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Published July 04th, 2022 by

7 Tips for Project Managers to Make Resource Allocation Effective

If everything’s a project (and it is), then time, energy, and money are the three ingredients necessary for bringing any activity to its successful completion. The more organized these resources are, the more successful the project becomes. In the manager’s vocabulary, this discipline is called – resource allocation.

The triad of time, energy, and money roughly translate to people, equipment, supplies, and venues that participate in a certain project. Juggling them together and at the same time, is not exactly the easiest trick in the book. Smart allocation requires both canny hacks and trusty tech.

With that in mind, we’ve compiled a list of seven tips for more effective resource allocation.

Build a Structure, Then Break It Down

Resource allocation is a part of every project planning phase, which is a step in project management that determines the scope and establishes the framework for all participants to follow. It’s nothing less than a critical task if we consider the fact that all projects rely on a great amount of moving parts.

So why not treat resource allocation as a project in its own right?

First, you’d determine the complexity of the official project and break it down into more manageable units such as tasks and milestones. Then, you’d identify resources – meaning both people and tools – needed for every one of them. As a result, you’d have a complete index of required resources.

In PMBOK Guide, which is deemed the holy book of project management, this step is called Activity Resource Requirements and describes the type and amount of resources needed for successful project execution. The principle is the same; create a to-do list and add resources to each task.

Create an In-Detail Resource Database

Before you can start allocating, you must know two things – which resources you need for a certain project, and which resources you have at your disposal. Since we’ve already tackled the first, it’s time to see what you can do about the second. You cannot allocate something you don’t have.

That’s where a comprehensive resource database can help you.

You can always employ resource management software, though they are typically designed for larger companies with bulkier needs. Simpler tools, which usually come as built-in features in project management solutions, can still provide you with an all-inclusive, automatically updated resource list.

That way, you’ll be able to build a portfolio of all available resources, which will include everything from people (the expertise and experience of individual employees) to equipment (materials, tools, and other supplies). Compare that with your project requirements, and you’ll know what to allocate.

Track Time for Every Recurring Task

If time is a resource too, then you must find a way to measure it with great accuracy. A simple time tracker can help you determine how many work hours, days, or months is needed for completing a certain task. Use that benchmark as an invariable point of reference for all future resource allocations.

Establish a Company-Wide Calendar

When resources are people, allocation typically goes like this – a manager starts working on a project plan and determines the skills and expertise needed for execution. These requirements are then checked against the resource index, where the right people for the job are discovered. A piece of cake.

But, what happens if these people are already working on another project?

To avoid unrealistic allocation of tasks, smart project managers rely on collaborative calendars. The same system can be applied to resource allocation, whereas every available resource would be regularly updated not only with the amount but also with information about who’s currently using what.

Schedule a Regular Resource Check

It goes without saying; you cannot build a resource database and establish a calendar once, and then continue to use them without any additional updates. Because there will never be the same amount of available resources on your plate, you need to make resource check a routine.

Schedule it for every first Friday of the month, or whenever it suits your company’s dynamic best. This is especially important when it comes to skills and time since these resources tend to fluctuate very often. Have a brief meeting, talk to other project leaders, and then allocate all resources accordingly.

Check Estimates Against Hard Facts

All the best strategies to improve team collaboration depend on the manager’s ability to stay on top of everyone’s progress during the execution phase. This automatically implies employing a reliable collaborative project management software that can be used for real-time consulting, but also control.

Such software can tell you everything you need to know about people and resources and inform you about who’s using what and for which purpose. It’s also an excellent opportunity to check your resource allocation estimates against actual project progress, and if need be, to reallocate in due time.

Employ Resource Management Tools

If systems dedicated to resources seem too complicated for managing a small team, then opt for the aforementioned collaborative project management software. The best ones come with resource-centered features explicitly designed with project managers in mind and are simpler and easy to use.

Conclusion

Again, resource allocation is never as simple as it sounds. It requires not only attention to detail and great managerial skills, but also a reliable tool for tracking resources and organizing people. It can be a blank piece of paper, or a vintage spreadsheet. But it can also be a collaborative all-in-one solution.

david-miller

Senior Researcher at ProProfs at ProProfs
David is a technical writer, his works are regularly published in various papers and top-notch portals. His rich experience in Project management domain helps him offer latest and fresh perspective on improved efficiency in work flows across organizations. His informative works on similar lines can be reached out on ProProfs Project.

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