Project Management Institute’s study results show that a global average waste is $122 million for every $1 billion spent on projects. This study was conducted in 2016, and every following year the amount increased by circa 12%!
No doubt, this waste was created by poor project management practices.
Turns out, the Middle East had the lowest average monetary waste on spending projects: $99 million per $1 billion spent, and Brazil reported the highest average waste on project spending: $202 million for every $1 billion spent!
And this is “only” money we are talking about.
So, what else falls under resources?
According to the APM Body of Knowledge, ‘the resources needed to deliver a project, programme or portfolio include people, financial resources, machinery, materials, technology, property and anything else required to deliver the work.
So, what are the most influential factors of project management resources waste?
- The lack of a department-specific, regional, or divisional PMO(s)
- The habit of not using standardized project management practices
- Not providing project management the tools and training on tools
- Projects that can’t be classified as a strategic initiative
- Low project management maturity (the organizations without program and portfolio management)
What is the best way to manage project resources?
In order to manage resources in an effective way is to strictly and thoroughly follow 3 steps:
This step involves a detailed identification of the resources needed to complete the work. In other word: the quantity required together with the amount of effort required to close the project.
The aggregation of resources should be done on a daily, weekly or monthly basis – as this is the only way to keep track of a total amount of both things listed above.
Resource scheduling is a group of techniques used to calculate the resources required to deliver the work and to estimate the time when they will be required.
We know all of this might sound a bit dull or, in a best-case scenario – as a complicated theory, not so much applicable in the practice. But, keep in mind that resource management is always more than simply managing each task individually, and joining results to create a general outcome estimation.
Managing People is Actually Managing Resources
Like everything else, it is always about managing people, plus keeping a timing of the resource management activities flexible, so that it can match any project schedule changes.
First of all, managers should identify resources during the very process of planning. Next step is to determine the exact moment those resources will be required. That is done through scheduling.
And these are the essential parts of the control of the resources plan.
A control resource is always linked to the management.
Management creates a project plan to determine what resources are needed, just to assign them to the various tasks on the project at the correct time. This process is done once the project is closed.
There are few standard practices used to make the entire process as much accurate and solid as it could be.
Stick to the proven methods (and kick in some new ones)
Like bringing in the experts with experience and getting their opinion on what resources this exact project will require.
Or considering several different options for how resources can be assigned, as there’s always more than one way to accomplish an activity. A various number of alternative analysis helps in making a decision.
Analogous estimating is yet another commonly used strategy– it is a practice of looking at similar activities from previous projects.
Reserve analysis involves adding extra time to the schedule to protect the resources from any risk of failing to meet a deadline.
But, the best practice is always to get help from a source that is deprived of the human error.
Project management software often has features designed to help project managers estimate resource needs and constraints and find the best combination of assignments for the project.
Teodesk is with you on this one
To be more precise, if you are looking to bring together people, processes, and tools – Teodesk can make it happen in no time. And no mistake.
In order to pull off a complex project and accomplish the common objective, Teodesk feature in charge of resources – keeps it simple in following its consumption and cash flow.
It will help you have all your resources aligned and you will have everyone working toward a common objective. Resource management requires transparency as much as it claims precision. Teodesk has it both, plus focus, flexibility, simplicity, and beauty of a logistic made easy.
When the risk is seen as the potential of gaining or losing something of value, Teodesk can be your ally in efforts of decreasing the losing element and increasing the gaining potential. It is done by raising the risk awareness – Involving resources in the project planning and delivery processes will put you closer to the safe side.
This kind of help will keep your employees focused on the tasks and activities that give your organization the best chance of getting where you want to go.
Without wasting any more of your precious resources.