{"id":2513,"date":"2022-07-21T09:00:29","date_gmt":"2022-07-21T09:00:29","guid":{"rendered":"https:\/\/resourceguruapp.com\/blog\/?p=2513"},"modified":"2024-03-04T15:28:55","modified_gmt":"2024-03-04T15:28:55","slug":"resource-allocation-guide","status":"publish","type":"post","link":"https:\/\/resourceguruapp.com\/blog\/resource-management\/resource-allocation-guide","title":{"rendered":"The complete guide to resource allocation in project management"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Resources are ever-changing\u2014a constant ebb and flow of people, materials, time, and money\u2014so it may seem obvious that <\/span><span style=\"font-weight: 400;\">resource allocation<\/span><span style=\"font-weight: 400;\"> should always be front of mind for your <\/span><span style=\"font-weight: 400;\">project team<\/span><span style=\"font-weight: 400;\">. But are you implementing it effectively? If your answer is no or you\u2019re unsure, keep reading.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Allocation strategy can be complicated, but once you master it, you\u2019ll be able to help your team do their best work, and they\u2019ll have confidence that the project\u2019s end goal is achievable. Using our step-by-step guide, you\u2019ll learn what <\/span><span style=\"font-weight: 400;\">resource allocation<\/span><span style=\"font-weight: 400;\"> is, why it matters, how to use it, and how to overcome the common challenges you may face as you implement the <\/span><span style=\"font-weight: 400;\">resource allocation process<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">In this article \ud83d\udcd6<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/resourceguruapp.com\/blog\/resource-management\/resource-allocation-guide\/#What-is-resource-allocation\" >What is resource allocation?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/resourceguruapp.com\/blog\/resource-management\/resource-allocation-guide\/#Why-is-resource-allocation-essential-to-project-managers\" >Why is resource allocation essential to project managers?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/resourceguruapp.com\/blog\/resource-management\/resource-allocation-guide\/#Common-challenges-with-resource-allocation\" >Common challenges with resource allocation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/resourceguruapp.com\/blog\/resource-management\/resource-allocation-guide\/#7-best-resource-allocation-tips-you-should-know\" >7 best resource allocation tips you should know<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/resourceguruapp.com\/blog\/resource-management\/resource-allocation-guide\/#Continue-expanding-your-resource-allocation-knowledge\" >Continue expanding your resource allocation knowledge<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-resource-allocation\"><\/span><span style=\"font-weight: 400;\">What is resource allocation?\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Resource allocation<\/span> <span style=\"font-weight: 400;\">is the process of managing resources to best meet a project\u2019s needs over the course of its duration.\u00a0<\/span><\/p>\n<p><b>Resource<\/b><span style=\"font-weight: 400;\"> refers to materials needed to complete a project: specific facilities, tools, and equipment, budget, a team, or even time itself. In <\/span><span style=\"font-weight: 400;\">resource management<\/span><span style=\"font-weight: 400;\">, employees are often referred to as resources. We encourage you to keep the human aspect of <\/span><span style=\"font-weight: 400;\">human resources<\/span><span style=\"font-weight: 400;\"> at the forefront of your projects. Think of allocation as not just a technique to keep your project on track but also <\/span><span style=\"font-weight: 400;\">as a way to ensure your employees are treated as human beings, not robots.<\/span><\/p>\n<p><b>Allocation<\/b><span style=\"font-weight: 400;\"> is fluid. As a project develops, you\u2019ll need to adapt who is working on what under which circumstances. A solid <\/span><span style=\"font-weight: 400;\">resource allocation plan<\/span> <span style=\"font-weight: 400;\">allows for some variability while outlining how employees can expect to use their time.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why-is-resource-allocation-essential-to-project-managers\"><\/span><span style=\"font-weight: 400;\">Why is resource allocation essential to project managers?\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div id=\"attachment_2514\" style=\"width: 953px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-2514\" class=\"wp-image-2514 size-medium\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2021\/10\/maximize-utilization-943x588.jpg\" alt=\"Resource allocation to maximize utilization\" width=\"943\" height=\"588\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2021\/10\/maximize-utilization-943x588.jpg.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2021\/10\/maximize-utilization-1042x650.jpg.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2021\/10\/maximize-utilization-1536x958.jpg 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2021\/10\/maximize-utilization.jpg 1951w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2021\/10\/maximize-utilization-943x588@2x.jpg.webp 1886w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><p id=\"caption-attachment-2514\" class=\"wp-caption-text\"><em>Resource allocation with Resource Guru<\/em><\/p><\/div>\n<p><span style=\"font-weight: 400;\">Allocation is an essential part of any project\u2014without it,<\/span> <span style=\"font-weight: 400;\">project managers<\/span> <span style=\"font-weight: 400;\">can make a timeline of when they want certain<\/span> <span style=\"font-weight: 400;\">milestones<\/span> <span style=\"font-weight: 400;\">completed but have no idea of whether or not that timeline is achievable with their team and resources on hand. In the worst cases, poor resource misallocation can lead to project failure.