What are the seven key elements required for successful strategy realization?
Element 6: Resource Management.
There are seven core elements, all of which are essential to achieve portfolio success – and we will discuss each in turn in this series of blog posts.
These seven core elements – pictured below as a hub and six surrounding spokes, are not only vital, but more importantly, must all work together to form a cohesive unit. There is a need for a constant feedback loop so that data, information, knowledge, and understanding can flow through and connect the whole process. It is only when all those ingredients are present that real competitive advantage can be achieved.
Resource Management isn’t something you choose to do or not do. Whether you do Resource Management in an ad hoc common-sense manner, or with a best-in-class capability, resources get allocated to projects every day in your organization. The key question is: Are your resources being deployed to the best projects?
In a recent survey of senior executives from Fortune 100 companies, 100% of the participants without a Resource Management capability admitted having resources deployed to undeserving projects. The penalty for not having a Resource Management capability in place is severe. In that same survey, participants identified the top 7 organizational consequences of not having a proven Resource Management capability:
- Inability to resource the right projects
- Spreading resources too thin
- Reduction of resources in the wrong functions/roles
- Inability to achieve growth targets
- Lack of knowledge of constraints and bottlenecks
- Allocation of projects to undeserving projects
- Missed deadlines and launch dates
Implementing a robust Resource Management capability will deliver immediate value. Combining Resource Management with an effective Portfolio Management capability could transform your company’s competitive position and growth trajectory.
Plan, Allocate, Track
A resource planning model enables you to forecast and manage the resource requirements of your projects. The model should be flexible, and cover planning by role and/or individual named resource. Analysis by role should be adapted to suit the roles/functions in your business. The resource planning model should cover both the supply and demand side of managing resources, over time, so you can manage capacity requirements.
In addition to planning, is the need for a resource allocation workflow model – spanning the stages of request, assign and schedule – according to your specific business needs. These functions should link with the resource planning model. It is all about flexibility, so you can deploy the right tools as you need them.
A good resource management solution can be used in just one department, a whole business unit, or across the entire corporation. You will benefit from proven best practices and experience to rapidly elevate your organization’s Resource Management capability in the following areas:
- Capacity Planning – Supply vs Demand
- Demand Management – Adjusting the portfolio to fit constrained resources
- Resource Allocation – Named resources being allocated to projects
- Time Recording – Capturing actual time (and cost) spent
A modular approach means you can choose to adopt any or all of the above processes. The best solutions are ones that can be configured to reflect your business needs for workflow around these process elements. A best-in-class solution is one that will incorporate:
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Element 1: Portfolio Management
Element 2: The Innovation Process
Element 4: The Investment Model