There is an unsung hero- the Resource Manager, ensuring the right resources, people, money, equipment, or other assets are at the right place at the right time. While the ever-optimizing organization is on one hand, the Resource Manager shines by balancing workloads and team skill sets while combating impending resource shortages or surpluses.
From that day onward, resource managers have become an absolute imperative for the organization. Over decades and decades, this simple function has now arisen to a point whereby it plays a principal role for whichever industry is considered, simply because it will ensure that organizational talent is utilized and fully distributed possible in all functional areas.
Resource Managers should be making optimum decisions about demand planning, capacity planning, monitoring of usage of resources, staff optimization, and learning & development activities, all of which are key processes for resource management.
This comprehensive guide provides the intricacies of managing resources as a window for project managers to find insights and best practices for managing this vital area of their work.
Resource management is the process of planning, organizing, and managing various resources to achieve organizational goals and objectives. Resource managers use human resources, equipment, supplies, and capital to accomplish their goals. The proper allocation of resources toward an organization's strategic goal and particular objectives must eventually be realized.
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64% of resource managers hold a bachelor's degree, which is the most popular education qualification among them," according to research by Zippia.
At least a bachelor’s degree is a must for resource managers; however, for better prospects in resource management, they should specialize in labour relations, project management, or resource management itself. Further degrees that an RM would likely pursue include Business Administration, Human Resources, Communication, Psychology, and Operations Management.
Holding a master's degree in these areas will not be a barrier to entry; however, it could get resource managers far in securing more senior positions with much better pay.
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Other than the minimum academic requirements, extra credentials and certifications count greatly towards strengthening the credibility and enhancing the ability of an RM, thereby also helping them in their profession.
Some of the most recognised ones include:
1. Resource Management Certified Professional (RMCP)
2. Certified Resource Planning Professional (CRPP)
3. Professional in Human Resources (PHR)
4. Certified Scrum Master (CSM)
5. Six Sigma Certifications
Also, credentials recognized in the marketplace enhance an employee's chances of getting promotions, top-level appointments, or more diversified opportunities for work.
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Proper experience is the important attribute of getting qualified. Therefore, entry-level jobs must be opted for as they expose one to actual and practical knowledge and skills, which cannot be provided by education.
Common entry-level jobs include:
1. Co-ordinators
2. Project analysts
3. Data analysts
4. Consultants
The experience gained through such jobs will be helpful for interested professionals to become resource managers in their post-peak age.
Besides business skills, a person is said to have advanced people skills required of a Resource manager.
Skill is an important part of effective communication and solving people-based negotiations, team building, and keeping harmony in the Teams.
Each resource manager has unique skills in communicating, settling disputes, negotiating, and adapting to different locations.
Being a resource manager is working at the interface level with various business units and stakeholders, and all these competencies are used by him/her in making the process of resource management smooth and successful.
We now have an idea of what exactly is required of a resource manager and the functions of the resource manager about the job. Let us now get into the core functions of resource managers in any company.
An efficient resource management cycle leads to increased productivity, cost reductions, and optimal performance. Project Management Institute (PMI) states that organizations with good resource management practices are 20% more likely to finish their projects on time and under budget.
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Skilled resource managers can lead to an overall improvement of a team's productivity by 30%.The same study has established that companies with successful resource managers achieve 25% fewer behind-schedule projects.
The resource manager carries out many activities that lead to effective project running.
Below are the core duties that make up their work.
Resource allocation at the appropriate time is the backbone of resource management. It involves the assessment of the needs of various projects and what resources will be required.
Scheduling involves developing detailed schedules and ensuring resources are in place when needed. This takes understanding the project schedules, availability in the team, and resource constraints.
Equitable distribution of resources is mentioned as one of the most significant ideas of the job, since resource management ensures the team does not overload anyone or create inefficiency.
One of the most important responsibilities of the Resource Manager is to monitor the efficiency of resource utilization. Periodic monitoring will ensure the identification of improvement areas to guarantee that resources are optimally utilized.
A good resource manager is proactive in planning future requirements by analysing the demands of a project and trends within the industry. This will help the organization in anticipating a shortage or surplus of resources in the future.
Resource conflict is when different projects all need the same resource at the same time. Conflicts will have to be managed through project scheduling and the reallocation of resources.
More than technical skills, being a resource manager entails. To be successful in this job, a combination of hard and soft skills is needed.
Listed below are some of the most critical skills needed by a resource manager.
Resource managers handle multiple projects and tasks. They need to be well-organized to prioritize and keep things in check. An Association of Project Managers survey found that 80% of effective resource managers list organizational skills as their number one priority.
