The optimization of resource and capacity management is essential for effective project portfolio management. But maximizing the utilization of limited resources is often a challenge for organizations. In fact, “poor resource management” has remained one of the top challenges reported by project management professionals every year since 2016 in Wellingtone’s “State of Project Management” Annual Reports.
We’ll see how adopting purpose-made PPM tools and systems may help facilitate, accelerate, and improve the quality of the capacity planning process.
Optimization #1: Assessing the Demand
Optimizing the resource and capacity management process starts with identifying the various types of resources needed to complete the different activities involved in a particular project. This requires determining which roles and skills should work on the project tasks and assessing the related workload.
Using a Portfolio Management (PPM) platform will not only facilitate and accelerate the calculations, but it’ll also make the results more reliable. This is because tool analyses are based on objective criteria and sound data.
Optimization #2: Aligning Supply and Demand
Another key phase in the resource and capacity planning process is identifying a named resource for each activity. Based on the list of requirements that you just put together, you’ll want to match resource supply and demand by assigning specific workers to specific tasks.
PPM capabilities will help with that too. Enterprise PPM tools provide detailed visibility into the resource pool, with a clear set of attributes, including availability. This way, you get a big-picture view of who is working on what — and when — to prevent resource and capacity conflicts.
Optimization #3: Maximizing Resource Utilization
Scarce, critical, or strategic resources can be highly expensive. Optimizing their utilization is essential to maximize value from labor expenses and technology investments. At the same time, overburdening human resources usually weighs on morale and productivity. It is therefore important to strike a balance and achieve the right utilization rate.
Project Portfolio Management tools provide dedicated workspaces and features that enable project and resource managers to manage resources from an organizational vantage point and ultimately to maximize overall resource utilization. Scenario modeling capabilities also empower PMOs to optimize resource and capacity management over time.
Selecting a PPM Tool for Resource & Capacity Management
Most PPM tools out there will help improve data visibility, with a positive impact on resource management and capacity planning. However, when choosing a piece of software, organizations should ensure that the platform they consider is flexible enough to support multiple methodologies and multiple resource allocation options (e.g., soft, generic, and hard, by the hour or by the day, etc.).
If you’re in the market for a PPM tool, or looking for a change for your organization, let Sciforma help! Book time with a member of our team to discuss your resource and capacity management needs today.