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What Is Resource Allocation? How to Allocate Resources for Projects

Projects require many resources. Everything from the people you’re working with and the equipment they’re using, to the materials and other supplies you need to even the site where you’re working falls under the umbrella of project resource allocation. Let’s explore what resource allocation is, why it’s so important for project management and what tools you can use to better allocate your project resources.

What Is Resource Allocation?

Resource allocation is the process of scheduling resources such as labor, materials or equipment to complete tasks. Organizations need resources to carry out the processes they operate normally and to execute operational and strategic projects to achieve specific goals.

This means the resource allocation process is integral in project management and strategic planning. Here’s a quick overview of the importance of resource allocation in these two areas.

Resource Allocation in Project Management

Resource allocation is a step in the larger project resource management process that involves estimating resources, procuring resources, allocating resources and tracking resources until the project is completed. The main objective of the project resource allocation stage is to ensure that resources are spent as efficiently as possible to minimize costs and avoid delays.

If a project team overspends resources on a task, the whole project schedule and budget might be affected as these resources need to be acquired again, generating additional costs and possibly extending the project timeline.

Once you’ve acquired your project resources, you should use project management software to plan how they’ll be allocated. That way you can coordinate them with your project schedule and distribute them across your team. In ProjectManager , for instance, you can manage your project schedule, team and non-human resources in one place. Build your schedule on a Gantt and track your resource distribution, progress and labor costs in one software. Try it free today!

Resource Allocation in Strategic Management

Resource allocation plays an important role when an organization is planning its business strategy for the future. This is described in a document known as the strategic plan, which outlines the key goals and objectives of the organization for a period from three to five years.

These goals and objectives are accompanied by an action plan detailing the actions, projects and strategic initiatives the organization will take to achieve them. All of these require resources , which need to be acquired, allocated and monitored.

Why Is Resource Allocation Important?

As difficult as it might be to allocate resources correctly over the life cycle of a project, it’s an essential part of any thorough project management plan and should be done in the planning stage of a project. This keeps costs down, maximizes productivity and helps with team morale. It also facilitates client satisfaction by achieving the best outcome and successfully delivering the project.

What Is a Resource Allocation Plan?

A resource allocation plan describes in detail what resources will be utilized for each project task, noting quantities, specifications and due dates for their utilization. There’s no standard way of making a resource allocation plan, it might include a variety of resource management charts such as a resource allocation graph, project calendar, Gantt chart or any other diagram that can be used to visualize how resources are allocated over a project timeline or a project task list.

In most cases, the resource allocation plan is part of the resource management plan , a document that guides all the project team’s resource management efforts.

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Resource Planning Template

Use this free Resource Planning Template for Excel to manage your projects better.

What Does a Resource Allocator Do?

A resource allocator can take many different names, but essentially this is a role that acts as a liaison between the project management office and HR, finance, accounting or any other business departments throughout the organization to ensure that project resources are acquired and allocated effectively.

Resource Allocation Software

Resource allocation software is equipped with resource management tools that help organizations allocate resources for the completion of projects or operational activities and processes. For example, ProjectManager is a robust project management software with advanced resource allocation features such as Gantt charts, workload management charts, timesheets, real-time dashboards and much more. These tools will help make a resource schedule , reallocate resources, track resource availability and utilization rate and much more.

Resource Allocation Methods

The specific resource allocation method your organization implements depends on your industry and the nature of how resources are managed. For example, manufacturing companies might focus on raw materials and equipment while a professional services company might focus on team utilization and financial resources.

Regardless, it’s important to balance resource allocation with involved stakeholders . This could include teams, departments, customers, shareholders and other stakeholders. We’ve outlined some commonly utilized resource allocation methods for you to consider.

• Critical Path Method: In project management, the longest chain of dependent tasks is referred to as the critical path . By outlining a straightforward priority for task completion before the project starts, the CPM helps use resources as efficiently as possible. However, one criticism is that this method doesn’t allow for multitasking.
• Resource Leveling: To implement resource leveling , start by looking at the capacity of your team to determine how much work they can handle. Compare this with demand. If resources aren’t aligned with demand, reschedule tasks accordingly.
• Resource Smoothing: Resource smoothing aims to reduce demand while executing the project within the ideal timeframe. During this method, the project manager makes adjustments to resource scheduling and allocation. For example, if you’re under a time crunch, you might bring on a more seasoned person who can complete the work faster.

Resource Allocation Tools

Now that we’ve explained some popular resource allocation methods, let’s examine some of the tools project managers can use along the way.

Gantt Charts

Gantt charts provide an easy way to map the required project tasks and note dependencies. You’ll be able to see and allocate your resources across a project timeline, so you know exactly when you’ll need each resource. Once you’ve identified your tasks, you can assign them on the Gantt chart and see how long each team member has spent working on each task.

Workload Charts

These project management charts visually represent your resource allocation for your project team, department or entire company. You can see how many hours each person has been assigned and make adjustments to ensure your team is working at capacity. Use it to quickly determine how your human resource management aligns with your planned resource allocation.

Resource Allocation Matrix

A resource allocation matrix is an overview of the needed project resources. It helps identify any potential bottlenecks or imbalances ahead of time. Typically, the matrix includes the names and roles of each team member, their availability  and their skills and tasks on the project. It acts as a visual representation of your resources mapped against project tasks and activities.

Resource Breakdown Structure

This resource allocation tool is a hierarchical chart of the resources needed to execute your project and it includes everything from the people needed for the project to what you’ll be spending your money on. An RBS can include materials, equipment, people, project management tools and more.

Resource Allocation Templates

Resources allocation requires accurate and timely data to avoid bottlenecks that can slow down your project. Project management software is the most efficient way to manage your resources, but if you don’t have an online resource management tool some templates can help. ProjectManager has free project management templates for every phase of your project, including ones to help with resource allocation. Here are a few.

Requirement Gathering Template

Before you can allocate resources, you need to understand what’s required. The free requirement gathering template for Word acts as a means of communication between the stakeholders and the project team. This ensures quality deliverables that meet specifications.

RACI Matrix Template

You’ll also need to organize your resources before you can properly allocate them. Our free RACI matrix template for Excel is a place where you can define the roles and responsibilities of the team members. RACI stands for responsible, accountable, consulted and informed, and the free template helps you place everyone involved in the project within one of those quadrants.

Our free resource planning template for Excel lists all the resources you’ll need for the project, how much each will cost and a monthly, weekly or daily chart of when you’ll need them.

Capacity Planning Template

Leverage this free capacity planning template for Excel to ensure you’re able to meet customer demand. It helps you understand your organization’s resource capacity by outlining the utilization, time and effort for each team member to complete tasks.

Workload Analysis Template

Use this workload analysis template to allocate work hours to employees and calculate their utilization rate and labor costs.

Project Dashboard Template

This free project dashboard template for Excel shows the project progress, costs and workload distribution in various charts and tables.

Resource Allocation Process: How to Allocate Project Resources

Resource allocation is a plan that you develop to make the most of the available resources at your disposal in a project, which makes it a critical resource planning activity. This is mostly a short-term plan set in place to achieve goals in the future.

This sounds challenging, but don’t worry, we’re here to help. The following are some general tips to help you with your resource allocation when managing a project.

1. Define Your Project Scope

Before you can allocate your resources or manage them, you have to determine the scope of the project you’re working on. To do so, you need to break down the project into every individual task and deliverable that will be completed. Once you’ve done so, you can make the right decision on what resources you’ll need and how many of them are necessary to complete the project.

The clearer the project scope is, the better you’ll be able to figure out how to allocate your resources. Take the time to get the full picture of the project using a work breakdown structure or other project planning tools to visualize all your project tasks before estimating your resources.

2. Estimate What Project Resources Will Be Needed

Once you’ve defined your project scope, you can move to the resource planning phase which is when you’ll have to estimate what resources will be needed including people, equipment, materials and anything else you’re going to need to complete your project tasks. Your organization will have some of these resources already, while others will need to be purchased or rented.

Before you can allocate resources, you have to have them. So, make a list using the criteria above and make sure it fits within the project budget .

3. Assess Your Current Resource Utilization & Resource Availability

Now that you’ve determined what resources are required for your project, you should also identify which of those resources are available within your organization. However, some existing resources might be being used for other projects, so it’s important that you not only identify which resources your organization has but also which of those are being utilized.

4. Create a Resource Allocation Plan

Take the information that you’ve gained from the above steps to put together a resource allocation plan. Outline the list of resources you’ll need for your project as well as the cost and quantity of each. When you’re finished, circle back to your project scope to make sure your plan aligns with it.

5. Keep Track of Your Project Resources

It’s a problem when you’re so focused on the process that you neglect to lift your head from the resource allocation plan to note what’s happening. This isn’t merely tracking your estimates against actual progress in the project, though that’s important, too.

You should always be aware of the state of your resources. For example, what’s the schedule for your team, are any taking vacation time, are they sick, etc.? Also, what’s the duration of the lease for the site or equipment? These are important questions to ask when scheduling resources.

Don’t let these details get past you because of tunnel vision. Look at the whole project, not just the various pieces.

6. Use Resource Allocation Reports

You can reallocate if you don’t know where your resources are allocated. You might have planned them out well, but change happens in projects. How can you tell what’s happening on the ground compared to your plans? Project reports .

You can generate all sorts of reports to give you a full picture of the project and how it’s progressing, which helps you balance your resources. For example, resource reports give you an overview of your team’s workload and whether they’re over-tasked or idle.

Task reports keep you updated and variance reports help you determine whether the project is proceeding as planned. The latter gives you vital information, such as if you’re behind schedule and need to redistribute the work to get back on track.

Resource Allocation Example

Let’s say you’re a manager for an IT organization and you’re tasked with hiring an architect for an upcoming project. You know the importance of an architect position to the overall success of the project but you know that they’re usually an expensive hire.

You’ll need to consider if it makes more sense to hire an architect for a specific project or if you want to assign him or her to multiple projects . You can utilize resource allocation tools to determine what makes the most financial sense for your organization.

Resource Allocation Tips

Even though there may be blind spots when managing resources, there are some tips to keep in mind to help you allocate resources as effectively as possible.

1. Know Your Resource Dependencies

By planning beforehand, you can avoid bottlenecks that trap your resources when you need them most in the course of the project execution . Planning also helps you keep your resources from falling short. This doesn’t mean you won’t have a bottleneck or resource shortage, but it’s less likely if you know your resource dependencies.

Part of planning for dependencies is having a contingency plan in place in case team members are blocked or you run low on needed resources. Keep your plans from being over-dependent on one resource to avoid trouble down the line.

2. Track Time

You always want to keep a close eye on the time, how your team is working and if they’re being efficient. It’s your job to make sure that a task that can be completed in a day doesn’t take a week. There are ways to improve time tracking .

To do this, you must keep track of your team’s workload. That requires the right tools to give you real-time data collected on one page where you can see and schedule ahead when needed.

3. Use Resource Allocation Tools

Project management software like ProjectManager  is a great asset for managing your resources more productively. With an online tool, you get project data instantly updated.

You can see where your resources are allocated across a calendar that’s color-coded to note whether they’re on- or off-task, on vacation or sick. Rescheduling to help a team member who is overtasked is a simple click of the keyboard.

How to Allocate Resources With ProjectManager

ProjectManager is robust project management software with multiple tools that allow project managers to allocate project resources, track utilization and availability, control costs and deliver project success. Regardless of how you prefer to manage and schedule your resources, ProjectManager has the tools to help you every step of the way. Here are some of our most popular resource management features.

Schedule Resources With Multiple Planning Tools

Tools such as Gantt charts, kanban boards, task lists and project calendars allow you to allocate resources in multiple ways. Use online Gantt charts to create interactive project timelines that let you easily assign the needed resources for each project task or create task lists that make it easy to stay on track. In addition, ProjectManager’s workload charts help you plan and oversee each team member’s workload at a glance so you can keep your team working at capacity.

Track Costs With Project Dashboards & Timesheets

Once you’ve allocated your project resources, you’ll need to track their costs to ensure that you’re sticking to your budget. ProjectManager’s real-time dashboards make it easy to monitor costs, timelines and progress so nothing is overlooked. Use the dashboard to make timely updates and catch problems before they snowball. In addition, you can use our project timesheets to help you keep track of labor costs.

Related Content

If you’re still interested in resource management, you’ve come to the right place. ProjectManager isn’t just superior software, it’s the online hub for all things project management. You not only get free templates but regular blog posts, thorough eBooks, whitepapers and more. Here’s a sample of that content as related to our topic.

• Best Resource Management Software Rankings
• Resource Management: Process, Tools & Techniques
• Resource Planning: The Ultimate Guide
• Resource Smoothing Steps, Templates and Tools
• Resource Forecasting in Project Management
• How to Track Resource Availability

If you’re looking for a project management tool that can help you implement those tips and manage your resources properly, then look no further. ProjectManager has all the features mentioned above to help you manage your resources, and it’s online software, which means the information you’re working with is in real time. See how it can help you by taking this free 30-day trial today!  

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Resource Allocation: How To Do It Effectively (+ Templates)

Strategic resource allocation helps you to realize overall business profitability and revenue growth. But if you get it wrong, missteps can spiral into lost money, unsatisfactory deliverables, and paralyzing organizational bottlenecks. 

In this guide, you’ll learn how to nail your resource allocation process for improved operational efficiency and accelerated decision-making.

But first, let’s make sure we’re on the same page…

What Is Resource Allocation?

Resource allocation is the identification of resources you can dedicate toward strategic initiatives , specific projects, or activities in your company. It means figuring out the optimal way to use available resources to get the job done. The whole process often involves one or all of the following:

• Understanding business priorities and goals. 
• Tracking progress and creating milestones to aim for. 
• Finding team members with the best skills and assigning them the right initiatives.
• Outlining how your resources can meet the project budget or project requirements. 
• Creating a work breakdown structure to account for initiative, project, or task dependencies.

The Benefits Of Strategic Resource Allocation

There are significant benefits to implementing strategic resource allocation for both companies and their stakeholders:

Alignment with the corporate strategy

The goal of strategic alignment is simple: to ensure that resources are leveraged in the most optimal way to impact business results. By doing so, it reduces the likelihood of bottlenecks in the execution process. It also fosters better working relations between different departments and ensures that every member of your organization is moving towards the same business outcome. Everyone has a clear understanding of their priorities and the tools they need to achieve them.

📚 Recommended reading: How To Build Organizational Alignment 

Resource utilization and efficiency

With proper resource allocation, you not only optimize the use of funds but also prevent team burnout by ensuring no personnel are being overextended. This can bolster stakeholder confidence in your organization’s ability to manage finances and safeguard employee well-being.

Cascade Strategy Execution Platform improves operational efficiency by eliminating duplication and aligning teams toward a common goal. It helps reduce waste caused by misalignment, ensuring smoother operations and better performance overall.

Strategic oversight and flexibility

Strategic resource allocation gives you an easily-accessible reference as to all the moving parts across your organization, allowing you to identify teams, projects, and initiatives that are performing well—and increasing support as necessary. This can also allow you to quickly pivot resources to an area that is underperforming and execute strategy within the planned timelines. 

📚 Recommended reading: Centralized Business Observability To Boost Your Bottom Line

7 Steps To Strategically Manage Resources Across The Organization

1. identify strategic initiatives.

First, you’ll need to understand how exactly your organization is performing concerning its goals. What are your core business metrics and financial statements reflecting, and what strategic initiatives can your company pursue to improve its overall performance?

This will help you match your resources to strategic initiatives that will have the most impact to move the needle.  

Here are some examples of strategic initiatives : 

• Product development to enter a new market
• Cutting supply chain costs
• Increasing customer satisfaction 

👉How Cascade can help : 

Cascade’s Metrics Library helps you unify all core business data in one place and pinpoint performance, giving you clear oversight into which strategic initiatives are worth pursuing. This will help you to root your decisions in data and move forward with confidence that you’re going in the right direction. 

🎥Watch this short video explaining how to use the Metrics Libray in Cascade. 

2. Assess resource needs and organizational constraints 

Once you have an idea of where your organization stands strategically, you can focus your attention on the resources that it needs to reach the goals that you’re working towards.

Some examples of resource needs include:

• Tools, equipment, and facilities for different departments
• Essential software or licenses for operations
• Staffing and other personnel for specific jobs
• Support personnel who may be from outside the organization
• Projected financing for your initiatives and projects 

This step is about pinpointing what you need and checking its availability, not about allocating resources. That comes later in the process. 

3. Prioritize strategic initiatives

Organizations often have several strategic goals, but with limited resources, they can't tackle them all at once. This is where prioritization comes in, helping focus on key objectives. 

Here are some decision-making tools and frameworks on Cascade’s blog to help you: 

• Decision matrix : This template will help you analyze and pick the most important option based on specific criteria. It allows you to make data-driven decisions toward high-ROI initiatives based on the most critical factors that meet your organization’s needs.
• GE Matrix : A framework to help you manage portfolios and prioritize investment across different strategic business units. This allows you to allocate resources (usually capital) as needed and gives you a better idea of which initiatives need focus and which can be dropped.
• Competitive analysis : This collection of competitive frameworks will help you analyze market dynamics and the competitive landscape. This will help you recognize marketing opportunities and threats to effectively assign resources. 

📚 Recommended read: 7 Decision-Making Tools For Business Leaders

4. Choose your resource allocation strategy 

Once you understand where your organization stands, where you want it to go, and what steps you need to take, it’s time to allocate resources. Use the insights from previous steps to develop your resource allocation strategies and decide which initiatives get what resources. 

Here are some examples: 

• If your organizational priority is growth , allocate resources to R&D, marketing, and expansion. 
• If your organizational priority is profit , dedicate resources to high-margin products or services. 
• If your organizational priority is control , assign resources to compliance, security, and governance. 

Don’t forget to balance your strategic priorities with resource availability. Avoid projects with low returns just because resources are at hand. Proper identification, categorization, and assignment of your resources ensure that you allocate them optimally.

5. Communicate allocation of resources 

A key aspect of resource allocation is alignment: ensuring that every stakeholder understands how they can properly utilize their resources—whether that’s finances, manpower, or time.

For organization-wide initiatives, this can be as simple as having an overview of all ongoing initiatives or a detailed map outlining the connections between each department and how their activities overlap.

This overview in a centralized place can also help with:

• Giving a clear view of what KPIs are being reached.
• Outlining the performance of assigned resources in real-time.
• Helping the entire organization stay consistent in working toward a specific initiative.
• Informing other resources outside the organization that contribute towards your goals.
• Promoting clarity and conciseness of information sharing at each milestone or benchmark.

👉 How Cascade can help : 

You can easily assign priorities to each objective, allowing stakeholders to better understand what’s important and how to organize their work. You can also reorganize your strategic plan based on the priorities without having to risk miscommunication across different departments in your organization.

6. Implement and monitor

Continuous monitoring is crucial in ensuring your resource allocation is reaching its targets. It allows you to spot: 

• Assets being underused or used incorrectly 
• Overspend or overallocation of resources on a single project
• Project scopes expanding unexpectedly ("scope creep")
• Resources bottleneck or shortages 

This real-time data provides a solid foundation for iterative strategic planning and decision-making. It helps you make informed financial decisions and quick adjustments when needed. 

Cascade’s dashboards help you monitor and analyze your key business metrics and information. They are highly customizable, helping you use different visualization options and present insights that power decision-making. 

7. Review and adjust

Resource allocation shouldn't be set in stone. Regularly review your resources and adjust as necessary. This could be in response to changes in the business environment, unexpected challenges during execution, or shifts in strategic objectives.

In Cascade, you can easily create, share, and collaborate on reports to ensure everyone understands the context, performance, and decisions for changes in resource allocation. Analyze performance across teams, departments, and projects with simple visualization and engaging reports.

4 Challenges That Prevent Effective Resource Allocation

Every organization, regardless of size, grapples with resource allocation challenges. Recognizing and addressing these is key to mitigating the negative consequences.

Overlooked resource dependency

This challenge refers to the lack of understanding of how different resources within an organization are interconnected. These can be people, equipment, time, or money, and they often depend on one another to deliver the expected results. 

Cascade's Alignment map and Relationships directly tackle this by enabling users to see the connections between objectives, metrics, projects, and actions. This ensures real-time status monitoring and swift removal of any bottlenecks. 

Use of outdated legacy tools

Many organizations still rely on legacy tools or systems, like spreadsheets or traditional project management software, to manage their resources and operations. While these tools have stood the test of time, they might not cater to the evolving demands of modern operations in terms of complexity, speed, or scale.