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Mishandled <\/span><span style=\"font-weight: 400;\">resource allocation strategy<\/span> <span style=\"font-weight: 400;\">can also frustrate employees, sometimes leading to <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/employee-turnover\"><span style=\"font-weight: 400;\">increased staff turnover<\/span><\/a><span style=\"font-weight: 400;\">. So can underutilizing your resources.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Before dedicated<\/span> <a href=\"https:\/\/resourceguruapp.com\/features\/resource-scheduling\"><span style=\"font-weight: 400;\">resource management software<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><span style=\"font-weight: 400;\">project managers<\/span> <span style=\"font-weight: 400;\">had to use version-controlled <\/span><span style=\"font-weight: 400;\">spreadsheets<\/span> <span style=\"font-weight: 400;\">to manage and allocate their resources. Tools like Resource Guru have changed that once time-intensive part of <\/span><span style=\"font-weight: 400;\">project planning<\/span> <span style=\"font-weight: 400;\">and made it as easy as taking a few moments to breathe.<\/span><\/p>\n<div class=\"adblock adblock--bright06\">\n<div class=\"adblock__image\">\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/12\/mc-saatchi.png\" alt=\"M&amp;C Saatchi\" width=\"562\" height=\"576\" class=\"alignnone size-full wp-image-2213\" \/><br \/>\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/12\/steffani-sabatinni.png\" alt=\"Steffani Sabatinni\" width=\"528\" height=\"576\" class=\"alignnone size-full wp-image-2207\" \/>\n<\/div>\n<blockquote><p>&#8220;Resource Guru is simple to use. It allows us to optimize our resources and keeps an eye on every project.&#8221;<\/p>\n<footer><strong>Stefania Sabbatini<br \/>\n<\/strong>Digital Production Director<\/footer>\n<p><svg class=\"curve__right\" preserveAspectRatio=\"none\" viewBox=\"0 0 42 236\">\n<path d=\"M42,0H0C20.4,38,31.14,77.5,31.14,118S20.4,198,0,236H42Z\" style=\"fill:#40264d;fill-rule:evenodd\"\/><\/svg><br \/>\n<svg class=\"curve__bottom\" preserveAspectRatio=\"none\" viewBox=\"0 0 236 42\">\n<path d=\"M236,42V0c-38,20.4-77.5,31.14-118,31.14S38,20.4,0,0V42Z\" style=\"fill:#40264d;fill-rule:evenodd\"\/><\/svg>\n<\/p><\/blockquote>\n<div class=\"adblock__link\"><img decoding=\"async\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/themes\/resourceguru_2019\/images\/resource-guru-vertical.svg\" \/><br \/>\n<a id=\"customtestimonial\" class=\"button\" href=\"https:\/\/resourceguruapp.com\">Try It Free<\/a><\/div>\n<\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"Common-challenges-with-resource-allocation\"><\/span><span style=\"font-weight: 400;\">Common challenges with resource allocation<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Successful project<\/span> <span style=\"font-weight: 400;\">completion isn\u2019t easy\u2014it&#8217;s likely that <\/span><span style=\"font-weight: 400;\">project managers<\/span> <span style=\"font-weight: 400;\">most often run into trouble with the allocation piece of their<\/span> <span style=\"font-weight: 400;\">project plans<\/span><span style=\"font-weight: 400;\">,<\/span><span style=\"font-weight: 400;\"> as consequences range as far as project delay, cost overruns, and even employee turnover.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are six of the common challenges you may face when<\/span> <span style=\"font-weight: 400;\">allocating resources<\/span><span style=\"font-weight: 400;\">, <\/span><span style=\"font-weight: 400;\">regardless of the size of your company. <\/span><\/p>\n<h3><strong>1. Resources have competing projects<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">It\u2019s not uncommon for two projects to require the same resources. Consider a website design firm: <\/span><i><span style=\"font-weight: 400;\">most <\/span><\/i><span style=\"font-weight: 400;\">projects will demand attention from the lead UX designer. And IT departments tend to rely heavily on their senior developers regardless of which tasks they\u2019re tackling. It\u2019s up to the<\/span> <span style=\"font-weight: 400;\">project manager<\/span> <span style=\"font-weight: 400;\">to allocate their resources effectively to meet all project needs.<\/span><\/p>\n<h3><strong>2. The project scope is subject to change<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Some projects are predictably challenging to plan for in the long term, like software projects or content plans.<\/span> <a href=\"https:\/\/resourceguruapp.com\/blog\/resource-management-techniques\"><span style=\"font-weight: 400;\">Project managers<\/span><\/a> <span style=\"font-weight: 400;\">can anticipate inconveniences like changing user expectations or Google updates and adjust their strategies accordingly. In our opinion, <\/span><span style=\"font-weight: 400;\">project managers<\/span><span style=\"font-weight: 400;\"> should use <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/5-tips-for-resource-forecasting-in-project-management\"><span style=\"font-weight: 400;\">Agile<\/span> <span style=\"font-weight: 400;\">resource planning<\/span><\/a> <span style=\"font-weight: 400;\">methods in these circumstances).