THE 2018 HOW-TO GUIDE. Agile. Resource Management MOVE FASTER, MORE CONFIDENTLY, MORE STRATEGICALLY

Transcription

1 Agile THE 2018 HOW-TO GUIDE Resource Management MOVE FASTER, MORE CONFIDENTLY, MORE STRATEGICALLY

2 Introducing A New Model: Full Cycle Resource Management 3 Phase 1: Estimate 6 Phase 2: Plan 12 Phase 3: Deliver 18 Phase 4: Analyze & Optimize 24 Final Thoughts & Takeaways 30

3 INTRODUCING A NEW MODEL Full Cycle Resource Management In services, success relies on getting the resources with the right capabilities, on the right assignments, and at the right margins. Effectively managing this process is important for client satisfaction and successful project delivery. It is also is extremely valuable: If 15 resources add 10 hours of billable work per week, that means a total of 150 extra billable hours each week. Assuming a bill rate of $200 per hour, that means an extra $30,000 revenue each week, or an additional $1.44 million profit each year. The truth is, selling projects with good margins is not the hard part. It s managing the high degree of change that occurs mid-project that is incredibly difficult. To combat this, an exciting new model has emerged that approaches resource management as a dynamic, holistic process: it s called Full Cycle Resource Management. In Full Cycle Resource Management there are four phases that mirror the project delivery lifecycle from inception to analysis: Estimate, Plan, Deliver, and Analyze & Optimize. Each of these phases involves a combination of roles within an organization, including executives, consultants, resource managers, project managers, services leaders, and department or team leaders. After each phase there is an evaluation step designed to inform both the previous and next phase in the process. Furthermore, the fourth phase of the process, Analyze & Optimize, is a feedback loop that will help inform improvements across the other three phases. By treating resource management as an iterative cycle, it becomes easier to prepare for conflicts and proactively make changes to the project or team. AGILE RESOURCE MANAGEMENT 3

4 ESTIMATE ANALYZE & OPTIMIZE Full Cycle Resource Management PLAN DELIVER Estimate. The Estimate Phase occurs during the sales cycle, when new business teams, account managers, and project managers collaborate during the proposal process to get an idea of the time, resources, and budget needed. This phase is critical for setting the project up for success. Plan. During the Plan Phase, project managers, resource managers, and department heads determine how resources will be allocated for a project in a way that maximizes profitability. The ability to visualize the entire resource pool and adjust variables in order to create various scenarios with different financial implications is key. Deliver. The Deliver Phase is when the project plan is set into motion. Project delivery teams, project managers, and resource managers must communicate and collaborate on changes in project scopes, timelines, and budgets to be able to adjust resources efficiently. This is the phase when unexpected challenges or obstacles pop up, although the impact of these is ideally minimized because of the prep work in the Estimate and Plan Phases. Analyze & Optimize. While listed as phase four, the Analyze & Optimize Phase is not a final step it s a phase that is constantly layered across the resource management process to help make smart decisions quickly. Everyone involved in a project has a hand in this phase, as it requires constantly measuring results, maximizing what works, and minimizing what doesn t. 4 AGILE RESOURCE MANAGEMENT

5 The most important quality of Full Cycle Resource Management is that it helps to create order within the chaos. There are a lot of moving parts, but each phase encapsulates only a few key items to consider, making the model simple to apply and adhere to. Valuable Aspects of Full Cycle Resource Management It s Constant. The phases are not meant to be linear, they bleed between each other. The ability to look forward and back between phases is critical. It s Evolving. The phases are like the process of building blocks each phase builds on the next, and the final outcome takes shape over time. It s Dynamic. Current processes are too rigid. Great resource management practices have flexibility. It s almost like a dance; take two steps forward, and then one step back. It s Strategic. Each phase has a purpose and a calculated method that affects every part of the business. When executed, it contributes to a strategy that makes projects more efficient. AGILE RESOURCE MANAGEMENT 5

