![\"How](\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2021\/08\/How-track-resource-allocation-main-cover-1110x555.webp\")
<\/figure>\n\n\n\nWhat is resource allocation?<\/h2>\n\n\n\n
According to the PMI\u2019s survey<\/a>, only 26% of companies always use resource management to estimate and allocate resources, while 36% use it often. What is that and why should it be used more frequently?<\/p>\n\n\n\n Resource allocation, or resource scheduling, is a process of identifying and assigning resources in a way that will bring the most success in completing your tasks. Scheduling resources in advance and tracking your team\u2019s progress have a role in resource allocation as well. It\u2019s a short-term plan that will help you in pursuit of a bigger goal.<\/p>\n\n\n\n Resources are key players in project management<\/a> and allocating them gives you a clear overview of what has to be done.<\/p>\n\n\n\n There are different types of resources:<\/p>\n\n\n\n These are the three resource allocation decisions you should keep in mind. And, here are the three questions that lead to them:<\/p>\n\n\n\n Let\u2019s say your project is painting a mural. Resource allocation would be:<\/p>\n\n\n\n After you\u2019ve finished all of that, your job is not done yet. You ended up with two painters with different skillsets, 10 cans of acrylic paint, 6 cans of spray paint, a ladder, 3 sets of brushes, and a certain amount of time to finish it. Those are your resources. How will the two painters divide the brushes? Will both of them get to use the ladder, and if yes, for how long? What would be an ideal daily workload? Who will paint which part of the mural?<\/p>\n\n\n\n Assigning the right team member(s) to a specific task is one of the most important aspects of resource allocation. The task complexity must match their skill level \u2014 if you give a simple, entry-level task to an experienced employee or a complicated task to a new hire, you won\u2019t get the best results. In the first case, the project cost would be unnecessarily high. The latter would cause a lot of stress, and the results probably won\u2019t be satisfactory.<\/p>\n\n\n\n Resource allocation is more than just delegating tasks \u2014 having the right resources at the right moment can make a difference between success and failure. Not doing resource allocation properly can result in missed deadlines<\/a>, delayed or unfinished tasks, blown-up costs, and overall chaos.<\/p>\n\n\n\n A way to avoid that is to make sure you\u2019re going to have all the resources available when you need them. Allocating resources in advance helps identify if any source is unavailable and plan further steps around that.<\/p>\n\n\n\n Benefits of good resource allocation also include:<\/p>\n\n\n\n These are the steps of tracking resource allocation.<\/p>\n\n\n\n You should first determine who and what are your available resources and, in the case of human resources:<\/p>\n\n\n\n After you have a clear idea of who and what you\u2019re working with, you can start allocating those resources. Also, be aware of the factors such as: are your team members going on vacation and when, are they sick, what\u2019s the condition of the equipment you\u2019re working with, what\u2019s the duration of the office space lease, etc.<\/p>\n\n\n\n \ud83d\udca1 You may find this useful: What is full-time equivalent and how to calculate it (+ free FTE calculators)<\/a>.<\/p>\n<\/div>\n\n\n\n Before you start working, you and your team have to have a deep understanding of your project as a whole, as well as all of its aspects. That includes, but is not limited to:<\/p>\n\n\n\n Making the project scope as clear as possible will help you avoid misunderstandings and make everything go more smoothly.<\/p>\n\n\n\n After you all get to know the project, divide it into tasks and assign them to the necessary resources. Along with each task, list its duration, deadline, team members who\u2019ll do it, required skills, and location. It\u2019s crucial to be realistic while doing this step and estimate correctly \u2014 especially when it comes to time and budget.<\/p>\n\n\n\n With all of this information in mind, you can forecast needed resources for each task as efficiently as possible.<\/p>\n\n\n\n PMI\u2019s survey revealed that, among projects that started but were deemed failures, 26% of cases had an inaccurate time estimate as the primary cause.<\/p>\n\n\n\n To have a better idea of the time spent and to be able to control it better, track your time<\/a>. That way, you\u2019ll also be able to:<\/p>\n\n\n\n Get Clockify by CAKE.com FREE\u00a0<\/a><\/p>\n\n\n\n When you\u2019re managing a project, you have to determine if you\u2019re using most of what you have. Or maybe there are resources that are over- or underutilized? Both can bring their own set of issues, so it\u2019s a good idea to track resource utilization, just as you would track projects and tasks<\/a> or time.<\/p>\n\n\n\n Resource utilization goes hand in hand with resource allocation. It entails measuring how effectively the available resources are utilized and helps you maximize productivity.<\/p>\n\n\n\n There are a few easy formulas to calculate (human) resource utilization, or how much your team spends working:<\/p>\n\n\n\n Benefits of this practice include better ROI from maximum utilization, better visibility, reduced risk of oversights, and reduced burnout (as it\u2019s a way to prevent overworking).<\/p>\n\n\n\n It\u2019s not unusual for a project to go through a couple of changes before it\u2019s finished, whether it’s a change in budget, duration, or scope. With each change, you\u2019ll probably need to re-allocate resources to fit the new circumstances.<\/p>\n\n\n\n Also, it would be a good idea to review and analyze how each task and\/or project went regarding resource allocation. Have you done it effectively? Did you go over the budget or extend the deadline? Is there something you could have done differently? Doing this and implementing necessary changes is detrimental to future improvement.<\/p>\n\n\n\n Over-allocation means either 1) taking allocation resources to excessive measures or 2) allocating too many tasks. Just as a computer would bug if it has to process too many things at once, your team members won\u2019t be able to do their best if they\u2019re overworked. It can cause high stress levels and burnout \u2014 and they don\u2019t result in anything good.<\/p>\n\n\n\n Resource allocation is an important aspect of project management. If you manage to do it correctly, your life would become much easier as you would avoid a lot of potential issues. Some of the best resource allocation practices are: identifying resources\u2019 availability, getting familiar with the project\u2019s scope, tracking time and resource utilization, and making sure you\u2019re not over-allocating.<\/p>\n\n\n\n\n
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Resource allocation example<\/h3>\n\n\n\n
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Importance of resource allocation<\/h2>\n\n\n\n
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How to track resource allocation<\/h2>\n\n\n\n
Identify the availability of resources<\/h3>\n\n\n\n
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Know the scope of the project<\/h3>\n\n\n\n
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Divide the project into tasks and match them with resources<\/h3>\n\n\n\n
Track time<\/h3>\n\n\n\n
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Track resource utilization<\/h3>\n\n\n\n
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Re-allocate if necessary<\/h3>\n\n\n\n
Don\u2019t over-allocate<\/h3>\n\n\n\n
Conclusion<\/h2>\n\n\n\n