With Cascade, you get access to modern strategy execution software that scales your needs, with flexibility and collaboration built into the platform’s design. This supports your growth long-term, ensuring streamlined operations without organizational chaos and disruptions. 

Limited visibility within a complex organization

Larger or more complex organizations often struggle to see all their resources in a single view. This can result from geographical dispersion, departmental silos, or disconnected resource management software solutions. Poor visibility makes it hard to understand resource utilization, pinpoint shortages or duplication, and optimize resource allocation. 

Cascade addresses this by centralizing all the necessary information about strategic initiatives and projects in a single platform. This centralized observability gives leaders complete insight into their initiatives so that they can stop what’s not working and double down on what is.

Lack of flexibility

All the shortcomings above can ultimately cause organizations to be too rigid in their resource allocation. They can struggle to adapt to changes and seize new opportunities, and risk lowering the efficiency of their operations and decreasing customer satisfaction.

In Cascade, you can quickly identify risks and align everyone around critical initiatives before it’s too late. This promotes a dynamic approach that your organization can always rely on to solve potential critical challenges and gives you the data you need for confident decision-making. 

8 Templates To Help You With Effective Resource Management

The Cascade platform has 8 different templates that any organization can easily and quickly use to help kick-start their resource planning:

Project Plan Template

This template is tailored for project teams that want to monitor the project lifecycle and ensure successful project execution. It streamlines project tasks, provides clarity on roles and project timelines, and ensures efficient resource allocation, enabling organizations to stay on track and meet their strategic goals efficiently. 

👉 Click here to get your Project Plan Template.  

Strategic Budgeting Plan Template

Prepare multiple budgets, create financial forecasts, and reduce spending. This works well for financial teams looking to reconcile how their short-term expenses work towards their long-term goals, helping them maximize financial resources and reduce spending on dead-end strategies. 

👉 Click here to get your Strategic Budgeting Plan Template.  

Resource Capacity Plan Template

Assess the availability of your resources and allocate them to your new projects efficiently. This template is suitable for resource managers and project leads who want to optimize resource allocation and ensure project success. 

👉 Click here to get your Resource Capacity Plan Template.

Resource Allocation Plan Template

Identify and define the right resources needed to reach your organization’s goals, accounting for anything from personnel, equipment, and finances. Useful for teams that need a resource allocation strategy to use their resources more effectively and align with strategic priorities. 

👉 Click here to get your Resource Allocation Plan Template.

Project Resource Plan Template

Detail how resources should be distributed across your project. It’s best used by project managers who want to optimize and track the resources used in a specific project, giving them a bird’s-eye view of how their resources work. In doing so, they can ensure they stay aligned with the project schedule.

👉 Click here to get your Project Resource Plan Template.

Cost Management Plan Template

Track expenses and manage funding effectively, especially concerning project costs in the long term. Useful for project managers and team leads who want to ensure accurate financial projects and data-driven decisions. 

👉 Click here to get your Cost Management Plan Template.

Portfolio Strategy Template

Evaluate and manage the risks and returns of a portfolio, helping you plan your asset allocation more efficiently. It’s best suited to businesses that want to optimize their specific portfolio and increase potential returns.

👉 Click here to get your Portfolio Strategy Template.

Staffing Plan Template

Identify the roles and responsibilities needed from your personnel to achieve your strategic objectives. Best suited for human resources that need a comprehensive staffing strategy that includes everything from vacancies, qualifications, and onboarding.

👉 Click here to get your Staffing Plan Template.

💡Need something else? Check out our Strategy Template Library with 1,000+ free templates. 

Optimize Your Organization’s Resource Allocation With Cascade 🚀

A strategic resource allocation plan can help your company manage multiple projects through organization-wide coherence and alignment. Using a strategy execution software like Cascade , powered with the key capabilities of a resource management tool, helps you monitor your resources and enables your organization to move faster with centralized observability of your multiple projects, metrics, teams, and initiatives.

If you need help with business planning and resource management, you’ll need a platform that can help you accomplish all that and more.

Sign up today for free or book a guided 1:1 tour with one of our Cascade in-house strategy execution experts. 

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A Guide to Resource Allocation for Your Small Business

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You probably have seen the sign: “Your dishes don’t do themselves.” Someone has to wash them -- or at least put them in the dishwasher.

Every project needs people and tools -- also called resources -- to get from here to there. But resources are often scarce, more so if you’re working on simultaneous projects. Which is why project managers must be able to effectively assign and schedule resources to squeeze the most value out of them.

This process is called resource allocation, a core project manager responsibility.

Overview: What is resource allocation?

A resource is anything required at the task level to complete an activity and move the project forward. These can be people, funding, equipment, materials, reports, vehicles, computers, and other technology.

Resource allocation assigns or allocates resources to project tasks to meet schedule and quality requirements. If you’re managing a construction project, your project management resources list may include:

• Construction equipment
• Hand tools, power tools, and machine tools
• Materials, such as wood, steel, brick, concrete, chemicals, etc.
• Hardware and software
• Safety gear
• Design blueprints

This is a list of the most commonly used resources:

• Labor : the people or human resources to perform a task. They should be available and possess the required skills, knowledge, and certifications to meet specifications. If the project is to bake a cake, you’ll need a baker or a group of bakers.
• Materials and supplies : Things that go into a project. To bake a cake, materials -- or ingredients -- will include flour, baking soda, salt, sugar, frosting, etc. For art projects, art supplies may include paint, watercolor, canvas, drawing paper, etc.
• Tools and equipment : The tools you will need to bake your cake, such as measuring cups, spatula, pastry brush, kitchen scissors, whisk, rolling pin, etc.

What are the challenges of resource allocation?

Resource allocation is not an “assign it and forget it” kind of process. Changes are inherent to projects, which is why you need a contingency plan as an integral part of any project plan.

For a project to progress according to plan, project managers must manage resources throughout the project’s life cycle. The failure to address project changes promptly can result in project derailment.

1. Changes in scope

As much as possible, you want the project’s scope to remain constant. But that won’t always be possible. The project management triangle -- more popularly known as the triple constraint -- states that the project constraints of time, scope, and resources are connected, which means any change in one will cause one of the remaining two, or both, to change.

If your project’s scope changes, because of funding or priority changes, you’ll have to make resource or time allocation adjustments. Projects going beyond the original scope happen a lot, so be ready to tap your pool of freelancers, contractors, suppliers, and vendors.

If that happens, you may have to request a project budget adjustment.

2. Changes in schedule

Project schedule changes can affect resource allocation in the following ways:

• Expanding timelines : Project delays resulting from the client taking time to provide feedback or approval to start the next phase of the project may mean temporarily shelving the project until the client responds. In the meantime, resources may have to be assigned to other projects so they’re not sitting idle. Or with independent contractors, a work agreement may have to be put on hold until further notice.
• Shrinking timelines : If the client accelerates the timeline, you may scramble to find resources. Remember this as you manage client expectations.

3. Changes in resource availability

Resources sometimes become unavailable when you need them most. Employees take pre-approved vacation leaves or suddenly become sick, businesses shut down because of a natural or man-made disaster , equipment or machinery failure, or supplies don’t arrive on time.

Timely and sound communication strategies can save the day here. When a team member is unavailable and their work is time-critical, speak with other team members to see if they can accommodate the extra work.

Otherwise, check your resource list for a replacement. If no one qualified is available, bring in freelancers or outside contractors. If that isn’t possible, negotiate a timeline adjustment with the client.

4. Changes in dependencies

Certain tasks can’t be started until another is completed. These are called dependencies. Pushing back predecessor tasks will likely delay the entire project, so it’s important you know the status of each task.

A project tracker can help you stay on top of things. It shows where bottlenecks are, which critical tasks are in danger of getting delayed, and which team members need a helping hand.

5. Changes in priorities

Resource-strapped organizations that work on simultaneous projects usually share resources across projects, making project prioritization critical to getting the most out of finite resources.

When priorities change, you may have to pause, or terminate, Project A to focus on Project B because it’s what makes sense for the company. That may also mean going back to the drawing board to rewrite your resource allocation plan.

How to allocate your resources for your project

When you’re ready to assign resources to your project, follow the general guidelines below:

Step 1: Break down the project into tasks

To assign resources to a project, you must know the tasks involved. For a project to be successful, resources must be assigned at the task level and each resource must be appropriate for the task.

For instance, if you’re working on a kitchen and bathroom remodeling project, a plumbing installation job will require a plumber, while to do the kitchen cabinets, you need a carpenter, and so on.

Tips for breaking your project down:

• Understand the project’s scope: Is the project big or small? Is it short term or long term? Only when you know the breadth and depth of the project will you be able to determine the type and quantity of resources you need.
• Use project management tools : A work breakdown structure breaks down projects into manageable tasks you can assign to individual team members.

Your project’s work breakdown structure may look something like this. Image source: Author

Step 2: Assign your resources

Once the project has been broken down into tasks, you’re ready to assign resources.

Tips for assigning resources:

• Know your resources: Review your resources profiles. Do they have the skills and experience to satisfactorily complete a job? Can they handle the tools and equipment the project requires? Are they certified to do specific jobs? With outside contractors, can your budget accommodate their rates?
• Don’t over- or under-allocate : Over-allocation means you’re assigning too much work to certain resources, leading to burnout, poor team collaboration, and unmet deadlines. Under-allocation happens when you have more resources than needed, which you pay for even when they’re sitting idle.

Step 3: Reallocate resources as needed

Resource management happens throughout the project’s life cycle. Even when a project is underway, certain situations may come up to disrupt the plan and schedule, such as:

• Team members don’t show up for work or are late because they’re sick or have an emergency.
• Specific equipment may be needed for other projects.
• Raw materials arrive a day late because of inclement weather.

Tips for reallocating resources:

• Factor surprises into your plan : The above scenarios -- plus others -- can cause a major scheduling or budget adjustment, so take into account the different ways your resource plan can go haywire.
• Optimize resources through resource leveling : Resource leveling is a resource management technique in which project start and end dates are modified to balance resource demand with available supply. It’s used when resources are scarce, when they have to be shared with other project teams, or when certain resources aren’t available for a specific time frame.

Step 4: Track resource utilization

Monitor resource utilization rates. This is to make sure you’re maximizing resource usage. To measure an employee’s utilization rate:

Utilization rate = working time / total time

So if an employee works 35 hours out of 40 in a week, their utilization rate is:

Utilization rate = 35 hours / 40 hours

Utilization rate = 87.5%

The optimal rate is between 70% and 90%.

The resource utilization rate shows two things:

• If it’s too low, the project is probably not profitable.
• If it’s too high, team members are probably overworked.

Effectively allocate resources for project success

You may have the most reliable talent on the team, but if you lack adequate funding and the tools to do things, your project is doomed to fail, which showcases why effective resource allocation is such a vital component of the project management plan.

To keep your projects organized and every document you need in one place, from project initiation to closure, check out The Ascent’s list of the best project management software . Options such as monday.com and Smartsheet come with resource allocation and planning templates you can use right out of the box.

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Step-By-Step Resource Allocation Example: See How It Works

Nicole Tiefensee is the co-founder of Runn.io, a resource planning and forecasting platform. Before Runn, Nicole worked as a digital project manager and Agile coach for almost 15 years. She's a true globetrotter and has led digital projects and coached agile teams in agencies, start-ups, and big corporations all around the world.

Resource allocation is a critical process that ensures the right team members are working on the right tasks. Here's an in-depth example to see exactly how it's done, so you can get your resources properly aligned on your next project.

Resource allocation is a critical step in the project management process . No matter your industry or whether you are running just one or multiple projects, you need resources. This includes things like tools or special equipment, and most importantly, people, to help you deliver the work and get the job done.

Optimally planning and allocating the resources available to you will impact your ability to deliver your project on time and budget . It may also affect your company’s bottom line and your team’s performance and happiness.

In this guide, we will explain what resource allocation is and why it’s important to get this process right, go over some of the challenges you might encounter, and then dive into a step-by-step example.

Who’s Responsible For Resource Allocation?

Resource allocation often falls to project managers, but some companies may also employ a resource or traffic manager for people planning and staff allocation.

Generally, project managers are concerned with allocating and managing resources for the projects they are accountable for. In contrast, resource managers take a more holistic view and look at resource allocation on a company level. Both roles work hand-in-hand to strategically assign people to projects based on their skills, experience, and availability.

Step-By-Step Example: How To Allocate Your Project Resources

Let’s say you’ve taken on a project for your new client, Ezycounting, a rapidly growing accounting firm with annual revenue of $20 million. They’ve come to you to build a mobile app in a timeframe of 6 months. We’ll name this Project Ezy !

Disclaimer : We’ve included examples from the Runn app to illustrate how to allocate resources to your projects. Runn is a modern resource planning and capacity forecasting app that helps project managers to plan and track their people and projects .

Having worked as a project manager myself for many years, I am well familiar with the challenges of resource allocation. I co-founded Runn to solve these issues and help provide you with company-wide visibility across your projects and the people needed to deliver them.

You can try Runn for free at runn.io .

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Before You Get Started

1. know your project team’s capacity and availability.

Before you begin allocating your resources to specific projects, it is essential to figure out how much time you have available to allocate in the first place.

Do some of your people work part-time? Do some of your people only work on certain days of the week?

Begin by making sure you know your team’s capacity and how many hours per week or day each employee can work.

Runn’s People Planner gives you real-time access to your resource pool of employees and contractors so you can see everyone’s existing workload, holidays, and availability for allocation.

Related Read: Capacity Planning For Every PM: Strategies + Complete How To

2. Know What Other Work Is In The Delivery Pipeline

It’s also important to know what other work is currently underway and what work is coming up as you may have people working on multiple projects at a time. Things can start to get messy if you over-allocate some people and under-allocate others.

Runn’s Project Planner displays all your projects scheduled in the selected timeframe and will show you what’s currently on.

If you’re a Runn user, the People Planner and Capacity Charts are quick ways to see where you may be going beyond capacity.

Most capacity planning platforms will allow you to easily view team capacity and workload, as well as confirmed workload for team members.

Scheduling Your Project And Allocating Resources

Once you have an idea of the other projects in your pipeline and how many people and hours you have available, it’s time to get to work on allocating these resources to your project. The easiest way to approach this process is to use resource scheduling software .

1. Understand The Project Scope And Delivery Constraints

Firstly, make sure you know the requirements and deliverables of your project and have identified any delivery constraints, such as:

• What’s in and out of scope
• Dependencies

For Project Ezy, you know you need to deliver a mobile app within six months with a hard launch date in July. 

2. Identify Roles And Skills For Your Project

Now, identify the roles, skills, and seniority level you will need to deliver the project.

Ezycounting requires a native iOS app, so you’ll need someone with Objective-C programming skills. 

As a project manager, you might not always know who will be appropriate for the job. Remember to consult the respective team leads, solution architects, and resource managers. They know their team members well and will have an idea of who on their team would be a good fit or where you may be lacking in skills necessary for project delivery.

Based on the size of Project Ezy and the timeframe given, you predict you’ll need:

• 1 project manager
• 1 UI/UX designer
• 2 developers
• 1 tester 

3. Map Out Your High-Level Project Timeline

Next, build out a high-level project plan . Work with your team to break down the scope into tasks and activities and estimate how much time you think you will need to deliver the scope of work. The number of hours or days your team will need to complete each task will feed into your project’s resource plan and schedule, so this is an important step.

It helps to visually draw-up the project phases and make a note of any critical milestones, key deliverables, or deadlines throughout the project schedule.

Once you have lined these all up, you’ll be able to see a timeline with start and end dates for the project.

In Runn, you can quickly draw out project phases and add project milestones.

Project Ezy spans from February to July and has seven significant milestones and 5 phases.

4. Allocate People To The Project

Choose the available resources you want to assign to the project, ensuring that they can take on new work.  Remember:

• To take any time off or public holidays into consideration
• To make sure the people you’re allocating to the project have the appropriate skill sets
• And that no one is overbooked

Resolve any overbookings or conflicts by re-allocating the work to someone else or moving the timeline.

You’ve allocated Michelle, Monica, Kenny, and Beyonce to Project Ezy.

Runn allows you to add people to a project by role and skill, as well as alerts you of overbookings and time off in real-time so you can adjust things on the fly.

What if I don’t have the right resources at the right time?  If you don’t have anyone on your project team with the right skill set, you might need to hire a contractor to help you deliver the work.

In Runn, you can use placeholders to indicate demand for a role or if you’re not sure yet who on the team will be taking on the work.

You’ve added a placeholder for the developer role while you continue allocating your other resources.

Once The Project Is Underway

As you progress through your project, things don’t always go as planned.

What if your resource allocation plans were too conservative, and you now run the risk of going over-budget?!

An easy way to see how your plans fare against reality is by using project management software with time tracking capabilities and having your team log timesheets throughout the project.

This allows you to identify how you track against your original resource allocation plan and identify any resource or scheduling risks early before they become issues. Frequently checking important resource planning metrics such as utilization and capacity will inform your decision making and avoid over-allocation and team burnout .

Utilizing an efficient resource management software can provide you with detailed insights into your resource allocation. Runn’s variance report, for instance, shows the variance between your actual and planned resource allocations. Runn's variance report shows the variance between your actual and planned resource allocations.

To stay on track and mitigate any risks, you might have to:

• Swap out a resource
• Allocate more resources
• Change the allocation of resources

You’re two months into Project Ezy, and you think things are going pretty well. You log into Runn and discover that your staff has all been working over-time. 

You talk to Ezycounting, and they agree to extend the project by two weeks.

An effective resource allocation process involves having a strategy before a project starts, assigning the right people at the right time, and keeping track of your plan along the way to ensure optimal team utilization and successful project delivery. To help you through this process, it can be beneficial to use a free resource management tool .

Visibility over your pipeline of work and your team’s capacity and availability is critical, so you can react to changes quickly and adjust your plan effectively.

Learn more about how to master resource allocation here .

Subscribe to The Digital Project Manager for more concrete project management information and actionable insights.

Related Read: 10 Best Resource Allocation Software

How To Plan Resources For Multiple Projects: 6 Expert Tips

What Is Resource Scheduling & How To Do It In 5 Key Steps

Resource Forecasting: Best Practices, Steps & Examples

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Resource allocation in project management + examples & template.

What is allocation of resources?

What is considered a resource, what are the benefits of resource allocation, how are resources allocated.

• Resource allocation examples

Resource allocation template

How can workamajig help you allocate resources like a pro, browse more blogs.

Imagine this: you're an elementary school teacher and it’s the first day of school. You’ve got 3 piles of workbooks to give out and boxes of pencils, glue sticks, and scissors. How do you go about giving them out?

Call each child to your desk one at a time to collect their pencil and then repeat for every item?

Choose one capable-looking child to give everything out to everybody?

Both ideas are pretty foolish, not to mention downright inefficient.

Though usually more complicated in nature, project resourcing is only as efficient as the person and processes in charge of it.

Resource allocation definition: the process of arranging resources in the most efficient way possible so that the right resources are available at the right times.

In project management, this translates into coordinating projects and resources so that there are enough of the required resources for the duration of a project. It also prevents over-allocation or under-allocation of resources, as well as ensures that employees are suited to and happy with the tasks they are being allocated.

Resources include everything needed to complete a project, such as:

• Office space/outdoor space
• Hardware/software 

Maximizes efficiency: when resources are thought out and allocated wisely, projects can be completed with minimal hiccoughs or delays. 

Increases bottom line: when projects are completed efficiently, more projects can be taken on, so more profit is made. Efficient project management resource allocation also keeps your agency's costs down, e.g. you won’t be paying employees to sit idly at their desks.

Improves client satisfaction: all clients enjoy working with agencies that complete projects before the deadline, which ultimately adds to the bottom line. The more satisfied your clients are, the more likely they are to ask for more projects.

Boosts team morale : good resource allocation planning means that no one has too much or too little on their plate and that tasks are paired with the most suitable people for the job. When employees have just enough of the right amount of work, morale is guaranteed to improve.

Improves collaboration: when resources are well allocated, team members know what their responsibilities are and what their colleague's responsibilities are, making your team a collaborative unit.

Define project scope: to know what resources are required for a project, you first need to know what exactly the project entails. A scope statement comes in handy at this point - a document that details exactly what the project entails.

Work out your resource availability: Before you can allocate your resources, you need to know what resources you have available.

Record all resources into a table/software: By having all available resources recorded in one place, you’ll be able to designate resources most efficiently, as well as track when resources increase/decrease. Having different resources recorded and tracked in different places is cumbersome and makes it extremely difficult to allocate resources effectively.

Match tasks with people : One of the best ways you can effectively allocate your resources is to allocate tasks to the people who are best at them and enjoy them most. That way, tasks will be completed quickly and employees will be happy.

