4 elements to your business reducing costs with resource management

4 elements to your business reducing costs with resource management

Considering that 70% of projects fail, and that failure rates represent a loss between $50bn and $150bn per year in the United States (according to Gallup, the research agency) the adage time is money is particularly pertinent when it comes to project management.

A project manager’s budget will usually correlate to the time it takes to deliver projects. So, a project that runs past its deadline usually means it’s also going over its budget. There are many project portfolio management (PPM) solutions that try to help you avoid project overruns and the cost implications they entail. But project timeframes are, above all else, dependent on the people working on a project (i.e. your resources). Resource management therefore plays a more critical role in reducing the time and cost it takes to run projects compared to standard PPM practices.

In this post, we’re going to detail 4 ways your business can start reducing costs with resource management.

1. Move on from spreadsheets

Too many project managers deal with resource management through spreadsheet software like Microsoft Excel, despite the limitations of this method. Excel spreadsheets are not designed specifically for project management, let alone resource management, and therefore require considerable effort and attention to turn raw figures into actionable resource management data.

This may not seem so bad when you have ample time to prepare for a project, but reacting to project changes as and when they surface is incredibly difficult with a tool like Excel. When organizing your resources is more complicated, resource planning becomes more difficult, making it harder to stick to project timeframes and increasing the risk of going over-budget.

Reducing costs with resource management

Resource management lets you structure your data to take better advantage of it, providing you with more control than a tool like Excel ever could. Resources can be managed from a centralized pool with custom-created or standard views for ultimate resource visibility.

2. Scenario planning

Scenario planning capabilities allow workers to use ‘What-if’ analysis to predict future outcomes. You can run various scenarios and see the impact it would have on projects. For example, what would happen if you added another five resources to a project? How would the project timeframe change? How much more would it cost to add those workers? ‘What-if’ scenario planning can interpret these hypothetical scenarios to see the outcome of decisions without having to invest money and time in doing so.

Reducing cost with resource management

Changes to your resource and projects are sometimes a necessity when variables around projects inevitably change. ‘What-if’ scenario planning lets you visualize these changing without having to take the financial risk. This flexibility allows you to make the most of your budgets and get the most out of your projects.

3. No wasted potential

A large element to project difficulty stems from understanding how efficiently workers are completing tasks. This is where resource allocation can help. Resource allocation can ensure you have the exact number of people on hand to complete a project; or perfectly align the reality of project costs with expectations. If there’s an imbalance, your projects are not going to be as cost-effective as they could be.

Reducing cost with resource management

Effective resource allocation means fewer resources are expended in producing the desired outcome, which frees up other resources for other tasks or projects. Resource allocation also lets you assign tasks to the best people for the job, saving costs associated with rehiring and changing the makeup of teams.

4. Time management

Knowing exactly how long it takes workers to complete tasks is a crucial aspect to running projects efficiently. Workers sometimes round-out actual working hours. These may be small oversights individually, but in large teams can add up to considerable discrepancies. If 100 resources say a project task took them 10 hours, when in reality it took 9.5, your estimates are over by 50 hours. With manual timesheeting, there’s also the risk that totals will be incorrect when payroll staff have to input timesheets into the system. This inefficiency will skew your project timeframes, and ultimately cost you money.

Reducing costs with resource management

Timesheets provide more control to end-users and give you a more accurate picture of the amount of time it takes workers to complete tasks. Combining this data with resource allocation reports will offer full-scale visibility into how long it will take your workforce to complete projects and tasks.

Reducing costs with resource management

Tempus Resource is sophisticated resource management software. It has several features that make managing your projects (and the resources within them) much easier. The tool uses powerful ‘What-if’ scenario planning to explore hundreds of hypothetical project changes in a risk-free environment. So no matter the magnitude or multitude of projects and portfolios you are dealing with, you can plan the most efficient use of your resources.

This will save time on your projects and save you the stress of managing them. When you save time, you can expect to save money. That’s the real power of resource management.

For more information on reducing costs with resource management, get in touch with us today.

Get in touch to arrange a free trial Contact Us