What is resource allocation?What are resources?Why do managers need to know about resource allocation?6 effective steps to allocating resources for managersIn an ideal world, all projects would have access to unlimited resources, allowing any deadline to be met with ease. However, in reality, resources are often limited. Project managers have a fixed number of team members, hours, supplies, and so on, and they must prepare a project plan that takes these limitations into account.For example, consider a publishing company that consists of several teams, all working on different projects. The company’s resources might include human resources in addition to office facilities, printing and production machines, materials, supplies, and capital. Without a resource allocation plan, you can imagine all sorts of situations in which the right resources are not available to project teams at the right times, leading to conflict and project delays.The process of assigning resources can become complex. Project managers must consider task dependencies, project schedules, uncertainties, resource availability, and more when developing an allocation strategy. This guide will help you understand the resource allocation process and how to incorporate it into the forecasting and decision-making parts of the project management life cycle.What is resource allocation?Resource allocation is essentially assigning resources versus having the necessary resources. All projects need resources, which are often limited. So, you need a methodology for how to assign and schedule them in a way that optimizes outcomes.What are resources?Before diving into steps for allocating resources, let’s define what resources are more explicitly in project management terms. Resources may consist of any of the following:People: These are workers who will perform the necessary tasks. This may be represented as people-hours (the number of total work hours available) and be subdivided based on the specific tasks those people can perform.Tools: This includes semipermanent items, such as computers, meeting rooms, company vehicles, printing machines, and so on.Materials: These are items used during the project process or to build a final product. Examples include paper in an office, car parts in a car manufacturing plant, and so on.Budget: Managers must monitor funds available to put toward the project with a close eye to ensure finances stay on track.Why do managers need to know about resource allocation?Managers often wear many hats, and one of those is the resource management hat. Regardless of industry, a manager needs to engage in resource planning. Poorly executed allocation of resources can lead to all sorts of problems down the line. For example, over-allocation of the budget can lead to financial problems. Excessive human resource utilization could lead to things like burnout or turnover.Consider the publishing house example from the introduction. With different teams working on different projects, the manager needs to make sure the printing press is allocated to each team according to need. Resource allocation can be ongoing, as well. Imagine one publishing project turns out to need a lot more editing than another project. The manager can redistribute editing resources based on this need.Many managers use resource management software to keep track of resource allocation. Many also use platforms like Upwork to find on-demand talent to meet their resource needs. With Upwork, you can find independent professionals in just about any field to help your teams meet their goals.6 effective steps to allocating resources for managersNow that we’ve defined what resources are and why resource allocation is important for managers, here are six effective ways to allocate resources.1. Outline your project scopeThe project scope is the full extent of the project. Is it a large project or a small project? How long will it take to complete? And most importantly, what resources are needed? Lay out the project clearly and list what resources are needed for each part. You’ll want a solid idea of how many people you’ll need, how many hours each will need to work, and what materials and tools will be required. You’ll then need to set a budget and begin acquiring the resources needed. When laying out the project scope, it can be helpful to refer to similar projects completed in the past or consult with other project managers. It’s important to be as accurate as possible when determining the resources that you’ll need. As mentioned, over- or under-allocation can lead to problems.2. Identify potential roadblocksRoadblocks are situations that can lead to bottlenecks or the slowing down of a project. When it comes to resource allocation, potential roadblocks may occur when the required resources aren’t available, or the ones allocated prove insufficient. Common scenarios that might lead to a roadblock include the following: Last-minute changes: It’s not unheard of in the project management world for a client to request a change in project scope after the project is underway. This can bring everything to a grinding halt as the project planning phase is revisited and resource allocation adjusted as needed.Unavailable resources: Sometimes, the resources you had planned on using become unavailable at the last minute (such as a worker falling ill or parts that are delayed in shipping). It’s worth spending some time determining the likelihood of such events and arranging contingency plans.Project dependencies: If you’re managing multiple projects at once, you need to be aware of any resources that may need to be shared between them or any projects that must be completed before another project begins.General uncertainty: Often, managers estimate when budgeting and allocating resources. The actual resources required can vary. If those vary significantly, it can lead to delays as new resources are acquired.Project priority: If many projects are happening at once within a company, and a higher priority project requires additional resources, your project may get the short end of the stick.3. Lay out a project timelineKeeping project scope and resource roadblocks in mind, plan a project timeline. Start with major milestones. Knowing how quickly things need to be done will help you identify how much manpower is needed to get the job done and how many people you may need working simultaneously, or if you need more advanced skill sets.4. Break down the project into tasksAfter you identify major milestones and deliverables, you can start breaking things out into tasks. Many find project management software, such as Asana or Trello, to be extremely helpful in both the breakdown and continual monitoring of project metrics. Now that you have identified what needs to be done and when, you can start assigning tasks to people and other resources. Ensure you provide information to the people and resource providers involved, including communicating timelines and expectations. 5. Monitor project progress to identify opportunities to reallocate resourcesMonitoring project progress is vital to the project’s success. When resource allocation is performed at the beginning of a project, many of the variables taken into consideration are estimates. The actual resources needed will differ. Not only that, but the project scope may change and evolve, requiring additional resource adjustments. When monitoring, look for where resources can be added or shifted to meet deadlines. Communicating with teams and watching for delays in deliverables can help you figure out where to make changes.6. Review data to better plan future allocationPerforming a project post-mortem allows you to reflect on how your initial estimates compared to final needs and what things occurred that you didn’t expect. This will prove helpful in the future as you refine your resource allocation planning for new projects.SaveSavedRemoved 0 PreviousHow to Become an SEO Freelancer NextHow To Develop a Marketing Plan Related ArticlesAdded to wishlistRemoved from wishlist 0 Unlocking Success with Pre-Employment AssessmentAdded to wishlistRemoved from wishlist 0 How to Write a Proposal LetterAdded to wishlistRemoved from wishlist 0 How to Write and Format a White PaperAdded to wishlistRemoved from wishlist 0 What is the difference between Java and JavaScript?