insights Back to overview Do you really have a shortage of people? Do you really have a shortage of people? The problem might be somewhere else entirely… In companies, I often observe that employees and managers complain about having a problem with a shortage of human resources. In my experience, the real cause is usually elsewhere: in poorly managed demand, unclear priorities, and insufficient communication across teams. 90% of the companies I work with therefore don’t have a “capacity” problem, but a “prioritization” and “coordination” problem. That is precisely why RESOURCE MANAGEMENT is one of the most pressing topics I address with companies in my more than twenty years of practice. What is our main goal, then? To ensure that the right people with the right skills are working on the right projects at the right time — and without being overloaded. Who is responsible for Resource Management? It depends on the size of the company and its maturity in resource management. In larger companies, the topic of resource management is divided among project managers, line managers, and senior management. Administration and governance are usually handled by the Project Management Office (PMO). In smaller companies without a dedicated department, this responsibility often falls to the operations department or the operations manager. What barriers do I most commonly encounter in practice when managing company resources? When we open the topic of resource management with clients, four key obstacles keep coming up: – Misalignment of goals between teams and the company’s strategy. Individual departments often operate in silos, which complicates capacity alignment and realistic planning. – Weak communication between projects and resource owners (managers). Methodology and technology alone (the hard skills domain) cannot carry information in place of people (the soft skills domain). – Insufficient or unreliable data. Without quality data on resource utilization and the actual effort required for activities and tasks (demand), plans are not realistic. – Too many projects for a limited number of people. In my observation, this problem is the most common and most damaging across industries! In many companies, we therefore first work together on demand (the volume of all projects, activities, and operational tasks), measurement and reporting on the utilization of existing capacity, and transparent communication. Only then does it make sense to look for new, genuinely missing, resources. An example from my practice: In a technology company with approximately 2,000 employees, we set up a resource management system (demand, prioritization, and capacity management). At the strategic level (top management): – The company established a PMO as part of the CEO’s team. The PMO ensured the complete process of strategic planning and capacity planning for the company. – A decision-making committee (board members) was created. Participation of all “company functions” and cross-company communication were ensured (to limit silo thinking). – Once a year, a budget planning and approval process was carried out. Individual departments defined strategic initiatives for the following year and estimated resource and financial requirements. At the project level (project management): – The project team jointly created a detailed project schedule and effort estimates for individual project phases. – Project managers updated their project plans on a weekly basis in a unified (ERP) system. All data was therefore aggregated in one place and served as input for strategic management. – Reports this precise served as a valid basis for managing the capacity of individual resources. What was originally met with resistance gradually became a respected discipline that clearly highlighted the overloading of certain individuals. At the operational level (line management): – Line managers created an annual resource and capacity plan in line with the company’s strategy. This plan was updated on a quarterly basis. – Line managers reported on the status of operational activities and how much capacity these activities consumed. The same ERP system was used as for strategy and projects. – Lean Six Sigma Black Belts and Green Belts were trained and worked on process improvement projects, reducing waste and error rates. Teams developed their skills in teamwork, facilitation, and workshop delivery. And the result? Within 2 years, the company was able to deliver 60 % more technology projects with the same number of employees. In addition, project delivery time was reduced by 30 %. Why do I consider resource management one of the key disciplines? When I work with companies on resource and capacity management, I know it is not just about a tool or brilliant software. It is about how an organization plans, communicates, and makes decisions. When demand, priorities, capacities, and open communication are successfully aligned, I see the following effects in my clients: – more motivated teams – less stress and “firefighting” – more stable project plans – and above all, the ability to focus people’s energy on work that delivers the highest value — without long-term overload That is precisely why I consider resource management one of the most important building blocks of modern company management and a key competency for today’s managers. LeadershipOrganization developmentProject managementResource managementStrategy Author of the article Libor Čadek Partner, consultant Contact Libor Related content Trainings Project Management Learn how to lead projects by using not only tools of project manager, but also correct communication, approach and mainly thinking. Consulting Organization development We help organizations build their readiness and responsiveness to change. Consulting Business process management (BPM) We map your processes, find owners and set up process measurement to collect and evaluate data for process management and improvement.
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