Resource management is often the most overlooked aspect of R&D portfolio and project management. Despite its crucial role in ensuring project success, many organizations focus predominantly on project selection and prioritization, but neglect or defer addressing the complexities of allocating limited resources across multiple projects. This can lead to bottlenecks, delays and inefficiencies that not only undermine portfolio performance but also significantly impact time-to-market for new therapies.
Research highlights that effective resource management and allocation can improve project success rates by up to 40%, underscoring their critical role in project portfolio success.
McKinsey’s report on strategic financial planning emphasizes that organizations which align their strategic financial plans with their resource allocation processes tend to outperform their peers. Companies that reallocate resources across business units within the year are significantly more likely to achieve superior revenue growth and return on capital
In this blog, we will delve into how technical advancements can help resource and project managers have deeper visibility into named resource forecast, allocation, capacity and more.
Effective resource management is crucial, especially considering that large pharmaceutical companies typically manage hundreds of cross-functional and functional projects simultaneously across different therapeutic areas. With R&D spending in the industry averaging 15-20% of revenue, efficient allocation of both financial and human resources is key to portfolio success.
Technology plays a vital role in effectively implementing any effective resource management. Life sciences organizations have an established ecosystem of tools and platforms which help to efficiently manage resources across all projects and portfolios. However, decisions on resource management capabilities are made through the lens of the enterprise, and typically do not provide the precision and granularity needed in the functional lines. In addition, data disparity and silos can still exist due to gaps in the tools in terms of visibility into named resource allocation, a clear idea on all auxiliary tasks assigned to the resources, etc. This can lead to insufficient visibility into resource allocation, task management, and coordination across teams.
With vast experience in PPM resource management for the life sciences, i2e Consulting developed Alloc8. It is a dedicated resource management tool that seamlessly integrates with your existing PPM ecosystem and focuses specifically on optimizing the use of human resources. Alloc8 is a unique tool which complements and extends existing enterprise tools by giving complete visibility of resource forecasts and allocation to line leads, department heads and product teams that require granular resource management data.
It integrates resource data (required to make informed resource allocation) from various systems such as PPM tool (project schedules, resource needs and forecasts at the role level) HR system (employee skills, and name allocations), and Full Time Equivalents (FTEs). Alloc8 then extends visibility into named resource forecasts, allocation, and capacity.
With intuitive features like task allocation, real-time progress tracking, and efficient coordination, Alloc8 empowers teams to optimize resource utilization, and enhance project efficiency.
Let’s go deeper into how Alloc8 can help life sciences organizations take data-driven decisions when it comes to resource allocation.
For more details, check out Alloc8
Now that we understand how technology can contribute to improving the efficiency of resource management, let’s see what business outcomes organizations can reap from a streamlined, and visible resource management process.
One major advantage of efficient resource allocation is the boost in productivity it brings to an organization. With proper distribution of resources, organizations make sure that every team or project gets the right tools, time, and support that is required to achieve the best outcomes. It also ensures that employees aren’t wasting time looking manually for resources or waiting for approvals; instead, they can focus on their main tasks and duties. Furthermore, resource allocation highlights bottlenecks or overburdened areas, allowing for timely corrections.
A well-implemented resource allocation strategy significantly enhances productivity and streamlines operations, resulting in greater efficiency and better outcomes for the whole organization.
2. Boosts decision-making
Efficient resource allocation provides resource and project managers with a clear understanding of the available resources and their distribution. This transparency allows for informed choices based on accurate data. Strategic resource allocation helps optimize efficiency, productivity, and overall success. With a well-structured plan and efficient decision-making, businesses can achieve their goals more effectively and boost profitability.
3. Enhances financial performance
Smart resource allocation can significantly improve a company’s financial performance. By distributing resources wisely, organizations can maximize productivity and minimize waste and unnecessary expenses. Proper allocation ensures every department or project receives the support and funding needed to meet its goals efficiently. This leads to smoother operations, better efficiency, and higher profitability. Additionally, it helps identify overused or underused resources, allowing for redirection to areas where they are needed most. Refining resource allocation strategies enhances financial performance and drives sustainable growth.
Resource management in life sciences management is crucial to support complex, multi-disciplinary and long duration projects. Life sciences organizations are on a continuous journey to make their processes efficient and automated. Tools like Alloc8 would seamlessly integrate into your existing PPM systems and fill any gaps.
