October 3, 2023
min read
Last updated:
October 12, 2023

A guide to resource planning

October 3, 2023
min read
Last updated:
October 12, 2023

A guide to resource planning

Project management is like a complex puzzle, and planning is the cornerstone that ensures all the pieces fit together seamlessly. Successful project planning, especially in resource management, is important. It can mean the difference between meeting deadlines, staying within budget, and achieving goals, or having delays, overruns, and frustration.

What is resource planning?

Resource planning in project management is the systematic process of identifying, allocating, and optimising resources required to accomplish project goals efficiently. This can be both physical resources like materials and equipment and human resources like the workforce. It involves foreseeing resource needs, scheduling their availability, and ensuring that they align with the project's timeline and objectives.

The importance of resource planning

Now we know exactly what resource planning is, let’s get into the details of what makes it important.

  1. Optimal resource allocation: It ensures efficient allocation of resources to maximise productivity and minimise waste.
  1. Budget control: Effective resource planning helps control project costs by preventing overuse or under of resources.
  1. Timeline adherence: It facilitates adherence to project schedules by ensuring resources are available when needed.
  1. Risk mitigation: Resource planning identifies potential resource-related risks and allows for the implementation of mitigation strategies.
  1. Quality assurance: Proper resource allocation improves the quality and consistency of work.
  1. Stakeholder satisfaction: Meeting project milestones and objectives boosts stakeholder confidence and satisfaction.

Types of resources to plan for

We touched on this earlier but it’s important to understand the types of resources that need planning around. Resource planning encompasses two primary types of resources:

  1. Physical resources: This category includes materials, equipment, technology, and any tangible assets required for project execution. 
  1. Human resources: Human resources involve the project team, including project managers, specialists, technicians, and skilled labour, necessary to complete the project.

By optimising resource planning, project managers can ensure efficient utilisation of resources, maintain project schedules, and enhance overall project success.

Benefits of resource planning

Effective resource planning provides so many advantages for project managers including:  

  • Enhanced efficiency: It guarantees the optimal utilisation of resources, minimising waste and inefficiency.
  • Cost control: By preventing resource overallocation or under utilisation, it helps manage project expenses effectively.
  • Improved scheduling: Proper resource planning aligns resource availability with project timelines, ensuring smooth progress.
  • Risk mitigation: Identifying resource-related risks enables proactive implementation of mitigation strategies.
  • Quality assurance: Resource planning ensures the availability of resources when needed, so enhancing work quality.
  • Stakeholder satisfaction: Timely achievement of project objectives boosts stakeholder confidence in a project, ultimately keeping them satisfied.

Stages of resource planning

We’ve established just how important it is to effectively resource plan, so how do you actually do it? Effective resource planning entails a structured approach that ensures seamless project execution. Here's a breakdown of the key steps:

  1. Initial assessment: This stage is about knowing the resource needs of the project based on its scope and requirements.
  1. Resource allocation: In this stage, available resources are assigned to specific tasks or phases of the project. This ensures that the necessary expertise and manpower are distributed in the best way.
  1. Scheduling: Creating resource schedules that align with the project timelines is crucial to ensure smooth progress and timely completion. This stage involves carefully coordinating the availability of resources with the project milestones.
  1. Monitoring and control: Continuously tracking and evaluating resource utilisation is essential to identify any deviations or bottlenecks. This stage allows for timely adjustments to optimise resource allocation and maintain project efficiency.
  1. Risk management: Identifying and mitigating resource-related risks is a critical aspect of resource planning. By proactively addressing potential challenges, such as resource shortages or conflicts, this stage helps minimise disruptions and ensures smooth project execution.

By following these stages, organisations can effectively plan and manage their resources, enhancing project outcomes and maximising efficiency.

When to resource plan in the project cycle

Resource planning is crucial for project management, and its timing during the project life cycle impacts project success. Here's when resource planning should occur within the project life cycle:

  1. Initiation phase:
  • Identify resource needs: During project initiation, you should start by identifying the types and quantities of resources required for the project. Consider both human resources (team members) and physical resources (equipment, materials). 
  • High-level allocation: Provide a high-level allocation of resources required for the project in the project charter or initiation documents. This helps secure necessary resources and budget approvals.
  1. Planning phase:
  • Detailed resource planning: As you move into the project planning phase, resource planning becomes more detailed. You should define specific roles, responsibilities, and skill sets required for team members.
  • Resource allocation: Assign team members to project roles and tasks based on their expertise and availability. Develop a resource allocation plan that outlines who will work on what and when.
  • Resource calendar: Create a resource calendar that shows the availability and commitments of team members. This helps in avoiding overallocation or scheduling conflicts. 
  1. Execution phase:
  • Resource management: Continuously monitor and manage resources during the execution phase. Ensure that team members have the necessary resources to complete their tasks.
  • Adjustments: Resource planning is not a one-time activity. Adjustments may be necessary due to unforeseen circumstances or changes in project scope. Be prepared to reallocate resources as needed.
  1. Monitoring and controlling phase:
  • Resource performance: Keep a close eye on resource performance. Are resources working efficiently? Are there any issues or conflicts that need to be resolved?
  • Resource utilisation: Analyse resource utilisation to ensure that resources are neither overused nor underutilised. Make adjustments to optimise resource allocation if necessary.
  1. Closing phase:
  • Resource release: As the project nears completion, release resources that are no longer needed for the project. This includes both human and physical resources.
  • Resource evaluation: Conduct a post-project evaluation of resource allocation and utilisation. This helps in capturing lessons learned for future projects.

Effective resource planning should be a dynamic process that adapts to the evolving needs of the project. It's not a one-time event, but a continuous effort to ensure resources are appropriately allocated.

Capacity planning in resource management

Capacity planning plays a crucial role in effective resource management and is in relation to the human resources. Capacity planning is about evaluating an organisation's capability to meet resource demands, ensuring their availability when required, and preventing shortages or surpluses. By optimising resource allocation, capacity planning enhances operational efficiency and drives sustainable growth.

Ineffective capacity planning consequences

Ineffective capacity planning – like anything ‘ineffective’ – is something you don’t want for a number of reasons. Some of the consequences include:

  • Project delays: Insufficient resources can lead to delays in project completion and missed deadlines.
  • Budget overruns: Inefficient utilisation of resources can result in exceeding the allocated budget.
  • Compromised quality: Poor resource planning can compromise the quality of work.
  • Team frustration: Team members who are overworked or underutilised can experience frustration, leading to decreased morale.

Software to enhance resource planning

Effective resource planning is a crucial component of successful project management. Project management software and project portfolio management software (PPM software) plays a vital role in facilitating this process. PPM software offers a range of benefits that contribute to efficient resource allocation and utilisation:

  1. Resource allocation: The software should allow you to allocate resources to specific tasks and projects. This includes assigning team members, equipment, or other assets to ensure the right resources are available when needed.
  1. Resource tracking: Capacity planning involves monitoring resource availability and utilisation. The software should provide real-time tracking of resource allocation and workload, helping you identify potential bottlenecks or overallocation issues.
  1. Workload balancing: It should help in distributing workloads evenly among team members or resources. This feature helps prevent burnout and ensures that no one is overloaded with tasks while others are underutilised.
  1. Resource scheduling: Effective scheduling tools enable you to create timelines and calendars for resources. This helps in visualising when specific resources will be engaged in tasks or projects.
  1. Demand forecasting: Capacity planning requires forecasting future resource needs. The software should provide tools for predicting resource demands based on project timelines and requirements.
  1. Scenario planning: Good software allows you to create 'what-if' scenarios. This helps in assessing the impact of changes in resource allocation or project timelines on overall capacity.
  1. Reporting and analytics: Robust reporting capabilities are essential. The software should generate reports on resource utilisation, capacity, and potential issues. Analytics can help in making informed decisions.
  1. Integration: Integration with other tools is valuable for accurate capacity planning. It should connect with calendars, task management apps, and other relevant software to provide a comprehensive view of resource availability.
  1. Customisation: Every organisation has unique resource management needs. The software should be customisable to adapt to your specific processes and terminology.
  1. Scenario modelling: Advanced software may offer scenario modelling capabilities. This allows you to simulate different resource allocation strategies to find the most efficient approach.
  1. Resource requests: For larger organisations, having a system where team members can request specific resources based on project needs streamlines the allocation process.

Remember that the specific features you need will depend on your organisation's size, complexity, and industry. It's essential to evaluate potential software solutions based on your unique resource management requirements.

See how Fluid enables your business to deliver the right strategic change

Find out how other teams like yours are working a better day.

We’ll show you how Fluid can help your team, division, or company - no matter the size.

Fluid logo
We provide organisations with a better, easier, and more user friendly way to deliver value, adapt, change, and meet their strategic goals.
© 2024 Fluid. All Rights Reserved.