TL;DR
Resource management is the backbone of effective project delivery. The best project management software combines project planning with real-time capacity forecasting, visibility into workloads, and tools for prioritizing high-impact work. When resource data is integrated with project execution, PMOs can forecast confidently, deliver faster, and scale strategically. PMOs should look for:
- Unified visibility of people, projects, and priorities in one platform.
- Capacity and scenario planning to prevent overallocation and burnout.
- Data-driven insights to align resources with strategic goals.
Project Management Software with Resource Management
Why are projects considered failures? Limited or taxed resources are one of the key factors, according to this report by the Project Management Institute (PMI).
You might have the most qualified project managers and a PMO that runs effectively and efficiently. But if you don’t have the right resources—and know how to manage them—then your projects will fail. That’s why resource management is so important.
Resource management in the context of PPM means allocating, prioritizing, and applying resources strategically. Essentially, you want to be able to do more with less. In PPM, resources typically include funding, people, tools, and materials—anything that is necessary for PPM and individual project completion. In order to fully deliver successful projects and portfolios, you need robust software. It is essential for scalability and portfolio success.
But what should you look for in project management software with resource management capabilities? Keep reading to discover key features your platform should offer and how to make it work for your organization.
What Is the Difference between Project Portfolio Management and Resource Management?
Project portfolio management is not the same as resource management, but the two are intertwined.
PPM refers to a complex, multifaceted field that involves choosing, prioritizing, managing, and delivering projects, all while ensuring that they align with your overarching goals. Resource management focuses on making certain that these projects have everything they need for successful completion and has a huge effect on capacity forecasting and project delivery.
While it is less holistic than PPM, it is no less essential to producing quality projects and portfolios. In fact, resource management is a function of PPM.
Signs of Mismanaged Resources
How do you know if you need project portfolio management software with resource management capabilities? That starts with understanding the signs of mismanaged resources.
Lack of Visibility into Capacity vs. Demand
You don’t have clear insights into your team and your budget’s capacity to handle all the projects and activities in your portfolio and wider organization. This leads to overallocated and overextended teams.
Team Burnout
Morale is low. Your team is missing deadlines. Some team members are overworked, while others are underworked. There is high turnover. Individuals are asked to take on tasks outside of their purview. Because of these issues, people keep making mistakes. These are signs that your team is being stretched beyond capacity.
Wasted Time
You are spending considerable time allocating resources. You’re using spreadsheets to manage resources, and it’s a time-consuming process. Manual reporting is inefficient. You’re using many different systems, and team members are spending hours finding or reporting information.
Scope Creep
Projects keep expanding beyond resource capabilities. The budget is being overrun, and your team members are being overextended to accommodate the new scope. Delays keep occurring as the project magnifies. On the flip side, you could be shrinking your project to accommodate the resources you have, and they aren’t being carried out effectively.
Lack of Data
There is limited transparency. You have no concrete data to support your resource funding and allocation. That means you are going in blind, unable to justify certain decisions. This can ultimately lead to chaos. You simply don’t have a clear or complete picture of how your resources are being used.
Why Is Integrated Resource Management Critical for Modern PMOs? Key Benefits
There is immense strategic value in integrated project and resource management. Here are the main benefits of your investment:
Centralized Project and Resource Management
With project resource planning software, team members have access to the same data at the same time. You will have a better understanding of what resources you need and how they are being expended.
Transparency
Transparency goes hand and hand with having a central repository of information. There are fewer data silos with a robust PPM platform with resource management in place. You can visualize capacity and plan accordingly, using real-time data.
You will also have access to predictive analytics, allowing you to look toward the future and make better decisions. This enables you to budget and allocate resources more effectively, too.
Efficiency
PPM software takes the tedious manual labor and guesswork out of your strategy and approach. You are no longer wasting time working with tedious spreadsheets. Instead, you will keep projects on track and deliver them on-time.
Productivity
With greater insight into your processes and resource capacity, you will also see gaps and areas for improvement. That will help you adjust team size and responsibilities, decreasing instances of burnout and improving productivity.
Profitability
When used appropriately and effectively, PPM software with resource management capabilities can even increase profitability. This comes partially due to greater efficiency and fewer wasted resources, including time and personnel. But your platform can go even further, surfacing areas where you could be delivering more productively or adding value, thereby increasing your profits.
Key Features to Look for in Project Management Software with Resource Management
What are the must-have features in project management software with resource management? Let’s take a look.
Forecasting
Your platform should be equipped with resource forecasting for PMOs. These tools leverage historical data to analyze projects and anticipate future resource needs. You should be able to run “what-if” scenarios, for example. This leads to proper resource utilization, preventing you from over- or under-utilizing your tools.
Time Tracking
Gain visibility into time spent on projects. This is important for allocating ALL your resources effectively, including people. For instance, you might find that too much time is being spent on a function that could be automated.
Budgeting
Your money is one of your most valuable resources. Your software should give you a clear picture of your budget and how you can better allocate your funds.
Workflows Configuration
Automate resource planning and other activities with configurable workflows. Balance resource management workflows and ensure alignment with your other processes. This feature can also make you aware of bottlenecks that can prevent you from managing your resources effectively.
Real-Time Alerts
Alerts to resource conflicts or excessive utilization, among others, help you stay up to date with your portfolio. By receiving these messages in real-time, you can make better decisions and more effectively manage your resources.
Reporting
One of the most important resource management tools is reporting. This feature allows you to visualize the results of your labors. With real data, depicted in tables, graphs, charts, and more, you can actually see how your resources are supporting results and whether any gaps exist.
Strategies for Proper Project Management and Resource Allocation
Project management software with resource management can go a long way in driving results for your organization. However, you still need to have proper strategies and plans in place to ensure a robust foundation for the software to do its job.
Conduct a Resource Audit
Take stock of your current resource landscape. Employ a data-driven analysis to illuminate your organization’s current approach to managing resources and what you have available. Use qualitative approaches as well, such as by surveying team members to better understand resource utilization. For example, you might find that certain team members feel over-taxed, while others feel like they have nothing to do.
Make a Thorough Plan
Create a comprehensive plan that acts as a roadmap for managing resources with the help of PPM software. This plan should also outline the state of your resources and best practices for resource allocation and consumption.
Research Vendor Options
Make a list of gaps in your resource management/PPM and must-have features. Thoroughly research options for project management software with resource management. In addition to features, ensure these options meet other specifications, such as seamless integration with your current systems.
Achieve Alignment
Stakeholders and team members must fully understand the importance of resource management and how you plan to carry out your processes effectively. Achieve buy-in by illuminating the benefits of a comprehensive software solution. Once you have selected a vendor, ensure that everyone knows how to use it effectively.
Conclusion: Why Prism PPM Stands Out
How do you find the right platform that combines portfolio project management and resource allocation? Prism PPM provides portfolio-level resourcing visibility and capacity planning. An advanced PPM platform, the solution goes well beyond task-based tools to support strategic decision-making.
Learn more about how Prism PPM supports and amplifies your portfolio project management and resource management strategies. Book a 30-minute consult or a 60-minute demo today.