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unfortunately, changing scope requirements aren\u2019t limited to <\/span><span style=\"font-weight: 400;\">Agile<\/span> <span style=\"font-weight: 400;\">projects. Even construction projects frequently undergo scope changes (like needing to retile a bathroom during a renovation), which pulls the <\/span><span style=\"font-weight: 400;\">right resources<\/span> <span style=\"font-weight: 400;\">from working on their original project onto another. The <\/span><span style=\"font-weight: 400;\">project manager<\/span> <span style=\"font-weight: 400;\">has to ensure that there\u2019s enough flexibility in the schedule to account for these scope changes.<\/span><\/p>\n<h3><strong>3. Team members take time off<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Vacations: we want employees to have nothing in the way of taking them at the right time to stay sharp for their projects. Unfortunately,<\/span> <span style=\"font-weight: 400;\">project managers<\/span> <span style=\"font-weight: 400;\">often have to create a <\/span><span style=\"font-weight: 400;\">resource allocation plan<\/span> <span style=\"font-weight: 400;\">months or even years before the project\u2019s end date. During that time,<\/span> <span style=\"font-weight: 400;\">team members<\/span> <span style=\"font-weight: 400;\">will undoubtedly exercise their right to time off, regardless of whether it\u2019s time spent on the beach or sick in bed.<\/span><\/p>\n<h3><strong>4. Time zone differences make collaboration difficult<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">As companies expand, outsource, and adapt to remote or hybrid work, team members often find themselves in different time zones from their colleagues and <\/span><span style=\"font-weight: 400;\">project managers<\/span><span style=\"font-weight: 400;\">. <\/span><span style=\"font-weight: 400;\">The trouble with time zone differences is coordination; what do you do if you have resources scheduled for a particular day but not available for the precise hours you need them?<\/span><\/p>\n<h3><strong>5. Change requests slow you down<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Change requests revise how a project will be implemented, often expanding the <\/span><span style=\"font-weight: 400;\">project\u2019s scope<\/span> <span style=\"font-weight: 400;\">or making significant shifts in requirements. When tasks change, so too do your allocation needs, especially if those new tasks create the need for more or fewer skills than what you have available on your team.<\/span><\/p>\n<h3><strong>6. Unrecognized level of effort for everyday tasks<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Wouldn\u2019t it be nice if work was <\/span><i><span style=\"font-weight: 400;\">just <\/span><\/i><span style=\"font-weight: 400;\">focusing on production goals: coding, writing, and making firm decisions? Most workdays consist of much more, like checking and responding to emails, attending long meetings, and participating in code reviews.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Given that the average employee checks their email <\/span><a href=\"https:\/\/www.zippia.com\/advice\/wasting-time-at-work-statistics\/\"><span style=\"font-weight: 400;\">36 times in an hour<\/span><\/a><span style=\"font-weight: 400;\">, it\u2019s unrealistic to expect eight hours of uninterrupted project time day to day. Still, <\/span><span style=\"font-weight: 400;\">project managers<\/span> <span style=\"font-weight: 400;\">often consider the<\/span> <span style=\"font-weight: 400;\">allocation of resources<\/span> <span style=\"font-weight: 400;\">with that expectation in mind.<\/span><\/p>\n<div style=\"background-color: #f9f8f8; padding: 30px 40px; margin-top: 40px;\">Check out our <a href=\"https:\/\/resourceguruapp.com\/blog\/download-a-free-resource-scheduling-template-for-excel\">free resource scheduling template<\/a><\/div>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"7-best-resource-allocation-tips-you-should-know\"><\/span><span style=\"font-weight: 400;\">7 best resource allocation tips you should know<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Scaled-up PMOs rely on the most advanced<\/span> <span style=\"font-weight: 400;\">project management software<\/span> <span style=\"font-weight: 400;\">and best practices to ensure that their projects are completed on budget and on time.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once you\u2019ve nailed down your <\/span><span style=\"font-weight: 400;\">project\u2019s scope<\/span><span style=\"font-weight: 400;\">, <\/span><span style=\"font-weight: 400;\">timeline, budget, and requirements, you can begin to allocate your resources effectively. These five tips will help you improve productivity, avoid delays, stay within budget, recognize new opportunities, keep your team in good spirits, and help them<\/span> <span style=\"font-weight: 400;\">excel<\/span> <span style=\"font-weight: 400;\">on your project.<\/span><\/p>\n<h3><strong>1. Identify which resources you have at your disposal<\/strong><\/h3>\n<div id=\"attachment_2515\" style=\"width: 953px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-2515\" class=\"size-medium wp-image-2515\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2021\/10\/Resource_Allocation_Availability_Resource_Guru-943x531.jpg\" alt=\"A screenshot of Resource Guru displaying resource availability\" width=\"943\" height=\"531\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2021\/10\/Resource_Allocation_Availability_Resource_Guru-943x531.jpg.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2021\/10\/Resource_Allocation_Availability_Resource_Guru-1042x587.jpg.