Resource Allocation Issues – Bite the Bullet and Put 25% of your Projects On Hold!

Introduction

So many of our clients think they have a Resource Allocation Problem.  They often ask for a tool or process to solve that problem.  They usually want to evaluate software and purchase quickly.  However, Resource Shortfalls are a symptom of Resource Over allocation which is a symptom of either Poor Estimating or simply allowing Too Many Projects to run concurrently, or both! Let’s wade into this political swamp a bit.

As always, we advise, “Set, test, and improve your process FIRST, only then map your process and workflow to a tool.”  Remember, a fool with a tool… No, wait, let’s reword that… An ineffective process using a tool is still an ineffective process, it just costs more now.

Resource Allocation Problem

You have a resource allocation problem only if your people are working on the wrong efforts.  Not if they are spread too thin or lack the tools or dependencies to work on the right efforts.  True resource allocation issues can be solved by grinding through the political process of prioritizing all efforts, posting the official prioritized list internally, and sticking to that vertical prioritized list.  It will be obvious to everyone what they should work on next.

Leaving the decisions of what to work on to every professional in your organization is a recipe for anarchy or at least competing factions, and that is exactly what executives do not want.  You may be amazed at the reduction in cross-functional pressure to perform when staff can point to a higher priority effort they are working on.

Resource Shortfalls

Resource Shortfalls occur due to poor estimating.  Poor estimating occurs due to three main causes:

1. Lack of risk-based and data-based contingency.  We have a lot of experience with clients who simply do not want to analyze, document, and use contingency to avoid Resource Shortfalls.  Teams usually have or can get data on both actuals and risks, it is just not encouraged for them to use their data!  This is easily fixed by moving to actuals-based scheduling and changing just one word in the estimating game.  Instead of saying, “How long will this take?” ask, “How long did this take last time?”  Unless an effort is really “Top Ten” priority, tasks will likely take just about the average of the last 3-4 actual tasks.  It can also be fixed by adding quite a bit of contingency up front then reducing for future projects or tasks as you gather actual data.  Timesheets and analysis will help.
2. Asking people to estimate tasks where they do not have the skill or do not control dependencies.  This is easily fixed by having people who understand the work and the skills of the people who will perform the tasks.  This works best when staff is assigned to efforts full-time and do not have to juggle support, operations duties, “Tiger Team” efforts, and other distractions.  To improve estimates add 2 factors; Complexity and Skill.  The easiest way to drive accurate estimates is to limit assigned staff to work on a particular effort full-time, at least until they finish or are blocked.  Timesheets and analysis will help.

Resource Overallocation – Too Many Concurrent Projects!

Resource over allocation occurs when assignments are given without really analyzing what is already on each staff member’s plate.  When the staff is given too many tasks to reasonably complete, they naturally can only work on some tasks, causing the other efforts to fall behind.  The problem is compounded by well-meaning project managers, functional managers, and others who increase “pinging” status meetings, and “transparent” communications that can feel like public floggings.  The Task-Switching Penalty goes into full swing, reducing work time by up to 20%!  One great way to limit projects starting is not allowing them to start until they are fully resourced with time to work on the tasks publicly on everyone’s calendar.  Timesheets and analysis will help.

Timesheets and Analysis Will Help

Have you noticed a pattern?  Our firm is Data Analysis & Results.  That means we seek meaningful data to use in projects and operations planning, process improvement, and day to day management.  Only when we know what is assigned to whom, and how long like tasks have taken in the past, can we make meaningful changes to our rapidly spiraling estimate quagmire.

“Get thee some data!” we say to staff who are overworked to the point their work / life balance feels nonexistent.  Armed with actuals, they have a much better chance of negotiating a reasonable task load and completion dates.  Using contingency can reduce the required heroics of all-nighters, weekend work, and taking shortcuts, thereby increasing risks and large queues of technical debt.

Moving to work negotiations based on priorities and trade-offs, rather than one of just adding work without reason, will yield higher performance and employee satisfaction.  Work can be reasonable if we use data to prove the time and effort tasks take.  Let’s all be reasonable.  There are fairly technically easy best practices out there.  We just have to have the political will to use them!

Let’s hear some of the ways you have used to communicate a full plate without political harm.  We will add the best ones to our best practices! Good luck and go home at a decent hour!

Your path to business success.