Don’t over or under-allocate: Back to our elementary school teacher; imagine the teacher would give every child five pencils, three glue sticks, and two pairs of scissors. Most of those resources would probably get lost before the first week of school is over. But, if the teacher would give out only one workbook between two, and one gluestick between four, the class would struggle to get any work done and end up far behind. Same with project management: allocate too many resources to a project, and it’s a waste, allocate too little and the project will not be of good quality and likely miss the deadline. If we’re talking about people as resources, it’s also important not to over or under-stretch your employees.

Make expectations clear: the best resource allocation plan will only be as effective as how well your team understands it. By ensuring that each team member knows what is required of them and which resources they have at their disposal, you ensure that each resource is used to its maximum.

Track resources and reallocate when necessary: Once your project is off the ground, it’s unlikely that everything will stay status quo. Instead, you’ll likely be faced with unexpected shortages and surpluses of resources. It’s therefore imperative to keep your finger on the pulse and reallocate resources as the project goes along.

Know your budget and track it: A fundamental resource to keep track of is the project budget, as it will determine the availability of other resources. The best way to keep tabs on your budget is with resource management software that can update you in real time about where and how your budget is being used.

Track time: Strategic resource allocation includes tracking time . Then, at the end of the project, you can see how long various tasks took and use that information to realistically allocate resources for the next project.

Minimize scope creep: Although scope change is pretty much inevitable, you can take control of how badly it affects resources by planning ahead with a change management plan . A change management plan is set before a project begins and determines how the agency will deal with a scope change request.

Put someone in charge: Make someone responsible for allocating resources and staying on top of them. Without that, it’s easy for everyone to assume that someone else is in charge and then your careful plan goes out the window.

Resource Allocation Examples

We’ll base our example of resource allocation around an ad campaign project, and discuss how to allocate the necessary resources.

First, we’ll define what’s included in the project, which in this case, is a series of print and TV ads.

Then, we figure out what resources we have available and plug them into a resource management software (which would probably be Workamajig being that it’s the best one;))

Now, we designate, making sure every team member gets the right amount of work, not too much or too little. We also ensure that we’re matching tasks to the people who are best at them. So the print ads go to James, who has 3 years of experience in print ads and enjoys creating them, and we task Amanda with the TV ads because her greatest joy is seeing the ads she created appearing on TV.

Once the project is off and running, we track, track, track. Track where the resources are going, track the budget and track team members' time.

Tim is put in charge of monitoring resources because he has the head and organizational skills required and we minimize scope creep by processing any change request through a predetermined change management plan. 

And…guess what happens?

The project fails miserably!

Why? Did you notice what stage we forgot?

We merrily allocated tasks to James, Amanda, and Tim, but failed to tell them about it - no go!

Next time, we’ll remember to clearly inform team members of their tasks and document tasks and progress in a place that can be easily accessed.

Use the basic template below to start effectively allocating resources.

As the only resource management software created specifically for creative teams, Workamajig’s intuitive resource management capabilities help you pull off successful projects without hiccups or headaches. Here’s how:

• Easily see what's needed & assign work in just a few clicks from the project schedule.
• Get ahead of the game with our ready-to-go templates - or customize your own - that include typical resources needed for each project type.
• Have everything you need at your fingertips. View workloads by week or day for the whole team, & filter by office, department, role, service, or person.
• Plan proactively, not reactively. View real-life utilization, including meetings, vacations, company holidays & job commitments.

Get the updates you need, in real-time

Know exactly where you stand with updates that factor in assigned work, task updates, and schedule changes.

• Get the bigger picture with less manual work. Easily view, filter, sort, & group all tasks - current, future, assigned, or unassigned
• Resourcing that stays connected to related projects lets you make quick changes & get instant recalculations
• Color-coded views factor in vacations, company holidays, and overbooked schedules to show you exactly where you need to focus

Keep your team happy & engaged.  

See your creatives' daily schedules (& meetings) just like they do, & easily rebalance work for the week - or month.

• New tasks show up automatically on your creatives' daily task lists, with full context.
• Managing priorities with drag & drop ensures tasks that need attention get it.
• De-stress resourcing surprises. Is someone out or sick? Reassign their tasks with ease.

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Ultimate Guide to Resource Planning

By Joe Weller | June 7, 2018

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Focusing on how to best use people to achieve essential activities helps organizations drive themselves forward in the information economy. Without a realistic view of who makes up your workforce, how much time your people have to spend on project tasks, and what they need to get the job done, your project and business plans won’t succeed. This article features an overview of resource planning and explains why it is essential to project management. Plus, you’ll find a variety of free resource chart tools and learn more about expert resource planning techniques to start planning how you will maximize your most important — and most limited — resources.

Why Is Resource Planning Important in Project Management?

Resource management is an essential project management process and a core activity of human resource management — from large enterprise to small startups. Managing projects requires managing resources. Whether the project is developing a new software feature or the construction of a new building, resource planning directly contributes to the project’s end result. An over-resourced project wastes time, those with too few resources risk missing critical milestones, and those that use the wrong resources won’t meet expectations. Project managers need to understand what resources a project needs and what resources the project already has before developing accurate project plans.

The topic of resource planning, allocation, and management is often associated with people planning activities common to human resource management (HRM) and planning. Human resource management is an approach to acquiring, training, controlling, managing, and measuring people resources, and human resource planning is a strategy to add value to a business or organization by supporting people activities like training, compensation, safety, and communication. Resource planning is associated with different industries and approaches as well, including the following:

• Enterprise Resource Planning (ERP): ERP refers to the combination of business processes and information that joins disparate functions of companies (like accounting and HR) with the manufacturing or product development and service-side functions of a business or organization. ERP software (like Microsoft Project) supports resource planning activity at Fortune 500 corporations and large companies that scale operations for thousands of projects including manufacturing.
• Material Requirements Planning (MRP): A planning and control system for inventory, production, and scheduling. MRP is an approach to handling material resources that involves converting a master production schedule into a detailed breakdown of the raw materials used in civil engineering, commercial real estate, and fabrication industries. Manufacturing and resource planning (MRP II) replaced MRP as the standard, and ERP expanded the reference to accommodate HR and financial activity.
• Utility Resource Planning: This activity involves estimating the demand to be met by the utility resource (for example, natural gas, the reliability of the resource, the costs of available resources, and government policies and regulations to consider).
• Integrated Resource Planning (IRP): A type of roadmap tool used for utility resource planning developed in collaboration with government agencies, industry advocacy groups, developers, and other project stakeholders.
• Natural Resource Planning: This refers to the management of natural resources such as land, water, soil, plants and animals. By contrast, distribution resource planning (DRP) refers to a method for planning orders within a supply chain

Agile Resource Planning Template

This resource capacity planning template includes a Gantt chart feature to visualize and plan resources for Agile software project sprints . Use this template to chart software development resources by quantity and skill type (for example, PMs, analysts, developers, designers, product managers, administrators, etc.). Modify the template to view the distribution of your team’s time and activities across your Agile sprint calendar (expressed in two week intervals in this template).  

‌   Download Excel Template Try Smartsheet Template   ‌

Looking for a better way to manage your resources? Look no further.

Resource Management by Smartsheet empowers your people to more effectively manage teams across projects, track time accurately, and forecast with confidence so you can make better, more informed decisions with a clear view of every project.

Watch the demo

Optimize the Resource Planning Process

Project resource planning involves the allocation and utilization of different types of resources, including people, materials, equipment, and financial capital. The term “resources” generally implies all of the things that a project manager or business depends on to deliver products and services. In the context of this example, the term means human resources. People planning is different from physical resource planning.

First, identify the resource requirements for your project schedule: What type of skilled people do you need to complete project tasks? Will you use internal employees or contract resources from external vendors? Do you have the materials, software, and equipment to supply team members with to empower their work? This step involves documenting project roles and responsibilities, organizing project teams based on competencies, and creating resource control plans for managing change and relationships.

Next, determine the cost and duration of the needed resources across the entire project schedule. Use resource forecast techniques and tools, including project management software, to assist with creating an optimized resource plan. Decide on the range of competencies needed (by project task) and determine if you need to change project scope, plan additional training, or provide subject matter experts. This step is both quantitative (in that you use information such as previous project schedules, budgets and reports, and data analysis) and qualitative (due to the people planning component).  

Finally, create a resource schedule and calendar and determine if you have the resource requirements to complete the entire project schedule on time. Anticipate what-if scenarios to determine worst-case resource management scenarios. List individual project resource activity and make sure all tasks are assigned to a specific resource.

Using spreadsheet software to create resource plans has its limitations. Managing data manually increases the chance of forecasting errors. Project resource plans are living project documents, meaning real-time analysis of the data is critical to success. The risk of overwriting or deleting spreadsheet resource plans, or of creating multiple versions across a distributed project team, is high. Consider investing in project management software to stay on schedule and optimize your resource planning and management.

Project Resource Plan Template

Use this project resource planning template for multiple types of project and portfolio management scenarios. Schedule human resources and non-human resources (like material and equipment) in separate sections for easy analysis based on each project phase, from project origination to execution. Plan and estimate the cost for full-time employees, freelance consultants, contingent staffing, software, hardware, and more.

Resource Planning Tools and Techniques

Resource management software tools can automate tasks and track work hours against budgets, provide color-coded visualization charts to help monitor scarce resources in real-time, and share big picture data for portfolio managers to track what-if scenarios across multiple projects and teams. Resource management strategy includes various processes for organizing and managing project teams.

Resource planning involves the strategic use of human and non-human resources to develop products and services under deadline and budget restraints. Software tools help simplify resource planning, but the human element to project resource management requires more than technology to manage. Different techniques exist to assist resource planning and manage project teams, including the following:

• Resource Meetings: Short, frequent, action-oriented meetings give project managers a forum for discussing roles and responsibilities related to resource planning. The meeting focuses on sharing fact-based information and short-term planning for critical project activities and tasks. These meetings help create project culture and provide leadership with a frequent control for corrective action and clarification.
• Resource Leveling: This is a technique to optimize resource allocation by adjusting the project schedule over time to resolve conflicts caused by the over-allocation of resources. According to the PMBOK guide, these project schedule adjustments may affect critical path .
• Resource Smoothing: A technique to optimize resource allocation using free float (or total float) without affecting the critical path. The PMBOK defines free float as the “amount of time that a schedule activity can be delayed or extended from its early start date without delaying the project finish date or violating a schedule constraint.”
• Resource Availability and Utilization: A resource planning technique to ensure that the project’s allocated resources are actually available. This is done by calculating the cost to use them, monitoring planned versus actual use of resources, and taking corrective action.
• Resource Capacity Planning: A planning technique used by portfolio managers that oversee resource planning and manage multiple projects. Capacity planning involves determining if the allocated resources are sufficient enough to complete new projects and determine if the amount of resources, or the level of skilled people, is sufficient on existing project teams.

What Is a Resource Planning Chart?

Resource planning software includes features to create resource planning charts like Gantt and RACI (responsible, accountable, consulted, and informed) charts to help project managers visualize, plan, and manage resources for the project schedule. Project managers use resource planning charts like Gantt charts to find the critical path, a color-coded network diagram that displays a sequence of activities through the project schedule, the duration of each task, and the longest path from the start of the first project activity to the end of the last activity. The PMBOK guide recommends using the critical path method (CPM) to determine the shortest possible duration of a project schedule.

Staff Resources Planning Template

Resource management involves assigning tasks, roles, and responsibilities to your project teams to clarify process and participation. This resource planning template combines a RACI matrix and a histogram feature. Use these tools to visualize and plan project activity and create an optimized project schedule based on staff resources.

‌ Download Staff Resources Planning Template – Excel

What to Cover in Your Resource Management Plan

Resource plans guide how to allocate, control, and use resources. In addition to this practical function, resource management plans can help earn stakeholder buy-in and get project budgets approved. A physical resource management plan advises project managers on the use of materials and equipment. Human resource plans specify the type of skilled people needed to complete a project, and the quantity, cost, and scheduled duration of their given activities. Before implementing your project plan, modify and organize the resource plan to assign every individual project task to the appropriate person. A sound resource plan includes the following information:

• Resource Identification: The type of people or material resource needed, name, title, source (if contracted), and the assigned project team.  
• Resource Cost: The direct or estimated resource cost.
• Resource Requirements: The information about the resources available, including when they’re available, any conditions, and the duration of their availability.
• Roles and Responsibilities: The specific function(s) that people resources perform for the project. This information might list the resource authority, including decision-making and approval authority.
• Resource Quantity: The amount of this type of resource (for example the amount of labor hours, equipment, or materials).
• Resource States: The current state of the resource (planned, requested, approved, denied, allocated, confirmed).
• Resource Locations: Where is the resource located, including virtual resources and co-located teams.
• Resource Organization: A graphic display of the project team and their relationship to other project team resources.
• Resource Calendar: The scheduled working days, shift hours, start and end dates for different project milestones, and scheduled holidays. Resource calendars identify the duration of work for specific resources.
• Resource Issue Log: The information on resource planning challenges, for example in acquiring skilled resources, and problem-solving steps that worked to keep project resource plans on track.

What Is a Resource Forecast?

A resource forecast is a quantitative assessment of conditions and events used to estimate the amount of resources, and the cost of a project’s planned, allocated, and actual resources. This forecast is based on information available when the resource plan is developed. Activity duration estimates forecast how long each project activity will take. This is a useful technique to determine cost and quantity of people resources required, expressed in hours, weeks, days, or months. PMI lists various forecasting tools and techniques in the PMBOK guide, including the following:

• Bottom-Up Estimating: Evaluate the small details, like individual project activity duration by resource, from an aggregate breakdown of the total scope of work. Use this technique to forecast the duration of individual assignments, or cost of skilled resources, by adding up all of the lower-level estimates of resource cost and consumption to determine a total estimate. This process is accurate but time consuming.
• Reference Published Data: Leverage published reports, articles from industry journals, and public data from organizations like PMI to create resource forecasts using this data to create estimates. This is a type of analogous estimating, which is defined in the PMBOK as “a technique for estimating the duration or cost of an activity or a project using historical data from a similar activity or project.”
• Parametric Estimating: Project management software features an algorithm function to perform parametric estimating. Use this tool to forecast resource cost or estimate resource duration based on the project resource parameters and historical data.
• Three-Point Estimating: Use a realistic estimate, an optimistic estimate, and a worst-case scenario estimate of project labor to forecast resource costs by applying the average of the three estimates.

Team Resource Planning Template

Use this template to forecast your project team’s bandwidth (expressed as work hours) using a heatmap visualization. Customize the template to reflect your team’s availability based on resource allocation of work hours. This is a resource utilization tool designed to help you plan and manage your team’s demand and quickly populate data based on project hours allocated and utilized.

‌ Download Team Resource Planning Template – Excel

Improve Resource Planning Efforts with Smartsheet

Resource Management by Smartsheet is a powerful resource management software that helps to effectively manage the who, the what, and the when behind projects.

With Resource Management by Smartsheet, you can more easily build the best team for a project, keep project schedules and budgets on track, and confidently forecast business needs.

When teams have clarity into the work getting done and by whom, there’s no telling how much more they can accomplish in the same amount of time. Watch a free demo to learn more about Resource Management by Smartsheet.

Make better operational decisions with a powerful resource management tool.

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Resource allocation plan template

When you’re planning a project, you want to make sure you’re maximizing the potential of all of your resources. You can easily standardize a plan for this with a resource allocation plan template.

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You’re ready to embark on your newest initiative, but before you do, you need to understand exactly what resources go into it. What tools, team members, and budget will you need to effectively execute this project and how many are available to you? A resource allocation plan template can help you provide context about resources both for your team, and other cross-functional collaborators.  

What is a resource allocation plan template?

A resource allocation plan template is the skeleton of a resource allocation plan that you can easily duplicate to create a new allocation plan. It’s a great tool to use if you’re looking to improve consistency across your allocation process or to create several different plans at once.

In this context, a resource is something required to complete a specific project. This could mean time, an individual team, specific roles, or finances. 

What is a resource allocation plan?

What’s the difference between a resource allocation template and a resource management template.

A resource allocation template is intended to help with the assigning of available resources to specific initiatives. A resource management plan template is a little more specific—it helps to specifically manage team bandwidth so you can see what your team is working on.

When to use a resource allocation plan template

A resource allocation plan template is best used when you're in the project planning or project initiation stage. It can help with the development of your project scope, schedule, budget, and other constraints. 

What’s included in a resource allocation plan template?

A good resource allocation plan template will have all of the information you need for project resources, including: 

Resource name : This could be an individual person, or the type of resource you need for a specific project.

Associated task: The specific work or task you’ll be using this resource for.

Role in the project: For staffing resources, this is the specific skill set a single person provides for the project.

Max capacity: The maximum capacity a resource can manage.

Availability: This is how much capacity a resource has left before hitting their maximum capacity.

Project start and end date: The time period when the project is active.

Integrated features

Workload . Workload gives you a visual snapshot of team capacity by making it easy to see what your team members are working on across projects—all in one place. With this at-a-glance information, you can pinpoint conflicts, address risks, and keep projects on track by reassigning or rescheduling tasks. Check Workload regularly to make sure team members aren’t overwhelmed or underworked. If they are, you can easily reassign or reschedule low-priority tasks to unblock high-priority initiatives.

Portfolios . Portfolios make it easy to organize and track all of your team's multiple projects in a single view. Get a high-level overview of how all your projects are progressing, then drill in for more details to address risks. Plus, share status updates across programs and keep stakeholders up to date without having to schedule a status meeting.

Project Overview . Project Overview is your one-stop-shop for all important project context. Give your team a bird’s-eye view of the what, why, and how of your project work. Add a project description to set the tone for how you’ll work together in Asana. Then, share any important resources and context—like meeting details, communication channels, and project briefs—in one place.

Start dates . Sometimes you don’t just need to track when a to-do is due—you also need to know when you should start working on it. Start times and dates give your team members a clear sense of how long each task should take to complete. Use start dates to set, track, and manage work to align your team's objectives and prevent dependencies from falling through the cracks. 

Slack . Turn ideas, work requests, and action items from Slack into trackable tasks and comments in Asana. Go from quick questions and action items to tasks with assignees and due dates. Easily capture work so requests and to-dos don’t get lost in Slack. 

Google Workplace . Attach files directly to tasks in Asana with the Google Workplace file chooser, which is built into the Asana task pane. Easily attach any My Drive file with just a few clicks.

Zoom . Asana and Zoom are partnering up to help teams have more purposeful and focused meetings. The Zoom + Asana integration makes it easy to prepare for meetings, hold actionable conversations, and access information once the call is over. Meetings begin in Asana, where shared meeting agendas provide visibility and context about what will be discussed. During the meeting, team members can quickly create tasks within Zoom, so details and action items don’t get lost. And once the meeting is over, the Zoom + Asana integration pulls meeting transcripts and recordings into Asana, so all collaborators and stakeholders can review the meeting as needed.

Clockwise . With the Clockwise + Asana integration, you can add Asana tasks as time blocks in your Google Calendar. The Clockwise + Asana integration allows you to specify the duration of tasks, when they happen, and whether Clockwise can automatically reschedule them. Add tasks to your calendar and make time to get work done.

How do I create a resource allocation plan spreadsheet? .css-i4fobf{-webkit-transition:-webkit-transform 200ms ease-in-out;transition:transform 200ms ease-in-out;-webkit-transform:rotateZ(0);-moz-transform:rotateZ(0);-ms-transform:rotateZ(0);transform:rotateZ(0);}

While resource allocation plans are often built in spreadsheets with complex formulas and formatting, the best way to create a resource allocation plan is by using a collaborative work management platform . This means that all of your team members and the key stakeholders will always know exactly what resources are available, and how they’re being utilized as the project progresses.

A resource allocation plan template is the outline of a resource allocation plan used to create multiple allocation plans. This makes it easy to standardize and duplicate a project so everyone on your team prepares the same information during the project planning stage. It’s best used if you’re looking to improve consistency across teams or create several allocation plans at once.

How do you calculate allocated resources?

The best way to calculate allocated resources is to use a tool that automatically monitors resource workload. A work management platform like Asana can help you visualize your resource workload and automatically calculate hours, without a spreadsheet.

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Project Management

What is resource allocation a complete guide for maximum efficiency.

Senior Content Marketing Manager

April 20, 2023

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Picture this: You’re throwing a party. Your house is full of celebrating guests. Someone says, “I’m getting hungry… Let’s order some pizzas!” 

You’re trying to figure out how many pizzas to order. Too many pizzas, and you’ll be stuck eating leftover pepperoni for days. Too few and some of your guests won’t get a slice.

