Resource allocation in project management is the scheduling and planning of the resources required within the scope and budget of projects. With a comprehensive and well-defined project management allocation and budget, you can better maximize project success and forecast your capital to better hedge against unexpected risks.
However, being strategic about how to properly allocate and plan is a crucial skill that requires a serious assessment of the potential risks and uncertainties that may arise throughout the course of your projects.
In this article, we are going to address the resource allocation best practices you should consider in your Q3-Q4 and 2022 outlook to ensure successful projects now and moving forward into the new year.
Why proper resource allocation is crucial for project management
According to a 2018 survey conducted by the Project Management Institute, 39% of projects fail due to poor project planning and a lack of a comprehensive resource allocation budget and, as a result, misforcasting project uncertainties.
When my team and I are mapping out a resource allocation budget for our clients, we want to take it into respect of the company’s overall available resources and the key dynamics of a given project (both tangible and intangible).
Despite quantifying your resources, it’s best practice to include the overall dynamics and synergies that exist within your current team members and workplace environment. For instance, consider the following questions:
- What is the general consensus of your workplace?
- Are team members experiencing workplace burnout?
- What is happening now that needs to be addressed and made more efficient?
- Is there a strategic training program that addresses the importance of workplace involvement and interaction?
At BDM Squared, we include a holistic approach with our resource allocation best practices. When you include both the quantifiable and nontangential aspects of your resource allocation, you can better minimize any potential risks.
So, you might ask how do you allocate resources in your project management planning?
Here are three crucial points you should be considering when discussing and planning your resource allocations at your next team meeting:
Keep team members on projects motivated, energized, and focused with dedicated team training integrated into your workplace management programs.
Engaging team members through cordial activities throughout your project planning is a crucial component to successful projects. When the team is happy and engaged, better productivity is generated.
If your internal team members are experiencing forms of workplace burnout, the likelihood of increasing your chances of cost overruns, delays, and optimal outcomes is evident.
We encourage incorporating team building activities and workplace events to allow bonding and the development of communication between coworkers.
Did you know that according to a study conducted by the Harvard Business Review, socializing at the workplace turns out to be deeply critical to team performance, often accounting for more than 50% of positive changes in communication patterns?
What factors in the social dynamics of your workplace can be improved to build better team performance?
The study also addressed how various companies could address this into their own workplace environment. One manager of a new software company tried promoting better team communication by having “beer meets” and other events.
But, the study showed that these had little or no effect. (Perhaps because of the interest. Communal events such as these can be polarizing as not everyone prefers to bond over drinks.)
However, the data in the study did reveal that “making the tables in the company’s lunchroom longer, so that strangers sat together, had a huge impact.”
Be strategic in how you engage your workplace and try to incorporate a solution that strives to include everyone in a respectful manner.
Account for scope creep and project runover.
Scope creep occurs when there is poor management of your scope. In turn, your project takes on changes without the respect of the grand scheme of the success of your project.
Your team should include a change management process in your scope management plan. Changes to your initial plan can delay or disrupt your operations in place of your project. However, if there is an opportunity that may benefit the project, your scope management can act accordingly and adjust to ensure project success.
Establishing a solid project management system in place allows for your vision to be seen by team members. Ensure that communication is properly given and that everyone is on the same page. After all, as stated in the PMI survey, nearly 30% of respondents reported project overruns due to inadequately sharing their vision or goal for their projects, while 28% of respondents said it’s due to inaccurate cost estimates.
Consider making your project work environment and team more dynamic by unifying your collaboration efforts, workflows, and content management all in one flexible and secure platform with a robust tool like SmartSheet.
With SmartSheet, you have the ability now to align work, people and technology across your enterprise; empower teams to rapidly build digital solutions; and move quickly and act with agility.
Keep workplace synergy a top priority in your project planning outlook.
In project management, workplace synergy is a term that isn’t often used. However, it’s a crucial component to the core success of any project. Workplace synergy is where two or more organizations interact to produce a greater finished product in comparison to performing it as one (i.e., project management team or division and the client or other division).
As published in the study “Interacting Mind Project” in the Science journal, the key to project success between organizational units is communication. It’s imperative for each party to accurately communicate their level of confidence at each step of the project timeline.
Prioritize team building and allow for members to feel respected at all levels of the organization. To maintain the highest quality and successful project deliveries, it’s crucial to have team members have honest and open conversations about their different perspectives and/or confidence levels, which is why having team building sessions and bonding events is crucial (see number 1).
At BDM Squared, we are committed to project success from our client’s perspective; we manage all of the internal and external stakeholders, vendor deliverables, and dependencies for large projects.
If you are looking for an external partner for your upcoming projects, schedule a free consultation with us today, and see how we can help you deliver more efficient, cost-effective, and strategic project initiatives in the new normal.