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2021\/10\/Resource_Allocation_Availability_Resource_Guru.jpg 1327w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><p id=\"caption-attachment-2515\" class=\"wp-caption-text\"><em>Using a visual tool like Resource Guru can help project managers determine how to allocate their resources appropriately<\/em><\/p><\/div>\n<p><span style=\"font-weight: 400;\">There are four major factors to consider when starting a<\/span> <span style=\"font-weight: 400;\">resource allocation plan<\/span><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which skilled resources match the tasks that the project demands?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which of those resources have any availability in their schedule?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">At what time are those resources free?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which <\/span><span style=\"font-weight: 400;\">dependencies<\/span><span style=\"font-weight: 400;\"> affect when a resource is needed or not?<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Small companies with 10 or fewer employees can probably get away with just using a <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/group-calendar-benefits\"><span style=\"font-weight: 400;\">shared calendar<\/span><\/a><span style=\"font-weight: 400;\"> to sort most of these questions out. Still, larger companies with hundreds of resources need a dedicated <\/span><span style=\"font-weight: 400;\">resource allocation<\/span> <span style=\"font-weight: 400;\">tool to do this first step correctly. A visual tool like Resource Guru can help <\/span><span style=\"font-weight: 400;\">project managers<\/span> <span style=\"font-weight: 400;\">determine how to allocate their resources appropriately.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s use a front-end upgrade as an example. Simple tools might direct <\/span><span style=\"font-weight: 400;\">project managers<\/span> <span style=\"font-weight: 400;\">to the IT team but leave it at that for the <\/span><span style=\"font-weight: 400;\">project manager<\/span><span style=\"font-weight: 400;\"> t<\/span><span style=\"font-weight: 400;\">o further sort out. With a tool like Resource Guru, <\/span><span style=\"font-weight: 400;\">project managers<\/span> <span style=\"font-weight: 400;\">can filter their resources by needed <\/span><span style=\"font-weight: 400;\">skill sets<\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this case, they can filter senior resources with React experience to meet the project\u2019s needs.<\/span><\/p>\n<div id=\"attachment_2516\" style=\"width: 953px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-2516\" class=\"size-medium wp-image-2516\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2021\/10\/Resource_Guru_Filters-943x657.jpg\" alt=\"Resource Guru Allocation Filters\" width=\"943\" height=\"657\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2021\/10\/Resource_Guru_Filters-943x657.jpg.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2021\/10\/Resource_Guru_Filters-1020x711.jpg.webp 1020w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2021\/10\/Resource_Guru_Filters.jpg 1037w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><p id=\"caption-attachment-2516\" class=\"wp-caption-text\"><em>Screen your resources with filters like experience, location, and skills.<\/em><\/p><\/div>\n<p><span style=\"font-weight: 400;\">Resource Guru, as an example, also offers the ability to distinguish between time zone differences when calculating team availability. That makes it easy for time off to be appropriately managed.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, when you create a booking or time-off event for multiple resources based in numerous time zones, you can choose whether the time\/date of the event should be found on the resource\u2019s local time or a specific time zone. This eliminates any of the confusion caused by international <\/span><span style=\"font-weight: 400;\">resource scheduling<\/span> <span style=\"font-weight: 400;\">mishaps.<\/span><\/p>\n<div id=\"attachment_2517\" style=\"width: 953px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-2517\" class=\"size-medium wp-image-2517\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2021\/10\/time-off-timezone-943x498.jpg\" alt=\"Making sure resources are scheduled correctly across time zones with Resource Guru\" width=\"943\" height=\"498\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2021\/10\/time-off-timezone-943x498.jpg.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2021\/10\/time-off-timezone-1042x550.jpg.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2021\/10\/time-off-timezone.jpg 1280w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><p id=\"caption-attachment-2517\" class=\"wp-caption-text\"><em>Avoid time zone mishaps with the right software.<\/em><\/p><\/div>\n<h3><strong>2. Be sure to include your material assets in your resource allocation plan<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">While individuals make up the bulk of <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/download-a-free-resource-scheduling-template-for-excel\"><span style=\"font-weight: 400;\">allocation planning<\/span><\/a><span style=\"font-weight: 400;\">, don\u2019t forget your equipment, facilities, materials, and other schedulable resources as well.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This step is essential for businesses that deal in physical assets. For example, a construction company wouldn\u2019t simply book a concrete slip form paver for two weeks and consider the task of allocating it correctly complete.