But you’re also limited by counter space and the money in your wallet.

How do you feed everyone while also getting the most value out of your money?

Like party organizers, every project manager should know how to allocate resources wisely. No project has an unlimited budget or amount of team members, but you can use resource allocation to maximize productivity and project success. 

It’s all about thorough preparation and strategic planning around making the most out of what you have.

Learn how to allocate enough resources to all your projects so that you get the job done—and everyone gets a slice of pizza. Let’s party!

What is Resource Allocation?

The benefits of effective resource allocation, how to manage resources and set client expectations, resource allocation examples and templates, resource allocation is a constant work-in-progress.

Resource allocation is the process of identifying all your available resources—whether it’s labor or monetary—for a project and then strategically assigning them to tasks that enable them to do their best work.

For agencies juggling multiple projects for different clients, resource allocation is key to making sense of creative chaos. Matching the right person, or resource, with the right project makes everyone happier in the end. Your staff gets to work on the projects they’re best suited for, so clients are likely to receive high-quality project deliverables and results. 

As projects evolve and client expectations change, resources are reallocated to keep progress on track with project timeline s.

What counts as resources?

Your resources are all the company assets necessary to complete tasks or projects. These may include:

• Individual people
• Teams or departments
• Hardware and software
• Real estate
• Intellectual property
• Techniques and skill sets

Who’s responsible for resource allocation?

Usually, project managers are responsible for resource allocation because they have the most visibility and control over project budgets, scope of work , and task management. However, large organizations might separate these responsibilities across several roles or have dedicated resource management departments.

Related: Resource Leveling

Not allocating your resources well is like sending just one person to pick up ten pizzas on their own while the other 15 people chat at home. It’ll take one person much more effort and time to get those pizzas, which runs the risk that everyone might be stuck eating cold pepperoni. 

Why not send three people to help out, so everyone can enjoy a warm slice ASAP? 

Resource allocation enables you to use your labor, money, and assets to their full potential , so clients are likely to receive high-quality work. At the same time, your agency minimizes team burnout by distributing work evenly. 

Other benefits of resource allocation include:

• Maximizes efficiency. Resource allocation helps the agency to take on as many projects as your teams can handle—no more lost opportunities due to overstaffing, or project failures due to understaffing
• Fosters collaboration . The client and your team know who’s working on what because you’ve divided tasks and responsibilities clearly across the team
• Increases your agency’s profit margins. Get the most out of each project’s budget and control staffing costs
• Boosts client satisfaction. Deliver better project outcomes by keeping projects on track and assigning the right people to each job

Since resource allocation takes stock of the available resources for a project at a given time, it is a short-term plan—but it has long-reaching effects. It’s a critical tool for capacity planning and managing client expectations. With effective resource allocation, your project has everything and everyone it needs to be successful, including the right resources and a realistic time frame. 

Bonus: Capacity Planning Tools & Capacity Planning Templates

Define your project scope

No chef starts cooking without picturing what they’re going to cook, right? 

Similarly, the first step in project management is to define the scope of your project. Without understanding your project scope , making resource allocation decisions is impossible!

As part of your project scope, you need to define the following:

• The statement of work : what tasks are necessary vs. what work is out-of-scope
• Project constraints such as budget and deadlines
• Project schedule and timeline with milestones
• Project deliverables or outcomes

Your project scope helps you plan out and understand a new project at a high level. Use this information to:

• Plan how many resources you’ll need to complete your project within the allotted time frame
• Dice up the project into smaller tasks
• Decide how you’ll assign those tasks to your team members

Take stock of your resources

Before picking toppings for your pizza, you have to know what toppings are available—and what everyone’s preferences are. Similarly, to pick the best resources for a job, you must first understand what each person does best and what kind of work they prefer to do. 

When project planning, you should understand the capability of your team and the quality of resources you have at your disposal. That way you can allocate those resources where they’ll be most effective. 

What are their strengths and core areas of expertise ? Match your project requirements to the resources that can execute those needs. 

Agency resource planning example

Say your project involves running a pay-per-click ad campaign for a B2B SaaS client in the business intelligence sector. You have two PPC managers at your agency: Jason, who has worked with other B2B tech clients before, and Sara, who has mainly worked with B2C direct sales clients. 

Sara says she’s less comfortable managing PPC for this client because she doesn’t know much about B2B software, much less a highly technical industry like BI. Meanwhile, Jason is confident he’s the right person for the job due to his past B2B experience.

For this project, you’d definitely want to place Jason on the account!

What is the availability and bandwidth of your resources? Team members rarely work on just one thing at once, but everyone is limited by the number of hours per week or day they can work. You want to ensure that your team has enough work hours to assign to this specific project.

Remember that absences, whether planned or unplanned, affect availability, so assign employees to tasks with contingency periods in mind. Employees can (and should) take paid time off or sick leave, which means they’re unavailable on those days. 

Meetings can take employees away from project tasks even during regular work days. Plus, everyone needs at least 15 minutes in their day to walk the pup or get a pumpkin spice latte! 

Never over-allocate resources . Overallocation can lead to burnout and lower productivity. The success of your project is never worth sacrificing the happiness and usefulness of your team. 

Refer to calendars and schedules when allocating your resources, and adjust timelines accordingly to accommodate resource availability. Optimize resource utilization so that your projects always have just what you need. 

Directly assign tasks to team members for full visibility

Once you know what your project team can achieve, the next step is to delegate the right tasks to each person based on their skill sets and availability. 

Set your team up for success ! Provide as much information as possible to ensure everyone understands what’s expected of them. Clarify all the need-to-know details for each task—the responsibilities, expected results, and due dates. 

In ClickUp, it’s easy to cut your pizza of a project into smaller slices with tasks, subtasks, and checklists. You can then quickly assign each action item to your team members in just a few clicks!

Here’s a closer look:

• ClickUp Tasks : Break down your projects into achievable tasks and subtasks, which you can easily assign to your team members. Your team can now work on the whole project one step at a time.
• ClickUp Checklists : Create simple to-do lists that your team can quickly check off as they progress through tasks. Use these lists to map out steps, perform quality checks and keep track of how your project is going.

For some tasks, a single person is just not enough—especially when you have tight deadlines.

Luckily, with multiple assignees in ClickUp , you can quickly assign more people to a task if needed. So the next time a task needs that extra pair of hands, you’ll be able to assign them in a jiffy.

Plan around dependencies to avoid overuse of limited resources

The pizza delivery person won’t reach your doorstep unless they can park first. If your driveway is full, the pizza party is off – and that’s simply not an option. 

Similarly, projects inherently have dependencies —relationships between tasks and resources that affect those resources’ availability. 

Consider resource dependencies , where multiple tasks require the same limited resource. Let’s say you need 10 new graphics designed by Friday, but only have one designer on the team who’s already allocated to other projects until Wednesday. 

In this case, you would need to adjust your project schedule to realistically accommodate your team’s limited availability . Or look to hire another graphic designer, whether full-time or freelance, to provide the support needed to meet your deadlines. 

Task dependencies also occur when one task’s progress depends on the progress of a separate task. For example, you have to wait for clients’ feedback before completing project revisions in line with their requests. Like rolling out a lump of pizza dough into a perfect pie before adding tasty toppings!

Stagger and schedule tasks based on these dependencies. Keep an eye on any potential bottlenecks and make sure that no one is left waiting on others for too long. Maintain constant communication around outstanding tasks and action items, and adjust expectations accordingly around project delays.

Consider adopting an Agile or Scrum project management methodology to eliminate or circumvent dependencies. 

ClickUp’s Dependencies help you map out the links between tasks and resources . This way, you’re able to keep tabs on all your project dependencies before they ever have a chance to become blockers. 

Here are more ways that Dependencies keep your team focused:

• Everyone always knows what to prioritize first, what they need to wait on, and what comes next in the pipeline. Less miscommunication, more getting it done!
• ClickUp pings assignees when their tasks get unblocked or dependencies are added or removed. This eliminates the “waiting game” so team members can focus solely on actionable tasks in the meantime. 
• Warns people before closing tasks that are waiting on other tasks, preventing them from skipping over or forgetting key requirements

You can add Dependencies to individual tasks manually, or visually by drawing links between tasks on a Gantt chart . 

Track progress and reassign resources accordingly

Ideally, you set resources for a project, and it goes according to plan. But if there are any delays or changes, you may need to reallocate resources. 

Don’t panic! Reallocation is a normal part of resource management. 

The first step is to keep a close eye on team capacity as it relates to fulfilling your project requirements. Ask these questions when looking at your current capacity: 

• Are some team members overloaded? 
• Have some employees suddenly become unavailable due to uncontrollable factors like internet outages, quitting, or reassignment to another project? 
• Are key milestones in danger of being missed? 
• Has the scope of your project changed, requiring unexpected, additional work?

If so, the next step is communicating changes with your client or project stakeholders . Keep them in the loop about your project’s progress as early and often as possible, including any potential shifts in scope or delays. 

This helps manage expectations so stakeholders are less likely to be caught off guard, disappointed, or surprised by changes or setbacks. 

The resource allocation process may involve rescoping your project and finding additional team members to help with the extra work. Some companies create a backup resource allocation plan by identifying employees with relevant skills that can fill in as needed or maintaining a pool of freelancers who can provide support on the fly.

You also may need to adjust timelines and deadlines for all tasks in your project to reflect your team’s capacity and account for unanticipated delays. 

Allocating your resources by itself, plus reallocating tasks down the line, can be a lot of work, but it doesn’t have to be hard work!

Consider using resource management tools that keep your team on track with centralized visibility. No need to dig up all your various spreadsheets, docs, and post-its, or constantly switch between all your team members’ calendars. 

We might be biased, but we believe ClickUp is a great (dare we say the best?) resource allocation tool. It brings all that information into one place so you can keep track of your progress and team capacity in real-time. You can create customizable Dashboards to see how your team is doing and where you might fall behind. 

That’s one way Diggs uses ClickUp to stay on top of its projects. The results? Greater transparency into workload management , less time spent on back-and-forth communication, and more productive use of everyone’s time.

We’d call that a win!

Minimize scope creep

You can order what you think is enough pizza for everyone at your party, but you can’t always anticipate how much they’ll eat. What happens if you unexpectedly run out of pizza? 

Aside from shedding some tears (understandably), you now need to shift gears to meet your goal of feeding all your guests. 

This is a case of scope creep —a project expanding beyond its original scope and requiring additional resources, including extra time, money, and people. Scope creep threatens your project’s success by adding extra work without extending the project timeline, creating extra pressure on your team members to do more in less time. 

You can try your best to prevent scope creep by setting firm boundaries in your project scope statement, but sometimes it’s unavoidable. In those cases, good change management puts structures and processes in place to mitigate scope creep. 

It establishes expectations that decision-makers will inform you about scope changes ASAP and give you the space and time to reallocate or add resources accordingly. 

Going with the flow is important, but so is preventing overwork by overloading your team! They have a pizza party to get to, after all.

Let’s say you’re a project manager in charge of launching an influencer marketing campaign for Marinara , a mobile Pomodoro timer productivity app. Here’s an example of what your resource allocation plan might look like:

• Define your project scope : Market Marinara on 10 productivity-focused TikTok accounts with over 50k followers in Q4. 
• Understand your resources : The project budget is $10,000. Your team consists of an influencer marketing manager, product marketing manager, IT specialist, and Payroll specialist. 
• Assign tasks: The influencer marketing manager will identify and communicate with influencers. The product marketing manager will solidify product messaging and create a brand kit for influencers to reference. Meanwhile, the IT manager will grant app access and troubleshoot tech issues. Your HR manager will collect payroll paperwork and make sure influencers are paid for their work.
• Plan around dependencies: The product marketing manager is also working on a new feature launch in October, so you’ll plan for them to complete their tasks by September. PM will create a backup list of influencers to contact in case one backs out. 
• Track progress: This marketing campaign will span from August to November with five major milestones. If one person is overcapacity, add resources to the team or extend the project timeline accordingly. You’ll monitor progress in ClickUp via Dashboards and communicate if any deadlines are at risk of being missed. 
• Minimize scope creep: Say Marinara wants 15 TikToks, or influencers with over 100k followers instead. They should request project scope changes by the end of August to stay on track with the current project timeline. Otherwise, you’ll agree to shift the project timeline to accommodate the change in scope. The PM will then identify and reach out to additional influencers that fit those requirements.

Ready to identify and allocate your resources? ClickUp is here to help! It’s completely free to sign up and start using in seconds . Get started with these resource allocation templates , designed to kickstart your project management into hyperdrive today!

The ClickUp Resource Allocation Template

ClickUp’s Resource Allocation Template helps you keep track of the capacity and availability of all your organization’s resources in one place. It comes with these convenient Views:

• List View : See all tasks in a single list. Group, sort, and filter through to-dos with ease. Organize them however it makes sense to you—whether that’s by clients, projects, or more!
• Board View : View and move tasks around this Kanban-style board which organizes action items by status.
• Workload View : Visualize the amount of work that each team member has been assigned during a specific time frame, like one week, two weeks, or one month. Compare each person’s assigned workload to their overall capacity. 

This template is fully customizable to fit your resource management workflows. Leverage this template to get a comprehensive overview of your team’s capacity and progress toward project completion and deliverables.

The ClickUp Resource Planning Template

ClickUp’s Resource Planning Template offers a variety of ways to visualize and allocate your resources throughout your team. 

In addition to the views included in the first template, this template provides two more Views: 

• Timeline view : See your schedule linearly on a chronological timeline. Perfect for resource planning and roadmaps!
• Gantt View : Visualize your tasks and their dependencies on a Gantt chart timeline . Quickly assess any roadblocks or bottlenecks to keep your project moving forward. 

This template helps you proactively plan around your available resources, including budgets and team members’ schedules. Like all of our templates, it’s customizable, so you can tailor it to your needs and make it your own. 

Related: Enterprise Resource Planning Software

You don’t just allocate resources before your project starts and call it a day. You have to keep a finger on the pulse of your projects, balancing your team’s capacity carefully against your project requirements. Since factors that can impact your project success are constantly changing, you also need to be flexible enough to adjust your resource allocation strategy as needed.

ClickUp is the best project management software for teams, with a robust set of features to help you manage your resources, keep your projects on track, and get things done quickly.  We help project managers and key decision-makers allocate resources and oversee the complete project lifecycle like pros.

See how ClickUp can help you and your team by signing up for free today! 

And keep your favorite pizza spot on speed dial — because you’ll never run out of cheesy goodness with our help!

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What Is Resource Allocation In Project Management?

Resource allocation in project management deals with finding and assigning the right resources to the right tasks at the right time. Allocating the right resources at the right time could be the difference between project success and failure.

No wonder, according to this Wellingtone report , resource management is the third biggest challenge for project managers.

In this article, you’ll learn:

• What resource allocation in project management is
• Who’s responsible for allocating resources
• Why is it important
• The resource allocation process
• And common resource allocation challenges faced by project managers

Ready to dive in and deliver successful projects, stress-free?

Let’s get started.

What is resource allocation in project management?

Resource allocation is a process in project management that helps project managers identify the right resources, and assign them to project tasks in order to meet project objectives.

Project resources can be material, equipment, financial, or human resources.

Typically, resource allocation is done during the early stages of a project’s lifecycle. Specifically, it’s a step in resource planning , which, in turn, is a step in the project planning phase in project management.

A project manager needs to consider the following factors during resource allocation:

• Skills: the skills that can help achieve the project objectives
• Capacity: the number of theoretical hours a resource can work during the project schedule
• Availability: the number of available resource hours, after excluding time off and culture hours from capacity
• Utilization: the number of productive hours a resource can put in, typically 80% of available hours

Resource planning tools make it easy to identify available resources and allocate them to a project.

Who is responsible for allocating resources in project management?

A project manager is responsible for resource allocation in project management. In larger organizations, resource managers are responsible to allocate resources from the resource pool.

Before a project manager resource planning and allocation, they must:

• Get a sign-off on the project scope.
• Identify all critical project tasks using Work Breakdown Structure ( WBS ).
• Create a project schedule and a project timeline .

During resource allocation, the project manager must work closely with:

• project stakeholders, including the customers and the project team members
• other project managers, in cases where multiple projects share the same resources
• identified resources to determine if their capacity and availability are in line with project objectives

Large organizations often have dedicated resource management teams. In such cases, the project manager needs to work closely with resource managers to ensure that resource requirements are met.

Why is resource allocation important in project management?

The benefits of following the right resource allocation process in project management include:

Efficient resource utilization

Assigning resources the right way ensures that limited resources are used in the best possible way to achieve the project’s goals. It helps make the most effective use of the team’s capacity among different projects and tasks.

Mitigate resource risks

Proper allocation of resources helps identify resource constraints that can cause project delays. It enables managers to anticipate potential risks and take remedial measures. Thus improving the chances of project success.

Reduces scheduling conflicts

Time off and shared resources across multiple projects often result in scheduling conflicts. Planned resource scheduling ensures that the project timelines don’t conflict with resource availability. In addition, it takes care to minimize resource dependencies while ensuring that the project stays on track.

Improved cost management

Deliberate resource allocation helps project managers track progress, and manage resource costs, which leads to better cost management. As a result, it reduces the possibility of the project budget going overboard.

Better project outcomes

Effective resource management leads to fewer project failures. When the right resources are assigned to the right tasks, it results in better project outcomes. As a result, project goals are met within the timeline and budget.

Improved project team productivity

Done right, resource assignment ensures optimum resources are allocated and avoid overallocation. This, in turn, prevents overwork, stress, and burnout. As a result, team productivity improves.

3 resource allocation strategies in project management

A resource allocation strategy is a method by which a project manager ensures the right resources are assigned to a project and its tasks. Three popular resource allocation strategies include:

Critical Path Method (CPM)

Using this resource allocation strategy, a project manager identifies tasks that cannot be delayed without delaying the project schedule. Then the project manager prioritizes the best available resources for these critical tasks.

The biggest advantage of CPM is that it ensures the project’s time constraints are met.

However, it does not allow multi-tasking. As a result, while time constraints are met, resources need to be allocated for a longer duration than necessary.

Critical Chain Method (CCM)

The Critical Chain Method is a newer resource allocation technique. Its focuses on resource constraints instead of time constraints like in CPM.

Considering resource availability and constraints, a buffer time is added to the initial project estimate . This allows project teams enough time to complete the project on time.

Some managers use CCM along with CPM.

Resource leveling and smoothing

Things don’t always go according to the resource allocation plan—An emergency means a team member is no longer available. A task takes much longer than estimated. Or something else happens that throws your project timeline off.

In such situations, a project manager can do little else but change the initial project plans.

In resource leveling, a project manager changes the project schedule, including the start and end dates, to account for resource availability.

However, that’s not possible with all projects. In such cases, the project manager uses resource smoothing—They change the resource schedule and allocation plan, or in extreme cases, bring in more resources.

How to allocate project resources effectively?

The project resource allocation process involves identifying and assigning the necessary resources to complete a project successfully. Here are the steps involved:

Step 1: Identify project requirements

Start by identifying the project requirements , including the scope, objectives, and deliverables. This is the first step to identifying resource requirements.

Step 2: Map out the project schedule on a timeline

Next, identify the major tasks needed to complete the project. The Work Breakdown Structure, or WBS in short, is a reliable framework for breaking down a project into deliverables and tasks.

Once you know all the tasks, identify dependencies and estimate how long each task will take.

Based on the estimates and the project requirements, make a project schedule and map it on a timeline.

This may seem like a lot of work. But, creating a project timeline with Toggl Plan is really easy. You can import all your tasks in a CSV file and then simply drag and drop the imported tasks to create a beautiful-looking timeline.

Step 3: Define resource requirements

Now that you know what tasks must be done to deliver the project, you’re ready to define the resource requirements.

You need to identify both, the quality and quantity of resources needed. The quality of human resources can be judged based on skills, experience, and certifications. While quantity simply means the number of people or other resources needed to deliver a task or a project.

Step 4: Allocate resources

Armed with the information in the first three steps, you’re now ready to dip into the resource pool. The resource pool is where you’ll find all the available resources within your company.

For effective resource allocation, look out for resources that:

• Aren’t on other assignments,
• Aren’t on an absence such as a holiday,
• And meet any time zone restrictions the project may have.

Some team members (for example, designers in a web design agency) often work on multiple projects at the same time. In such cases, you want to reevaluate resource availability based on their allocation to other projects.

Just like the Project timeline, Toggl Plan also has a team timeline .

This makes it really easy to identify available resources. On the team timeline, you can see what each team member’s schedule looks like, across projects and their time off plans.

