How managing resources can improve a business

Without efficient resource management, the workforce will only end up making efforts without getting the desired results. For example, the workforce in a matrix organization has to work on different projects under multiple reporting lines.

In such a complex structure, the active resources will receive critical tasks and operate beyond their capacities. In contrast, less visible employees may remain underutilized. Moreover, it reduces billable utilization because competent resources may keep working on non-billable projects due to lack of visibility.

This leads to hiring new employees abruptly as project leaders find everyone unavailable when the requirement of resources arises. When the projects end, rolled-off resources will serve bench time or even face a layoff. There are many scenarios where a talented workforce cannot achieve project success due to improper planning.

With effective resource management best practices , you can increase business profitability with the existing resource pool. Let us go through some of these methods to make the best use of resources. An organization functions with a diverse workforce in different departments, teams, locations, etc. It creates silos and leads to a lack of visibility. In this case, resource managers will have to search every hierarchical channel whenever the need for a particular skill arises.

The resource manager will not be able to view their bookings. Ultimately, they will not be able to allocate resources on the project at the right time despite having sufficient talent. Centralizing resource details like their departments, location, skill sets , competencies, etc. Also, it establishes transparency of resource bookings, task ownership, and engagement period. Finally, anyone can find resource details easily and create resource plans without wasting time.

In multi-project organizations , employees have to take up different roles at times. It means they not only take up the projects matching their primary skills but also as per their secondary skills.

When team members possess primary and multiple secondary skills, they can be easily made billable. Every employee in the resource pool may not have the necessary skills to take up different roles. Secondary skills can be learned on the job with some training and support from the management.

Ultimately, allocating them to various projects becomes easier and organizations can make efficient use of the resources in the workplace. Resource allocation helps you get the most from your available resources. To get a clear view into allocation, project managers will often use resource allocation reports. These can give anywhere from a high-level view to a detailed run down of resource availability — helping you avoid schedule delays and going over budget. The better the reporting capabilities at your disposal, the more transparency and efficiency you will have over your projects.

What is resource leveling on a project and what are its objectives? This technique aims to discover underused or inefficiently used resources within the organization and work them to your advantage. An example of resource leveling is having a content writer who has experience in graphic design help out the design team by taking on small content tasks that require design work. Having a resource management plan is critical to optimizing people, materials, and budget efficiency.

Managing the capital you use to keep your business growing and thriving is one of the most challenging parts of running a small business. Regardless of how you categorize the resources in your business, the goal should be to maximize their value to increase profits, grow, and thrive. Skip to Content Skip to Footer. What I learned during that time has caused me to look at small business resources in basically three categories: 1.

People 2. Nevertheless, over years ago a monk name Luca Pacioli, the father of modern accounting, suggested there were three things needed to run a successful business : 1. Adequate cash 2. A capable mathematician to work with the numbers 3. Learn More. Similar Articles. Take your business further with the experts in small business lending Apply in minutes — No obligation Apply Now. Would you rather talk to us?