6 PHASE 1 estimate

7 Many projects are actually doomed from the start. That s why the Full Cycle Resource Management model begins early with the Estimate Phase, which is dedicated to setting projects up for success. The Estimate Phase is intended to ensure that projects proposed to potential clients are strategically designed. It is the time for new business teams, account managers, and project managers to collaborate during the proposal process to get an understanding of the time, resources, and budget necessary for the project to be successful before signoff by the client. Once the requirements for the project are communicated, it s time to estimate the types and amount of roles required for a given project. Estimates typically start at a high level, since they have less certainty around the exact details of the project. Individuals in sales and project management begin to identify the roles necessary for the project. The initial step would be to identify the roles required, as well as the high-level deliverables before comparing those needs with current capacity. Roles are referring to job title or position such as engineer, project manager, or designer. B U D G E T T I M E L I N E ESTIMATE R O L E S P H A S E S Therefore, the goal of the Estimate Phase is to adjust the variables that will help to predict the feasibility and profitability of a completed project. When done properly, this frees up time for project managers to fill in the more granular activities later down the lifecycle, and feel better prepared to respond to changes when they arise at any point throughout the project. Part of the Estimate Phase is determining the complexity of the project high, medium, or low and bridging the gap between what is ideal and what is actually realistic. One strategy is to aim high with estimates and then chip away as necessary based on resource or budget constraints. AGILE RESOURCE MANAGEMENT 7

8 Roles Scenarios - NEW BUSINESS TEAMS - ACCOUNT MANAGERS - PROJECT MANAGERS These three roles will work together to estimate the scope of the project, the resources, and time needed, as well as the budget necessary to complete the project. 1 2 When working with a new client, it is important to put the team s best foot forward. After hearing what the client is looking for, the team can estimate the resources required and the budget needed to complete the project. If the budget needed is $150,000 but the client only wants to spend $100,000, adjustments to the estimate need to be made. Consider scaling back on the scope of the project, or giving a discount with the hope of earning more business down the line. It can be tricky because a new client may not see the value in a high-cost resource that will deliver strong work on the project. If a project manager already has a relationship with the client, the types of questions and decisions that go into a project estimate may change. For example, the appropriate staff may already be in place, so the estimate can then go straight to thinking about how long each resource is required to be on the project. The goal of the Estimate Phase is to adjust the variables that will help to predict the feasibility and profitability of a completed project. 8 AGILE RESOURCE MANAGEMENT

9 1 Information Required High-level scope and information about the service being provided such as: skills required, necessary experience, and estimation details (time, difficulty, or effort level). Key variables, including milestones, specific resources, and dates that are being committed to the client in the project agreement. Availability of required roles (also known as capacity) to work on the project in the proposed timeframe, and their associated costs. The client s price sensitivity. That is, determine the price that the client will likely agree to in order to win this deal. Other key projects on the organization s horizon that may conflict or overlap. Insight into historical data on similar projects or tasks for accurate planning. Step-by-Step Guide Start by setting standards on when the team should start resourcing projects. In other words, determine the confidence level of each project. A confidence level is the probability that a project is actually going to happen. Every company varies when it comes to what confidence level spurs the start of resource planning. It s important to get this timing right so the team doesn t waste time spinning wheels planning for projects that never come to fruition. Determine the level of detail required for project estimates. If there s high variance between project plans and actuals on completed projects, it may be time to go into a bit more depth on future estimates. Now it is time to define the project scope in order to understand what types of roles are required on this project. The Estimate Phase is all about providing the confidence that there are adequate resources available at a later stage of demand. Estimation doesn t actually end at the Estimate Phase. There is additional value from using the estimation process to optimize success throughout the entire project lifecycle. Increase the success and profitability of future, similar projects by comparing how past estimates compared to actuals. More on this later. AGILE RESOURCE MANAGEMENT 9

10 ONE Potential Roadblocks & Challenges Common roadblocks, pitfalls, and issues that may arise in this phase: Pressure to close. The sales team may be pressuring the estimation team to minimize the costs associated with the project in order to close a deal. However, if they fail to adequately estimate the resources required for a project, the chances of successfully delivering the service at the desired margins and level of quality, are low. Poor estimation. Many service leaders fail to recognize the importance of proper estimation in project success. Lack of visibility into available resources. Often, organizations don t have proper processes or systems to see what new projects may be coming and which resources may be available to meet demand when they may need them. This is especially an issue when there is a lack of integration with CRM applications. Increased demand. As the number of service organizations grow, so do the number of resources and projects. Previous resource management methods will no longer suffice. 10 AGILE RESOURCE MANAGEMENT

