Understanding Human Resource Demand and Capacity

One way to survive in a no- to low-growth economy is to manage resources effectively at least cost. There are two options – one is managing the demand for resources and the other is how to guarantee that there is capacity and capability through the right and best fit resources for tasks or implementation. This knowledge is shared by Guy Galboiz, a top management consultant and entrepreneur.

Visibility into Resource Management Leads to High Value Return on the Investments

Top concerns of most executives are usually about the resources they have on hand – the lack of focus among the workers, improper utilization of manpower.  Management wants to gain better understanding on ways to maximize resources, minimize production losses and efficiently realize the goals that they set.

In a study conducted by Appleseed Partners and OpenSky Research entitled Resource Management and Capacity Planning Benchmark Study, the state of resource management and capacity planning was made.

The study surveyed more than 600 global executives and managers responsible for the planning and utilization of human resources. While the study examined results and factors against the maturity of organizations, there are key issues to address no matter what your maturity is. There is absolutely no question that increasing maturity in an organization’s effective application in project, program and project management has been proven to make a long and lasting impact. It should not be ignored.

The study highlighted many of the common pain points, causes and business risks. Personally, working with a few clients recently, these completely resonate with their own experiences.

Human Resources Demand and Capacity Pain Points:

These were the key areas of pain that topped the chart:

  1. Constant change in availability and assignment
  2. Ineffective demand prioritization and governance process
  3. Not enough visibility into demand

Causes of Human Resources Pain Points:

While causes were quite varied, these three causes really highlight the need for practices and standards in human resources management, particularly at the project level.

  1. Lack of process maturity – ill-defined, ill-used
  2. Challenges estimating in projects
  3. Incorrect granularity of information on resources

Business Risks of Ineffective Resources Management:

The risks of ineffective resource management and capacity planning are clear:

  1. Lost productivity
  2. Wasting high value resources on low value projects
  3. Delayed time to market

These powerful insights would make any executive want to get on with improving resource demand and capacity to deliver. The first reaction may well be to immediately acquire portfolio management software. The benefits of implementing the right portfolio management software include:

  • Better prioritization discipline,
  • Ensuring the right amount of granularity in reporting on resource information, and
  • Being able to play out what-if scenarios.

 Getting Resource Management Right needed to Succeed in Challenging Global Market

Getting resource management visible, actively managed and using the information to make smart portfolio decisions will increase the capabilities to navigate the choices required in a global and challenging market.

Keeping it simple, developing right fit practices and processes is a clear first step. Wading into the swamp means doing it in bite size steps – ankles first, then waist deep and finally swimming wi