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Author: Greg Bailey

Is your project management still in the dark ages?

In current project management (PM) practices people are treated as units of resources, rather than a whole resource.

Let me explain; goals originate at the top tier of the project, and are subdivided as tasks are passed down, leaving little room for creative contributions. Standard PM practices however rarely appreciate this fact and fail to realise that in a structurally rigid system, popular PM practices like the PERT and Gantt chart are proving to be over-detailed and guilty of inciting excessive control over people. Excel spreadsheets are another prime example of a technology that:

  1. Makes it difficult to access real-time data
  2. Lacks the ability to facilitate collaboration and to share data

What’s required in the modern workplace is an automated resource management tool, that centres itself around your people as well as your assets. Dedicated resource management software does just this, providing organizations with a more powerful, intelligent, and accurate solution to resource visibility, project planning and collaboration.

Project management, still sticking to U.S Navy methods from the 1950s

What tends to happen with well-established companies is that they become too rooted in old ways of management. When new, younger hires come on-board they’ll expect a fully-fledged digital company, rather than be crushed underneath a mechanistic, outdated management model from a time where workers were no more than disposable cogs in a machine. The PERT chart is a project management tool used to schedule, organize, and co-ordinate tasks within a project. It was originally used to manage the Polaris submarine missile program in the 1950s, which is worlds apart from say, an advertising project or housing re-development project. But we continue to apply these old management techniques, without ever wondering if we’re getting as much value from our resources as we perhaps could be if we switched to more modern techniques or technologies.

If the objective of a project is simply reduced to task allocation, then the potential of a person is essentially ignored, meaning they won’t be able to contribute to the total business objective.

A human is more than a resource

The fact that a human, under the appropriate conditions, can expand their contributions tremendously is what distinguishes them from other quantifiable resources like money and time. What technology should give us is a breakthrough in understanding how our resources are being used, rather than relying on guesswork, intuition, or past experiences. It should grant us insights into how human resources and tasks within processes are performing, which goes way beyond basic task allocation. Instead, traditional PPM software standardizes human resources to nothing more than the parts that make up the project whole.


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Don’t make decisions in the dark

While we can use an array of abstract models to break down our tasks for us, this is only part of the equation. Resource management software allows you to shift and shape your models any way you like, and the resource optimization gives you even clearer visibility over your resources, to plan a strategy that saves you time and money. It’s a giant stride forwards for project managers.

You could say that project visibility is one of the most important factors in the success of any project. During the life of a project, the work assigned to a position or person can change, depending on unforeseen changes to budgets, priorities or employee availability. But there are new technologies that help provide greater planning and foresight in project planning, such as ‘what-if’ analysis.

‘What-if’ analysis provides end-users with a blank canvas to re-design project processes in a risk-free environment, letting you test out different scenarios to optimize resource allocation. So, while you may have previously relied on guesswork, past experiences or pure instinct, ‘what-if’ analysis gives you data-driven insights to help you better allocate resources for risk-free decision making.

Collaboration is a celebration you should always attend

In project management, the benefits of collaboration are often overlooked in favour of delegating lots of minute tasks to individuals – assuming it creates more efficiency. In fact, dedicated resource management software lets project managers chop and change resources, scale budgets, and streamline processes, all in real-time – even when there’s no internet connection. So project managers can now be free to confer and decide on the next course of action, any-time and any-place, for better clarity and intelligence. With these capabilities it is much easier for them to co-ordinate and collaborate on projects. Everyone knows that they are all driving the organization forward together in the right direction.

The right technology can revitalize your project planning in ways that were only dreamt of in the past. Budgets can be tracked, employee performance can be assessed, workloads can be managed, and processes can be tweaked – all with a few clicks. Project managers are no longer burdened with having to understand complex formulas in Excel spreadsheets, nor are they limited by the files saved on their desktop. Instead resource management software provides a central platform, familiar to each of your project management teams around the world.

Are project managers isolationists?

No project is an island.There are lots of components that make up a project, often requiring the involvement of multiple departments.