Step 5: Monitor resource utilization

In spite of all the planning, things could still go wrong. Project scope changes, emergency time off, or task delays can throw your best project resource plan off.

That’s why you must constantly monitor resource utilization to identify over or under-utilized resources. Monitoring helps you:

• Release unused or under-allocated resources
• Use resource leveling or smoothing to get over the resource crunch

It also helps to have a backup resource allocation plan when nothing else works. For example, you could hire freelancers or outsource work to partners.

Today, most project management software comes with features to track resource utilization. Alternatively, you can use a resource loading chart.

Common resource allocation challenges and solutions

We live in a world where change is constant. And, to deliver projects on time, you need to adapt your plan constantly. That’s what makes resource allocation so difficult.

Here are some common problems that can trip you.

Changes in project scope

Workloads can change at any moment. Scope changes will undoubtedly lead to your resource requirements changing, so you need a resource allocation plan that’s flexible.

Solution: Fully assess scope changes before they’re approved. Then identify if the current resource allocations remain sufficient or whether changes are required.

Changes in resource availability

Resource allocation is rarely static and there are many scenarios that bring changes. Whether that’s a team member off sick or a late supplier delivery, try to factor contingency into the resource allocation process.

Solution: When building your initial project plan, try to factor in some resource contingency. This will give you room to maneuver for minor changes. If the consequence is major, take immediate action to source replacements.

Task delays

No piece of work is without its dependencies. That’s why a delay in one task has a cascading effect on other tasks, sometimes across projects. Because of this, you lose your resource availability window.

Solution: When building your initial project plan, identify key dependencies and make contingency plans for those resources.

Level up your project management with efficient resource allocation

Every one in four projects fails, because of resource dependencies.

Understanding how to allocate resources and planning project resources can be the difference between a successful and a failed project. That’s why resource allocation becomes so critical.

Also, allocating resources is not a one-time planning phase activity. Situations change. And, that’s why the need to monitor your resource plans continuously.

Toggl Plan is a beautifully simple project planning tool that can help you manage your resources and deliver a project on time.

Sign up for a free 14-day trial account .

Jitesh is an SEO and content specialist. He manages content projects at Toggl and loves sharing actionable tips to deliver projects profitably.

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How to Create an Effective Resource Allocation Process

November 23, 2018 | by sean pales.

A resource allocation process is the method that project managers use to allocate budget, equipment, people, tools, and data to the project areas where it’s most needed.

An effective resource allocation strategy is half science and half art. Learning how to assign the right balance of resources to multiple projects requires knowing everything you can about each one and being able to accurately envisage and predict the knock-on effects that each decision will have.

Projects can’t be completed successfully unless they have the right work resources assigned to them.

When you consider the number of moving parts in largescale projects, you quickly discover that only the most experienced project managers can perfect the resource allocation process. So, what tactics have they developed to achieve this and how can it guide others to access success themselves ? What is the ideal method of resource allocation? This article will answer these questions.

What’s involved in an end-to-end resource allocation process?

For project managers and project management offices (PMOs), the resource allocation process involves using cutting-edge technology and techniques to accurately predict and allocate the optimum balance of resources in individual and simultaneous projects.  Here they share some of the resource allocation methods they use to do this.

1.     Knowing when to say no

Any change in customer or stakeholder demands, time or budget restrictions, or a myriad of other project changes means resources have a tendency to expand in a phenomenon known as scope creep .

No project manager wants to under-resource their projects. But if every project could consume as many resources as possible, most would never stop. Effective project management is knowing the point at which projects need to simply be content and make the best use of the resources they have. This is where resource management software can support project managers by  giving them a clear overview of how resources are distributed and where over- or under-allocations occur.

2.     Gathering the right information

Gathering and recording as much information as possible is the key to making good resource allocation decisions. In short, knowing everything you possibly could about your resources, their availability, and the projects in most need of them lets you effectively match needs with resources.

When deciding where to allocate people, for instance, you need to match up the skills and experiences of available resources with the unique demands of individual projects.

So, it’s important for the PMO to ensure that information is readily available on staff: their experience, how they’ve performed in previous projects, and what their specialties are.

Why allocate two people to complete the same job when you know one expert will suffice? Knowing people’s specialties and project requirements allows project managers to easily see where one person can do a job more effectively than others.

The same logic stands for other resources, like time and money. Knowing which projects are most likely to overrun allows you to effectively allocate budgets to avoid this. All of this requires your PMO to compile and effectively record information at every stage of the process.

3.     Effectively visualize data

Simply having the right data isn’t always a means to an end. Project managers are busy people and don’t always have time to search through a lot of dense information.

Effective data visualization helps project managers make informed decisions quickly. Whether it’s running costs assigned to a project, total workload assigned to a worker, or risk of unforeseen circumstances, it’s important to make sure that the evidence you’re accounting for is well presented.

Project managers risk making poor quality decisions if they can’t take all the evidence into account. This is another place where resource management software is a vital part of effective decision making; being able to effectively visualize the distribution of data in such a way that project managers can quickly use it to inform effective decision making.

4.     Effective resource leveling

Every resource allocation process requires an element of resource leveling. This is when project managers divert resources from a project to one where they could be better used.

Resource leveling is a simple concept in theory, but it becomes increasingly difficult when you account for the complexity of each moving part within and between projects. Taking budget or workers away from one project is always a risk, especially if the situation changes again down the line and it needs an influx of money or manpower to stay afloat.

Resource management software automatically calculates when resources are over or under capacity and when they can be better deployed elsewhere. To properly achieve effective resource levelling, resource management software needs not only to recognize when a resource is needed, but also to analyze the secondary and tertiary effects of moving something elsewhere.

Effective resource allocation

Good project managers know how to balance these competing requirements, assemble the right information, make fast decisions, and analyze the effects of any decisions they make.

Excellent project managers get the best resource management software in the field to do it for them. In short: they use Tempus Resource.

Tempus Resource effectively uses sophisticated algorithms to measure the knock-on effects of every decision you make, in a function known as ‘what if’ planning. With this, it achieves that ever-crucial optimal balance of resource allocation across multiple complex projects.

Tempus Resource was created to remove the limitations in other project management tools and create new and better ways to allocate resources. To find out more about how Tempus Resource can solve your resource management issues, contact ProSymmetry today .

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How to Prepare a Dynamic Resource Management Plan: Step-by-Step Guide

Audio version:

Project teams often wonder how to allocate resources in project management properly. They compose a resource management plan to optimize asset utilization, whether for a single project or an entire portfolio of work.

Is it easy to create a plan that will significantly improve resource allocation in project management and be several steps ahead of competitors’ strategies?

In this straightforward guide, you’ll learn what a professional resource plan is, its importance and benefits, what you should look for in such a plan, and what steps should be taken to create a stunning one.

Let’s try to sort everything out.

What is a resource management plan?

What should be included in a resource management plan.

• Benefits of a resource management plan .
• How to create a resource management plan .
• 4 resource management plan best practices .

A resource management plan is a consistent strategy for scheduling, allocating, and evaluating resources over the course of a project’s lifecycle.

The ultimate goal of this plan is to maximize resource utilization, decrease wastage, and avoid schedule variance. 

It can be defined as a guideline and one of the key resource management best practices for managers and their teams. This plan may detail how they will acquire, predict, manage, control, and release all assets they need for a particular project.

Professionals in the project management field emphasize the importance of developing a resource management plan at the very beginning of a project’s lifecycle to avoid unnecessary problems later on.

One of the vivid examples is Brian E. Porter, a trainer of the American Management Association and consultant with more than 25 years of experience in PM. He claims :

Resource planning is an essential requirement for a project. In multi-project management, we might have the challenge of not having the resource that we want and when we want it. We can not get the exact individual that we’re looking for. So we must communicate our entire resource planning needs through a resource management plan.

• Acquired resources.
• Resource allocation strategy.
• Resource schedule.
• Project organization chart.
• Timeframes.
• Estimated costs.
• Contingency strategy
• Roles and responsibilities.
• Performance metrics.

An average project resource management plan usually includes the elements listed below. 

• Acquired resources. This is a kind of inventory of all assets that will be used for the successful completion of a certain project.
• Resource allocation strategy. This is about a certain way of how available resources will be allocated to different tasks. It typically involves assigning specific individuals or departments to particular activities.
• Resource schedule. This element of a plan involves a schedule that outlines when and for how long each resource will be needed throughout a project timeline.
• Project organization chart . Task and resource scheduling , team involvement, and reporting should be represented in a visual structure. It can be any convenient system but one of the most effective is an online Gantt chart .
• Timeframes. By tracking the time required for each resource, you’ll get a better idea of how each asset fits into your overall schedule.
• Estimated costs. It’s about budget issues associated with each resource (equipment rental, salaries, or other expenses).
• Contingency strategy . This plan should also contain a part for addressing resource shortages or unexpected changes in asset availability. It may involve adjusting the schedule or identifying backup resources.
• Roles and responsibilities. Clearly defined roles and responsibilities involved in resource management processes are also a vital element of such a plan.
• Performance metrics. This point is about establishing key performance indicators (KPIs) that measure the effectiveness of resource management efforts and lead to adjustments when needed.

Let’s also define the vivid advantages of a plan for effective resource management .

Benefits of a resource management plan

When you possess a comprehensive resource management plan in project management, it gives you a multitude of undoubtful benefits. Below are the most conspicuous among them.

• Smart resource allocation . This type of PM plan helps allocate resources in the right manner. It fulfills the ultimate dream of project managers to optimize asset utilization while minimizing waste and extra expenses.
• Realistic schedules. A meticulously designed plan based on a resource calendar helps generate realistic project schedules. It identifies the required assets for specific tasks, taking into account their sequence and completion time.
• Well-balanced workload. One of the most demanded project assets is personnel. When individuals face an overwhelming workload and tight schedules, burnout becomes a significant issue. Strategic resource management planning and appropriate workload management tools can help distribute workloads evenly, promoting team motivation and engagement.
• Mitigated conflicts and risks. Unforeseen conflicts and sudden risks can disrupt projects and lead to project delays . A well-defined plan enhances risk assessment and conflict resolution by identifying potential resource constraints and bottlenecks. This clarity empowers employees to understand what their colleagues do.
• Accurate budgeting. Comprehensive information about resource needs and costs is essential for precise budgeting and efficient cost control.
• Performance monitoring. A resource management plan outlines a project’s path, enabling the comparison of completed activities against the schedule. It leads to better project performance evaluation.
• Reduced downtime. This type of plan promotes efficient allocation of project assets, reducing idle periods and preventing resource wastage.
• Satisfied project participants. A smart project resource management plan fosters transparency among managers, staff, and other parties involved. All stakeholders understand that resources are available when required. They have a clear visibility into ongoing and upcoming events.

Keeping this information in mind, you can begin the practical preparation of your future strategic masterpiece related to planning and organizing different resource types in project management .

How to create a resource management plan: 9 steps for a smooth process

There is no absolute rule or magic guide to creating a perfect resource management plan in project management. PM professionals rely on their knowledge base while project managers without experience most often use available guidance for exemplary planning. 

However, both can use a specific structure and stages that will help them prepare such a plan quickly and without unnecessary headaches.

It’s time to work it out step by step, so here we go.

• Initiate a resource identification and acquisition strategy .
• Act following your company’s resource-related policy .
• Visualize resources .
• Match the right resources to the right tasks .
• Choose a proper resource allocation method .
• Control deadlines .
• Keep workload under control .
• Make changes if necessary .
• Perform post-project analysis and report regularly .

1. Initiate a resource identification and acquisition strategy

In the realm of project management, the initial step in developing a resource management plan entails a comprehensive understanding of all project requirements and resources accessible within a company. This process traditionally involves assessing a project scope, core objectives, financial aspects, and schedules.

This vital information serves as the foundation for determining the precise resources indispensable for the successful execution of your project.

Project resources are usually categorized into the following groups:

• Workforce. These are usually personnel who provide their efforts to a project.
• Workspaces. It primarily refers to places for work, such as offices, meeting rooms, workshops, or any building where your team operates.
• Tools. It is about various physical instruments or software solutions necessary for managing project activities from A to Z.
• Supplies. They include any expendable materials, ranging from office stuff to fuel for buses.
• Finances. It’s about the total funds required for procuring any of the aforementioned resources.

Alternatively, as a reference, you can use a previous successful project to guide you. It will help you eliminate upfront PM work and accurately predict the current project’s chances of success.

2. Act following your company’s resource-related policy

Once you understand your asset needs and choose resource management techniques , it’s crucial to ensure they align with the resource policy of your organization.

Here are two typical examples:

• If a project requires hiring full-time, part-time, or contract personnel, you must consult with the HR department.
• If your project processes involve purchasing certain equipment, tools, materials, or software, you should engage with your finance team and a responsible procurement manager.

The key goal is to adhere to your company’s procedures and workflows while minimizing project disruptions.

3. Visualize resources

Professional visualization makes planning efforts much easier, especially if you need to improve the process of resource planning for multiple projects. While some managers still rely on Excel spreadsheets or simple Excel alternatives , smart resource management tools simplify the process by storing data in one easily accessed and easily viewed location. 

The truth is that modern resource management software allows teams to drill down into certain resources to understand their roles, rates, skills, or availability.

By the way, 79% of professionals surveyed within the State of Resource Management report (2022) are satisfied or highly satisfied with the specific resource management software they use.

One of the most demanded solutions for planning and managing resources online is GanttPRO.

This Gantt chart generator serves as a trustworthy assistant for PM professionals and enthusiasts who need a robust online platform without switching between different solutions. It enables precise task scheduling, efficient resource allocation, seamless team collaboration, and much more.

The software combines all essential PM features and guarantees that its users have a clear overview of their projects in one place.

At this point, you probably wonder how it works to generate a resource management plan. We’ll explore the next steps of resource planning using this Gantt chart maker as an example.

Project teams rely on GanttPRO while managing resources because it provides a handy Gantt chart with resource allocation for getting all things done as quickly as possible.

When you start using this platform, you gain confidence and professional motivation. Its functionality is user-friendly and intuitive. Additionally, there are ready-made Gantt chart templates available for various purposes to help users get started swiftly.

Why is GanttPRO a reliable choice for planning and managing project resources?

First of all, let’s turn to experts.

Ben Emmons, the director of special projects at MagMod, a company that produces flash modification systems, notes :

We needed a flexible project management tool since multiple departments had differing requirements and project complexity. Some projects were very short and needed to be initialized quickly and others were very complex requiring a critical path, resource management, and workload monitoring. GanttPRO provides the full spectrum of features without feeling overwhelming or being too expensive.

It was the example of using the Gantt chart maker for production planning and work tracking. However, GanttPRO is widely used in a variety of industries.

PM experts worldwide apply it for software development, retail, healthcare, manufacturing, resource management in construction , event planning, marketing resource management , and beyond.

George Rossle, a production manager at A+ Construction Pro is also totally satisfied with GanttPRO, applying it as construction project management software :

For us, GanttPRO is a basic tool for planning and management. We invite our colleagues to projects as well as create resources. We use the software for deadline management and time tracking, file sharing, and smart scheduling.

From experts’ thoughts, let’s move on to the GanttPRO functionality designed for planning and managing project resources.

To plan your project assets and manage them, you first need to divide your project into manageable activities and tasks. Each of them should have a fixed budget, due date, and start and end date.

GanttPRO comes with a work breakdown structure (WBS) that helps systemize tasks without extra effort. 

Having a clear structure of tasks, you will probably need to connect many of them. The convenient drag-and-drop feature allows you to visualize task dependencies in seconds, just like placing project milestones on a timeline.

After gathering your tasks in one place, it’s possible to invite project participants and fill your project with other resources.

GanttPRO users are allowed to invite team members and specify their roles, as well as set costs and calendars for them. 

Organizing virtual resources is also a matter of seconds. Then you can specify costs for all resources per hour, per item, or just cost.

4. Match the right resources to the right tasks

After thorough task organization, you can allocate relevant resources to certain activities.

In GanttPRO, assigning resources and setting their working hours to avoid overwork or downtime is a piece of cake. You may allocate one or several resources to each task.

5. Choose a proper resource allocation method

Project teams should be prepared for potential resource shortages and excesses of their assets while taking proactive steps to keep things in order.

Professional resource allocation methods assist them in resolving resource conflicts and preventing the underutilization or overuse of assets. These approaches help reduce missed deadlines, work disruptions, and project delays.

Among the various methods available, 4 are particularly in demand:

• CPM (the critical path method).
• CCM (the critical chain method).
• Resource leveling.
• Resource smoothing.

Whether you choose one method or a combination of them, effective resource allocation remains a critical success factor for your projects.

GanttPRO helps implement resource allocation methods and work on project asset utilization with the help of a handy Gantt diagram.

For instance, below you can see how to apply the critical path method. You’ll need just a click to visualize a critical path to let GanttPRO activate a sequence of critical activities, displaying it in red.

6. Control deadlines

Deadline control is also a crucial process that project managers should keep in mind when developing their resource organization plan. 

Remember that even one missed deadline can ruin your project performance and harm the work of your colleagues.

That is where GanttPRO also comes to the rescue as it assists project teams in:

• Maintaining schedules for completing each task.
• Managing deadlines.
• Monitoring teammates’ activity.
• Preventing project delays.
• Analyzing project data in one place.

Online notifications facilitate work distribution, allowing team members to finish their work promptly.

7. Keep workload under control

Resource workload management is crucial for maintaining budget compliance. 

Teams that permanently review and optimize resource allocation increase their project value and ultimately yield higher returns. This approach also helps minimize employee burnout.

In GanttPRO, you can easily perform resource and workload planning in a centralized way.

Here’s what Allan Cid, an experienced PM, thinks about it :

I like that I can create a workload for my team. This way, I can measure whether I give too much workload to a worker on a project or not. GanttPRO sorts out the hours used in different projects. So, if I have a worker working on Project A, Project B, and Project C, I can see what their workload looks like for a week or a day and reassign tasks if needed. That’s great.

Workloads of employees are automatically calculated. It’s easy to redistribute tasks between team members if needed.

The user-friendly drag-and-drop feature makes the process of reallocating project resources an easy thing. It looks beneficial when dealing with resource overload or underutilization.

8. Make changes if necessary

High-quality visualization simplifies resource management. Controlling project assets may involve repositioning them as high-value or high-priority projects come along. It may require the use of already booked individuals. 

Such repositioning is the basis of Resource leveling, one of the methods we mentioned above.

Because of its dynamic nature, this phase of creating a resource management plan persists throughout the project lifecycle. It highlights the significance of a PM tool that can display availability and enable task assignment with ease.

9. Perform post-project analysis and report regularly

Conducting post-project reviews is not always valued by managers as it is required, although this process is very important for understanding further progress and working with new projects.

It’s time when you can compare your projected resources and schedules to the actual assets used. 

Reporting is also a matter. In GanttPRO, real-time synchronization of information eliminates the need for manual report compilation. Users can generate two types of reports:

• Time log by people.
• Budget analysis.

Professional resource management software

Create a resource management plan with a handy Gantt chart.

4 resource management plan best practices

Specific steps and stages of developing a resource management plan may be changed, shortened, or complemented with extra steps. However, there are best practices that are beyond doubt.

Here are the core practices you may surely consider when generating your next project resource management plan.

1. The role of previous resource planning data

Storing data from past projects or similar practices is beneficial for future project resource planning. 

This data can include all changes and modifications, resource reallocation, tasks and events, as well as time utilization.

2. The significance of well-defined approach

Many powerful methods and techniques greatly assist businesses in creating effective resource management plans. Some of them were mentioned earlier.

In addition to those, it’s essential to consider the following approaches:

• Project-based planning. This approach means that resources are allocated to tasks with a focus on executing them efficiently, prioritizing the completion of a plan over its optimization.
• Resource-based planning . According to this approach, tasks are allocated to available resources. It is especially useful when companies operate on a tight budget, ensuring optimal resource utilization.

3. The power of professional resource management software

Effective resource management software minimizes or eliminates inconvenient manual planning, saving time and effort. It enhances accessibility and collaboration for the entire team. 

Project managers require real-time data updates and continuous access to resource visualization. Therefore, the advanced features of modern resource scheduling tools play a crucial role in this regard.

4. The aspect of managing uncertainty

Numerous factors can lead to deviations from planned outcomes.

Companies dealing with complex projects with significant human and material resources often encounter substantial uncertainty. This uncertainty may stem from the lack of essential information and various external or internal events capable of impacting workflow.

The central idea is that while uncertainty cannot be eliminated, it can be anticipated and managed. You can prioritize tasks, avoid rigid deadlines, and encourage team members to complete assignments promptly.

