5 Success Factors for Resource Planning in Project Management

Often neglected: Resource Planning in Project Management

Although the effective use of resources is considered critical to success, resource planning in project management is still inadequately implemented in many companies. The problem does not lie in a lack of willingness but in the practicality of the tools used.

Even in large corporations, resource planning using Excel is widespread – not a particularly handy solution: the rough basic planning may still go smoothly, but it becomes complicated when adjustments are needed. Chaos is inevitable.

Furthermore, there is a lack of an overarching view of the short- and long-term capacities available within the company. Departments and project management teams plan individually, without a comprehensive perspective that would be crucial for supporting (strategic) decisions.

Additionally, resource management is subject to constant changes. Accurately reflecting these changes is often perceived as too complex and time-consuming. Overall, resource planning in projects is frequently a source of frustration.

In this article, we outline ways companies can address these challenges:

• Challenges in Resource Planning for Project Management
  • Challenge #1: The tension between different stakeholder groups
  • Solution: Tool usage tailored to versatile requirements
  • Challenge #2: Overly rigid planning in a dynamic (project) environment
  • Solution: Simplify resource planning in project management and minimize the need for re-planning
• Conclusion: Success Factors for Resource Planning in Project Management

Don’t have the resources to read the entire article? Then check out:

Resource Planning in Project Management with Projectworx (in brief)

Challenges of Resource Planning in Project Management

In a perfect world, project managers would have unrestricted access to the resource pool. They could pick the most qualified employees, and there would always be more available if needed. Unfortunately, reality looks quite different. There is no self-service; you have to wait your turn—and in the end, you often don’t get what you ordered.

Resource management is a hotbed of conflict, which is not easy to address. The best approach is to use specialized software solutions.

Depending on their role within the company, stakeholders have very different requirements:

• Decision-makers need a comprehensive overview and reliable analyses to assess the situation accurately and make informed decisions. The company’s success and profitability are closely linked to resource management. They need an overview of the project landscape composition, knowledge of which projects are in the sales pipeline, and visibility into the likelihood of these being commissioned (A/B potentials).
   
• The PMO is tasked with establishing the foundation for effective resource planning in project management. It requires tools to establish processes and make portfolio decisions, such as prioritizing or terminating projects, in coordination with decision-makers. Clear guidelines must be defined and enforced to prevent conflicts over questions like, “Which project gets resources when shortages arise?”
   
• Project managers need a way to secure qualified resources for their projects. A tool should help them to simplify coordination between project managers and team leaders and to record agreements transparently. Performance problems due to resource conflicts should be avoided as far as possible and the causes should be traceable for justification purposes.
   
• Team leaders must be able to provide reliable information, but have no solid basis for their resource commitments. Projects hang in the balance, employees drop out unplanned and other times there are problems with implementation. In addition to the tasks from projects, line activities also have to be fulfilled – and everyone wants to be served first. Acting on demand is still widespread and threatens the deadlines of ongoing projects. In addition to an overview of available capacities, absences and tasks to be completed, it is also necessary to monitor where employees’ hours are actually going.
   
• Employees benefit most from clear task management and simple time recording and, in agile organizations, are increasingly involved in effort estimation.

(1) One or Many Tools for Resource Planning in Project Management?

How many tools are needed to cover all these requirements? The answer: as many as necessary, as few as possible. Projectworx combines all the above-mentioned levels in one tool, but also offers interfaces to third-party systems if these are still to be used in your company.

(2) Ensure that the data required for resource planning in project management is up-to-date

Accurate representation of (overall) capacity utilization is only possible if all relevant data is bundled in a central location. This argument speaks in favor of using a fully integrated tool. The actuality of the data is guaranteed by the fact that work on the projects takes place in the tool, which means that project times can be easily tracked and compared with the planning data.

Often, the planning tools used in companies are too rigid to keep up with the high level of dynamism. What is valid today is outdated tomorrow. Everything seems to be subject to change:

• Planned projects do not materialize
• Promised resources are still tied up elsewhere or become unexpectedly unavailable
• Higher-priority projects are given preference, causing the schedule to shift
• Urgent revisions must be completed, throwing plans into disarray
• The scope of work is (subsequently) increased by the client, rendering existing plans obsolete

etc.

Adjusting the plans every time would be like a Sisyphean task.

The result: The resource planning in project management is barely in place before it’s outdated again.