Take a building project in the construction industry, where logistics, timelines, and budgets all need to work together seamlessly for projects to be finished on time. Just one chink in this chain could cost someone their job.

Without solid communication which is fluid between all stakeholders, such as contractors, local councils and senior management. The success of your project could be heavily hampered.

The project manager is another separate entity, who despite having resources scattered across roles, departments, and sometimes even countries is expected to unify everyone and keep on top of everyone’s workload.

The company has to make an executive decision to improve the fluidity of work processes for two reasons:

1. To increase the speed at which work is completed, making teams much more productive, efficient, and creative.

2. To foster a new company culture by prioritizing the morale of staff, creating fluid teams and centralizing all communication.

When you isolate you kill visibility

At some point in the project lifecycle the temptation to isolate tasks can affect project managers everywhere. For instance, a brief conversation at the desk of the build manager to slightly delay a shipment of timber means that suddenly the site joiners are out of the loop and need to inform the roofer and delay the bricklayer. That single decision has now cost you 2 days and put a team of disorganized people in a panic. It’s easy to forget the grand scheme of the project when a few tweaks need to be made here and there, but the success rate of all projects, big or small, can be significantly improved with better visibility.

It’s one thing unifying communication between your teams but measuring each person’s productivity amidst the tasks you’ve given them is crucial, and that’s where visibility or lack thereof comes into play. Especially if you’re going to manage your project in the most cost-effective way possible.


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Hidden visibility

You might be surprised at just how little some project managers know about the effectiveness of their resources. Assigning tasks to the right talent is one thing, but visibility is all about measuring exactly what they do, how they approach it, and how long it takes them to accomplish a task. Understanding how your resources work makes it a lot easier to plot your project journey, helping to see overlaps with other departments or barriers and delays.

How we know is as important as what we know

Your employees are bound to approach tasks in their own unique way and measuring performance can be a tricky exercise.

Timesheets and temperature mapping are two features of a resource management tool that are key to understanding how your employees work. Timesheets will track employee hours against projects, so you can literally see what you planned versus what you actually achieved. And temperature mapping shows you a visual representation of your resource allocation. So, you can visualize maps by role, department, or skill, with the ability to drill down into individual resources. This is helpful for seeing if any of your resources are over or underworked.

Once you equip yourself with this information, you’ll start approaching project management with an entirely new perspective.

Expect the best, prepare for the worst, capitalize on what comes

In an ideal situation – timeframes would be realistic, budget estimates would be exact, and you’d react like lightning to any sudden changes. A good resource management tool provides you with useable information that you can apply immediately. You can even break down a single process into 5, 10 or 20 tiny parts to pinpoint exactly where your weakest links are hiding.

What if you moved your resources from one task to another for the next two weeks? Or what if you allocated extra resources to a part of your project to help speed things up? You may even be wondering if a new hire could be more cost-effective in the long-run. But without easy-to-use what-if analysis it can be very difficult to see the outcomes of these potential decisions. And you certainly can’t risk the flow of your strategy by chopping and changing workflows without fully understanding the consequences.

‘What-if’ scenario planning presents you with a virtual display of your project strategy, including resource allocation, timelines and budgets. It then let’s you move parts around, all the while calculating in real-time the outcome of your new hypothetical scenarios you’ve just created. So now you can anticipate and prepare for inevitable project changes, which will help you to make far better decisions.

5 reasons why resource modelling is crucial for project success

Time and again, projects fail due to the unexpected… something unforeseen brings about downtime, bottlenecks, financial losses and perhaps even a few gray hairs.

Many organizations rely on Project Portfolio Management (PPM) software like Microsoft Project to manage projects from inception to completion. There are several downsides to using these kinds of tools, as they can restrict your ability to deal with the unexpected. This is because PPM tools don’t include advanced resource management capabilities, such as resource modeling, which allow project managers to adapt to project changes as they happen.

In this post, we will:

  • Look at how resource modeling can save you time, money, and more
  • Outline five reasons why it can play a crucial role in project success

What is resource management?

