3 strategies for overcoming resource management challenges

| © 2010 Project Management Solutions, Inc. (www.pmsolutions.com)

3 Strategies toOvercome Resource

Management Challenges

J. Kent Crawford, PMP, PMI FellowOriginally Presented via Webinar on May 26, 2010

© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

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3 Strategies to Overcome Resource Management Challenges

Agenda

2010 Challenges & Priorities Top 10 Resource Management Challenges 3 Strategies to Overcome These Challenges Action Plan


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Resource Management is the Top Challenge

Source: State of the PMO, PM Solutions’ Research, 2010

15%

14%

12%

10%

9%

7%

6%

6%

6%

4%

3%

2%

1%

5%

Resource managementConsistent application of defined processes

Applicability of the PMO to all projectsDemonstrating the added value of the PMO

Significant responsibility/little authorityExecutive support

Appropriate fundingFormally defining the PMO role

Getting reliable, accurate information from PMsLine manager acceptance

Project manager acceptanceSenior manager acceptance

Client acceptanceOther

Single Greatest PMO Challenge

Percentageof PMOs


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Resource Management Priorities

64%

40%

30%

22%

Improve resource planning and forecasting process

Implement/enhance PM training

Assess competency of project managers

Increase operational staff within the PMO

High Priorities over the Next 12 Months

Percentageof PMOs



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What’s Really Happening?

• Too many unplanned requests• Unrealistic schedules and budgets• Scope creep• Too many pet projects jumping the queue• Poorly defined deliverables


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Strategies

#3: Create a Results‐Driven

Culture

#2: Practice Portfolio

Management at the

Enterprise Level

#1: Centralize the Resource Management Organization


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Strategies#1: Centralize the Resource Management Organization


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Top 10 Resource Management Challenges


14%

13%

11%

10%

9%

8%

6%

6%

4%

4%

Resource contention issues

Conflicting authority

Inadequate project management skills

Not enough project managers

Roles split with competing priorities

Inadequate resource forecasting

Lack of transparency on resource loading

Supply and demand for key skills not aligned

Roles not clearly defined

Inadequate info on resource availablability

Greatest Resource Management Challenges

Percentageof PMOs


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Centralize Resource Management

• Full visibility of work across the organization• Resource pools assigned based on need/skill/demand• Sponsors that are informed and engaged in resolving resource

conflicts• “Pay to play” (no more “free” labor)• Scenario “what‐if” planning • Put a cost value on everything• Balance current need with development of people• Understand current skill mix, when people are available, and

what skills must be acquired (hire or source)



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Assess Organizational Capacity

• Establish a resource inventory• Analyze resource capacity against the portfolio• Forecast resource requirements and resolve over/under utilization

• Optimize resource utilization in correlation to portfolio priorities

• Repeat (as often as necessary)



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Tips to Balance Supply with Demand

• Determine skills inventory criteria• Educate PMs on how to estimate and load projects

• Create a staffing plan or RACI (Responsible, Accountable, Consulted, Informed) matrix for each project so PMs, managers, and staff know who is working on what

• Establish an organizational resource leveling and analysis process


*Adapted from the Resource Management round table discussion at the Strategy & Projects Summit, Boston, MA, May 2009


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Strategies


Management at the

Enterprise Level


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Portfolio Management at the Enterprise Level

• Full visibility into resource requirements across the organization

• Portfolio planning aligned with resource skills and capacity

• Ability to apply appropriate assets to the highest priority projects/programs


Management at the Enterprise

Level


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PPM: Where Resource Management Fits In

Active & Proposed

Work

Business Decision Criteria

Prioritization & Resource Capacity

Funded Projects

Portfolio Health & Value

Contribution

Project Portfolio Management

System (PPMS)

• Reallocate Resources• Remove Completed Projects• Cancel Projects• Sunset Products

Project Portfolio Management Lifecycle


Management at the Enterprise

Level


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Strategies


Culture


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Dilbert on Resource Management

Source: www.dilbert.com – originally published on June 11, 2007


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Create a Results-Driven CultureUse your PMO to:• Facilitate and optimize portfolio• Understand, analyze, and forecast resource

productivity• Provide comprehensive insight into organizational

demand


Culture


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Create a Results-Driven Culture#3: Create a Results‐Driven

CultureDEMAND MANAGEMENT

0

EXAMPLE:

*Percentages are meant to be representations of average time spent in the various work areas.

# of Resources

Months0

5

10

15

20

25

30

Project %

Program%

Service %

Operations %

Maintenance %


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Create a Results-Driven CultureUse your PMO to:• Facilitate and optimize portfolio• Understand, analyze, and forecast resource

productivity• Provide comprehensive insight into organizational

demand• Establish internal/external positioning• Provide insight for cost allocation and pricing• Monitor portfolio performance against

organizational strategies


Culture


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Resource Management Action Plan• Assess organizational readiness to adopt resource

management governance and practices• Get the pre‐requisites in place first

– Standard methodology– Consistent estimating and planning of projects across the portfolio

– Capable PMs and project support• Inventory resources and skills across the enterprise• Align resource allocation with portfolio prioritization• Plan to factor in service, operational, and maintenance

resource demands


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Strategies


Culture


Management at the

Enterprise Level



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Thank You!

More insights at: www.pmsolutions.com Webinar Recording White Papers Blog PMO Resource Center

Kent [email protected]

+1 (484) 450‐0115

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