Resource Allocation: Strategy Implementation

Resource allocation is a process and strategy involving a company deciding where scarce resources should be used in the production of goods or services. A resource can be considered any factor of production, which is something used to produce goods or services. Resources include such things as labor, real estate, machinery, tools and equipment, technology, and natural resources, as well as financial resources, such as money.

The 5 Best Methods of Successful Resource Allocation

1. Make room for strategic reallocation

Your allocation responsibilities seldom end with the first installment as reallocation is an unavoidable outcome of ad hoc requirements. But reallocation does not necessarily mean overloading work onto the same set of resources. Strategic reallocation lets you look for replacements and a few extra hands that can take on the additional responsibility. Such smart reallocation invariably depends on the all-round visibility of your projects and resources. This is essential to keep your workforce occupied optimally.

2. Diversify skill sets and responsibilities

It always pays to have resources who have been trained in a wide range of skills or at least those who are accustomed to being placed onto different tasks. It is essential that you recognize the secondary skill sets your employees may have and nurture them. When faced with reallocation requirements that are likely to exceed your capacity, this could easily solve your immediate problems.

For example, one of your engineers is a communication minor and an amateur blogger. He/she can be a great asset to your internal branding activities that require an understanding of your products along with having a flair for the language.  For employees, this can prove to be both motivating and fruitful to have been given a chance to diversify and grow. Stagnation is nobody’s dream and good managers not only understand that but also accommodate it in their allocation strategy.

3. Subscribe to an easy, automated resource request process

One of the most obvious hindrances to your resource allocation process is often the convoluted process you need to stick to while having a resource placed onto your project or job.  Having to manually sift through your resource pool or take phone/email requests from individual managers makes it a very unyielding ride before you can find the project resource you are looking for.

An automated process in a dedicated channel, independent of spreadsheets, changes everything. Automated resource requesting lets managers specify the skill sets, the level of competency and years of experience they are looking for along with timelines of the project. This directly reaches your inbox or that of the resource manager in charge. Coupled with all round visibility, you can allocate and reallocate without batting an eyelid thereby saving precious hours. In addition, a set process lets you track your allocation record and end any process related confusions that may arise when you cannot trace resources.

4. Make ‘optimal utilization’ the benchmark

Having optimal utilization as the default status that your reports achieve is the first sign that you have healthy allocation habits. When resource utilization levels are optimal across the pool, it means you are not over or under allocating onto your resources under any circumstances. As a result, the output that your resources deliver does not suffer as well. Optimal utilization must further be the overall outcome you get as opposed to a chanced upon the result of ad hoc measures. Every method you adopt to allocate must fulfill this criterion.

5. Base timelines on booked vs. actual reports

To tie in all these steps realistically, it is best that you base your estimates on the booked vs. actual reports you draw. If you do not have a tool that lets you directly access these comparisons, you can do so manually by comparing them with earlier project reports that you might have.

The steps here are simple: analyze the previous bookings you have made and the time that their actual execution took. If the execution took longer, there must have been roadblocks that caused them. Understand the roadblocks. Evaluate whether or not they will repeat themselves. Now, you can draw timelines for tasks based on this execution period. With each repeat cycle, you are likely to get closer to making accurate bookings. Most importantly, you will not have under or over-utilized resources either.

Alternatively, switching to a resource planning tool that has been designed to help you asses booked vs. actuals with precise metrics is a great initiative you could take to improve your overall resource allocation strategy.

The best-kept secret of resource managers is the ‘trial and error’ system they have had to undergo before they could perfect efficient allocation of resources. Most success stories are likely to have precedent failures that are not spoken about. So go on, be unconventional, apply a combination of these practices and find out what your team is most receptive towards.

Successful strategic management involves ensuring that all company resources perform effectively. By learning how to manage competing priorities, successful business professionals enable employees to balance job tasks, schedule work efficiently and ensure that work flows smoothly from one process to the next. Today’s dynamic, global environment poses challenges for company executives and project managers. By establishing a comprehensive strategic plan for allocating workers and supplies, you avoid costly mistakes that lead to overruns and delays.

1. Coordinate project and operational effectively by establishing a comprehensive program management strategy. Evaluate project proposals on a monthly or quarterly basis to decide which ones gets sponsorship. Consolidate multiple similar efforts under one program leader; this tends to enable the use of key resources more effectively and allow you to make critical deadlines.
2. Employ software tools, such project management software such as Microsoft Project, dotProject.net or Basecamp, to identify project tasks, allocate resources effectively, avoid overallocation and prevent employee burnout. Approve budgets, finish dates and the amount of flexibility in the deadlines if you are a company executive to help project managers make decisions aligned with the company’s strategic goals.
3. Delay tasks until staff have time available to work on them or split up tasks and hire additional workers to prevent staff from working more than 40 hours in a typical week and becoming burned out.
4. Outsource routine tasks to companies that specialize in a particular function, such as payroll processing, customer service or technical support.
5. Train employees so they have the required skills and job tasks get completed on time to ensure timely delivery of products and services. Train less experienced workers to complete job tasks if you experience unexpected demand or attrition. Obtain specialized training from authorized providers to ensure that your company runs a safe workplace that complies with local, state and federal regulations.
6. Manage suppliers by analyzing work flow of resource materials from one process to the next. Gather input from experts before considering alternative solutions to backlogs. Take prompt action to rectify problems if a supplier provides poor quality materials or delivers them late. Require that the supplier improves the quality of raw materials and provides them on time.