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Instead, the<\/span> <span style=\"font-weight: 400;\">project manager<\/span><span style=\"font-weight: 400;\"> h<\/span><span style=\"font-weight: 400;\">as to calculate how much wear and tear the heavy equipment would undergo during that time and use that information to flag <\/span><span style=\"font-weight: 400;\">dependencies<\/span><span style=\"font-weight: 400;\"> t<\/span><span style=\"font-weight: 400;\">hat may affect other resources (it\u2019s kind of hard to paint a parking lot before it\u2019s entirely paved).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Back at the office, buffer time is particularly precious. While it might be tempting to book out one of two meeting rooms for a three-day project brainstorm, the savvy <\/span><span style=\"font-weight: 400;\">project manager<\/span> <span style=\"font-weight: 400;\">might realize that eliminating half of all private meeting space for greeting new clients, informal office communications, and other meetings could cause problems.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Recognizing just how competitive those meeting rooms are, the<\/span> <span style=\"font-weight: 400;\">project manager<\/span> <span style=\"font-weight: 400;\">might choose to extend the brainstorming to five days so that the meeting rooms can be used more efficiently.<\/span><\/p>\n<h3><strong>3. Look at your resource utilization rates<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">If you know your utilization rates, you can be more strategic and accurate when scheduling employees. A reasonable <\/span><span style=\"font-weight: 400;\">resource utilization<\/span><span style=\"font-weight: 400;\"> rate ensures that your team progresses an <\/span><span style=\"font-weight: 400;\">entire project<\/span><span style=\"font-weight: 400;\"> forward by spending time on the right tasks. <\/span><span style=\"font-weight: 400;\">Resource utilization<\/span><span style=\"font-weight: 400;\"> is especially important if your employees are working on several projects because it gives you a more complete picture of their workload. Utilization awareness gives you a <\/span><span style=\"font-weight: 400;\">real-time<\/span><span style=\"font-weight: 400;\"> understanding of workloads and <\/span><span style=\"font-weight: 400;\">workflows<\/span><span style=\"font-weight: 400;\"> and <\/span><span style=\"font-weight: 400;\">allocation of resources<\/span><span style=\"font-weight: 400;\"> when you begin scheduling people for the project, which can help you <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/solve-resource-overallocation\"><span style=\"font-weight: 400;\">ward off team <\/span><span style=\"font-weight: 400;\">burnout<\/span><span style=\"font-weight: 400;\"> and overallocation<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The difference between <\/span><span style=\"font-weight: 400;\">resource allocation<\/span><span style=\"font-weight: 400;\"> and <\/span><span style=\"font-weight: 400;\">resource utilization<\/span><span style=\"font-weight: 400;\"> is this: allocation is how you decide when and where to focus employees and materials (resources); utilization tells you how much work your team is doing across the company and how effective their work is on each project.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As <\/span><a href=\"https:\/\/www.ibm.com\/cloud\/blog\/resource-allocation-vs-resource-utilization\"><span style=\"font-weight: 400;\">IBM<\/span><\/a><span style=\"font-weight: 400;\"> puts it, \u201c<\/span><span style=\"font-weight: 400;\">resource utilization<\/span><span style=\"font-weight: 400;\"> differs from <\/span><span style=\"font-weight: 400;\">resource allocation<\/span><span style=\"font-weight: 400;\"> because it measures how efficient a team is based on how it\u2019s using the <\/span><span style=\"font-weight: 400;\">available resources<\/span><span style=\"font-weight: 400;\">.\u201d In this case, <\/span><span style=\"font-weight: 400;\">resource utilization<\/span><span style=\"font-weight: 400;\"> uses KPIs to measure the team\u2019s performance for the <\/span><i><span style=\"font-weight: 400;\">available<\/span><\/i><span style=\"font-weight: 400;\"> time or capacity and not on an unrealistic 100% utilization rate.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The term \u201c<\/span><span style=\"font-weight: 400;\">resource utilization<\/span><span style=\"font-weight: 400;\"> rates\u201d describes the percentage of time employees spend on billable work during their allotted shift. To understand why employee allocation matters, imagine a work environment in which employees are often overallocated. They become burned out quickly and always feel stressed at work. Because <\/span><span style=\"font-weight: 400;\">burnout<\/span><span style=\"font-weight: 400;\"> and stress impact employees\u2019 productivity <\/span><i><span style=\"font-weight: 400;\">and<\/span><\/i><span style=\"font-weight: 400;\"> their mental and physical health, they may take more time off work or call in sick more often. The quality of your team\u2019s work lessens or tanks altogether due to employees\u2019 poor health. If this work climate continues, employees may give their notice in order to salvage their health and find a work environment with better allocation.