Several teams need to be led and coordinated by a resource manager. When necessary, they should be able to uphold their authority while inspiring and motivating others. Conflict resolution, pressure management, and team success are all made possible by effective leadership.
A resource manager must communicate with both team members and stakeholders. They must ensure that everyone is aligned on project goals and resource allocation.
A resource manager must be able to estimate resource demands, identify trends, and analyse data. Information can be gathered with the use of analytics technologies, but data interpretation requires human judgment.
Time management is an essential skill. Resource managers must prioritize and meet all deadlines. Ineffective time management can cause deadlines to be missed, and this can cascade to the project timeline.
Resource management involves solving problems such as resource clashes and under- or over-utilization. A good resource manager has to be able to solve problems quickly and efficiently.
A good resource manager should know how to manage budget and cost constraints. Resources are not free, and the manager should see to it that they remain within the project's budget while utilizing resources to their maximum potential.
There will always be conflicts, especially when resources are scarce. Conflicts should be settled amicably and professionally by resource managers. Their ability to resolve disputes can make or ruin a project.
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A resource manager is answerable for a broad range of tasks, including from scheduling the deployment of staff to budgeting. Here are some of their main duties.
The resource manager makes sure that every resource, whether human resources, technology, or money, is deployed cost-effectively to achieve the objectives of the company. They are central to making sure that proper resources arrive at the right time.
A resource manager creates schedules that meet the requirements of various projects. By properly scheduling the work, they make sure that resources are neither overworked nor underworked.
The resource manager generally has the duty of overseeing numerous projects. This involves ensuring that tasks are completed timely, resources are utilized efficiently, and deadlines are achieved.
Resource managers are constantly on the lookout for how to get the most out of available resources. Whether through the reallocation of resources to increase productivity or looking for cheaper solutions, optimization is central to their function.
Risk management is also a critical part of the resource manager's function. They must know where resource risks could happen and act to prevent them. For example, what if one of the most important team members becomes unavailable?
Resource managers should generate reports on resource usage and project status. This documentation provides monitoring of whether resources are used effectively and how they can be improved.
Resource managers need to be in constant contact with the stakeholders so that project expectations and requirements are met. They need to be open about any challenges and brief them from time to time.
Succeeding in resource management is not easy. It takes leadership, communication, technical skills, and flexibility.
These are some tips for succeeding in this role.
Resource managers of today must be technology-savvy. Software for resource management such as Microsoft Project, Smartsheet, and Resource Guru help in scheduling, allocating, and tracking resources. These programs help make more informed decisions and optimize resource usage.
A resource manager needs to be aware of the organization's overarching objectives. Resource management and organizational goals must be in harmony for resources to be used in a way that directly advances the objectives of the business.
A resource manager should have harmonious relations with team leaders, stakeholders, and staff. Favourable relationships between individuals enhance mutual trust and transparency of communication that ensures smooth utilization of resources and settlement of matters swiftly.
Since resource management is dynamic, it requires constant adjustment. Resource managers must be adaptable concerning scope, budget, and schedule changes in the project. Maintaining projects on track requires the capability to shift direction when necessary.
The resource management landscape is evolving continuously. The ideal resource manager should be made aware of fresh tools, best practices, and industry trends. Resource managers must remain updated about trends through participating in workshops, webinars, and networking events.
Setting priorities is essential to resource management. The resource manager has several duties, and being proficient in time management enables them to meet deadlines and maintain productivity.
Data-driven judgments have a higher chance of success. A resource manager can use trends and patterns to determine how best to allocate resources. Analytics tools are useful for tracking performance and areas that need development.
Clear communication is one of the basic requirements of effective resource management. All the stakeholders in the project must have all the requirements communicated to them and the timelines. Open communication reduces the chances of misalignment and builds confidence.
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The Project Management Body of Knowledge (PMBOK) identifies six major processes for successful resource management:
Although the rewards are many, being a resource manager has several challenges. Resource allocation is never easy, and there are usually disputes over scarce resources.
Moreover, workload balancing and employee morale management while delivering deadlines can be challenging. Resource managers also have to contend with unexpected changes, like staff turnover or changes in project scope, that impact resource planning.
A Gallup study discovered that 60% of workers are overloaded, which can result in burnout. The resource managers help prevent this from happening by keeping workloads equal.
Essential steps for project managers to build an integrated resource management plan include:
1. Define Resource Needs: Determine the exact resources and these may be human resources, equipment, materials, or even buildings that are needed at each phase of a project.
2. Estimation of Resource Quantity: Calculate the quantity or level of intensity for each resource type, keeping in mind work length, skill level, and availability of resources.
