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Resource allocation is an important step in project management. You need resources, regardless of your industry or whether you’re managing multiple projects. This includes tools and special equipment, but most importantly, people to help you complete the work and get it done.
Your ability to deliver your project on-time and within budget will be affected if you plan and allocate resources efficiently. It can also impact your bottom line, as well as your team’s performance.
This guide will explain the importance of resource allocation and discuss some of the challenges that might arise. Finally, we will dive into a step by step example.
This article explains.
What is Resource Allocation in Project Management?
Who is responsible for resource allocation?
Why is resource allocation important?
What are the Challenges of Resource Allocation?
Step-By–Step Example: How to Allocate Your Project Resources
What is Resource Allocation in Project Management?
Resource allocation is about allocating resources to various activities within your project to meet your project goals.
Project management resources refers to everything you need to complete the project. This includes tools, equipment, facilities and funding. However, most digital projects require people to complete them. This article will focus on how you can allocate your human resources.
Who is responsible for resource allocation?
Although project managers are often responsible for resource allocation, some companies may also have a traffic or resource manager to help with staff planning and allocation.
Project managers are responsible for allocating and managing resources for projects they are responsible for. Resource managers, on the other hand, take a more holistic approach and consider resource allocation at a company-level. Both roles work together to strategically assign people to projects based upon their skills, experience, availability, and other factors.
Why is resource allocation important?
For project success, it is crucial to have the right resources at the right times and the right skills.
Resource allocation will help identify and mitigate potential risks such as resource conflicts or gaps in available resources, and manage the expectations of your customers or stakeholders.
This will save your company time, money, headaches, and a lot of hassles.
A better company’s profitability, a balanced workload, and less stress can all be achieved by distributing resources efficiently across projects.
What are the Challenges of Resource Allocation?
Allocating resources in their literal sense is easy. It’s not difficult to do so if you consider other factors, such as resource availability and the changing nature of your business or project.
You might have to change the requirements of your project, someone on your staff might suddenly need to take days off, or your customers or other stakeholders might throw you a curveball.
You won’t likely be working on one project. There will be multiple projects. This means that your resources will be challenged.
These factors will impact how much work your team is able to accomplish and when.
It’s difficult to keep track of the changing workload and availability of employees without a plan or software that can help you manage your resources.
Related: Resource Allocation Spreadsheets – Free Template + Simple Example
Step-By–Step Example: How to Allocate Your Project Resources
Let’s say that you have taken on a project to help Ezycounting, an accounting firm with a $20 million annual revenue. They have come to you to create a mob.