The Importance of Resource Management (With 10 Benefits)
By Indeed Editorial Team
Published March 25, 2022
The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.
When project managers have several concurrent projects, they're responsible for allocating their people, technology and funds accordingly. Resource management is the formal process that ensures all projects have the necessary assets to meet deadlines and ensure optimal results. Understanding the importance of resource management can encourage project managers to implement the practice and begin enjoying its benefits. In this article, we discuss the importance of resource management by listing 10 key benefits.
Related: 12 Resource Management Tools
10 reasons why resource management is important
Here are 10 reasons why resource management is important:
1. Increased project success
Organizations may define project success in many ways. Some might consider a project successful when teams meet predetermined deadlines and adhere to the company's quality standards. Others might define success by measuring profits or customer satisfaction. Resource management can improve these metrics by ensuring a team has all the people, technology and funds it requires.
2. Increased employee morale
Resource management helps employees complete projects by providing them with assets ranging from technology to other employees. This attentiveness to employee needs can boost morale and make their workload feel more manageable. The result is often increased productivity, high-quality results and reduced workplace conflict. Employees also experience higher job satisfaction, which can help an organization save on hiring and retraining costs.
3. More accurate estimates
An efficient resource management process can help organizations create more accurate estimates. An account of equipment expenses and employee wages allows project managers to produce expense reports and calculate profit margins. These reports can also serve as historical data that future project managers use to petition stakeholders for the appropriate funds.
4. More accurate project timelines
Resource management eliminates much of a project's guesswork, allowing project managers to create more accurate timelines. Stakeholders may feel more confident about a project when they have an accurate estimated completion date. Project timelines also help project managers establish deadlines for smaller tasks, measure progress and assess the quality of deliverables. Project timelines assure clients by letting them know when they can expect deliverables.
5. Improved project flow
Resource management often improves project flow by ensuring consistent access to the necessary assets. For instance, consider a project that requires perishable raw materials throughout its timeline. It wouldn't be logical for the project manager to order all the materials in the beginning, so the project manager decides to order them in increments. A good resource management plan would account for this requirement and arrange orders before the need for a new shipment arises. This efficiency ensures that production teams always have the necessary resources and don't experience interruptions in their workflows.
Related: A Guide to Project Management Flow
6. Effective use of existing resources
Effectively using existing resources can prevent waste and ensure the efficiency of an organization with limited assets. For instance, consider a project manager who requires a graphic designer. If the organization doesn't have a designated graphic designer, the project manager might assign some duties to content writers with graphic design skills. This resourcefulness prevents the need to hire new employees and helps current employees develop their talents. Another example of using existing resources effectively is using a single program for multiple applications. Paying one fee for software with several features is often more cost-effective than paying for several programs.
7. Streamlined hiring process
Though many resource management initiatives focus on inanimate assets, the process also involves allocating staff members. Resource managers evaluate a project's requirements to determine what employees are necessary. For instance, an advertising campaign might require market analysts, content marketers, social media managers and graphic designers. An organization can assess its current talent pool to determine which employees are capable of these duties.
If its employees are busy with other tasks or don't have the proper skills, an organization can outsource or hire new employees. Resource management often streamlines the hiring process, as organizations are more aware of the ideal candidates. They can write detailed job descriptions and find employees whose abilities suit the project's requirements.
8. Increased profitability
Many organizations find increased profitability to be one of the most compelling benefits of resource management. Savings often begin during the planning stages, as an account of the necessary resources can help project managers work with the right vendors. They can find high-quality materials at a low price and ensure each project has enough resources to meet deadlines. Increased profitability is also possible because of the more efficient allocation of labor and satisfactory final products, which can lead to increased sales and customer retention.
9. Creates transparency
The necessary people, tools and funds are essential to a project's success. Resource management can help ensure you use all the organization's available assets and optimize the chances of positive results. If the lack of resources leads to a project's failure, a resource management plan may be useful when communicating with stakeholders. A transparent plan can reveal that the project failed despite your best efforts and help you advocate for more resources for future projects.
The transparency that resource management creates also promotes company-wide collaboration. For instance, consider a sales department that creates a resource management plan for a new product launch. Giving this plan to the accounting department can help its team create more accurate budgets and allocate additional funds if necessary.
10. More successful future projects
When a resource management plan results in a successful project, organizations can use that plan as a template for future projects. Adhering to similar strategies for resource allocation can help project managers replicate successful results. For instance, an organization might assign the same number of employees or allocate the same funding it did to a past project. Templates also reduce much of the work of resource management, allowing teams to focus more of their effort on tasks directly related to their projects.
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