When faced with decision-making in uncertain conditions, try to forecast potential outcomes based on current actions or circumstances.

Flesh out an effective resource management plan with the best software

A carefully prepared project resource management plan is essential for smooth work management and process coordination. 

It may seem time-consuming to make it comprehensive and detailed. However, its obvious benefits and usefulness are worth the efforts spent on its creation.

Robust software solutions like GanttPRO provide teams with advanced online resource management tools for professional scheduling, real-time tracking, and analyzing all resource planning initiatives related to your project.

Frequently asked questions about a resource management plan

What are the components of a resource management plan.

A resource management plan may contain various components, depending on the nature of a certain project and other factors. Typically these components include acquired resources, a resource allocation strategy, schedules, an organization chart, timeframes, estimated costs, a contingency strategy, roles and responsibilities, and performance metrics.

Why is a resource management plan important?

A project resource management plan is important because it helps businesses efficiently allocate and utilize their resources, including personnel, finances, equipment, time, and other assets. It ensures that these resources are used effectively to achieve business objectives while minimizing waste and optimizing productivity.

Paolo Kukhnavets

Paolo writes about the exciting world of project management, innovative tools, planning strategies, time management, productivity, and more. He has a professional journalism education, over ten years of writing experience, and a vast bag of enthusiasm to comprehend and learn new things every day. In his other life, he is addicted to traveling, gym, and sci-fi movies. He cycles and runs a lot.

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From burnout to balance: using resource allocation to help teams do their best work

Build a healthy, happy, efficient team with these practical resource allocation tips.

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Summary: people-centric resource allocation sets projects on the right track from the get-go, giving team members complete visibility into their project schedule and allocating their time to projects they enjoy and excel at. Team-wide access to a dynamic resource allocation plan that includes each individual’s working hours, skills, location, utilization rates, time off, current workload, and tentative projects ensures work is consistently delivered on time and within scope—without causing burnout.

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In a perfect world, resource allocation would be easy: you’d line up your projects → divvy up your people’s time → and the project gets delivered . 

But as much as we wish it did, this pared-down process doesn’t even begin to represent the real world, where you—the long-suffering, caffeine-fueled people planner on the ground—are juggling:

• Limited resource availability and a large number of requests
• Team members with paid time off, national holidays, and the occasional cold
• A long list of existing projects (and plenty more in the pipeline)
• Your boss wanting you to deliver the project for Acme yesterday

The truth is that resource allocation is hard —but people just like you do it successfully every day.

This guide shares proven tactics from the resource managers , traffic and project managers, team leads, and people planners perfecting the art of allocating their team’s time accurately and sustainably.

What is resource allocation? A people-centric definition

In the project management space, resource allocation is the process of identifying and assigning available resources—including people, time, money, and equipment—to projects.

Allocating resources is easy when you’re a creative agency moving a camera from one shoot to another. Where resource allocation gets really tricky is when you’re the same creative agency moving the camera and also the tens or even hundreds of people involved in getting the work done. 

Suddenly, you have to consider factors like each team member’s availability , skill sets, and interests. You need to help them use their time productively while avoiding overutilization—not so easy when two of your digital designers are on parental leave, a copywriter has come down with the flu overnight, and (surprise!) an account manager is working remotely from a different time zone for the next month.

Making sense of all these moving parts and allocating the right resources is exceptionally challenging. But that elusive state called clarity (💡!) starts with a solid resource allocation plan. 

Your plan can look as simple as this…

Or as detailed as this:

📝 Note: because you’re dealing with people (and all the unpredictability that comes with them), your resource allocation plan itself should be viewed as a living entity that exists in a constant state of change. In other words, expect your carefully laid-out plans to be changing all the time.

How to allocate the right resources to the right projects

Allocating project resources effectively involves scheduling people onto projects to ensure work is delivered on time, on budget, and within scope, without causing burnout. Resources should be allocated based on project budget constraints, project requirements , timelines, and resource availability. 

But as a people planner tasked with allocating your team’s time to multiple overlapping projects, where do you begin?

We view effective resource allocation as a process that can be split into two simple steps:

• Identifying which projects to prioritize
• Determining who should work on them

Step 1: identify which projects to prioritize

At any point in time, several projects are being worked on while others are patiently waiting in the wings—but your team has a limited number of hours to get it all done. That’s why you need to prioritize projects and allocate your team’s time to those that increase profitability for your organization.

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Emily Feliciano

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Senior Creative Resource Manager at Atlassian

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Emily Feliciano, the Senior Creative Resource Manager at Atlassian, deals with up to 60 resource requests every week. To prioritize requests, she uses a set of questions based around business value, urgency, and cost.

 📈 Business value

• Are we mending a broken relationship with a client we really want to salvage?
• Is this a new opportunity to partner with a client we’ve been seeking for a long time?
• What is the priority of this work?
• What is the level of importance of getting this work accomplished?
• Is there flexibility in the timeline for us to deliver?
• Is there a large budget attached?

Once these questions have dictated priority, she starts allocating people’s time in her dedicated resource management tool, Float. 👉 Find out more about how Atlassian uses Float for project prioritization

Ideally, projects that contribute to core business metrics, are urgent, and have big budgets should be prioritized when allocating project resources. 

Here’s a decision tree to make it easier:

Step 2: work with your team to find the best people for a project

Once you have an idea of the projects you’ll soon be working on, it’s time to determine who can (and should!) take on the work.  

We’ve said it before, and we’ll say it again: you’re working with humans, not machines, so it’s important to evaluate not just how much time they have available but also what their strengths are and whether a specific project sparks their interest. 

In other words, you need to know your team —easy enough when you’re allocating resources in a small, in-house team that does karaoke together every Friday; decidedly more complex when you’re doing it in a dispersed, global team of 100+ people, with multiple stakeholders involved. 

Maike Jahnens

Head of Financial Operations and Capacity Management at Scholz & Friends

There comes a time when larger and growing teams inevitably outgrow spreadsheets as a viable resource allocation and capacity planning tool . Maike Jahnens, the Head of Financial Operations and Capacity Management at global agency Scholz & Friends, oversees a team of more than 200 creatives and freelancers. 

In the past, Jahnens (understandably!) found it near impossible to stay on top of people’s names and roles—let alone their individual skill sets and interests. 

But after switching from a struggling spreadsheet to a dedicated resource management tool (it’s Float 😉), Jahnens has instant access to information like:

• What people are working on
• Where they’re based
• What language they speak
• What projects are in the pipeline 
• What their skills are

More than just simplifying the resource allocation process, having all this information about team members accessible at a glance has helped Jahnens get to know her coworkers on a deeper level —their strengths, interests, and areas for growth—and allocate their time to projects that truly inspire and energize them.

👉 Find out more about how Scholz & Friends uses Float to streamline resource allocation

Align each team member’s skills to the right projects

Do you have people with the necessary skills for the entire project lifecycle? Are you missing any additional resources? Do you need a generalist or a specialist? Or should you be looking outside your team and hiring a freelancer? 

For example, if you’re a digital marketing agency doing an SEO audit for your client’s website, you’d ideally allocate a technical SEO specialist instead of a generalist digital marketer.

💡Pro tip: you might be the person in charge of allocating people’s time, but these decisions should never be made in a silo. Keep communication lines open and involve your team and project stakeholders in the conversation as much as possible—this will positively influence your allocation decision-making.

Identify which team members are available

Allocating people with already stacked schedules can lead to work being done poorly to meet deadlines or constant context-switching. Your project might even grind to a halt because interconnected work won’t be delivered on time.

Consider these questions before allocating your team’s time: 

• Does anyone have time off planned during projects?
• Is anyone on sick leave?
• Are any national holidays coming up?
• What are their work hours (e.g. are they working full-time or part-time)?
• How much of their time is already allocated to other projects?
• Can their current allocations be negotiated?

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Simplify allocation with a dedicated tool

Adjust resources and timelines to changing priorities, and watch as your team’s schedule updates dynamically and in real time.

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Align allocations with your team’s interests

During the resource allocation phase, don’t miss the chance to allocate people to projects that interest or challenge them. You might be lurking in a Slack channel and seeing a team member expressing a desire to work on a certain kind of project 👀 Or perhaps you’re a team lead, and you think a direct report would do a fantastic job on a type of project that's entirely new to them.

People-centric resource allocation should be approached as an opportunity to grow and develop your team members’ skills.

Jason Fisher

Co-Founder and Global Studio Director at Flight Story

Jason Fisher is the Co-Founder and Global Studio Director of Flight Story, a marketing and communications company. 

When his resource management tool (yes, it’s Float) revealed that some team members were almost exclusively booked on one particular type of project, he decided to change things up.

Now, Fisher strategically schedules and manages team members’ jobs and projects so they can gain exposure to various aspects of their roles and explore different parts of the business.  

His entire team uses Float’s visual Schedule dashboard to see everyone else’s availability and skills, so they can reach out to any underallocated coworkers for assistance. Team members are also encouraged to volunteer their help work on deliverables that pique their interest when they have nothing firmly booked, putting them in the driver’s seat of their own career progression. 

👉 Find out more about how Flight Story uses Float for resource scheduling and allocation 

Resource allocation vs. task allocation: what’s the difference?

We’ve been talking about resource allocation for a while now, and you may have noticed that the concept of a ‘task’ hasn’t come up once. That’s because resource allocation is not the process of assigning project tasks to people. Here’s how they differ:

Resource allocation 

Resource allocation involves allocating the right people’s time—in hours or percentages—to projects that match their skills. Take a look at the example below: this creative agency has been tasked with the project of creating a print ad for the new Bose boombox, which will require 60 hours spread across the next 15 days.

In this way, a project is the high-level view of where your team’s attention will be focused on for the following weeks, months, or quarters. 

Resource allocation should ideally happen in your resource management tool , like Float, where your team’s skills, interests, and availability are visualized.

Task allocation 

Tasks are the individual activities involved in each project that you can log billable time against. Continuing with the creative agency/Bose print ad example above, your tasks might include copywriting, illustration, design, proofreading, and client review.

You should ideally allocate tasks in your project management tool, like Trello or Asana, where your team’s activities and time logs are stored. 

(That said, most resource management tools, including Float, do allow you create and track time on tasks, too. Video and animation agency Storm+Shelter were able to replace Asana and Everhour with Float , keeping their project and task allocation in one place.)

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📝 Note: because they serve different functions, we believe that having both a resource management tool and project management software in your tech stack is vital to project success and business growth. Take a look at our list of the best resource management software curated for you, complete with feature and pricing comparisons.

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4 signs you need to improve your resource allocation

Poor resource allocation can be glaring (bottlenecks that stall a project) or very subtle (overworked team members).

• 🧠 Too much context switching: if a team member is regularly jumping between different projects and trying to juggle a lot of work at the same time, the result will likely be subpar work and an unhappy, exhausted team member
• 🚧 Frequent bottlenecks: when projects are stalled because the necessary resources are unavailable, the next phase is blocked, resulting in paused projects
• 🗂️ Several active projects: too many projects taking place simultaneously can be a sign of inefficiency. Taking on projects without adequate capacity planning can lead to the first two problems of bottlenecks and context switching.
• 🔍 No unified view of team capacity: if you don’t know what people are working on, or what kind of resource utilization rate you’re dealing with, you have no way of knowing how well or poorly your people are being managed

4 common resource allocation problems (and how to handle them)

Even if you adopt all the right tools and follow resource allocation best practices, you’ll probably still run into some challenges of resource allocation—it’s the nature of the beast. But when these hiccups do happen, you can definitely know what to expect and be prepared. 

1. Project scope changes

You did your best to plan resources for your upcoming deliverables, but there’s still the chance of scope creep . Maybe the project was more extensive than expected or required skills you didn’t account for.

When this happens, you need to be nimble and adjust your resource planning accordingly. Here’s how: 

• Ensure project scopes are always transparent 
• Set clear and defined project goals
• Strive to do your best work, but don’t be a perfectionist if it will cause delays
• Build a work plan that guides your course of action
• Create a system that allows workers to greenlight change requests and revisions
• Monitor project team performance to ensure everything is on track
• Use all the tools at your disposal to speed up project progress

2. Resources become unavailable

We’ve already listed plenty of reasons a team member may unexpectedly be unavailable (a sudden bout of sickness, a time-zone change), and there are hundreds more where those came from. 

You can prevent this lack of resources in the future by looking at your allocation dependencies now . 

Investigate other responsibilities team members have that may pull them away from the project, like internal training initiatives or a company-sponsored volunteer day. It’s also always a good idea to have a backup resource allocation strategy in place for these types of eventualities—one easy option is to have a pool of reliable freelancers you can count on to fill in gaps fast.

Pro tip: simplify allocation with a dedicated resource management tool

It’s worth getting on our soapbox and mentioning again: a purpose-built tool like Float lets you filter and sort team members by skills and capacity and stay on top of any upcoming time off to determine who is best suited (and available!) for upcoming projects. 

Plus, if a project isn’t 100% confirmed yet, you can still schedule tentative projects and tasks to estimate timelines and allocate your team’s time accordingly. This way, if a particular skill is unavailable, you’ll have more than enough time to find an alternative.

3. Resources need to be shared

It’s common for projects to share the same resources; this is especially true in smaller organizations that can’t afford to hire an extensive staff roster. Shared resources can lead to issues that bog down the pipeline—and project bottlenecks may occur if people are spread too thin.

Resource management software helps you spot gaps in advance. Closely monitor the workloads of team members who move between several departments to prevent resource overallocation and burnout.

📝 Note: sometimes, even with careful, strategic planning, a project team might need to put in extra hours because you simply don’t have enough resources. While it’s not ideal and should always be a last resort, it happens. To prevent your team from getting too overwhelmed:

• Try to limit the extra workload to a short time to avoid exhausting your team
• Talk to your team about why the extra time is needed and what steps you’ll take to manage the workload , like finding extra help or hiring freelancers
• Make an effort to find extra support to lighten the workload for your team

4. Unexpected delays occur

A delay can hit when you least expect it. People get sick, labor shortages arise, and miscommunication happens. That’s when scope creep may rear its ugly head. Some issues are within your control; others, not so much.

The easiest way to manage potential delays is to… prevent them in the first place (easy! 😅). Do this by:

• Scheduling projects based on skill, not just time: an expert or specialist works faster, so use your resource management tool to create custom skill tags for team members and find the right person for the job in seconds
• Avoiding overallocation: team members should never be bogged down with too many other priorities, especially if a project depends on them to move through the pipeline
• Offering flexible hours: some employees work more productively outside of traditional working hours (as an async, distributed team, we can vouch for that—this article is being edited at 9pm in South Africa! 🇿🇦)
• Mapping out project timelines : break them into phases and track project progress. Software helps to pinpoint potential delays before they become bottlenecks.

The more organized and transparent your resource allocation, the easier it is for everyone to take accountability for their role.

Profitability starts with happy people

At the heart of our approach to people-centric resource allocation is the belief that team members are our greatest asset. And as a people planner, you’re in the unique position to foster healthy, happy teams who are motivated to do their best work every day. It all starts with a resource allocation plan that puts people front and center. 

Want to get started? Sign up for a free trial to give Float a try.

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📚 Everything else you need to know about resource planning

Resource allocation is just one part of the resource planning process—we have a lot more to share with you: 👇

• The ultimate guide to all things resource planning , with steps to create a plan of your own
• A handpicked list of seven free resource planning templates to use right away
• Resource loading best practices to keep team members’ utilization at healthy rates
• Steps to build a solid resource scheduling process for visibility into your team’s time
• A tactical how-to guide to set up an accurate resource forecasting process

Some FAQs about resource allocation

Resource allocation is the process of assigning and managing assets—such as people, tools, and budget—necessary for completing tasks and achieving project objectives. In agencies and professional services businesses, it involves effectively distributing team members (employees, contractors, freelancers) to various client projects and internal tasks to optimize productivity and client satisfaction.

The benefits of resource allocation include:

• Team members are used to their fullest potential, increasing their efficiency and contributing to their overall job satisfaction
• Allocating the right skills to the right tasks ensures high-quality deliverables
• Well-planned resource allocation helps streamline workflows, making processes more efficient and reducing delays
• Team members have more balanced workloads, which prevents burnout and overworking
• Businesses can stay agile by quickly reallocating resources in response to changing project demands
• Matching tasks to employees’ skills and development goals fosters a culture of continuous learning and growth
• Allocating resources in line with strategic goals ensures that team members’ efforts are focused on achieving key business objectives

Leadership plays a crucial role in effective resource management, helping the team to achieve maximum project success by:

• Setting clear goals and priorities for resource allocation
• Providing guidance and direction to ensure resources are allocated effectively
• Empowering teams to make decisions and take ownership of resource allocation
• Monitoring progress and providing support or intervention when needed
• Encouraging collaboration and communication among team members

Most of our customers switch from using spreadsheets or project management tools for resource allocation because they encounter one (or all) of the following:

• Their team grew and the spreadsheet became inadequate
• They need to do a lot of manual updating
• They couldn’t gauge availability of resources accurately

If you can relate to these, it means you too might need to switch to a resource management tool like Float.

Related reads

Resource allocation and capacity planning: what’s the difference.

A straightforward guide to resource planning (according to resource planners)

Resource tracking guide: 9 key metrics to an effective process

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What is Resource Allocation? Strategies and Examples for Sustainable Development

• January 4, 2024
• / Sustainability
• / By Daniela Solis

In the dynamic world of project management, the challenge of how to effectively allocate resources persists as a critical concern. Businesses grappling with this issue often encounter escalated costs, delayed project timelines, and resource mismanagement.

Imagine a scenario where team members are stretched thin across multiple projects, leading to poor output quality and decreased team morale. Imagine a project manager struggling to balance the delicate act of resource allocation, resulting in fluctuating resource demands and a ripple effect of inefficiencies.

This is where the pivotal role of resource allocation in project management comes into play. Resource allocation – the strategic distribution of available resources, including team members, project resources, and time – is not just a task but a fundamental strategy for ensuring project success and client satisfaction. Our guide delves into the art and science of resource allocation, offering strategies, tools, and real-world examples to navigate the complexities of effective resource allocation.

Whether you’re a resource manager, project manager, or part of a sales and delivery team, understanding and implementing efficient resource allocation strategies is key to achieving your sustainable business goals.

Importance of Resource Allocation

Effective resource allocation is the cornerstone of successful project management. It ensures that the right resources, from skilled team members to essential project resources, are available at the right time to meet project demands. This strategic approach is fundamental in managing multiple projects, ensuring that each has access to the necessary resources without overburdening any single aspect of the business.

Cost Control and Productivity

Proper resource allocation plays a pivotal role in controlling project costs and maximizing productivity. By allocating resources efficiently, project managers can avoid overspending and ensure that resources are used to their full potential, contributing to the overall project success and client satisfaction.

Enhancing Team Morale

When resources are allocated thoughtfully, taking into account the capacity and interests of team members, it leads to higher morale and engagement. Employees feel valued and are more likely to contribute positively to the project outcomes. This not only benefits the current project but also boosts the team’s performance on other projects.

Client Satisfaction and Project Delivery

Client satisfaction is directly tied to the successful delivery of a project within the agreed timeline and budget. Effective resource allocation ensures that project resources are available when needed, preventing delays and ensuring high-quality deliverables. This directly contributes to client satisfaction and the success of the project.

The Resource Allocation Process

The resource allocation process is an integral component of project management, encompassing a series of steps that project managers undertake to ensure effective use of resources. It involves careful planning, strategic execution, and continuous monitoring. Here’s a detailed look at this process:

Understanding Resource Management

Before delving into the allocation process, it’s crucial to understand resource management. This includes identifying and organizing the resources (team members, equipment, time, etc.) needed for project tasks.

Implementing resource management software helps streamline this process, offering tools for tracking resource availability, utilization, and forecasting future needs.

Assessing Resource Availability

Project managers must evaluate the resources currently available, including talent development programs , materials, and equipment. This involves understanding the capacities, skills, and limitations of each resource.

In organizations handling multiple projects simultaneously, assessing resource availability becomes more complex. Project managers must navigate conflicting demands and prioritize resource distribution effectively.

Resource Planning

Resource planning is a critical step that involves mapping out the quantity and type of resources required for each project phase.

Utilizing resource management software in this phase aids in creating a more accurate and adaptable resource plan. This software can forecast resource needs, helping to prevent shortages or excesses.

Formulating a Resource Allocation Strategy

A well-defined resource allocation strategy outlines how resources will be assigned to various project tasks. It considers factors like skill sets, project timelines, and resource costs.

The strategy must be flexible enough to adapt to changing project scopes or unexpected resource availability issues.