(1) Plan from General to Specific

We would like to illustrate this general recommendation with a simple example of resource planning in project management.

Project planning phase
 

• Don’t get lost in the details when setting up project plans. It is better to plan roughly, with phases, overarching processes and milestones, but in full and for all projects – including potential. (This ensures that the data reflects the actual situation as realistically as possible and sharpens the overall view of capacity utilization).
   
• This lean project plan is the ideal basis for scheduling, rough effort estimation and resource planning, and is easier to manage and keep up to date.
   
• The use of planning templates for similarly structured projects is a good idea in many cases. This ensures that no work packages are forgotten in resource planning. It also reduces the effort required for planning – especially if estimated resource requirements (e.g. at department level) are already stored in the template.

Customer order / project commitment 

• The detailed personnel and department planning takes place after the project or customer order has been confirmed. The work packages can now be specified or complemented with the departments. A detailed estimate of the work involved is made. The available resources are compared with the updated schedule and planned accordingly.

What is the best way to get from a rough estimate to a detailed estimate? This can look very different depending on the use case, as these user stories demonstrate:

Rough Estimation bei T&S in der Pre-Sales-Phase

Detailled Estimation für Change Requests bei Hammerer Aluminium Industries

(2) Reducing Replanning Effort

Reduce replanning effort through integrated resource management

When project managers set up their project resource planning, they ideally want the full manpower of the resources they have requested. They plan in the Gantt view of Projectworx and, thanks to the link with the integrated resource management, automatically see whether the employee is already scheduled for other activities or even overburdened.

In this case, they have the option of requesting additional resources, extending the resource request to the entire team (so that the team leader can allocate available employees) or extending the duration of the work package accordingly. The coordination effort and subsequent replanning are significantly reduced by the combination of scheduling and resource planning in the Gantt view.

Reduce replanning effort through sensible planning cycles

Even if the availabilities are continuously maintained and largely updated automatically, all requests that have been received in the meantime need to be taken into account. The team leader checks the extent to which they can grant the provision of resources. It may also be necessary for the team leader to reassess the time required for a work package.

After coordinating with the team leader and obtaining a certain contingent, the project manager may have to adjust the planning. This can happen again and again during the course of the project if unexpected efforts arise. In practice, it has proven useful to set fixed planning cycles (approx. 2-4 weeks). Within the current cycle, resource planning should only be adjusted in exceptional cases. In the case of short cycles, this recommendation also applies to the following cycle.

Reduce rescheduling effort with planning aids

Projectworx facilitates resource allocation, coordination processes & replanning through various tools:

• Preview of the latest resource availability and resource conflicts in the Gantt plan
• Resource requests at the individual or department level
• The potential use of planning templates for similar projects
• Automatic recalculation of available resources when shifts or replanning occur during the planning phase
• The comparison of plan, forecast, and actual (see screenshot) also serves as a control tool and provides an overview of requested, granted, and actual working hours
• Rolling planning (configuration option) shows where things are not progressing according to plan, reducing the effort needed for replanning in such cases. Promised but unperformed hours are automatically carried forward to the future and increase the workload of the team/employee. This ensures that hours promised to a project are actually worked on that project, giving it priority over new requests.

Conclusion: Success factors for resource planning in project management

• Creating the best overview for everyone involved: While the PMO and decision-makers need an overview of the overall workload over a longer period of time, project managers and team leaders need the most accurate possible preview of the available resources in the next planning cycles. Projectworx offers coordinated and rights-protected views for all task areas.

• Ensure up-to-date data: The less manual maintenance required, the more up-to-date the data. Thanks to integrated time recording, employees’ project hours are recorded on an ongoing basis and are available for the current display of workload and for target/actual comparisons.

• Establish processes and set clear guidelines: Projectworx makes it easy for you to integrate standard processes into your project management. Also in the area of resource management. We would be happy to show you all the possibilities in a personal meeting.

• Plan from general to specific: Do not go into too much detail in the project planning phase, but carry out rough resource planning for all projects. Use planning templates to ensure continuity and completeness. Only carry out precise personnel and resource planning once the project has been approved or the order has been placed.

• Reduce rescheduling effort: These planning aids help you to keep data up to date and reduce rescheduling to a minimum.

Is resource planning in project management a constant source of frustration in your company? Let’s talk about how you can improve your situation.

Make an appointment now in the online calendar and take a look around in your personal test account.