Top Ten Business Benefits of Resource Management

Last updated on November 23, 2020

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The strength of any organization lies in its human resources. They are, after all, the most significant investment for all businesses. Organizations spend significant time and effort in hiring high-quality resources. They must be used to their fullest capability to get the best possible outcome.

The principles of resource management address the effective utilization of the entire workforce. An ideal Resource Management Software can reduce resourcing costs significantly, improve profitability, and help you overcome market volatility.

Top Ten Business Benefits of Resource Management

Unfortunately, most organizations overlook the importance of resource management. They continue to use the following legacy systems for this purpose:

  • Silos of spreadsheets built with macros
  • Home-grown half-baked systems
  • Windows-based systems of the 1990s
  • Entry-level resource scheduling software

Top Ten benefits of resource management

These legacy systems are incapable of handling the complexities of matrix organizations and provide multi-dimensional project forecasting. An organization can improve both the top line and bottom line by investing in a robust resource management solution. There are two types of benefits, tangible that is measurable (or quantifiable), and intangible, which can be realized.

In this article, we discuss some of the advantages of Resource Management.

#1.Reduce Project Resource Cost

Resource management is the process of utilizing different types of business resources efficiently and effectively. These resources can be human resources, assets, facilities, and equipment. Using the right resource management strategy, companies can minimize costs and improve productivity. A few techniques used to control resource costs are: –

  • Allocate the right resources to the right project at the right time with enterprise scheduling.
  • Create 360-degree visibility even in a complex matrixed organization and enable allocation of cost-effective global resources from any geographical location.
  • Minimize reactive planning and last-minute hiring using advanced capacity planning facility
  • Avoid wasteful hiring/firing costs by forecasting project vacancies, people on the bench, and hot skills.

Top Ten benefits of resource management

#2. Centralize and Create Visibility of Resource Competencies

The workforce planning system provides visibility of people’s information across the matrix organization structure and controls the rights to modify them. The system can achieve 360-degree visibility into all types of work demand. It could be a project, non-project, BAU/admin, and vacations across the verticals of geography, functions, domains, and business units.

#3. Optimize Resource Utilization across the Enterprise

Businesses can reap benefits by utilizing resources on a billable or strategic project. It is critical to ensure that the resources are allocated and utilized in the most efficient ways. A good resource management solution can forecast resource utilization and proactively take corrective actions ahead of time. It will also provide real-time information to improve profitable utilization.

Top Ten benefits of resource management

#4. Plan Proactively your Capacity for Present and Future Demand

Resource capacity planning first forecasts the gap between resource capacity and demand. Then it comes up with an action plan to bridge this gap.

It has the following advantages:

  • Reduce project resourcing cost across the enterprise
  • Deploy competent employee at the right time and cost
  • Forecast skill shortage and bridge the gap proactively
  • Forecast and ensure that excess capacity is not wasted
  • Align sales and delivery by forecasting pipeline opportunities

Top Ten benefits of resource management

#5. Leverage the Skills of Resources Across Matrix Org. Boundaries

Matrix organizational structure allows the sharing of highly skilled resources between functional units and projects. Communications are open, which helps knowledge circulate throughout the organization with less hindrance. The following steps help achieve this: –

  • Get the visibility of cost-effective local and global resources across the world by skills for resource allocation.
  • Provide role-based access for viewing resource competencies and taking actions.
  • Control the project budget by utilizing generic resources from low-cost locations
  • Implement a multi-location policy if local resources are not available for a specific skill.
  • Utilize High skilled resources to provide training and mentoring.

#6. Future Proof Your Workforce Against Market Volatility & Uncertainty

Market volatility in the last few years is continuously impacting the business outlook of every organization. With the sudden outburst of the Covid-19 pandemic, it is getting harder to predict an organization’s growth and profitability.

In such conditions, most firms resort to reactive measures such as abrupt layoffs and halting new initiatives. It works in the short term but affects business sustainability adversely.

A functional capacity planning process which consists of the following steps will prepare you for an adverse situation: –

  • Bridge resource shortage proactively
  • Forward plan and utilize excess resources
  • Build on-demand workforce
  • Reduce project resourcing cost across the enterprise

Top Ten benefits of resource management

#7. Improve Organization Health Index of Resources

For a successful organization, assigning resources to the right projects as per their skill set and experiences is essential.

Self-development, learning new skills, and keeping up to date with current technology-trends, motivate them. If they don’t receive the right opportunities from their resource managers, they end up spending much time on the bench. Consequently, their billable utilization suffers, and they may end up leaving the organization.

Individualized portals, dashboards, and reports with powerful business intelligence allow decision-makers to monitor the overall health index of resource ecosystems.

  • Build tailored portals, dashboards, analytics, and reports using highly configurable and expandable architecture.
  • Control data visibility with a combination of security rights, portal designs, and filters

#8. Simulate before Adapt using What-if Analysis

What-if analysis helps to get the best possible ROI within existing resource constraints. It allows you to juggle around with the resources and adjust the project’s timelines. Critical analysis of the impact on resource capacity and utilization is made before making any decision. Some of the steps followed in the simulation techniques are: –

  • Build different scenarios (ideally three) for the current situation involving multiple projects
  • Simulate each scenario at a time and apply the available resource from the pool for the specific case.
  • Carefully analyze different parameters such as overall utilization, people on the bench, and project overdue, if any, caused by resource allocation.
  • Select the best scenario and apply it to the project schedule.

#9. Deliver Projects and Services within Time and Budget

There are two primary components for measuring project success. Timely delivery and no budget overrun.

Effectively managing resources helps companies more consistently meet these two objectives. Project managers estimate different tasks keeping the resource capabilities in mind with the help of a project management tool.

If an under-skilled resource gets the responsibility, the person takes more time than needed, which affects the timeline. At the same time, if a high-cost resource is assigned the task, it will blow-up the budget. Following guidelines can serve as an indicator for successful project delivery

  • Minimize under/over skilled resources
  • Use cost-effective resources wherever applicable
  • Invest in the self-development of resources
  • Identify resource shortfall/excesses in advance

Top Ten benefits of resource management

#10.   Improve Employee and Customer Satisfaction

An employee consistently working overtime can be at risk of being unproductive or can leave the organization. The Resource management system display resource loading in real-time, ensuring that the person is not over-worked or under-utilized. Resources also have their aspirations and development plans, which can be accommodated in resource planning.

On the other hand, achieving customer satisfaction is possible if the organization meets its project delivery commitments. The project’s success very much depends on the quality of resources.

An ideal resource management tool is an enabler to achieve these two objectives.

Top Ten benefits of resource management

The Glossary

A Comprehensive Guide to Resource Planning in Project Management

The SAVIOM Solution

SAVIOM is the market leader in providing Enterprise Resource Capacity Planning Software. It has more than 20 years of experience working with high valued global companies around the world.

Besides, SAVIOM provides tools for professional service automation, project portfolio management, and workforce planning software. So, SAVIOM can help your business create an efficient system geared towards your specific business challenges.

The Ultimate Guide to an Efficient Resource Management
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The Ultimate Guide to an Efficient Resource Management

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Punya Palit

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