11 1 Tips for the Estimate Phase Involve the right people. Dependent on the organization, a number of different individuals may be valuable for resource estimation; this could be a project manager, account executive, or business development representative, to name a few. There is often additional information required from specific people to flesh out some of the project details. Play out the What ifs. Due to the nature of the services industry, change is inevitable and ad-hoc conflicts will occur. Expect resource demands to change and project requirements to shift, but ensure that change doesn t spur chaos. Ensure that resources are not being chaotically shifted when change does happen. Learn from the past. Use lessons from past clients and like projects to hone estimates. Don t spread resources too thin. Ensure that the project resources have adequate flexibility in case conflicts arise during the Deliver Phase. Estimate at a high level. The Estimate Phase allows an organization to get an understanding of what resources are needed and what it will take to deliver a profitable project. Investing too much time in granular details, too early, is wasteful, as those details will get more refined and solidified during project delivery. The following phases will allow the team to get more granular with planning and assigning resources. AGILE RESOURCE MANAGEMENT 11

12 PHASE 2 plan

13 2 The Plan Phase is focused on booking resources to high-level projects. At this time in the resource management process, a project is close to being won, or, for other reasons, needs to be taken into account as part of the constraints on the resource pool. In this phase, the project is almost a go, but the phases, milestones, and resource demands are still in limbo. This is the opportunity for the resource manager to take a closer view at the requirements and expectations of the project and assign resources based on skills, roles, and availabilities. Resource managers can use visual planning tools to move resources from soft to hard allocation as the confidence level of the project increases. Once hard allocated, resource hours are committed to the project and those hours are no longer available for use on other projects. SOFT TO HARD ALLOCATION A critical aspect of the Plan Phase is the ability to see all potential resources in one place, which allows the team to swiftly manage change and limit potential consequences. This is what many people call the resource pool. In order to allocate resources properly, visibility is required on multiple levels and facets including the available people, their makeup (skills, roles, experience, geography), and cost rates and bill rates. The Plan Phase requires the team to match this resource supply (resource pool) to resource demand (projects, tasks, or clients). The Plan Phase isn t just about getting a resource onto a project, it s about managing resources in a way that increases profitability. For example, a certain resource may be more expensive in terms of hourly rate, but due to their expertise and efficiency, they could potentially complete a project in half the time of a less expensive resource. By using a resource like this one, the team may potentially get a better output for a lower total cost, helping to expand margins on the project. Keep in mind, resource managers typically balance more than one project at a time. Visual planning helps to balance resources across multiple projects more efficiently. The Plan Phase is also the final stretch of time prior to project kickoff. This is important to note because the cost of making resource changes or requests will dramatically increase entering the Deliver Phase. The chance that a resource is only assigned to one project or client is often slim. Because of this overlap, shifting people around during the live project can have a serious domino effect on the execution and profitability of other projects. AGILE RESOURCE MANAGEMENT 13

14 Roles Scenarios - PROJECT MANAGERS - RESOURCE MANAGERS - DEPARTMENT HEADS In the Plan Phase, project managers set up the project and define the tasks needed for the desired deliverables. Resource managers look at the resource pool to decide the right mix for a project and coordinate with department heads to determine the availability of the needed resources. 1 2 For a resource manager that needs to staff multiple projects at a time, the Plan Phase involves deciding how to distribute work across projects. Keep in mind that not all projects take place within the same time frame. A resource manager may know they need a more senior developer for a project that begins in 60 days, which limits the ability to allocate that resource to larger projects beforehand. The goal is to come up with balanced teams for each project to maximize efficiency. A project manager may be late to realize they forgot to bring a quality assurance resource near the end of the project. If this wasn t planned on ahead of time, it places risk on the entire project and budget. A resource manager can bring a new set of eyes to the project, take a wider view and think about needs a project manager may miss. This kind of collaboration during the Plan Phase helps account for all of the resources needed to complete a project. A critical aspect of the Plan Phase is the ability to see all potential resources in one place. 14 AGILE RESOURCE MANAGEMENT

