For many organizations, the Project Management Office (PMO) plays a central role in creating project portfolios that are both high value and feasible. As part of this process, the PMO is responsible for ensuring that the proper skilled resources are aligned with the highest priority projects. That makes project resource management one of the most critical functions the PMO oversees.
While PMOs are also responsible for project intake, time tracking, project execution, and portfolio optimization, none of these processes can succeed without an underlying foundation of resource capacity management and demand planning.
Why Project Resource Management Is Critical for the PMO
Many organizations struggle with resource overcommitment, delayed projects, and unclear priorities. Often, this happens because project execution begins without fully assessing staff availability.
The PMO is in the best position to prevent these missteps. By owning the resource management process and implementing the right tools, PMOs can create transparency across the organization. Without this visibility, even the best project delivery methods fall short, especially if the people assigned to a project don’t have the necessary skills or are stretched too thin.
At its core, resource management is about funding achievable projects and maintaining feasibility throughout project execution. It ensures that your project portfolio is realistic and that every initiative is staffed to succeed.
How PMOs Should Drive Resource Management Success
To lead effectively, PMOs must take ownership of both the resource management process and the software that supports it. This creates structure and consistency, helping the organization avoid operating in “reaction mode” when priorities shift.
PMOs that excel in resource management can:
- Provide a clear view of resource capacity vs. project demand to drive realistic planning
- Establish formal intake processes that prioritize meaningful, achievable work
- Ensure projects are not approved or scheduled without a resource plan that matches available capacity
- Set a regular cadence for portfolio reviews that adjust based on priorities and workforce availability
- Deliver reports on resource and skill utilization to support informed staffing decisions
- Equip teams with tools for what-if scenario planning and Waterline Analysis when considering new initiatives or adapting to internal or external change
- Facilitate the AOP (Annual Operating Planning) and LRP (Long-Range Planning) process
- Enable long-range resource capacity planning and staff planning with the proper data and tools
- Improve performance by tracking process adoption, ensuring data quality, and driving continuous improvement
A PMO Methodology for Managing Projects and Resources
With the foundation of Resource Capacity Planning and effective Resource Allocation in place, a good model for the PMO to operate with includes three components, each addressing a phase in the proper management of portfolios: Project Intake, Portfolio Rationalization, and Optimization
Phase 1: Project Intake
The project intake phase provides major inputs into the operational flow, such as:
- Strategic Alignment and Ranking (priority)
- Demand Forecasting
- Risk and Impact Assessments
- Team and Skill Capacity Assessments
Phase 2: Portfolio Rationalization
The portfolio rationalization phase builds on the foundational input of supply, demand, and priorities and adds additional operational elements to support the allocation process. These may include:
- Setting Financial Targets
- Setting and comparing Project Baselines
- Creating and maintaining Effort Forecasts
- Addressing shortfall when trying to satisfy Project Demand
- Capturing Actuals
- Running What-If Scenarios
- Capturing periodic Project Status and changes to key project parameters
Phase 3: Optimization
Lastly, the optimization phase provides the tools and reports for informed decision-making, such as:
- Waterline Analysis
- Risk Mitigation
- Financial Analysis
- Performance and Variance Analysis
Project and Resource Management Workflow
A strong end-to-end workflow helps the PMO evaluate new project requests, schedule initiatives based on available resources, and guide execution through completion. Each phase should include governance checks, feasibility assessments, and mechanisms for continuous improvement.
Here’s what a holistic portfolio and resource management process looks like:
Demand Intake
New project requests are submitted, validated, and sized. If a request doesn’t meet the criteria for a formal project, it’s routed to the appropriate department. Valid project requests enter the Portfolio Planning and Governance phase.
Portfolio Planning & Governance
Each project is scored and prioritized based on alignment with strategy, expected impact, required resources, and projected costs. Feasibility is assessed, particularly whether the right staff is available to do the work.
Scheduling
Approved projects are scheduled based on resource availability. Priority projects may move ahead of others, but only if staffing and budget support it. Skipping this step often leads to overcommitment and missed deadlines.
Execution
Once scheduled, project execution begins. Resources are assigned, and project teams get to work, guided by clear timelines and deliverables.
Review & Optimization
As new projects arise or priorities shift, the planning and governance process repeats, typically during periodic portfolio reviews. Throughout the process, the PMO should track adoption, gather feedback, and refine workflows to improve efficiency and outcomes.
PMO Best Practices for the Portfolio Review Process
To maintain alignment with business goals, the PMO should establish a recurring cadence of portfolio reviews and decision-making checkpoints. These meetings help stakeholders make informed tradeoffs, adjust resource allocation, and keep the project pipeline realistic and achievable.
Annual Planning
Each year, the organization should develop an Annual Operating Plan (AOP) that aligns projects and staffing plans with strategic priorities and available budgets. Functional areas finalize their contributions, and long-range plans (LRPs) typically cover a three-year horizon or more to ensure continuity and foresight.
Quarterly Prioritization & Allocation
At least once per quarter, the PMO should reassess project priorities and rebalance resources. This step ensures the portfolio remains viable in light of shifting business needs, team capacity, or external factors.
Monthly Portfolio Review
A Portfolio Review Board typically meets monthly to govern the active portfolio. This group makes key decisions such as:
- Reprioritizing projects
- Approving or deferring new initiatives
- Adjusting resource allocations based on utilization or availability
- These reviews keep the portfolio responsive and aligned with strategic goals.
Weekly Steering & Stage Gate Meetings
Program and project-specific steering or stage-gate meetings can occur weekly or biweekly or monthly, depending on the size and duration of the program/project. Here, program/project-specific decisions are made involving stage-gate approvals, project staffing, issue resolution, and more.
Advisory Councils & SIGs
Lastly, the Voice of the Customer (VOC) is usually addressed via function-specific advisory councils or SIGs (Special Interest Groups). These groups can advocate for their key priorities and weigh in on important decisions impacting their area.
Drive Better Results with ResourceFirst Software
Certainly, a PMO needs to foster project management excellence, including project planning, risk management, and project accounting. But to accelerate its value to the organization, it needs to address the crucial foundation of Resource Management, and this is best done via specialized Resource Management Software, such as PDWare’s ResourceFirst.
ResourceFirst helps PMOs:
- Align the right people to the right projects, without needing detailed task plans
- Quickly spot over- or under-utilized staff and skill gaps
- Identify available talent across teams to fill resource needs
- Run what-if scenarios to evaluate the impact of changes to scope, timing, or priorities
Each team member plays a role:
- Project Managers request resources, manage plans, track performance, and report financials
- Resource Managers forecast effort, approve allocations, and plan for shifting priorities
- Team Members log actuals and communicate schedule changes
- Team Leaders assign staff and teams to projects
- Finance & Executives set budgets and track alignment with strategic goals
By grounding your PMO in effective resource management with the right tools, you empower smarter decisions, more accurate planning, and a culture of feasibility.
Explore how ResourceFirst can help your PMO thrive. Visit the PDWare Product page or Contact Us to learn more!
