that available resources can be used more effectively.
What is resource smoothing?
Resource smoothing reduces fluctuations in resource demand by adjusting activities within their available float. Unlike resource levelling, it aims to manage resource use without changing the project’s overall completion date.
How often should project resources be reviewed?
Resource planning should be reviewed throughout the project lifecycle. Changes to scope, timelines, costs, issues or resource availability can affect the resource plan, so project managers should regularly monitor resource use and adjust allocations as required.
Who is responsible for resource allocation in a project?
The project manager identifies and requests the resources needed, while resource managers or resource pool owners determine availability and allocate resources. Where resources are shared across projects, prioritisation may also involve programme or portfolio management.