15 2 Information Required The number of resources the project needs in each role (e.g. 1 engineer, 2 designers). The skill level, expertise or certification required at different phases of the project (e.g. Java engineer, beginner). The moving parts, if any, that are still in limbo. The project scope is not set in stone until the project is in the Deliver phase. Keep note that timelines and expectations can still change prepare for last minute ironing of plans. Up-to-date information about a resource s availability. What other work do they have allocated? What does their typical work week look like? Bill rates. A more senior resource may cost double, but could finish their portion of the project in half the time. On the other hand, the low cost of a relatively unknown resource adds risk to a project because the team isn t aware of quality of work they ll deliver. Step-by-Step Guide Begin to breakdown the project scope into tasks and deliverables. Understand what roles are required at what phases of the project. Be ready for requests for specific resources (people) or roles from the project leader. Look towards the resource pool for available and fit resources. If a project has not yet reached a high enough confidence level, start soft allocating resources to roles based on skill level, expertise, availability, and cost. Once a project has reached the appropriate confidence level change from soft allocation to hard allocation so that resource availability in the resource pool reflects these commitments. The project manager will need to ensure that these assigned resources are aware of their responsibilities by confirming scheduled assignments with each resource and reviewing the project plan and requirements. At this point, the project plan is beginning to take final shape with all associated resources assigned to the project. AGILE RESOURCE MANAGEMENT 15

16 TWO Potential Roadblocks & Challenges Lack of visibility into skills. In all but the smallest organizations, lack of available skills information by person prevents resource managers from assigning resources to roles based on expertise. This can have an impact on both quality of execution and efficiency of the project. Clarity of resource availability. The team needs to know when someone is officially unavailable or conflict will occur sooner or later. Once a resource is moved from soft to hard allocation, there needs to be an indication to others performing resource planning that certain resources are no longer available. This, again, requires enhanced visibility into resources and project details. Lack of resource pool. Many times, organizations not only lack visibility, they also lack an actual resource pool. Many resource managers keep resources organized across platforms or simply by memory, making it impossible to have a holistic view of availability. The complexity of projects today requires a resource pool for proper project management. Establish rules for specific resource requests. When resource managers allow the organization to request specific people during the plan phase, it has the potential to set a precedent that does not foster scheduling based on skill. So, be sure to put skills first. If a client requests the resource, include this in the project requirements and consider the profitability when including this resource in the project. 16 AGILE RESOURCE MANAGEMENT

17 2 Tips for the Plan Phase Set up a process for resource approvals and requests. Once a resource is chosen for a project, they are plucked from the resource pool and then hard allocated to their respective phase or skill. Look to skills. Availability should not be the only concern in the Plan Phase. Part of successful delivery is finding a resource who is both skilled and available to do the work. Set up for profitability. Profitability is determined by finding the perfect balance between skill and cost of a resource. Maintain communication. Ensure the project and resource managers have ample time to sync on the project. Update the skills database. Maintain an updated database with resource skills. There is no use having a skills database if it s out of date. Consider a balanced team. It may be tempting to staff a project with all senior resources, but that will make a budget skyrocket and also limit the ability to use those resources on other projects. A more balanced approach across projects will lead to more efficient results across the board. AGILE RESOURCE MANAGEMENT 17

