Common Resource Allocation Challenges and How Digital PPM Solutions can Solve them

Effective resource allocation and management is a critical success factor for project portfolio management. Projects can only achieve their intended goals when the right resources with the necessary skills and experience are assigned to the appropriate work packages. However, this task is often fraught with challenges which can result in over or under allocations, delayed timelines, over hiring or under utilizations. 

For example, one of the obstacles project managers faces is ensuring they have the right people with the right qualifications allocated to projects. It’s a delicate balance between leveraging existing talent and ensuring that team members are equipped with the necessary skills to handle the specific requirements of their assigned work packages. This requires an end-to-end visibility of the available resources, along with their allocations and skill sets. 

Traditional resource management practices are no longer able to sustain the growing portfolio requirements. So, how can resource managers tackle the resourcing issues? Read on as we present some of the most common resource allocation challenges and how modern PPM solutions like Planisware and Microsoft Project Online can help. 

Resource Allocation Challenges and how to Solve them?

1. Identifying future skill requirements for long-running projects: Projects can span several years, from drug discovery and development to clinical trials and regulatory approvals. During this extended timeframe, the skill requirements for a project may evolve significantly. At the outset of a project, it can be challenging to accurately predict the specific expertise and competencies that will be needed as the project progresses through various phases. This uncertainty makes it difficult to allocate resources effectively, as the required skills may change, or new specializations may become necessary. Organizations often face situations where there is an unexpected surge in resource demand that exceeds their current bandwidth. In such cases, they must create contingency plans by either downsizing the resource demand, accelerating some projects while delaying others, or adjusting the scope of initiatives to smooth out the resource requirements over time. 
   1. Digital PPM solution: Digital PPM solutions offer robust capabilities for prioritizing and ranking projects based on critical resource constraints, such as skilled personnel and budgetary limitations. These solutions typically incorporate algorithms and scoring mechanisms that consider various factors, including resource availability, skill requirements, and budgetary considerations. The ranking and scoring system provided by PPM solutions helps PMOs and decision-makers understand which projects should be prioritized based on resource alignment. Projects with higher scores, indicating a better match between resource availability and project requirements, can be given precedence in the portfolio, ensuring optimal resource allocation and increasing the likelihood of successful project execution. This data-driven approach to project prioritization and resource allocation helps organizations make informed decisions, mitigating the risks associated with resource constraints and maximizing the efficient utilization of scarce resources, such as skilled personnel and limited budgets.

    

   

2. Lack of visibility and changing resource requirements: Unforeseen circumstances and changing scenarios can affect projects as they progress. Factors such as regulatory changes, emerging scientific developments, competitor activities, or shifts in market dynamics can significantly impact resource requirements. As these scenarios evolve, the resource needs for a project may change, requiring adjustments in staffing, expertise, and resource allocation.
   1. Digital PPM solution: By providing real-time insights into resource availability and project demands, these solutions offer better long-term visibility of projects, enabling organizations to effectively plan and allocate resources across their portfolios. With centralized platforms, these solutions enable quick adaptation to changing resource needs by facilitating dynamic resource allocation and planning. Additionally, automated workflows streamline resource management processes, ensuring the resources are allocated promptly and efficiently to meet project requirements. Collaboration features of these solutions foster seamless communication among teams, enabling swift adjustments to resource allocations based on evolving project needs. Moreover, robust risk management capabilities allow organizations to anticipate and mitigate potential disruptions caused by changing resource requirements, ensuring smooth project execution.
   
   
3. Sub-optimal resource allocation due to siloed data: In many organizations, project data and resource information are often stored in separate systems or databases, leading to data silos. Such silos can exist between different departments, business units, or even within the same functional area. The lack of integrated and centralized data can significantly hinder effective resource allocation decisions during project portfolio management. When data is siloed, it becomes difficult to obtain a comprehensive view of the organization’s resource pool, their skills, availability, and utilization across various projects.
   1. Digital PPM solution: By consolidating data from various sources into a centralized repository, digital PPM solutions eliminate information silos, offering a comprehensive view of portfolio data. Additionally, integrated risk management modules facilitate proactive identification, assessment, and mitigation of project and portfolio risks, reducing the likelihood of delays or failures due to unforeseen circumstances. Robust reporting and analytics capabilities enable real-time visibility into project performance, resource utilization, and portfolio health, empowering data-driven decision-making. Advanced scenario analysis features allow organizations to simulate different resource allocation strategies, project prioritization scenarios, and potential risks, enabling informed decisions before committing resources.



4. Inadequate resource utilization because of poor prioritization: Without clear prioritization, organizations may allocate their limited resources across too many projects simultaneously, leading to resource over-allocation, reduced productivity, and increased stress among team members. This misalignment can result in resources being allocated to projects that do not align with the company’s strategic objectives or long-term goals, leading to wasted efforts and missed opportunities. Furthermore, when resources are spread too thinly, it can cause delays in project delivery, as critical tasks may not receive the necessary attention or resources, leading to bottlenecks and timeline slippages.
   1. Digital PPM solution: These solutions typically help incorporate best practices that enable organizations to define and prioritize their strategic objectives, allowing for a clear mapping between projects and overall organizational strategy and facilitating better project prioritization. By integrating strategic objectives into the PPM tool, project proposals can be evaluated based on their alignment with these goals. The solutions can also provide a comprehensive view of how each project contributes to the achievement of specific strategic objectives, enabling decision-makers to prioritize and allocate resources towards projects that are most closely aligned with the organization’s strategic direction.



By leveraging digital PPM solutions, companies can effectively align their project portfolios with strategic objectives, optimize resource allocation, and enhance the overall success and impact of their project initiatives. If you also want to incorporate digital PPM solutions within your organization, or are looking to adopt the best PPM practices, team i2e can assist you. We are a trusted partner in digital PPM services and solutions. Reach out today for tailored support and expertise in optimizing your project and portfolio management strategies. Let’s streamline your operations and maximize efficiency together.