Q: What’s the single most important ingredient in project success?

A: Your people.

Resource management is an approach that puts your people first and unlocks their full potential. This involves assigning the right people with the right skills to the right jobs. It means balancing your available resources so that they are optimally allocated. It means figuring out a way to get the job done on time, on budget and at the level of quality required.

To get this right, you need visibility over your resources. You need to be able to see:

  • Who is working on what
  • Who could be given more work or less
  • Who has the relevant skillset for different tasks
  • What would happen if you tried a, b or c
  • Which (a, b or c) would produce the best outcome

Unfortunately, PPM tools don’t offer the advanced modeling functionality that is required to obtain this valuable insight. Many project managers use Excel spreadsheets to allocate and manage resources.

Of course, Excel wasn’t built with this specific function in mind. It can be quite challenging to scroll through resource data in spreadsheets, move resources around and figure out what the results are going to be. Most of the time you must roll the dice and live with the consequences. Neither does it provide the required visibility to make informed decisions on resource allocation, nor the ability to test possible outcomes of resource scenarios in a risk-free environment. Without this, you can end up making matters worse, rather than improving the situation.


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What is resource modeling?

Resource modeling is a feature of resource management software that allows you to visualize resource data. With this, you can better plan how your resources are allocated across multiple projects over time. What’s more, you can create models to test scenarios – an invaluable aid in predicting a wide range of scenarios.

For instance, in the planning stages of a project, you can move your resources around on screen and try out different ways to optimize them. Rather than just assigning tasks to people and seeing how it plays out. You can weigh the pros and cons of different scenarios until you find the one that serves your purposes best.

When you can visualize resource data in this way and model possible scenarios, you can begin to ask, ‘what if’? What happens if a resource suddenly becomes unavailable? What happens if multiple employees fall sick on the same day? What happens if I respond this way or would it be better to take a different approach? Not only does this help you prepare for the unexpected but it can also help you react in a flash and get your project back on track in no time.

5 ways resource modeling is critical to project success

So, let’s dig a little deeper and look at five ways resource modeling can save your projects.

1. Plan better

Although you can’t plan for all eventualities – as projects have a habit of surprising you with new ways of breaking down – it always pays to be as prepared as possible. A good plan can go a long way.

2. Visualize

Using spreadsheets to manage resources offers you almost no visibility over resources. How can you expect to react to a critical issue when it takes hours just to figure out what has gone wrong? Resource modeling will present your resource data so that it leaps from the screen immediately. With heat maps, cool maps and various models for showing how changes influence resource utilization, it can be the difference between project delays and project success.

3. Stay on budget and time

With resource modeling, you can create models that test different costings, budgets and outcomes. Figure out how much something will cost and how long it will take. Compare different models to find the most efficient and cost-effective approach to completing projects.

4. Deal with the unexpected

The difference between the best project managers and the rest is their ability to react quickly to change. Their choice of using resource management software with modeling functionality helps too. By modeling the impact of potential responses, you can deploy a solution in minutes rather than days.

5. Innovate

Resource modeling allows you to try out new things in a risk-free environment. Without the pressure of your changes being deployed instantly, you can work out innovative responses to problems. There’s always a better way of doing something. Resource modelling gives you the space and freedom to find it.

With resource management software that has advanced modeling functionality, you can better prepare your projects and deal with problems that occur.

What to do when project members don’t have the skills you need?

Here’s a nightmare scenario: you’ve won a major new client that has signed on for a large piece of work.

This could mean big things for your business. Do well and your revenue gets a big bump, along with your reputation and the prospect of bigger projects in the future—a significant step for your business and one that will result in growth.

“Wait, that hardly sounds like a nightmare.”

The flipside of this opportunity is the prospect of failure. Imagine: while the revenue from the work may still come in, your new client realizes you’re not up to the job, can’t handle the workload and refuses to use your service again. What’s more, if your name crops up in conversations within the industry, so does your reputation for being ‘not quite up to the job’. This becomes more than just a failed project but a barrier to future business growth.