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/resourceguruapp.com\/blog\/project-managers-resource-utilization\"><span style=\"font-weight: 400;\">We recommend shooting for a 70\u201380% utilization rate<\/span><\/a><span style=\"font-weight: 400;\"> to allow for buffer time for admin tasks and short breaks throughout the day. Monitoring <\/span><span style=\"font-weight: 400;\">resource utilization<\/span><span style=\"font-weight: 400;\"> before you\u2019ve <\/span><span style=\"font-weight: 400;\">allocated resources<\/span><span style=\"font-weight: 400;\"> helps you understand how productive your team is and ensures that they\u2019ll continue to be productive because they aren\u2019t burned out.<\/span><\/p>\n<p><strong>How to calculate resource utilization rate<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">There\u2019s a simple formula you can use to calculate an employee\u2019s utilization rate:<\/span><\/p>\n<p><em>Total billable hours \u00f7 total available working hours \u00d7 100 = utilization rate<\/em><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s say you work for a marketing agency and have a graphic designer on your team. The graphic designer works 40 hours per week. Since you\u2019re implementing a 70\u201380% utilization rate, you have 28\u201332 hours per week of billable hours to be scheduled. The other 8\u201312 hours are preserved for administrative work and non-lunch breaks. Now you need to understand whether the designer has other ongoing assignments. Let\u2019s say they have a project that takes 10 hours each week. The designer\u2019s utilization rate is already at 25%, so you know not to assign them more than 18 hours per week of work to honor your 70\u201380% utilization goal.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Perhaps you schedule the designer for 10 more hours of work. Their total billable hours at that point would be 20 hours or a 50% utilization rate.\u00a0<\/span><\/p>\n<p><em>20 total billable hours \u00f7 40 total available working hours \u00d7 100 = 50% utilization rate<\/em><\/p>\n<p><span style=\"font-weight: 400;\">Because you\u2019ve paid attention to your team\u2019s utilization rates, you\u2019re able to allocate the designer\u2019s time to the highest-priority projects without overallocation.<\/span><\/p>\n<h3><strong>4. Take time for resource leveling<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Resource leveling<\/span> <span style=\"font-weight: 400;\">is the practice of evening workloads across the entirety of a project.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Imagine a project\u2019s workload like a piece of classical music\u2014say Holst\u2019s \u201cJupiter, the Bringer of Jollity.\u201d Sometimes the project requires the orchestra to play in unison. Other times, the orchestra goes soft to allow a single instrument to solo over the rest. There are points in the piece when the music crescendos and decrescendos, getting louder and softer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can plan for the piece to begin and end, just like a project, and plan the <\/span><span style=\"font-weight: 400;\">allocation of resources<\/span><span style=\"font-weight: 400;\"> (<\/span><span style=\"font-weight: 400;\">the musicians) to the music arrangement\u2019s demands. You can reliably churn out an outstanding performance every time.<\/span><\/p>\n<p><center><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/JEi23_uSGNE\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/center>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The thing is: most projects don\u2019t perform like an orchestral ensemble\u2014nor should they! Consider just how much work the first-chair violinist (or your most senior architect) would have to put in to make the project \u201csound\u201d right, while the poor second-chair flutist\u2014an intern perhaps?\u2014twitters in and out, barely heard by an audience member.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Resource leveling<\/span><span style=\"font-weight: 400;\"> an orchestra <\/span><span style=\"font-weight: 400;\">would involve stripping the music of its fortes and pianissimos, its solos and solis, and distributing play time and notes evenly across instruments.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The result would sound nothing like \u201cJupiter\u201d as we know it now, but instead, like a steady chord held for roughly seven minutes (likely far less, given that leveling would do away with so much idle time between musicians).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While<\/span> <span style=\"font-weight: 400;\">resource leveling<\/span> <span style=\"font-weight: 400;\">is a terrible idea for music lovers, it can really help out a <\/span><span style=\"font-weight: 400;\">resource allocation plan<\/span><span style=\"font-weight: 400;\"> because it involves balancing resource workloads throughout the project. And sometimes, that means rebalancing the project\u2019s duration, budget, or scope to accommodate. It\u2019s also used to ensure that non-competing tasks are scheduled concurrently for optimal efficiency. <\/span><span style=\"font-weight: 400;\">Resource leveling<\/span> <span style=\"font-weight: 400;\">is often applied to critical path calculations.<\/span><\/p>\n<div class=\"adblock adblock--bright29\">\n<div class=\"adblock__image\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-2212\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/12\/gyro.png\" alt=\"Gyro\" width=\"562\" height=\"576\" \/><br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-2208\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/12\/stephen.png\" alt=\"Stephen\" width=\"528\" height=\"576\" \/><\/div>\n<blockquote><p>&#8220;Resource Guru is simple to use with powerful permissions that allow us to manage the team the way we want.