18 PHASE 3 deliver

19 3 The Deliver Phase of Full Cycle Resource Management begins when the project is confirmed and agreed to by the client, resources are hard allocated, and billable project work is set into motion. At this point, the details of the project have been thoroughly vetted by the project manager including the work breakdown structure, subtasks, and task timelines and specific named resources are assigned at the activity level. During the Deliver Phase, the project manager and resource manager must communicate frequently in order to understand if the resource hours allocated are actually being used. If too many or too few hours are allocated to a project, resources are not being used optimally. Keeping an eye on how actuals are tracking against the hard allocations will help the team determine what changes are necessary to get the project back on track. It is common, if not an absolute guarantee, that in this phase the team will have to react to change in real-time to project scopes, timelines, budgets, and other factors that will affect resource needs. This is a very dynamic part of the resource management process, and it requires a strategic manager that can make swift changes at a very granular level the more granular the better. Best practices in this model suggest that resources are scheduled hourly as opposed to daily or weekly. The resource manager must be able to see how the changes impact the profitability of the work in order to make the best decisions for the organization. ACTUALS RESOURCE METRICS HARD ALLOCATIONS Another important aspect is having insight into projects that resources are rolling off, or completing. Minimizing the non-billable time between when a resource rolls off one project, and starts another, will significantly improve utilization rates and gross margins. It s important to note that this phase is most successful when it follows proper Estimate and Plan Phases. This makes it possible for organizations to properly track expected versus actual hours billed against work. Tracking time and keeping daily schedules allows resource managers to take a closer look at performance and utilization metrics while the project is still in progress, in order to make necessary adjustments on the fly to improve key metrics. Additionally this helps to inform future work that may be routinely over- and under-accounted for in proposals. AGILE RESOURCE MANAGEMENT 19

20 Roles Scenarios - PROJECT MANAGERS - RESOURCE MANAGERS - CONTRIBUTORS The Deliver Phase includes project managers, resource managers, and project contributors. This is the most dynamic part of the process, as the project is actually live and changes must be handled in real-time The Deliver Phase is where the unexpected comes into play. The Estimate and Plan Phases help limit these situations, but an expect the unexpected attitude will help the team quickly react to issues that arise. For example, something may have taken longer than expected, or a resource unexpectedly used PTO. It s not always possible to account for these situations in the Estimate and Plan Phases, so project and resource managers may need to recalibrate resources in order to meet project goals. The unexpected doesn t always happen on the organizational side. Sometimes a client takes longer to respond to a question or concern, or is late meeting deadlines in their own right. This may temporarily halt portions of a project and lead to delayed results. To make the most of this scenario, the resource manager can temporarily allocate in-limbo resources to other projects to help prop up areas of immediate need. A resource or team member may get fired or promoted, resulting in a change in the makeup of the team as a whole. In this case, the resource manager may need to do a bit of pushing to secure resources that can be used to fill in for the missing pieces. It is during the Deliver Phase that it becomes clear how all four phases work together. Properly set aside time in the Estimate and Plan Phases, as this will help account for unexpected occurrences that pop up during the Deliver Phase. 20 AGILE RESOURCE MANAGEMENT

21 3 Information Required Keep note of all resources hard allocated to the project. Have contact information readily available throughout the entire project lifecycle. Step-by-Step Guide 1 2 Launch the project and begin work. All scheduled resources start their assignments. Track resource performance as the project gets underway. Move around misallocated resources to enhance utilization or chance of project success. All project details must be shared by the project manager. Scope, issues, complexities, or potential roadblocks should be anticipated. Have a skills list or library accessible. Note the skill levels of all resources and determine the optimal way to arrange people across projects. Label the most important KPIs and track throughout the project Have each resource track his or her time spent working on the project so the resource manager can have a greater understanding of the actual hours required to complete a project. This is key to understanding utilization rates and seeing how the actual work compares to the client agreement. Keep weekly schedules for each resource to ensure the most up-to-date project demands are in sync with resource supply. Check in weekly to ensure performance levels are high and resources have the tools they need to get the job done. Establish a list of resource backups in case of conflicts along the project lifecycle. It s important to note that this phase is most successful when it follows proper Estimate and Plan phases. AGILE RESOURCE MANAGEMENT 21

22 THREE Potential Roadblocks & Challenges Last minute changes in project scope. Timelines, expectations, or resource demand will occur and inevitably disrupt the project momentum. Resources on multiple projects. Conflicts may occur when multiple resources are spread across projects. Many times a stall from one project bleeds over to affect a number of others. Complications with time tracking. Tracking time may seem like a minor matter but it is the only true way to understand the utilization of resources. In order to track utilization, track the actual hours worked on a project based on data and not assumptions. Lack of visibility into resources. After planning a resource, there is little visibility into how that resource is working out relative to the plan (i.e. someone could be done working and ready to move onto the next job). The resource manager must be able to see how the changes impact the profitability of the work in order to make the best decisions for the organization. 22 AGILE RESOURCE MANAGEMENT

