3 strategies for overcoming resource management challenges

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3 Strategies toOvercome Resource 

Management Challenges

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

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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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3 Strategies to Overcome Resource Management Challenges

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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3 Strategies to Overcome Resource Management Challenges

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

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

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3 Strategies to Overcome Resource Management Challenges

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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3 Strategies to Overcome Resource Management Challenges

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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3 Strategies to Overcome Resource Management Challenges

Strategies#1: Centralize the Resource Management Organization

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3 Strategies to Overcome Resource Management Challenges

Top 10 Resource Management Challenges

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

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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3 Strategies to Overcome Resource Management Challenges

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)

#1: Centralize the Resource Management Organization

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3 Strategies to Overcome Resource Management Challenges

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)

#1: Centralize the Resource Management Organization

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3 Strategies to Overcome Resource Management Challenges

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

#1: Centralize the Resource Management Organization

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

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3 Strategies to Overcome Resource Management Challenges

Strategies

#2:  Practice Portfolio 

Management at the 

Enterprise Level

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3 Strategies to Overcome Resource Management Challenges

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

#2:  Practice Portfolio 

Management at the Enterprise 

Level

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3 Strategies to Overcome Resource Management Challenges

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

#2:  Practice Portfolio 

Management at the Enterprise 

Level

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3 Strategies to Overcome Resource Management Challenges

Strategies

#3: Create a Results‐Driven 

Culture

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

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3 Strategies to Overcome Resource Management Challenges

Dilbert on Resource Management

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

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3 Strategies to Overcome Resource Management Challenges

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

productivity• Provide comprehensive insight into organizational 

demand

#3: Create a Results‐Driven 

Culture

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3 Strategies to Overcome Resource Management Challenges

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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3 Strategies to Overcome Resource Management Challenges

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

#3: Create a Results‐Driven 

Culture

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3 Strategies to Overcome Resource Management Challenges

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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3 Strategies to Overcome Resource Management Challenges

Strategies

#3: Create a Results‐Driven 

Culture

#2:  Practice Portfolio 

Management at the 

Enterprise Level

#1: Centralize the Resource Management Organization

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

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3 Strategies to Overcome Resource Management Challenges

Thank You!

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

Kent Crawfordkcrawford@pmsolutions.com

+1 (484) 450‐0115