Help is at hand

Our post today is for project managers who’ve begun to realize their team members may not quite have the skills or knowledge for the job they’ve been tasked with. This might be for a variety of reasons, including:

Personnel misunderstandings

This is potentially a case of a poor hiring policy along with poor resource management. Being unable to identify and plan for work you currently have on, or work coming down the line, are major barriers to organizing your staff.

‘What-If’ analysis allows you to see what the impact of a new piece of work might be on your resources. This way you can make sure your personnel have the right tools and enough time to make their deadlines without compromising the quality of the work.

The scope of the project has changed

Sometimes you have the right people for specific tasks within projects. But when the scope or end goal of a project changes (which it has a tendency to do), your well-planned resources can sometimes be rendered invalid. For example, you might have plenty of construction workers and tradespersons on hand for a building project. But, if that project is suddenly revised by your client and more engineers are now needed to fulfil the new requirements, you could be left in a tricky situation if those engineers are off working on another project.

What are your options?

If your dream client has left you in a nightmare scenario, what can you do? Do you hire new people? Fire people? Borrow staff from other projects? Train your team up?

Here are some of our suggested solutions that will help get you back on the right path to project success.


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Understand the cause of the problem

Are you solving the correct issue? Knowing what action to take in most situations comes down to understanding the cause of the problem. For example, do you have the right employees in the correct roles? If your employees are trying to complete tasks that they don’t understand or have the skills to do, giving them more time isn’t going to help.

A crucial aspect to project management, then, is understanding and controlling your resource allocation. Resource modeling can really give you an edge here. It lets you visualize the impact of moving your resources around across a variety of projects. You can check these against timelines and skills, giving you a better idea of who is most suited to a task and who is available. This will help you both understand the cause of your problems, and help you find a solution.

Help your employees do their jobs

Sometimes even the best employees can get overwhelmed. When deadlines approach and work isn’t completed, tension can bubble to the surface. When this happens, it’s often important that the employer or senior management step in. To help ensure that employees aren’t overworked or without enough work to do, you should take it upon yourself to reevaluate certain practices and processes. This may include:

  • Reevaluating team roles
  • Examining project goals
  • Streamlining tasks
  • Considering adding new hires

Plan, plan and plan again

So much of our working lives is spent concentrating on our day-to-day tasks and making sure we complete our work on time that it can be difficult to think about anything else. We expend a lot of energy on reacting to unexpected change. This isn’t exactly the recipe for a healthy and productive working life. Nor is it good for your business. Disengagement is rife across most industries in the U.S. This stems from being overworked and understaffed. It’s nearly impossible for your employees to work towards professional growth when they are constantly in crisis mode.

This is where strategic planning and resource management can play a huge part in your business operations and lead to more engaged, happier employees and increased growth for your business. By optimizing your resource management and treating it as fundamental to project success, you can, among other benefits:

  • Increase revenue
  • Reduce costs
  • Resolve conflicts
  • Empower your staff
  • Improve company flexibility
  • Optimize delivery of your product/services

Trying to grow your business is rife with surprises and obstacles to overcome. But with the right foresight and tools you can overcome even the most arduous of impediments. Resource management software can help you optimize your resource management, help you put the right people on the right projects so you can keep winning those big clients.

Does Your Company Need a Resource Manager?

Often, the goals we set ourselves are done with the best of intentions. Eat a healthier diet, get more exercise, visit our family more often. There is a myriad of examples, but following through on plans is hard. Circumstances change, things crop up, our motivations fluctuate and sometimes we just run into pure bad luck. It doesn’t make us failures, yet our plans and goals still end up taking a hit.

Within the mechanics of your business, there is essentially a bunch of projects of different sizes going on at all times which, on the face of it do different things but are tasked with the same ultimate end goal. This common thread they share is the goal of moving your business forward; whether it’s to increase profits, reduce expenditure, or to expand the purpose of the company. Along with the day-to-day administration of running a business, projects are what the people in your company are concerned with week-to-week and month-to-month.