23 3 Tips for the Deliver Phase Hold weekly resource check-ins with the project team. In order to keep up with the performance of resources, maintain a weekly meeting or stand-up to check in on timelines, statuses, and pending conflicts. Dedicated RM & PM sync. Project and resource managers need to be in constant communication. Generally, project managers are sharing what is on the ground and resource managers are sharing what is on the horizon. Keep track of utilization rates. Take note of what resources are being under or over utilized. Move people around if necessary. Create a time tracking process. Create a procedure for time tracking, time submission, and time approvals. One communication channel. Agree on one channel of communication so that project or resource changes don t get lost in . AGILE RESOURCE MANAGEMENT 23

24 PHASE 4 analyze & optimize

25 4 The Analyze & Optimize Phase of Full Cycle Resource Management is the process of using insights, data, and analytics to understand the success, utilization rates, and profitability of a project or client. ESTIMATE It is critical to then apply this knowledge to processes to make overall operations more efficient. The Analyze & Optimize phase is used to provide feedback on the project, such as utilization rates or performance metrics. Consider an example: A resource is planned that takes three times as long to finish a project than average. At first glance, this resource is not cost-effective. At second glance, they deliver phenomenal work and consistently get the biggest praise from clients. In this case, the team may determine that this resource is best fit for big pressure, high expectation projects. The ability to optimize resources at ANALYZE PLAN DELIVER OPTIMIZE such a granular level is only possible with end-to-end project visibility. This phase has been historically skipped, often due to the lack of data. That is, projects would be completed, but managers would fail to recognize if they were actually profitable or if resources could have been allocated differently to improve project performance. In order to analyze the success of resource plans and tactics, it s important to first recognize how to measure success. Old-world thinking says teams should analyze a project when it s complete, and then apply what they learn to new projects going forward. One unique aspect of the model is the Analyze & Optimize Phase occurs at the end of all four phases, not just the final one. It exists throughout the lifecycle of a project, constantly acting as a feedback loop for current projects and future work. Think about it as a living part of a continual cycle that helps organizations make smarter decisions, sooner. AGILE RESOURCE MANAGEMENT 25

26 Roles Scenarios - NEW BUSINESS TEAMS - ACCOUNT MANAGERS - PROJECT MANAGERS - RESOURCE MANAGERS - DEPARTMENT HEADS Any team member or resource that contributes to a project can benefit from the Analyze & Optimize Phase. It s all about learning what works and what doesn t, understanding why that may be the case, and then immediately applying lessons learned to the projects currently being worked on. Rather than a final step, the Analyze & Optimize Phase is overlayed on top of the previous three phases to help make smart decisions quickly. 1 2 A resource manager may notice that one person consistently works at 120 percent of the normal capacity. By analyzing the hours this resource is putting in, the manager may sense that he or she will begin to feel strained or burned out. The optimization part comes in by staying on top of that resource and making sure their hours are more in line with expectations. Department heads notice that many resources are not properly logging work hours on time. The problem may not present itself at first because the work is getting done, but later on it leads to strains on budgets and accounting. The optimization might be constant reminders for resources to log hours, or finding a more efficient way for them to easily do so. The Analyze & Optimize Phase is used to provide feedback on the project, such as utilization rates or performance metrics. 26 AGILE RESOURCE MANAGEMENT

