Without the resources–that is, the people, tools, funds, technology, etc.–to follow through on it, even the best project plan could fall flat on its face. That means that as PMOs and organizations evaluate projects, portfolios, and programs for their feasibility and potential value, the resources they require should also be considered. A resource allocation matrix is a powerful tool that project managers can use to minimize the risk of over- or -underutilizing vital resources. Below, we explore how matrix planning can facilitate effective and strategic resource allocation. Let’s dive in!
Understanding Approaches to Project Resource Planning
Planning for effective resource allocation is just as important as identifying the most worthwhile projects to pursue. It enables teams to make strategic decisions–like which order to complete projects in or how to schedule work tasks. Or to maximize the value projects bring and minimize the strain they place on an organization.
How project managers tackle this challenge of planning resource availability and allocation can vary. There are a few main techniques that PMOs tend to rely on to guide their project resource planning. They are based on organizational goals and needs. Let’s take a brief look at each.
- Project-Based Planning: This model of resource planning prioritizes project completion. Resources are allocated to tasks, and project managers focus on ensuring projects have the right staff, tools, and capacity to be successful.
- Resource-Based Planning: This approach views effective resource utilization and optimization as a key focus. Tasks are allocated to resources, and project-specific considerations become a second priority.
- Matrix Planning: PMOs can reap the benefits of both of the above approaches with matrix planning. Matrix planning considers two dimensions–resource and project capacity–when allocating tasks. It’s usually a multi-step process. It involves planning projects and adjusting resource allocation plans to align with organizational strategy.
So, when PMOs need a model for planning project resource allocation that allows them to balance resource optimization with project requirements, a matrix approach can be useful.
What is a Resource Allocation Matrix?
A resource allocation matrix –sometimes known simply as a resource matrix, staffing matrix, or resource allocation chart –is a visualization of project tasks measured against the resources they require. In other words, it’s one type of visual aid PMOs can use to engage in strategic resource planning.
We know that matrix planning is all about understanding the connections between resources and projects (and vice versa). In the context of resource management and allocation, a matrix can be used for individual projects. Or it can consider resources from the portfolio or even program level. It uses a two-dimensional graph or chart to help project management teams understand capacity from multiple angles.
The main perk that creating a resource allocation matrix offers organizations is the ability to simultaneously construct a picture of project and resource capacity. This captures both high-level and granular details.
How to Create a Resource Allocation Matrix: Best Practices
Using purpose-built project portfolio management (PPM) software that features robust resource and capacity management tools is the easiest way to create a resource allocation matrix.
Enterprise project portfolio management tools like Sciforma Vantage enable PMOs to track resources, store project information, access data and reporting insights, and create visuals that facilitate strategic decision-making. Sciforma is built to do the hard work for you so that you can focus on putting your discoveries into action.
If you decide to create a resource matrix the old-fashioned way, here are the steps you’ll need to take:
Define Project Tasks
Before you dive into resource management, make sure you’ve thoroughly identified and defined the project itself.
List all of the tasks required to complete the project, and be sure you have key details like deliverables, timelines, risks, and requirements recorded. The more thoroughly you define the project’s structure and scope, the easier it will be to appropriately distribute resources to its components.
Consider Resource Needs & Choose a Format
With your project thoroughly outlined, it’s time to shift your focus to resource demands. In some cases, the resources required for each project task may be straightforward. In others, a careful analysis of the skills, tech, and talent needed for project components will be necessary. Think about things like staff availability, other workload, and dependencies as you list all of the resources needed for all tasks.
The last step to take before you transfer all of your resource planning to a matrix is creating a “code” or format based on your needs. You may, for instance, decide to use different colors, numbers, or symbols on your matrix to represent different project teams or responsibilities.
This is also a good time to think about granular details that are relevant to your resources. Like staff work preferences or experience level, and consider how you might incorporate them into your visual map.
Create the Resource Allocation Matrix
Bring everything together into a resource matrix by creating a table or grid with two dimensions (an X-axis and a Y-axis). Each row or horizontal unit will represent a resource. Meanwhile, each column or vertical unit will represent a project task.
Fill in your matrix using the information brainstormed earlier. Allocate project tasks to resources and vice versa according to your organizational goals.
It’s smart to look back at past project and resource plans or timelines for reference as you do this. Make sure you note any additional information about your resources that might impact allocation or utilization.
Communicate, Review & Update
With a completed resource allocation matrix, PMOs can easily communicate expectations and goals to all team members and stakeholders. The matrix is a tool that can be leveraged across the entire organization to increase visibility into resource availability and capacity.
As such, your resource matrix will likely need to change over time to continue serving your PMO and teams. Establish systems for measuring how effective your allocation matrix was. And regularly revisit it to identify areas for improvement or change.
Master Project Resource Planning & Allocation with Sciforma Vantage
A resource allocation matrix is one of many visual tools project management offices and teams can use to align project tasks, demands, and outcomes with an organization’s strategic plans.
It’s most useful when it’s part of a larger PPM ecosystem, particularly when paired with resource management software. Sciforma Vantage gives PMOs the ability to map out, visualize, and optimize resource and project plans in minutes.
Ready to get started? Request a demo today to learn more.
More about resource allocation and resource capacity management:
- Resource allocation: The right people for the right job
- Managing Large Scale Projects with Work and Resource Management Software
- 4 Ways Resource and Capacity Management Can Make or Break Your Business