&#8221;<\/p>\n<footer><strong>Stephen Crowther<br \/>\n<\/strong>Studio Manager<\/footer>\n<p><svg class=\"curve__right\" preserveAspectRatio=\"none\" viewBox=\"0 0 42 236\">\n<path d=\"M42,0H0C20.4,38,31.14,77.5,31.14,118S20.4,198,0,236H42Z\" style=\"fill:#40264d;fill-rule:evenodd\"\/><\/svg><br \/>\n<svg class=\"curve__bottom\" preserveAspectRatio=\"none\" viewBox=\"0 0 236 42\">\n<path d=\"M236,42V0c-38,20.4-77.5,31.14-118,31.14S38,20.4,0,0V42Z\" style=\"fill:#40264d;fill-rule:evenodd\"\/><\/svg>\n<\/p><\/blockquote>\n<div class=\"adblock__link\"><img decoding=\"async\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/themes\/resourceguru_2019\/images\/resource-guru-vertical.svg\" \/><br \/>\n<a id=\"customtestimonial\" class=\"button\" href=\"https:\/\/resourceguruapp.com\">Try It Free<\/a><\/div>\n<\/div>\n\n<h3><strong>5. Follow up with resource smoothing<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Because you\u2019ve followed the previous steps, you know your utilization rates, and you\u2019ve used <\/span><span style=\"font-weight: 400;\">resource leveling<\/span><span style=\"font-weight: 400;\"> to make workloads more even across your team\u2014which means your <\/span><span style=\"font-weight: 400;\">project plan<\/span><span style=\"font-weight: 400;\"> is primed for resource smoothing.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Resource smoothing helps with allocation because when partnered with <\/span><span style=\"font-weight: 400;\">resource leveling<\/span><span style=\"font-weight: 400;\">, resource smoothing allows you to meet <\/span><span style=\"font-weight: 400;\">project timelines<\/span><span style=\"font-weight: 400;\"> without overallocation of resources. In order to meet your <\/span><span style=\"font-weight: 400;\">project schedule<\/span><span style=\"font-weight: 400;\"> (resource smoothing), you need to be aware of your employees\u2019 (resources) other obligations\/projects\/admin duties (<\/span><span style=\"font-weight: 400;\">resource utilization<\/span><span style=\"font-weight: 400;\">). That way, you can schedule resources and employees strategically to meet both <\/span><span style=\"font-weight: 400;\">project requirements<\/span><span style=\"font-weight: 400;\"> and <\/span><span style=\"font-weight: 400;\">deliverables<\/span><span style=\"font-weight: 400;\"> (<\/span><span style=\"font-weight: 400;\">resource allocation<\/span><span style=\"font-weight: 400;\">).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Resource smoothing helps you to identify the most important action items within a project and eliminate any unnecessary steps that could slow your project down. The classic definition of <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/resource-leveling\"><span style=\"font-weight: 400;\">resource smoothing<\/span><\/a><span style=\"font-weight: 400;\"> says that it helps you make sure a project is completed on time \u201cwithout peaks or dips in <\/span><span style=\"font-weight: 400;\">resource availability<\/span><span style=\"font-weight: 400;\">.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s say your current project has four steps. It takes a minimum of three days to finish those steps, but your client is pushing you to complete the project in two days. Resource smoothing would eliminate one unnecessary task and identify the most important steps. Now you can complete the project in two days and meet the client\u2019s deadline. <\/span><\/p>\n<h3><strong>6. Capitalize on modern resource management tools<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Resource allocation planning<\/span><span style=\"font-weight: 400;\"> i<\/span><span style=\"font-weight: 400;\">sn\u2019t just for your team\u2014it applies to the rest of your company too.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When allocations are visible to everyone, the entire agency can see how pieces fit together and where their \u201cquick tweaks\u201d or internal projects align with the grand scheme of other <\/span><span style=\"font-weight: 400;\">allocated resources<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whether you\u2019re a small team using a shared <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/group-calendar-benefits\"><span style=\"font-weight: 400;\">group calendar software<\/span><\/a><span style=\"font-weight: 400;\"> or a more robust office relying on more advanced <\/span><span style=\"font-weight: 400;\">resource management software<\/span><span style=\"font-weight: 400;\">, <\/span><span style=\"font-weight: 400;\">team leads that can visualize employee availability have an advantage over those relying on <\/span><span style=\"font-weight: 400;\">spreadsheets<\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Further, tools like Resource Guru can significantly cut down on emails, facilitate conversations that would otherwise require rounds of meetings, and help you allocate your resources as efficiently as possible.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, with features like reports, you can see just how over- or under-allocated<\/span><span style=\"font-weight: 400;\"> resources<\/span> <span style=\"font-weight: 400;\">are for any given period. And if you need to rush a project, you can always put in for overtime if needed (though I\u2019m sure your team would prefer it if you didn\u2019t).<\/span><\/p>\n<div id=\"attachment_2518\" style=\"width: 873px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-2518\" class=\"size-full wp-image-2518\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2021\/10\/Resource_Allocation_at_Resource_Guru.png\" alt=\"Resource allocation report from Resource Guru\" width=\"863\" height=\"639\" \/><p id=\"caption-attachment-2518\" class=\"wp-caption-text\"><em>Why yes, the team can take on new projects!