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3 Strategies for Overcoming Resource Management Challenges
The document outlines three strategies to tackle resource management challenges faced by Project Management Offices (PMOs): centralizing the resource management organization, practicing enterprise-level portfolio management, and creating a results-driven culture. It highlights common resource management issues, such as resource contention and inadequate skills, and emphasizes the importance of aligning resource allocation with project priorities. An action plan is also provided, focusing on assessing organizational readiness and developing a structured methodology for resource management.
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3 Strategies for Overcoming Resource Management Challenges
- 1. 3 Strategies to Overcome Resource Management Challenges J. Kent Crawford, PMP, PMI Fellow Originally Presented via Webinar on May 26, 2010 slide 1 | © 2010 Project Management Solutions, Inc. (www.pmsolutions.com)
- 2. 3 Strategies to Overcome Resource Management Challenges 2 Agenda 2010 Challenges & Priorities Top 10 Resource Management Challenges 3 Strategies to Overcome These Challenges Action Plan © 2010 Project Management Solutions, Inc. | www.pmsolutions.com
- 3. 3 Strategies to Overcome Resource Management Challenges 3 Resource Management is the Top Challenge Single Greatest PMO Challenge Resource management 15% Consistent application of defined processes 14% Applicability of the PMO to all projects 12% Demonstrating the added value of the PMO 10% Significant responsibility/little authority 9% Executive support 7% Appropriate funding 6% Formally defining the PMO role 6% Getting reliable, accurate information from PMs 6% Percentage Line manager acceptance 4% of PMOs Project manager acceptance 3% Senior manager acceptance 2% Client acceptance 1% Other 5% Source: State of the PMO, PM Solutions’ Research, 2010 © 2010 Project Management Solutions, Inc. | www.pmsolutions.com
- 4. 3 Strategies to Overcome Resource Management Challenges 4 Resource Management Priorities High Priorities over the Next 12 Months Improve resource planning and forecasting process 64% Implement/enhance PM training 40% Assess competency of project managers 30% Percentage of PMOs Increase operational staff within the PMO 22% Source: State of the PMO, PM Solutions’ Research, 2010 © 2010 Project Management Solutions, Inc. | www.pmsolutions.com
- 5. 3 Strategies to Overcome Resource Management Challenges 5 What’s Really Happening? • Too many unplanned requests • Unrealistic schedules and budgets • Scope creep • Too many pet projects jumping the queue • Poorly defined deliverables © 2010 Project Management Solutions, Inc. | www.pmsolutions.com
- 6. 3 Strategies to Overcome Resource Management Challenges 6 Strategies #1: Centralize the Resource Management Organization #2: Practice Portfolio Management at the Enterprise Level #3: Create a Results‐Driven Culture © 2010 Project Management Solutions, Inc. | www.pmsolutions.com
- 7. 3 Strategies to Overcome Resource Management Challenges 7 Strategies #1: Centralize the Resource Management Organization © 2010 Project Management Solutions, Inc. | www.pmsolutions.com
- 8. 3 Strategies to Overcome Resource Management Challenges 8 Top 10 Resource Management Challenges Greatest Resource Management Challenges Resource contention issues 14% Conflicting authority 13% Inadequate project management skills 11% Not enough project managers 10% Roles split with competing priorities 9% Inadequate resource forecasting 8% Lack of transparency on resource loading 6% Percentage Supply and demand for key skills not aligned 6% of PMOs Roles not clearly defined 4% Inadequate info on resource availablability 4% Source: State of the PMO, PM Solutions’ Research, 2010 © 2010 Project Management Solutions, Inc. | www.pmsolutions.com
- 9. 3 Strategies to Overcome Resource Management Challenges 9 Centralize Resource Management #1: Centralize the Resource Management Organization • 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) © 2010 Project Management Solutions, Inc. | www.pmsolutions.com
- 10. 3 Strategies to Overcome Resource Management Challenges 10 Assess Organizational Capacity #1: Centralize the Resource Management Organization • 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) © 2010 Project Management Solutions, Inc. | www.pmsolutions.com
- 11. 3 Strategies to Overcome Resource Management Challenges 11 Tips to Balance Supply with Demand #1: Centralize the Resource Management Organization • 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 © 2010 Project Management Solutions, Inc. | www.pmsolutions.com
- 12. 3 Strategies to Overcome Resource Management Challenges 12 Strategies #2: Practice Portfolio Management at the Enterprise Level © 2010 Project Management Solutions, Inc. | www.pmsolutions.com
- 13. 3 Strategies to Overcome Resource Management Challenges 13 Portfolio Management at the #2: Practice Enterprise Level 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 © 2010 Project Management Solutions, Inc. | www.pmsolutions.com
- 14. 3 Strategies to Overcome Resource Management Challenges 14 PPM: Where Resource Management #2: Practice Portfolio Fits In Management at the Enterprise Level Project Portfolio Management Lifecycle Active & Business Prioritization & Funded Proposed Decision Resource Projects Work Criteria Capacity • Reallocate Resources • Remove Completed Projects Portfolio Health & Project Portfolio • Cancel Projects Value Management • Sunset Products Contribution System (PPMS) © 2010 Project Management Solutions, Inc. | www.pmsolutions.com
- 15. 3 Strategies to Overcome Resource Management Challenges 15 Strategies #3: Create a Results‐Driven Culture © 2010 Project Management Solutions, Inc. | www.pmsolutions.com
- 16. 3 Strategies to Overcome Resource Management Challenges 16 Dilbert on Resource Management Source: www.dilbert.com – originally published on June 11, 2007 © 2010 Project Management Solutions, Inc. | www.pmsolutions.com
- 17. 3 Strategies to Overcome Resource Management Challenges 17 Create a Results-Driven Culture #3: Create a Results‐Driven Use your PMO to: Culture • Facilitate and optimize portfolio • Understand, analyze, and forecast resource productivity • Provide comprehensive insight into organizational demand © 2010 Project Management Solutions, Inc. | www.pmsolutions.com
- 18. 3 Strategies to Overcome Resource Management Challenges 18 Create a Results-Driven Culture #3: Create a Results‐Driven Culture DEMAND MANAGEMENT Service EXAMPLE: % Program % Maintenance 30 % 25 # of Resources 20 Operations 15 Project % % 0 10 5 0 Months *Percentages are meant to be representations of average time spent in the various work areas. © 2010 Project Management Solutions, Inc. | www.pmsolutions.com
- 19. 3 Strategies to Overcome Resource Management Challenges 19 Create a Results-Driven Culture #3: Create a Results‐Driven Use your PMO to: Culture • 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 © 2010 Project Management Solutions, Inc. | www.pmsolutions.com
- 20. 3 Strategies to Overcome Resource Management Challenges 20 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 © 2010 Project Management Solutions, Inc. | www.pmsolutions.com
- 21. 3 Strategies to Overcome Resource Management Challenges 21 Strategies #1: Centralize the Resource Management Organization #2: Practice Portfolio Management at the Enterprise Level #3: Create a Results‐Driven Culture © 2010 Project Management Solutions, Inc. | www.pmsolutions.com
- 22. 3 Strategies to Overcome Resource Management Challenges 22 Thank You! Kent Crawford kcrawford@pmsolutions.com +1 (484) 450‐0115 More insights at: www.pmsolutions.com Webinar Recording White Papers Blog PMO Resource Center © 2010 Project Management Solutions, Inc. | www.pmsolutions.com