3. Conduct Resource Scheduling: Create a schedule for resources based on dependencies and reconciliation with resource availability and project schedules.
4. Resources Acquisition Strategy: Create strategies for hiring or outsourcing or plan for allocating internal resources to obtain or procure resources needed.
5. Establish resource development protocols: Establish monitoring, conflict resolution, and optimization protocols for resource usage throughout the life cycle of the project.
6. Set Resource Risk Mitigation Strategies: Identify resource-related risks and formulate contingency plans or risk mitigation strategies. To complete the plan, make sure stakeholders buy into it: conduct a review and approval if needed.
Resource capacity is the maximum number of effort or output that can be allocated to a project by a resource. It considers the availability, skill, and productivity of the resource.
Correctly estimating the capacity of resources is crucial for efficient resource allocation as well as for ensuring that activities are sufficiently resourced throughout the project without overburdening resources.
Resource dependencies arise when a project task or activity cannot begin or finish until some resources become available or other activities have been finished. These dependencies can be based on resource availability, precedence relationships among tasks, or external issues.
With a high-velocity project setup, not having a resource manager can create some serious problems.
Here are some of the major signs that signal it's time to invest in this vital role:
These are clear signs that it is time to start investing in a resource manager when an organization continues to face recurring hiring delays, along with a disconnect between available talent and what is needed for a particular project. Without proper resource management, organizations can find themselves unable to fill key positions with world-class candidates or fill them with candidates who don't have the skill set they require.
If team members are consistently overwhelmed with work, leading to high stress and burnout, it’s time to bring a resource manager into your organization. If the workloads are not evenly distributed, some employees may get overworked while others are underutilized, leading to burnout and increased attrition risk.
Having a resource manager on board will probably revolutionize your company if your projects regularly end up behind schedule because of inadequate resources. Inefficient forecasting, poor resource planning, or ignorance of current and upcoming project requirements are generally the reasons for constant resource shortages.
When talented workers are continuously saddled with administrative tasks while low-level employees work on high-priority projects, disengagement, low morale, and chronic absenteeism may follow. If this disproportionate workload becomes the norm, the solution is to invest in a resource manager.
Unremedied talent deficiencies within the team can frustrate project completion and result in delays or product deficiencies. With no resource manager in place to determine team talents and align them with project requirements, such shortcomings typically remain unnoticed until they cause issues with deliverables. By contrast, a resource manager looks ahead to potential talent shortages and remedies them in advance through special training or wise hiring.
A resource manager's performance is based on how effectively they achieve their key performance indicators (KPIs).
Below are the key KPIs to achieve for a project resource manager-
The billable utilization of each resource within an RM's span of control is one of the key KPIs. The percentage of the available capacity of the resources being utilized for billable and strategic work defines their performance.q
Bench size continues to rise or fall depending on ever-evolving resource needs. An effective resource manager should ensure that the bench size remains within a specific percentage of the total available capacity or reduce it to the minimum.
Several days a resource stays idle on the bench is referred to as bench aging. Ideally, there should be 0 days of bench aging. In real-time situations, it must not be more than 90 days. If more than that, it reflects poorly on the manager's performance
The fill rate is calculated to find out how effectively a resource manager can meet the demand for the resource on or before the project start date. If the resource manager allocates the resource according to the demand on or before the start date, the fill rate is 100%.
Each employee has his or her development objectives and ambitions in terms of his or her career. It is, thus, essential for a manager to meet the needs and provide them with sufficient opportunities to develop soft skills and other technical skills in their respective fields.
To show how crucial is proper resource management, let us go through some real-life examples from the investment banking sector:
During a fast-paced M&A deal, the top investment bank was understaffed as it handled concurrent premium transactions. The project team maximized the number of their knowledgeable analysts and industry experts by applying resource levelling, aided by using a resource scheduling software tool.
These guaranteed timely tasks were filled to the exact right levels with the right employees, allowing the bank to finish projects within limited timelines while consistently providing top-of-the-line customer service.
In a prominent IPO task, an investment bank experienced a resource bottleneck in its legal and compliance verification procedures.
Using resource-smoothing techniques and cross-training employees, the bank was able to divert resources from non-essential activities to address the bottleneck. This planning makes sure that the IPO prospectus and regulatory filings are accomplished on time, preventing delays and fines.
A resource manager's role is essential to any business's success. Projects function well, budgets are fulfilled, and teams are taken care of when resources are managed effectively. The ability of a resource manager to allocate resources, anticipate requirements, and settle disputes is essential to maintaining output and cutting expenses.
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