<\/em><\/p><\/div>\n<h3><strong>7. Continuously monitor your allocation and communicate changes<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Wouldn\u2019t it be nice if when you set up your <\/span><span style=\"font-weight: 400;\">project resources<\/span> <span style=\"font-weight: 400;\">at kickoff, it would just stay as you\u2019d planned it?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unfortunately, businesses, and people, aren\u2019t stagnant. You acquire<\/span> <span style=\"font-weight: 400;\">new projects<\/span><span style=\"font-weight: 400;\">, o<\/span><span style=\"font-weight: 400;\">ne of your essential <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/how-to-work-maternity-leave-into-your-long-term-projects\"><span style=\"font-weight: 400;\">resources goes on family leave<\/span><\/a><span style=\"font-weight: 400;\">, and budget cuts force project delays; as your needs and your<\/span> <span style=\"font-weight: 400;\">resources\u2019 availability<\/span> <span style=\"font-weight: 400;\">shifts, so too do your <\/span><span style=\"font-weight: 400;\">resource allocation plan<\/span> <span style=\"font-weight: 400;\">have to adapt.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One way to do this (other than using your <\/span><span style=\"font-weight: 400;\">resource allocation<\/span> <span style=\"font-weight: 400;\">dashboard) is to emphasize continuous communication. Ask your teammates how they perceive their workloads; don\u2019t just assume stress levels based on how much they are formally allocated according to your <\/span><span style=\"font-weight: 400;\">project management tool<\/span><span style=\"font-weight: 400;\">. A<\/span><span style=\"font-weight: 400;\">nd keep track of their tasks; unanticipated project completion speed can help you adjust the project l<\/span><span style=\"font-weight: 400;\">ifecycle<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Finally, ask your team both during and after the project completes if they have any ideas to improve their own allocation or efficiency. While you can glean where each individual fits best in a project, it\u2019s important to remember that you will always have imperfect information about their preferences and abilities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Regular retrospectives can help you continuously improve your existing process and make more significant changes for <\/span><span style=\"font-weight: 400;\">future projects<\/span><span style=\"font-weight: 400;\">. <\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Continue-expanding-your-resource-allocation-knowledge\"><\/span><span style=\"font-weight: 400;\">Continue expanding your <\/span><span style=\"font-weight: 400;\">resource allocation<\/span><span style=\"font-weight: 400;\"> knowledge<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">With all these different ways to look at the <\/span><span style=\"font-weight: 400;\">metrics<\/span><span style=\"font-weight: 400;\"> of <\/span><span style=\"font-weight: 400;\">effective resource allocation<\/span><span style=\"font-weight: 400;\">, you can equip your team to do their best work and give them the confidence that they will meet their project\u2019s goals.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Implementing all the steps we\u2019ve laid out may seem overwhelming, but the benefits of allocation make it worth it, especially with technology on your side. As you continue to learn about <\/span><span style=\"font-weight: 400;\">resource allocation<\/span><span style=\"font-weight: 400;\"> and the various other techniques we\u2019ve shared here, consider trying <\/span><span style=\"font-weight: 400;\">resource management software<\/span><span style=\"font-weight: 400;\"> to help you meet your goals and take the extra work out of managing your team\u2019s <\/span><span style=\"font-weight: 400;\">timesheets<\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Resource Guru can automatically flag employee overallocation for you and allow you to rework it before it becomes a problem. And with other helpful features within the software, you can keep your team on track, balanced, and happy, leading to more productivity, higher employee satisfaction, <\/span><span style=\"font-weight: 400;\">profitability<\/span><span style=\"font-weight: 400;\">, and more accurate <\/span><span style=\"font-weight: 400;\">decision-making<\/span><span style=\"font-weight: 400;\">. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Resources are ever-changing\u2014a constant ebb and flow of people, materials, time, and money\u2014so it may seem obvious that resource allocation should always be front of mind for your project team. But are you implementing it effectively?&hellip;<\/p>\n","protected":false},"author":30,"featured_media":2673,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","mc4wp_mailchimp_campaign":[],"footnotes":""},"categories":[58,38],"tags":[],"class_list":["post-2513","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-resource-management","category-project-management"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>A Guide to Resource Allocation for Project Managers<\/title>\n<meta name=\"description\" content=\"Use our resource allocation guide to tackle the most common challenges for project managers in an ever-changing work environment.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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