If Resource Capacity Planning represents the long-range staff planning that ensures you have the appropriate skills and workforce to meet expected demand, Strategic Resource Allocation goes a level deeper, and represents the medium and short-range assignment of people, teams, and skills to specific projects and programs.
In other words, while Resource Capacity Planning helps you plan the supply, Strategic Resource Allocation is how you tackle the demand.
Since capacity (AKA “supply”) is finite once planned, this becomes a matter of determining which initiatives (AKA “demand”) are the most important to accomplish within the limited resource pool—and ensures that your project portfolio is feasible to deliver. This is where Strategic Resource Allocation shines.
In essence, Strategic Resource Allocation is about three things:
- Assigning the right people to the most important work when they’re needed
- Addressing Demand Shortfall
- Managing Resource Workload
What is Strategic Resource Allocation?
Strategic Resource Allocation is the targeted management of demand by assigning people and skills to projects, considering three primary levers:
The question to consider is: Given your available resource supply and the current and future demand on those resources, how do you make the necessary strategic tradeoffs when deciding which projects you can afford to staff (whether a new project or an existing one with a new or modified resource requirement)? For example, if two or more projects are vying for the same resources, which project gets funded and staffed? In most cases, it will be the project with the highest priority.
Project Scoring and Ranking Can Assist with Prioritization
Assuming the competing initiatives are equal or close in priority, then stakeholder conversations may be necessary to rank the projects that are in competition. A project scoring and ranking model can assist with this, whereby each project is given a composite score based on a variety of benefit and risk factors and their alignment with the organization’s strategic objectives. In some industries, projects are staffed on a FIFO (First In, First Out) basis—but even this is a form of priority.
Want to find out how ResourceFirst can help make Strategic Resource Allocation a breeze? Visit the PDWare Product page to learn more!