If a big project succeeds, the business grows, and people are rewarded. If a project fails, the business takes a hit. The ratio of successes to failures is the difference between a business staying afloat, or sinking to the bottom of the vast enterprise ocean joining all the other business shipwrecks.

What causes a ship to wreck?

Well, I have theory. My theory is that no matter what your business, no matter your size, the most essential, most crucially important aspect of your organization is your resources. If businesses are made up of varying sized projects that succeed and fail, on repeat, it’s your resources that are responsible for your success. No, let me rephrase that: it’s you who is responsible for managing the resources in the most effective way who is ultimately responsible. Don’t want to end up on the bottom of the broken business ocean? Then you better get your resource management in order.

What is resource management?

First, it’s probably useful to define what resource management is. Basically, if you think of a project, you know that there are big and little things that allow you to complete it successfully. Managing resources is concerned with knowing what (or who) is available within a business to complete the work:

  • The personnel/skills available
  • Finances
  • Distribution/Logistical ability
  • Knowledge of the demands of an individual project

If your resources are managed and used effectively, your project has a good chance of success. Yet, mismanagement of your resources can lead a project to:

  • go over budget
  • take longer than scheduled
  • generate expensive overtime

And there are other headaches. Your employees may not be precisely sure what their exact role on a given project actually is, eventually resulting in their time and skills being wasted. And of course, there are always the possibilities of the unforeseen – a market downturn, employee issues, a company merger, etc. The bottom line? If you don’t have a dedicated Resource Manager (or equivalent), your business processes and projects have the potential to become rudderless and really chip away at your long-term profits.

Resource Managers and their importance

For my money, this isn’t a new thing. Companies have always needed a dedicated resource management team. If it’s a small company, okay, maybe you have one individual, maybe it’s the CEO who’s making sure his or her resources are doing the work they need to do. If it’s a growing business with growing resources, maybe the CEO delegates to one of his division managers or team leaders. If you’re a multi-national corporation, it’s more than likely you’ll have a whole department dedicated to the task of making sure things are humming along nicely. Likely you’ll find resources managers in the Project Management Office (PMO). The point here is you need to have a skilled person in a dedicated role.

All too often, companies try to fit round pegs into square holes. While understandable, it can cause big problems. A recent Manpower survey looked to find out what the impact of talent shortages could have on a business. The following was highlighted:

resourcemanager

(Source: Manpower 2015)

What does this tell us? In a nutshell, when the business doesn’t have the right employees with the right skills in place, your company suffers.

Poor allocation of resources is a major cause of project failure

A lot of the time, companies find that they have too few resources spread across too many projects at the same time. This can be a result of a couple of things.

  • Firstly, a lack of visibility to available resources and overworked individuals. How do you know if someone is working too hard, or not hard enough?
  • Secondly, communication. Often overlooked, poor communication can mean people don’t actually know who’s doing what, when they’re doing it and why.
  • And thirdly, expectation. We all have a goal in mind for project completion, but is that realistic? Have the right resources been allocated to their strongest areas? Are there enough people to actually do the job? Your leading member of staff is away for two weeks, how is that going to affect the overall due date? Not knowing and being reactive is why projects fail.

This is where the Resource Manager comes in. It’s their job to make sure there is a clear and functional strategy for defining what resources are available, what projects they can be designated to, what would happen if part of a project was delayed, plus much, much more.

Thankfully in 2016, as technology continues to evolve and innovate there is a growing arsenal of tools for managing resources at your disposal; no matter the size of your business or your goals. But without the right person overseeing your resources, the chances of project (and company) success is at risk.

So ask yourselves these questions:

  • Do you have the right people working in the right area?
  • Are you struggling to meet the expectations of your clients?
  • Do you know what all your resources are actually doing?
  • Do you have people overstretched and not utilizing their own skill set?
  • Are your project costs running over budget?

If the answer is yes, then hiring a Resource Manager should be high on your agenda.