Allocating Resources

The actual allocation involves assigning resources to specific tasks based on the developed strategy. This is where the balance between resource availability and project needs is crucial.

Allocating resources isn’t just about materials or tools; it’s also about assigning the right team members to the right tasks, taking into account their skills, interests, and workload.

Using Resource Allocation Tools and Software

Resource allocation tools and software play a pivotal role in facilitating efficient and effective resource distribution. These tools provide real-time data on resource utilization, availability, and performance.

Modern resource management software offers features like drag-and-drop interfaces for easy task assignment, detailed reports for resource analysis, and integration with other project management tools.

Monitoring and Adjusting Allocations

Continuous monitoring of resource utilization is necessary to ensure the project stays on track. Project managers must regularly review resource performance, availability, and workload.

Adjustments might be required to address any imbalances, such as reallocating resources from overstaffed areas to understaffed ones or addressing skill gaps.

Review and Improvement

After project completion, reviewing the resource allocation process provides insights for future improvements. This might involve analyzing what worked well and what didn’t, and making notes for future projects.

Continuous learning and adaptation are key to refining the resource allocation process. Each project offers a new set of data and experiences that can be used to improve future resource allocation strategies.

In conclusion, the resource allocation process is a dynamic and ongoing activity that requires careful planning, strategic thinking, and adaptability. By effectively managing and allocating resources , project managers can optimize productivity, control costs, and enhance the overall success of their projects. Utilizing advanced resource management software and tools further streamlines this process, making it more efficient and responsive to the ever-changing demands of project management.

Resource Allocation Techniques and Strategies

In the realm of project management, resource allocation is a complex and critical process, and resource managers are at the forefront of this challenging task. Their primary responsibility is aligning resource allocation with the extensive project scope, a process that requires both strategic foresight and practical know-how.

Critical Path Method in Resource Allocation

One of the most effective techniques in resource allocation is the Critical Path Method (CPM). This method involves using math symbols and calculations to determine the longest sequence of tasks in a project that must be completed on time to avoid delaying the project. And now, typing these math symbols on a Mac has become more seamless thanks to advancements in text editors. The basic symbols like digits and Latin letters, and even more complex symbols, can be accessed through standard keyboards or tools like Keyboard Viewer and Character Viewer.

For more elaborate equations, tools like Euclid, a scientific calculator supporting LaTeX math symbols, and PocketCAS for advanced calculations and visualizations, can be utilized.

These tools simplify creating and handling complex mathematical notations and formulas, integral to applying the CPM in project management, ensuring that resource managers can prioritize critical tasks in the allocation schedule with precision and clarity​.

Challenges in Resource Allocation

The challenges of resource allocation are multifaceted. Resource managers must grapple with balancing the demand for resources against their availability, a task that often requires them to make tough decisions on how best to allocate limited resources. This balancing act is further complicated by the need to match team members with suitable skills to specific tasks, ensuring that each aspect of the project is handled by someone with the appropriate expertise and experience.

Effective Scheduling of Resources

Scheduling resources is another key aspect of resource allocation. This involves not just deciding when resources will be used, but also planning how they will be utilized over the course of the project. It requires a deep understanding of the project timeline and the ability to forecast potential bottlenecks or resource shortages. Effective scheduling is crucial in preventing project delays and ensuring that resources are used efficiently and effectively.

Managing Resources with Flexibility

The ability to manage resources flexibly is essential for resource managers. Projects are dynamic, often changing course unexpectedly, and resource managers must be ready to adapt their allocation strategies accordingly. This may involve reallocating resources to different tasks, bringing in additional resources, or even scaling back on resource usage in response to project developments.

Resource allocation, a critical aspect of project management, involves numerous challenges that can impact the success of a project. These challenges require strategic planning, efficient use of tools, and adaptability to overcome.

1. Balancing Resource Demand and Availability

Allocating resources efficiently requires a delicate balance between the available resources and the demands of the project. Project managers often face the difficulty of aligning resource availability with the project schedule. This includes ensuring that team members, equipment, and other necessary resources are available when needed, without causing delays or bottlenecks in the project timeline.

2. Integrating Effective Project Management Software

The use of project management software is essential in modern project management. However, selecting and effectively integrating this software can be challenging. The right project management software should offer features that aid in resource allocation, such as tracking resource availability, managing project schedules, and providing real-time updates. The challenge lies in choosing a software that is compatible with the organization’s workflow and user-friendly for all team members.

3. Utilization of Resource Allocation Tools

Resource allocation tools are designed to simplify the process of distributing resources across various tasks and phases of a project. These tools help in visualizing resource allocation, avoiding over- or under-allocation, and adjusting allocations as per changing project needs. However, the challenge is in selecting a tool that is sufficiently robust to handle the complexity of the project while being intuitive enough for easy use by the project team.

4. Adapting to Changes in Project Scope

Changes in project scope are common and can significantly affect resource allocation. Project managers must be prepared to adjust the allocation of resources efficiently when project scope changes. This requires a flexible approach to resource management and the ability to quickly reallocate resources as needed to accommodate new project requirements.

5. Managing Resource Dependencies and Conflicts

Resource dependencies and conflicts can arise when multiple tasks or projects require the same resources simultaneously. Managing these dependencies and resolving conflicts is a key challenge. Project managers must be adept at identifying potential conflicts and finding solutions, such as resource leveling or employing alternative resources, to ensure smooth project progress.

6. Ensuring Timely and Efficient Resource Allocation

Timely allocation of resources is crucial for maintaining the project schedule. Delays in allocating resources can lead to project delays and increased costs. Efficient resource allocation involves not only timely distribution of resources but also ensuring that the resources are utilized to their maximum potential.

7. Balancing Cost Constraints with Quality Outcomes

Project managers must often work within tight budget constraints while ensuring high-quality project outcomes. This requires making strategic decisions about where and how to allocate resources, balancing the need for cost-efficiency with the need for quality results.

8. Addressing Skill Gaps and Training Needs

Projects may require specific skills that are not readily available within the team. Identifying these skill gaps and arranging for training or hiring new talent is a significant challenge. This also includes the management of team dynamics and ensuring that all members are adequately trained and prepared for their roles in the project.

Strategies for Efficient Resource Allocation

One of the primary strategies for efficient resource allocation involves adopting a comprehensive view of the entire project lifecycle. This approach enables project managers to anticipate future needs and challenges, allowing them to allocate resources proactively rather than reactively. Understanding the project in its entirety, from initiation to closure, ensures that resources are allocated in a way that supports each phase of the project.

Utilizing Advanced Resource Management Tools

The integration of advanced resource management tools is crucial for efficient allocation. These tools offer functionalities such as resource forecasting, capacity planning, and real-time tracking, which aid in making informed decisions about resource distribution. By leveraging these tools, project managers can gain insights into resource utilization patterns, identify potential shortages or surpluses, and adjust allocations accordingly.

Implementing Flexible Resource Allocation Strategies

Flexibility is key in resource allocation. Projects often evolve and change direction, necessitating adjustments in resource distribution. Implementing flexible strategies allows for quick adaptation to these changes, ensuring that the project remains on track despite shifting requirements. This might involve reallocating resources from one task to another, adjusting timelines, or even bringing in additional resources when necessary.

Encouraging Collaboration and Communication

Efficient resource allocation also hinges on strong collaboration and communication within the team. Regular meetings, clear communication channels, and collaborative decision-making processes ensure that everyone is on the same page regarding resource needs and availability. This collaborative approach fosters a more cohesive team environment and allows for more effective resource utilization.

Prioritizing Tasks Based on Importance and Urgency

Prioritizing tasks based on their importance and urgency is a crucial strategy. This approach ensures that critical tasks with the most significant impact on the project’s success are allocated the necessary resources first. It helps in managing limited resources more effectively by focusing on what is most important at any given time.

Developing a Contingency Plan for Resource Allocation

Finally, having a contingency plan in place is essential for dealing with unexpected changes in resource availability or project requirements. This plan should outline alternative resource allocation strategies to be deployed in case of unforeseen circumstances, ensuring that the project can continue to move forward even when challenges arise.

Resource Allocation in Sustainable Development

Resource allocation plays a pivotal role in sustainable development, an approach that emphasizes long-term resource management for ecological, social, and economic stability. In the context of sustainable development, resource allocation extends beyond mere project management; it involves making strategic decisions that balance current needs with the preservation of resources for future generations.

Integrating Sustainability into Resource Allocation

The integration of sustainability principles into resource allocation requires a shift in mindset. It means considering the environmental and social impact of every resource decision. This could involve opting for environmentally friendly materials, investing in renewable energy sources, or ensuring fair labor practices in resource procurement.

Efficient Use of Resources for Sustainability

Sustainable plumbing development calls for the efficient use of resources to minimize waste and reduce the ecological footprint. This involves optimizing resource utilization in projects, avoiding overconsumption, and implementing recycling or reusing practices wherever possible. The goal is to achieve the desired outcomes while consuming the least amount of resources.

Long-Term Planning and Resource Allocation

A key aspect of sustainable development is long-term planning. This means allocating resources not just based on immediate project requirements but also considering the long-term impacts of these decisions. It involves assessing the lifecycle of resources, understanding their long-term availability, and planning for renewable and sustainable alternatives.

Balancing Economic, Environmental, and Social Factors

Resource allocation in sustainable development requires balancing economic goals with environmental protection and social responsibility. This tripartite approach ensures that development projects contribute to economic growth while preserving the environment and enhancing social welfare.

Innovative Approaches to Resource Allocation

Sustainable development encourages innovative approaches to resource allocation. This might involve using new technologies and methods that are more efficient and less harmful to the environment. For instance, using advanced construction techniques that reduce material waste or implementing water-saving technologies in manufacturing processes.

Collaborative and Inclusive Resource Allocation

Sustainable development also promotes collaborative and inclusive approaches to resource allocation. This involves engaging with various stakeholders, including local communities, governments, and environmental groups, to ensure that resource allocation decisions are equitable and benefit all parties involved.

Educating and Empowering Stakeholders

An important element of resource allocation in sustainable development is educating and empowering stakeholders about the importance of sustainability. This involves raising awareness about the impact of resource decisions and encouraging practices that support sustainability goals.

Resource Allocation Tools and Software

In today’s fast-paced project management landscape, leveraging the right tools and software is crucial for efficient resource allocation. These tools provide a platform for project managers to plan, track, and adjust resource allocation in real time, ensuring optimal utilization throughout the project lifecycle.

Project Management Software

Many project management software solutions come equipped with integrated resource allocation features. These tools provide functionalities like resource scheduling, workload balancing, and capacity planning. They offer a centralized view of all project resources, making it easier to monitor and adjust allocations as per changing project requirements.

Resource Allocation Tools Specific to Task and Workforce Management

Specialized resource allocation tools focus on task assignments and workforce management. They help in matching the right team members with appropriate tasks based on their skills, experience, and availability. These tools often include features for tracking individual workloads, ensuring that resources are not overburdened or underutilized.

Real-Time Tracking and Reporting Capabilities

An essential feature of these tools is their real-time tracking and reporting capabilities. This allows for immediate visibility into resource utilization, helping project managers to identify potential issues and make timely adjustments. Advanced reporting features also aid in analyzing resource allocation trends and efficiency, providing valuable insights for future projects.

Integration with Other Project Management Tools

Effective resource allocation tools, like debt collection , often integrate seamlessly with other project management tools and systems. This integration facilitates a holistic approach to project management, ensuring that resource allocation is aligned with other project activities like budgeting, time tracking, and milestone planning.

By utilizing these advanced tools and software, project managers can enhance their resource allocation strategies, leading to better project outcomes, increased efficiency, and more effective team management. These technologies are instrumental in transforming the traditional approaches to resource allocation, adapting to the evolving needs of modern project management.

In conclusion, understanding and implementing effective resource allocation is a fundamental aspect of project management and sustainable development. By adopting strategic planning, utilizing advanced tools and software, and integrating sustainable practices, resource managers can ensure efficient and responsible use of resources.

The challenges and complexities inherent in resource allocation demand adaptability, foresight, and a commitment to balancing economic, environmental, and social considerations. As we navigate the intricacies of resource management, the key lies in making informed, sustainable decisions that not only drive project success but also contribute to the broader goal of long-term sustainability and equitable growth.

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What is Resource Allocation? A Comprehensive Guide for Project Success

According to a McKinsey survey, “83% of business leaders consider proper resource allocation as a critical management lever for growth.”

Resources, including human capital, financial assets, equipment, and others, are critical assets for any organization and their allocation can make or break a project’s success. As a result, it is important to carefully plan and distribute these resources across various project activities, ensuring that the right ones are assigned to the right tasks at the right time.

Effective resource allocation is also about striking the right balance between competing priorities, optimizing resource utilization, and continuously monitoring and adjusting allocations as the project progresses. It ensures timely project delivery and improves profitability & ROI.

In this article, we will cover the key concepts of resource allocation and how to create an effective one for your organization.

Before that, let’s start with the basics.

What is Resource Allocation?

Resource allocation definition:.

Resource allocation, also known as resource scheduling , is the process of identifying and assigning resources for a specific period to various business activities. These activities can be project or non-project work, such as BAU, admin, support, operation, etc.

Assigning 100% of their capacity ensures maximum utilization of resources.

Resources can be either fully or partially available. Therefore, resource managers must ensure the availability of allocated resources for optimal utilization.

Now, let’s go through a resource allocation example.

Resource Allocation Example

An IT firm has a new web development project in the pipeline. So, the project manager initiates the planning process by creating a detailed Work Breakdown Structure (WBS) that summarizes all the tasks and sub-tasks involved in the entire project lifecycle. This is followed by a Resource Breakdown Structure (RBS) that entails all the resources required to execute the project efficiently.

The project manager establishes that for the project to be completed on time, they will require five backend developers proficient in Java and CSS, 2 QA testers, 2 UI/UX designers skilled in Adobe Photoshop, and 2 DevOps engineers with AWS expertise. Upon determining the requirements, the project manager submits the resource requests for all these roles to the resource manager.

Subsequently, the resource manager commences the allocation process . They look into the internal resource database to identify suitable employees with the right competencies for each role. At the same time, they also look into the availability of these resources for the specified time frame. However, the resource manager discovers that only three developers and 1 DevOps Engineer are available to take up the project, resulting in a talent shortage.

To address this, the resource manager implements an out-rotation & backfill strategy and hires contingent workers for the missing skills. By adopting a proactive approach to acquire the necessary skills, the resource manager is able to ensure that the resource requirements are met promptly and that the project starts on time.

What are the Benefits of Resource Allocation in Project Management?

Resource allocation is essential in project management as it allows you to plan and achieve project goals.

Let’s understand the various other benefits:

Reduces Project Resource Costs

Efficient resource allocation enables managers to assign best-fit global resources from low-cost locations to project tasks. This helps firms reduce the project resource cost significantly without compromising on the quality.

Assigns the Right Resources for the Right Projects

With a proper resource allocation process in place, managers can gain a comprehensive view of resource attributes like- skills, availability, capacity, etc. This helps identify and assign the right resources to the right projects at the right time and cost, ensuring competent allocation.

Optimizes Utilization of Every Project Member

Allocating resources according to their skillsets and expertise ensures optimal productivity and increases employee engagement. As a result, resource allocation plays a pivotal role in maximizing the productive utilization of project resources.

Helps Combat Resource Constraints Effectively

Effective resource allocation allows organizations to accomplish more projects with limited resources. Therefore, it enables firms to optimize resource usage, overcome workforce constraints, and deliver projects successfully.

Ensures Timely Project Initiation & Delivery

A well-planned resource allocation process ensures that suitable resources with the right skill sets are available before the project’s onset. It also helps utilize resources optimally throughout the project lifecycle, resulting in high-quality project delivery.

Following this, let’s learn about the various factors affecting the resource allocation process.

Factors that Influence the Resource Allocation Process

Understanding the factors influencing resource allocation in project management is crucial for informed decision-making and enhancing project success.

Resource Availability

The availability of resources, including personnel, budget, equipment, and technology, is a crucial factor that directly impacts resource allocation decisions. The manager must assess the quantity and quality of available resources and allocate them effectively to ensure the successful execution of project tasks. In addition, resource availability constraints may require prioritization or reallocation to optimize productive utilization.

Read more: Understanding Resource Availability within Project Management

Project Requirements

The specific requirements of a project, such as scope, complexity, timeline, and quality standards, heavily influence the resource allocation process. Projects with tight deadlines may require a larger allocation of resources or even resource intensification (a higher number of resources for a shorter duration) to ensure timely completion. Similarly, projects with complex technical requirements may necessitate specialized resources or additional training/upskilling.

Project Cost Considerations

Another key factor in resource allocation decisions is cost considerations. It’s essential to balance the resource cost rate with the available budget. Allocating resources within budgetary constraints ensures financial feasibility and efficient resource utilization. In this scenario, cost-benefit analysis and return on investment assessments can guide resource allocation decisions by weighing the potential benefits against the associated costs.

Resource Interdependencies

Resource allocation decisions should also consider interdependencies between different tasks, activities, and resources within a project. Some tasks may require specific resources to be completed, and changes in resource allocation for one task can have ripple effects on other tasks. Evaluating these interdependencies helps in optimizing resource allocation to maintain project flow and minimize bottlenecks.

Read more: What Project Interdependencies Span Your Portfolio?

Other Factors

There are certain factors beyond the control of the organization or project team that can impact resource allocation. Market conditions, economic factors, industry trends, regulatory requirements, and competition are examples of external factors that may influence resource allocation. For instance, if there is intense competition in the market , organizations may allocate additional resources to R&D (research and development) or marketing to gain a competitive edge.

By considering these factors, project managers can make informed decisions about resource allocation, ensuring that the right resources are assigned to the right tasks at the right time.

Let’s look at some of the challenges managers face when allocating resources to projects.

What are the Challenges of Resource Allocation in Project Management?

Effective resource allocation is often easier said than done. Without the right tools or techniques, identifying and allocating the right resources can be daunting. Let’s have a look at some of the resource allocation challenges that organizations face:

Changes in Project Scope

Despite taking necessary control measures, the project scope can change anytime during the project lifecycle. This may happen for several reasons, such as changing client and stakeholders’ requirements, budget constraints, changes in business priorities, etc.

Usually, changes in project requirements lead to fluctuations in resource demands . So, project managers have to make frequent changes in resource allocations to cope with the changing needs. However, this proves to be an obstacle for them in the absence of real-time visibility into resource schedules. Ultimately, it will result in incompetent allocation, expensive last-minute hiring, schedule/budget overruns, and project delays.

Use of Spreadsheets & Outdated Legacy Tools

Spreadsheets and homegrown tools are inadequate for the allocation of resources. They fail to provide real-time visibility into project and resource schedules, leading to scheduling conflicts such as double bookings, resource unavailability, etc. Additionally, the absence of real-time updates leaves resources uninformed about changes in allocation, resulting in chaos and confusion about their work priorities.

Moreover, outdated legacy tools lack the capability to track and update resource skills and competencies, hindering the identification and assignment of suitable resources to tasks. This situation escalates project resource costs and leads to the delivery of subpar projects to clients.

Miscommunication Between Sales and Delivery Teams

While focusing on achieving sales targets, sometimes the sales team doesn’t involve the delivery team before signing the deal. As a result, the delivery team ends up scrambling for competent resources at the eleventh hour to meet the project deadline.

Besides, due to a lack of visibility into sales pipeline projects, delivery teams may not be aware of upcoming projects, making it challenging to allocate resources proactively or plan for capacity accordingly. This misalignment between the sales and delivery teams can hamper project progress and even lead to failure.

Lack of Resources Visibility Within a Matrix Organization

Most companies lack a centralized resource scheduling system that provides comprehensive visibility of resources and their allocations across matrix boundaries. This lack of insight affects resource managers’ ability to allocate the best-suited and cost-effective workforce to projects.

Moreover, in matrix organizations where resources work on multiple projects, it becomes difficult for managers to comprehend the overall capacity and availability of resources. This can result in resource conflicts where managers demand the same resources simultaneously, leading to overallocation and delays.

Skill-mismatch & Shortages

The inability to forecast pipeline project requirements prohibits organizations from identifying skill shortages in advance. It leads to a misalignment between resource capacity and project demand, resulting in skill shortages.

To tackle this deficit, organizations resort to last-minute hiring of resources whose skills may not align with the project demands, causing skill mismatch . Therefore, it leads to budget overruns, subpar quality of deliverables, and project delays.

Read more: What is Resource Capacity Planning? An Ultimate Guide for Every Project Manager

Employee Overallocation & Burnout

Due to a lack of real-time information , managers cannot assess the current and future schedules of resources before assigning them to tasks, resulting in overallocation. This situation can lead to disengagement, reduced productivity, and increased stress levels among employees.