27 4 Information Required Metrics of the most relevant KPIs across the entire project lifecycle. Definitions of billable vs. non-billable work. Feedback from the client on satisfaction, expectations, and overall project success. Feedback from the resource manager on individual performance metrics across the entire project lifecycle. Labels on significant challenges from the project to learn from mistakes or highlight wins. Understanding which resources or roles are in high demand and re-visit hiring priorities. Step-by-Step Guide Collect data and metrics from each phase of the project. This could include: time tracking information such as actual hours worked, client satisfaction reports, a collection of notes from weekly resource check-ins, task due dates and completion dates, increases in skill level, forecasted utilization vs. actual, billability target vs. actuals. Measure utilization rates. Focus on billable scheduled and billable actual. Utilization = total hours tracked divided by possible hours. Possible hours are usually just a representation of a resource s workweek or hours available to perform work. Scheduled Utilization = total scheduled hours, divided by possible hours. Billable Scheduled Utilization = billable scheduled hours, divided by possible hours Billable Actual Utilization = total billable hours tracked divided by possible hours. Sync with project managers and others to gather data that may only be accessible to him or her. Discuss the data with the team pick key metrics to spur the first conversation about the success or failure of a project. Original goals, project scope, and resource estimates available to compare to actuals during the project Take time to re-evaluate hiring decisions based on over or under utilization rates. Note trends in certain roles or skills. Take notice to what types of roles or skills are scheduled more than others. Do certain team members need additional training? Keep profits in mind constantly. Where can the team trim margins to save money? What resource-associated costs can be cut? Take note of any roles, individuals, practices or processes that add substantial overhead to the project. AGILE RESOURCE MANAGEMENT 27

28 FOUR Potential Roadblocks & Challenges Lack of visibility into data. The Analyze & Optimize Phase is literally impossible without data or a measurement of success. Metrics must be collected constantly and at each phase and organized in a way that stakeholders can access the information for reflection. Information in silos. Too many systems, tools, variables, or the lack unified system where all data resides. Time tracking can be complicated. The software typically used for time tracking exists outside of project management software, as well as a resource planning tool, making it more difficult to compare forecasts to actuals. Lack of important metrics. Resources are not adequately reviewed and performance isn t noted. If it is, most times this is only for certain points in the project and not start-to-end. Lack of visibility from the start to the end of the project. This makes it incredibly difficult to see why some projects are more successful than others. Inability to embed metrics into the process. Some aspects of projects are easier to measure than others, but a top-to-bottom analysis of the entire project is needed to completely optimize the process. Employees need to buy in. A more cultural challenge is getting employees and contractors with the discipline to track various metrics by a certain date. Measures will not be valid without discipline. Lack of time to consistently evaluate. This may be due to a lack of an embedded reporting system analyzing metrics should be worked into the day-to-day process of managing the business. 28 AGILE RESOURCE MANAGEMENT

29 4 Tips for the Analyze & Optimize Phase Focus on utilization rates. Use the data to compare resource forecast to actuals to see how well the team planned. Take note of trends. Across projects, are certain roles, people, or skills being over or under utilized? This can indicate that it s time to hire or spend more on selling a particular service area. Understand profitability. Calculate the potential or past profitability of a client, a project, role, or even a set of skills. Share and disseminate results. Many individuals can benefit from this information. Sometimes a business development manager can leverage this for future projects, c-levels have new visibility over projects, or human resources can utilize this information for hiring and training purposes. Analysis and optimization is not reserved for post-project completion. Use the concepts associated with the Analyze & Optimize Phase while moving through the project lifecycle. Learn from mistakes. Reflecting on past projects, or individual steps within the same project, in order to approach resource management differently the next time. AGILE RESOURCE MANAGEMENT 29

30 Final Thoughts & Takeaways Resource management can no longer be managed in a silo. Projects are becoming increasingly complex and pressure to resource and deliver quality services at a rapid pace has never been greater. Lack of knowledge, coupled with lack of visibility, are the two major factors exacerbating the complexity of resource management today. As demand for services continues to grow and more resources flood the market, a new, mature, and proactive model of resource management is required for business success. So, after learning about Full Cycle Resource Management what are the next steps? Acknowledge that there is a better way to be doing resource management. Adopt Full Cycle Resource Management. Start by making incremental improvements to the process. Hire a dedicated resource manager. This role will pay for itself within months. Get serious about tracking skills. Matching resources to projects based on skills rather than availability alone will have a dramatic impact on an organization s bottom line. Constantly optimize. Use data and experience to make informed decisions and change practices. 30 AGILE RESOURCE MANAGEMENT

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