Understanding Resource Availability in Project Management

If you're a project manager or human resources manager, chances are you're asking yourself (and trying to answer) the same questions over and over again:

• How many resources do I need in the coming week, month, or year?
• Which resources do I need?
• Do I need to hire more people?
• Is there enough work to keep everyone busy?

Resource availability is s an important part of resource planning and resource management and the success of the business overall. In this article, we'll take a closer look at what it is and how it works.

What is Resource Availability?

Resource availability tells you which resources you need to service a specific project, when you need those resources, and under which conditions. Having access to the right resources and tools directly impacts whether or not a project will succeed or a customer will be satisfied.

Resource availability is often mapped on a tool called a resource calendar or resource heatmap. You can monitor current utilization and availability at a glance. Most of these tools also include skill mapping, which gives you an overview of the skills, seniority, knowledge, and abilities of every resource.

Thanks to this holistic view, you can ensure that the right skills are on hand to complete projects in a timely manner. You can also avoid putting pressure on your budget by adding over-qualified staff to projects where their skills may not be needed. 

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The Importance and Stakes of Resource Availability

Tracking resource availability has a number of benefits. People are often a business's greatest asset - and highest cost. Their time needs to be allocated in a way that enables the business to scale enables the business to scale and achieve the best possible returns. 

By understanding which resources are available, companies can achieve a number of benefits regarding the
 development of your business. 

Improved Operational and Organizational Performance

Understanding resource availability ensures that projects can be executed smoothly without delays or bottlenecks. Teams can adapt to project timelines and changes effectively. Departments aren't competing for resources with external parties (or one another) because the project timelines avoid clashes.

Improved Financial Performance

Having the right resources at the right time ensures that projects are properly staffed without excessive costs.

Overstaffing leads to underutilization of resources, affecting profitability, while understaffing can result in project delays or quality issues, impacting revenue and client satisfaction.

All resources come at a cost - and if your resources are not being productive, that's money down the drain! Mapping your resource availability ensures that resources are allocated and used to their full potential.

Employee Retention and Commitment

It is easy to overbook or overwork staff when you don't know their availability. 

Maintaining the appropriate level of workload for employees promotes job satisfaction, reduces burnout and improves engagement. Resource planning prevents employees from feeling overwhelmed or underutilized, fostering a positive work environment and improving retention rates.

Sales Performance

When you know which resources you have at your disposal, you can pursue projects with confidence, knowing that you have the right skills and manpower on hand.

This means you can commit to deliverables and timelines and increase your likelihood of securing and delivering on your contracts.

Customer Satisfaction

Not having the right resources available can delay project start dates and impact the quality of delivery.

Making sure that your projects are staffed with the right people, with the right skills, at the right time is the first step towards achieving customer satisfaction.

How To Manage Resource Availability

Understanding which resources you have at your disposal is just one piece of a larger puzzle. Whether or not the resources you currently have will be sufficient in the future is another matter.

You need a resource availability tool that uses resource forecasting techniques  that can identify future gaps so that you can devise a plan for acquiring or reallocating the resources you'll need in the future. Here's how you can manage resource availability, even as demands change.

To be able to manage the availability of resources even when demands change, three criteria must be taken into account when choosing your tool.

Resource planning

Resource planning is the process of ensuring that you have the right resources available at the right time to complete a project or task. This can involve anything from human resources, such as employees and contractors, to physical resources, such as equipment and materials.

Start by assessing your needs. Which resources do you need to complete your project? This includes both human and physical resources.

For each project, break down the tasks and figure out how much of each resource (people, equipment, materials) will be needed for each stage. Be sure to consider things like project duration, complexity, and any known dependencies.

Resource forecasting

Resource forecasting is the practice of the resources you'll need in the future to complete projects or tasks successfully (resource demand).

First, assess your available resources. What resources do you already have access to? This could include employees, contractors, equipment, materials, and budget. Are the available resources sufficient to meet the needs of your current projects?

If your forecast reveals any resource shortages, it's time to take action! You might need to:

• hire new staff or contractors;
• invest in new equipment or materials;
• reschedule projects or adjust deadlines ;
• get creative with your resource allocation. 

Resource allocation

Forecasting may reveal gaps that need to be addressed. Resources may be assigned elsewhere. Some team members may lack seniority or skills. Others may be idle with not enough work to keep them occupied. Can you reallocate your resources to ensure that all projects are staffed correctly? Do you need to train or upskill staff to manage future projects? Visibility gives you the ability to take the most appropriate action.

Here's where you can analyze your staff activity and ensure that you strike an optimal balance between the utilization rate of your resources against billable projects versus their actual occupation rate (in all projects, including non-billable ones). Once you know which staff members are underutilized or available, you can make adjustments to ensure you meet your KPI targets.

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Resource Availability: Tips and Best Practices

Managing resource availability effectively requires a combination of best practices, techniques, and flexibility to address both internal and external factors.  

Consider internal and external factors

Conduct thorough resource planning to anticipate project needs and align resource allocation with project timelines and objectives.

Consider both internal resources(employees, teams) and external resources(freelancers, contractors) to ensure flexibility and scalability. Remember, the market might shift at any time, and you need to be able to remain agile.  

Continuous Communication and Agile Scheduling

Foster open communication channels between project managers, team members, and stakeholders to stay informed about project progress, changes, and resource requirements. Encourage proactive reporting of resource availability and potential constraints to address issues promptly.

Utilize agile scheduling and allocation tools like Stafiz to enable drag-and-drop rescheduling, quick views of resource availability and the ability to postpone tasks as needed. 

This can help you avoid scope creep that can derail your project budget and impact profitability.

Keep Financial Considerations In Mind

Optimize resource allocation by replacing expensive consultants with junior staff members or leveraging a mix of skill levels to balance cost-effectiveness and project requirements. 

This can help you avoid scope creep avoid scope creep that can derail your project budget and impact profitability. 

Keep the Risks In Mind

The project scope can change. Projects can experience delays. Resources may leave or become over-stretched 

Make sure that you develop contingency plans and allocate buffer resources to mitigate risks and ensure project continuity.

Use Skill and Capacity Matching

Match resources to projects based on their skills, expertise, and availability. Consider cross-training and upskilling initiatives to enhance your resource flexibility and adaptability as project needs change.

Focus on Data-Driven Decision Making

Guesswork doesn't work when it comes to resource allocation. Use data analytics and performance metrics to evaluate resource utilization, identify trends, and make informed decisions. 

Monitor crucial key performance indicators (KPIs) such as resource utilization rates, project profitability, and client satisfaction to ensure you are using your resources properly. 

Keep Reviewing and Improving

Resource allocation isn't a once-off exercise. You need to constantly evaluate and re-evaluate your plans and make improvements. 

Solicit feedback from project teams and stakeholders to assess the effectiveness of resource allocation strategies and implement necessary adjustments.

Remember: a dashboard only gives you a glimpse of what's happening on the ground. 

Conclusion

Understanding resource availability is not only about the allocation of employees on projects; It's about aligning skills, availability, and timing to organize realistic schedules that meet your time and budget constraints.

Resource availability impacts many fields, such as : 

• operational efficiency;
• financial performance;
• employee satisfaction;
• sales effectiveness and customer relationships. 

As your projects evolve and your needs change, you'll need to adjust your forecasts accordingly - and for that, you'll need the right tools. But by taking the time to assess your resource availability, you can set yourself up for success.

By implementing effective resource planning, your business can remain agile and maximize the value of your most valuable assets - your people and resources. If you need help with resource allocation, management or planning in your business, reach out to Stafiz.