Moreover, burnout may prompt employees to take more unplanned leaves as they struggle to manage continuous exhaustion. This, in turn, results in lower quality of work, delayed submissions, and ultimately disrupts project delivery, impacting the company’s profitability.

Now that we are aware of the challenges, let’s dive further to understand how to allocate resources effectively.

Read More: What is Resource Booking? A Comprehensive Guide for Managers

How to Master Resource Allocation in Projects?

To ensure smooth project execution, a well-structured resource allocation framework is crucial. Here are the best ways to effectively distribute the workforce across different projects.

Determine Project Priority

Efficient resource allocation starts with prioritizing projects based on strategic significance and their impact on revenue. For this, managers must conduct a comprehensive assessment to identify critical projects and rank them accordingly. This involves evaluating factors like project deadlines, client needs, and organizational objectives.

Once priorities are established, resources can be allocated accordingly, ensuring that the most important projects receive the necessary attention and support. This proactive approach enhances productivity and fosters a strategic alignment between resource allocation and overarching business goals, ultimately driving success and maximizing ROI.

Define the Scope & Understand Resource Requirements

Once project priorities are determined, the next step is to define the scope of a particular project and understand resource requirements for efficient allocation. This involves conducting a thorough assessment of project objectives, timelines, and deliverables, alongside identifying the necessary skills, expertise, and technology needed.

This way, managers can align available resources effectively, ensuring optimal utilization and productivity throughout the project lifecycle. Additionally, this comprehensive understanding enables managers to anticipate potential challenges and adapt resource allocation strategies, accordingly.

Use a Resource Allocation Tool

Employing a modern resource allocation tool streamlines the process, ensuring efficient distribution of resources across projects. The tool helps consolidate various resource attributes, like cost, experience, competencies, etc., on a centralized platform. This ensures that managers have a clear visibility of every resource before allocating them to various projects. Moreover, the tool offers advanced filtering capabilities , streamlining the search for resources in real-time. This helps managers swiftly pinpoint the most suitable resources for projects.

Further, built-in functions like capacity planning can help them forecast resource demand ahead of time and bridge the gaps, ensuring timely project initiation. In addition to that, the advanced drag-and-drop scheduling feature, Gantt Charts, and multi-dimensional scheduler help managers easily assign resources based on project priorities and skill alignment. As a result, the right resources are allocated to the right projects at the right time and cost, ensuring seamless delivery.

Leverage an Automated Resource Request Process

While allocating resources, manually sifting through the resource pool or taking phone/email requests from individual project managers can be cumbersome. An automated resource requesting process that is independent of cumbersome spreadsheets streamlines the process.

It allows project managers to specify the required skill sets, qualifications, experience, cost, and project timelines. This request directly reaches the inbox of the resource manager in charge, who starts planning for the same. As the entire process is documented and auditable, tracking allocation records eliminates any process-related confusion.

Identify and Allocate the Best-Fit Resources to Project

The next step is to obtain a clear visibility of the workforce across the organization. A resource allocation software can consolidate resource data from various systems into a centralized platform. This helps managers get a comprehensive view of the resource’s attributes like- skills, qualifications, experience, availability, competencies, cost, locations, etc.

As a result, managers can allocate the best fit resources to projects, instead of first-available-fit resources, enabling smooth project execution. Further, the tool enables firms to leverage cost-effective global resources from low-cost locations to meet project requirements, without compromising quality, maintaining profitability.

Empower Employees to Work on Projects of Interest

“According to Gallup , businesses with highly engaged employees realize an 81% difference in absenteeism and a 14% difference in productivity.”

Managers must consider employees’ interests instead of allocating them to projects only based on their skills and availability. For this, resource managers can create open positions and publish them , which become visible to all relevant personnel across the enterprise. Accordingly, interested resources can apply for the position.

After reviewing the applications, managers can then select the best-fit resources. When resources work on the project of their interest, it improves their productivity and increases their engagement levels, reducing unplanned attrition and enhancing project quality. Therefore, this method is a win-win for both resources and the managers responsible for their allocation.

Diversify Employee Skill Sets and Responsibilities

The rise of new technologies and evolving customer expectations has heightened the demand for highly skilled resources. However, acquiring these talents can pose challenges and incur significant costs for organizations. Hence, companies must proactively invest in enhancing the skills of their internal resources, which can also reduce project resource costs.

To achieve this, organizations should develop tailored training modules , offer peer-to-peer coaching, provide on-the-job training, and implement mentoring programs to upgrade the competencies of their workforce and prepare them for future projects. Moreover, this approach enables employees to refine their core skill sets and develop new ones. This allows managers to allocate resources to diverse projects and increase their billability, thereby reducing bench size

Read more: Importance of skill development in making your workforce future-ready

Utilize What-if Analysis to Fulfill Dynamic Project Demands

When managing the workforce across multiple projects with limited resources, any misstep due to poor judgment can lead to significant costs in today’s dynamic business landscape. This is where the practice of simulating business scenarios becomes invaluable. Resource managers can utilize scenario-based modeling and simulation techniques , such as what-if analysis, to evaluate different scenarios and their potential outcomes.

By exploring various resource combinations and comparing the resulting revenues, managers can pinpoint the most financially rewarding projects. This method empowers them to identify the most advantageous course of action and apply it to real resource planning and allocation. For instance, managers can adjust the timeline of a low-priority project and allocate scarce resources to higher-priority ones. Consequently, this approach enhances revenue and ensures the profitability of firms.

Use Real-time BI to Monitor and Improve Resource Allocation

Even after the resource allocation process is complete, there can be changes in the project requirements that require immediate attention. Thus, implementing a modern resource management solution equipped with real-time business intelligence reports helps managers monitor the resource allocation process as the project progresses.

Further, the role-based customizable dashboards of the tool will enable them to make informed and timely decisions and adjust resource allocations accordingly. Thus, real-time business intelligence helps track and control resource allocations ahead of time, ensuring smooth project execution, improving the enterprise’s health index.

Read more: 5 Benefits of Using Business Intelligence in Resource Management

Now, let’s understand the tools required for dynamic resource deployment.

Effective resource allocation is paramount for business success. It ensures the appropriate distribution of organizational resources, both human and non-human, to suitable projects. To achieve this, firms can implement the above-mentioned strategies coupled with advanced resource management software and harness the full potential of their workforce, increasing project success and improving profitability.

The Glossary

Read more:  Glossary of Resource Workforce Planning, Scheduling and Management

The SAVIOM Solution

SAVIOM is the market leader in offering the most powerful and configurable solutions for deploying appropriate resources to suitable projects. With over 20 years of experience, this Australia-based MNC has helped more than 100 clients across over 50 countries address specific business challenges. SAVIOM also provides tools for project portfolio management , professional service automation , and workforce planning software .

The Ultimate Guide to an Efficient Resource Management

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Home » Resource Allocation: Definition, Methods and Examples

Resource Allocation: Definition, Methods and Examples

June 13, 2023 max 7min read.

This article covers:

What Is Resource Allocation?

Benefits of resource allocation, how to allocate resources effectively, resource allocation methods, examples of resource allocation.

In the vast landscape of organizational management, one crucial concept looms large: resource allocation. Picture a complex puzzle, with various pieces representing the finite resources available to a company or project. 

The art and science of resource allocation involve deciphering how to distribute those pieces strategically, maximizing productivity, and achieving desired outcomes.

At its core, resource allocation refers to assigning resources, be it financial, human, or material, to different tasks, projects, or departments. It requires a delicate balance between efficiency and effectiveness as organizations strive to optimize resource utilization while meeting objectives.

Resource allocation methods vary, with some relying on intuitive decision-making. In contrast, others employ systematic approaches such as cost-benefit analysis , priority setting, or mathematical models. These methods help stakeholders determine the allocation that offers the most value and impact.

Let us learn all about resource allocation in this article.

Resource Allocation Definition:

Resource allocation refers to assigning and distributing available resources, such as financial capital, human capital, equipment, and time, among different activities, projects, or departments within an organization.

Resource allocation is a fundamental management process that efficiently utilizes limited resources to achieve organizational goals. It is a strategic tool that enables organizations to optimize operations, make informed decisions, and drive sustainable growth and success.

Resource allocation plays a crucial role in determining the success and sustainability of a business or project. Effective resource allocation allows organizations to:

• Optimize productivity : By strategically allocating resources, organizations can maximize output and productivity, ensuring that resources get utilized most efficiently.
• Prioritize initiatives : Resource allocation enables organizations to prioritize projects or activities based on their strategic importance, urgency, or potential return on investment. It helps identify and focus on high-priority initiatives, avoiding waste or misalignment of resources.
• Manage risks : By allocating resources appropriately, organizations can mitigate risks and uncertainties associated with projects or activities. It allows for contingency planning and ensures that resources are available when needed, reducing the likelihood of delays or failures.
• Enhance decision-making : Resource allocation provides a structured framework for decision-making. It helps stakeholders evaluate trade-offs, analyze cost-benefit ratios, and make informed choices regarding the allocation of resources.
• Foster innovation and growth : Effective resource allocation supports innovation and growth by directing resources toward research and development, new initiatives, and strategic opportunities. It enables organizations to adapt to changing market dynamics and invest in future success.

Resource allocation benefits organizations, including increased efficiency, reduced costs, and improved project success rates. Let us look at them in detail.

• Increased efficiency : By allocating resources strategically, organizations can ensure their resources get used to their full potential. This leads to better efficiency and productivity, as tasks can get completed more quickly.
• Reduced costs : Proper resource allocation can help organizations minimize unnecessary expenses. By avoiding overallocation or underutilization of resources, organizations can save money on things like excess inventory, idle workforce, and redundant equipment.
• Improved project success rates : Resource allocation is essential for successful project management. By allocating the right resources to suitable projects, organizations can boost the chances of project success. This involves assigning resources with the necessary skills and expertise to specific tasks and ensuring that projects are adequately staffed and equipped.

Here are some additional benefits of effective resource allocation:

• Improved employee morale : When employees get the resources they need to do their jobs effectively, they are more likely to be motivated and engaged. This can lead to improved productivity, decreased turnover, and increased customer satisfaction.
• Enhanced decision-making : By having a clear understanding of the availability and capabilities of their resources, organizations can make useful decisions about how to allocate them. This can indeed result in improved strategic planning and execution, as well as more efficient use of resources.
• Increased agility : Effective resource allocation can help organizations respond more swiftly to changes in the market or the environment. It can give them a competitive advantage and help them achieve their goals more quickly.

To allocate resources effectively, organizations can follow a systematic approach that involves the following steps:

Here are the steps on how to allocate resources effectively:

• Identify your resources. What resources do you have available? This includes financial capital, human resources, equipment, technology, and other assets.
• Prioritize your tasks. What tasks are most important? Which ones need to get done first? Consider the urgency, importance, and potential return on investment of each task.
• Create a resource allocation plan. How will you allocate your resources to the different tasks? Make sure that you consider the resource requirements of each task, the availability of resources, and any dependencies or constraints.
• Monitor and adjust your plan as needed. How are your resources being used? Are you on track to accomplish your goals? Make adjustments to your plan as needed.

Here are some additional tips for effective resource allocation:

• Be flexible and adaptable. Things change, so be ready to adjust your resource allocation plan as needed.
• Communicate with your team. Keep your team updated on your resource allocation plan and any changes that you make.
• Get feedback. Ask your team for feedback on your resource allocation plan. It can help you identify any areas where you can improve.

Effective resource allocation is essential for any organization to achieve its goals. By following these steps, you can ensure that your resources get used effectively and that you are on track to meet your goals.

Resource allocation methods provide structured approaches to distributing resources within an organization effectively. Here are four commonly used methods:

Critical Path Method (CPM) : 

You may define the critical path and the order of work that determines the minimal project length using the critical path method. CPM works by analyzing task dependencies, durations, and resource requirements. This helps you identify the optimal allocation of resources to critical tasks. By allocating resources efficiently, you can minimize project delays and maximize productivity.

Here are the steps involved in CPM:

• Identify all the tasks in the project.
• Determine the dependencies between tasks. This means identifying which tasks must get completed before other tasks can start.
• Estimate the duration of each task.
• Calculate the critical path. You do this by finding the longest sequence of tasks that must get completed on schedule for the project to get completed on time.
• Allocate resources to critical tasks. You can do it by ensuring that there are enough resources available to complete the critical tasks on time.

Earned Value Management (EVM) : 

Earned value management (EVM) is a technique that integrates cost, schedule, and scope to track and measure project progress. EVM compares the value of work completed against the planned budget and schedule. This helps project managers identify deviations from the plan and take corrective actions to ensure that the project concludes on schedule and within the allotted budget.

EVM works by tracking three key metrics:

• Planned value (PV) : This is the budgeted cost of the work that has gotten scheduled for completion at a given point in time.
• Earned value (EV) : It is the value of the work that you have actually completed at a given point in time.
• Actual cost (AC) : This is the actual cost of the work completed at a given time.

Resource Leveling : 

Resource leveling is a project management methodology that helps you balance the demand for resources with the available supply. It does this by adjusting task schedules or adding or removing resources. The goal of resource leveling is to optimize resource allocation while maintaining project constraints and deadlines.

Resource leveling can be used to:

• Avoid resource overloading: This can lead to errors, accidents, and burnout.
• Avoid resource underutilization: This can waste resources and lead to cost overruns.
• Minimize conflicts: This can improve morale and productivity.
• Maximize resource utilization efficiency: This can save money and time.

Resource leveling can be a complex process, but it is an extremely valuable tool for project managers. If you are a project manager, I encourage you to learn more about resource-leveling.

Resource Smoothing : 

Resource smoothing focuses on maintaining a constant resource utilization rate by adjusting the project schedule. It aims to minimize resource fluctuations by redistributing tasks within the available time frame while considering resource constraints. Resource smoothing helps avoid resource peaks and valleys, prevent resource bottlenecks, and ensure a more stable and balanced allocation of resources.

Here are a few examples of resource allocation in different contexts:

Financial Resource Allocation : 

A multinational corporation has a budget for marketing activities. To effectively allocate financial resources, they analyze market research data, identify target markets, and allocate funds to various marketing campaigns, such as digital advertising, social media promotions, and sponsored events. They allocate resources based on the potential return on investment and the strategic objectives of each campaign.

Human Resource Allocation : 

A software development company is working on multiple projects simultaneously. They allocate their human resources by assigning programmers, designers, and testers to different projects based on their skills, expertise, and project requirements. They ensure each project team has the workforce to meet deadlines and deliver high-quality software solutions.

Material Resource Allocation : 

A construction company has limited equipment, such as excavators, cranes, and trucks. They allocate these resources by analyzing project schedules, equipment requirements, and availability. They assign the equipment to different construction sites based on project priorities, ensuring optimal utilization and avoiding delays caused by equipment shortages.

Departing Thoughts

Resource allocation is a fundamental element of effective management and planning. It enables people and organizations to optimize their resources, make sound judgments, and achieve their objectives. By comprehending the advantages and implementing best practices, people and organizations can fully utilize resource allocation and achieve success.

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Resources can be allocated to various organizational areas, including departments, projects, specific tasks, initiatives, or particular individuals/team members.

The three key elements of resource allocation are:

• Resources: These refer to the available assets, such as financial capital, human resources, equipment, technology, and time.
• Allocation: It involves the process of assigning and distributing resources to specific tasks, projects, or departments based on their needs and priorities.
• Optimization: This element focuses on maximizing the utilization and effectiveness of resources, ensuring they get allocated most efficiently and beneficially possible.

Resource allocation methods are structured approaches or techniques used to distribute resources effectively. Some common methods include the Critical Path Method (CPM) for project management, Earned Value Management (EVM) for tracking project progress, Resource Leveling for balancing resource demand and supply, and Resource Smoothing for maintaining a constant resource utilization rate. These methods help organizations make informed decisions about resource allocation, optimize resource utilization, and improve project outcomes.

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What is resource allocation?

Resource allocation is the process of assigning and managing assets in a manner that supports an organization's strategic planning goals.

Resource allocation includes managing tangible assets such as hardware to make the best use of softer assets such as human capital . Resource allocation involves balancing competing needs and priorities, and determining the best course of action to maximize the use of limited resources and get the best return on investment .

In practicing resource allocation, organizations must first establish their desired goal, such as increased revenue, improved productivity or better brand recognition . They then must assess what resources will be needed to reach that goal.

While resource allocation often refers to activities related to project management, the term is also used in other contexts, including the following:

• economics, where it is a component of public finance; and
• computer storage, where it describes how operating systems manage data storage resources.

How to allocate resources on a project

The following five steps are important when allocating available resources as part of project management:

• Plan. Project managers should first map out the project. They must divide the project into separate tasks and identify what skills are needed. They also must examine any constraints, such as the deadlines and budget. Project managers should also identify potential team members based on their skills and availability. They also need to determine task dependencies that might affect completion of specific steps. Planning also requires the development of a work breakdown structure, which matches each task to start and end dates and establishes a budget.
• Gauge availability. Sick time, vacation time, holidays and other projects all impact a team's availability. During this stage, managers must establish lines of communication with team members so resource allocation and shifts and changes in the project or its schedule can be communicated. Open communication is critical to enable cross-collaboration among teams and optimize the use of shared resources. It also helps identify team members that have conflicting commitments or are balancing multiple projects that might slow down the project.
• Schedule. Managers assign tasks and develop project timelines. They use resource management tools to automate and streamline this process and improve workload management. Effectively managing workloads can prevent burnout, identify opportunities to enhance team members' skills and indicate additional staff is needed. Resource scheduling involves blocking time for priority tasks and designating the priority level of each task.
• Track. Once the project begins, it's important to track the performance of team members and monitor how effectively they complete tasks. Resource allocations should be adjusted to maximize efficiency and take advantage of new opportunities that arise. Business intelligence tools and project management software and tools facilitate the collection of real-time data needed to ensure the team remains on the project's schedule.
• Evaluate. The success of the project is evaluated based on metrics that show how well it met expectations. Data from these findings can be used to refine resource allocation strategies in new projects.

Benefits of resource allocation

Effective resource allocation offers the following benefits:

• Collaboration. Resource allocation helps facilitate communication among teams and fosters collaboration . A resource allocation strategy allows communication with stakeholders, to keep them informed about progress toward strategic goals.
• Efficiency. Resource availability helps teams complete a project on time and use only the resources needed to achieve each goal. A solid resource allocation strategy helps project teams avoid mistakes related to conflicting dependencies.
• Team morale. Resource allocation improves employee engagement and team member morale. Resource allocation allows a more equitable distribution of responsibilities so that no team member is overworked. This approach can improve productivity because as team members' well-being is improved, they have the bandwidth and agency to take on additional work.
• Cost reduction. Effective resource allocation can result in significant cost savings because it increases efficiency, reduces waste and avoids costly mistakes, setbacks and delays.

Challenges of resource allocation

There also are challenges associated with the resource allocation process, including the following:

• Resource scarcity. Sometimes there are not enough resources available to achieve the tasks laid out in the project plan. Some resources may only be partially available throughout the project. In other cases, project resources may be available at the beginning of a project but not later on as it progresses.
• Skill shortages. If specific skills are in short supply, that can have a negative effect on the project. The additional training or hiring required can take time that may not be built into the project's schedule.
• Resource overallocation. Too many resources can also negatively affect efficiency and productivity. If more resources are allocated to a task than needed, employees may get overwhelmed trying to make use of them all.
• Visibility. Poor visibility into the details of how a project is progressing can result in project managers not allocating the right resources where they're needed. A lack of visibility can also negatively affect a business's ability to forecast future project requirements, leading to future misallocation of resources. The lack of a centralized resource planning tool is often the cause of poor visibility.
• Miscommunication . Poor communication among team members or teams can cause a range of problems. For example, a common point of miscommunication is between the sales and delivery team. If the team delivering the product to the customer isn't informed of all project requirements, it may not be able to ensure resources are properly allocated and the deliverables adhere to customer expectations.
• Outdated technology. Legacy technology, such as a spreadsheet application, may not provide adequate real-time data for tracking This can lead to missed opportunities or overallocation of resources as project requirements shift.
• Scope creep. Project scope can change at any point in the project lifecycle and lead to fluctuating resource demands. Scope creep is a change to the original goals or tasks of a project and can result in continuous changes or unsustainable growth in the project's scope. If requirements are continually added, resources may be exhausted and team members can be negatively affected.

Business intelligence is an important component of resource allocation, especially for tracking project performance. Learn about some common business intelligence challenges organizations face and how to handle them.

Continue Reading About resource allocation

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