Resource management gets tougher with rising budgets in projects. A research suggests that failure rate of projects with $1 million budget is 50% more than that with fewer funds. How do you avoid such mishaps? In this article at Clarizen, find out 5 resource management tips to avoid massive budget overrun.
Avoid Resource Catastrophes
As per a Harvard Business Review report, the average budget overrun was 27%. This is shocking as 59% of IT services firm have a team dedicated to resource management. To evade such budget overrun, follow the below-mentioned resource management best practices:
Increase Visibility on Resources: Have an hourly update regarding the resources. For efficient resource management, find out how projects are using the approved funds. You will need a standard tool to track task progress on a real-time basis.
Replace Old-School Spreadsheets with a Dedicated Tool: Several businesses still use spreadsheets to manually log in all the details for resource management. In the digital era, digitize your management process. Deploy a dedicated software that would automatically send you reports, notifications, etc. You can also implement a project management tool that offers all-round support to all the project activities.
Prioritize Your Core Resources: All resources are necessary, but some are critical. This holds true for all the large organizations or projects. To keep an eye on these resources, create your workflow around them. This will lessen your planning period and fast-forward project lifecycle.
Have a Plan but also Be Adaptable: Create a work breakdown structure to understand how the project is shaping up. Also, it will alert you of the dependencies that must be addressed to reach a milestone in the lifecycle. New dependencies or factors might crop up later but proper resource management with aid in the smooth running of the project.
Don’t Overschedule Resources: It is common to depend on one skilled resource for multiple assignments. However, overloading work on fewer resources can lead to burnout, reduced productivity, and quality drop. Avoid rework or client disapproval by giving them enough time to complete their assignments.
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