Whether you’re dealing with resource contention issues, inadequate project management skills within your PMO, or unrealistic schedules and budgets, you need to identify and implement actionable steps over the next 12 months to make sure your PMO is firing on all cylinders. Learn how you can uncover the three key strategies necessary to overcome your resource management challenges and create a sustainable, results-driven PMO culture geared for success.

1. 3 Strategies to
Overcome Resource
Management Challenges
J. Kent Crawford, PMP, PMI Fellow
Originally Presented via Webinar on May 26, 2010
slide 1 | © 2010 Project Management Solutions, Inc. (www.pmsolutions.com)

2. 3 Strategies to Overcome Resource Management Challenges
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Agenda
 2010 Challenges & Priorities
 Top 10 Resource Management Challenges
 3 Strategies to Overcome These Challenges
 Action Plan
© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

3. 3 Strategies to Overcome Resource Management Challenges
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Resource Management is the Top Challenge
Single Greatest PMO Challenge
Resource management 15%
Consistent application of defined processes 14%
Applicability of the PMO to all projects 12%
Demonstrating the added value of the PMO 10%
Significant responsibility/little authority 9%
Executive support 7%
Appropriate funding 6%
Formally defining the PMO role 6%
Getting reliable, accurate information from PMs 6% Percentage
Line manager acceptance 4% of PMOs
Project manager acceptance 3%
Senior manager acceptance 2%
Client acceptance 1%
Other 5%
Source: State of the PMO, PM Solutions’ Research, 2010
© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

4. 3 Strategies to Overcome Resource Management Challenges
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Resource Management Priorities
High Priorities over the Next 12 Months
Improve resource planning and forecasting process 64%
Implement/enhance PM training 40%
Assess competency of project managers 30% Percentage
of PMOs
Increase operational staff within the PMO 22%
Source: State of the PMO, PM Solutions’ Research, 2010
© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

5. 3 Strategies to Overcome Resource Management Challenges
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What’s Really Happening?
• Too many unplanned requests
• Unrealistic schedules and budgets
• Scope creep
• Too many pet projects jumping the queue
• Poorly defined deliverables
© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

6. 3 Strategies to Overcome Resource Management Challenges
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Strategies
#1: Centralize
the Resource
Management
Organization
#2: Practice
Portfolio
Management
at the
Enterprise
Level
#3: Create a
Results‐Driven
Culture
© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

7. 3 Strategies to Overcome Resource Management Challenges
7
Strategies
#1: Centralize
the Resource
Management
Organization
© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

8. 3 Strategies to Overcome Resource Management Challenges
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Top 10 Resource Management Challenges
Greatest Resource Management Challenges
Resource contention issues 14%
Conflicting authority 13%
Inadequate project management skills 11%
Not enough project managers 10%
Roles split with competing priorities 9%
Inadequate resource forecasting 8%
Lack of transparency on resource loading 6%
Percentage
Supply and demand for key skills not aligned 6% of PMOs
Roles not clearly defined 4%
Inadequate info on resource availablability 4%
Source: State of the PMO, PM Solutions’ Research, 2010
© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

9. 3 Strategies to Overcome Resource Management Challenges
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Centralize Resource Management
#1: Centralize
the Resource
Management
Organization
• Full visibility of work across the organization
• Resource pools assigned based on need/skill/demand
• Sponsors that are informed and engaged in resolving resource
conflicts
• “Pay to play” (no more “free” labor)
• Scenario “what‐if” planning
• Put a cost value on everything
• Balance current need with development of people
• Understand current skill mix, when people are available, and
what skills must be acquired (hire or source)
© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

10. 3 Strategies to Overcome Resource Management Challenges
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Assess Organizational Capacity #1: Centralize
the Resource
Management
Organization
• Establish a resource inventory
• Analyze resource capacity against the portfolio
• Forecast resource requirements and resolve
over/under utilization
• Optimize resource utilization in correlation to
portfolio priorities
• Repeat (as often as necessary)
© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

11. 3 Strategies to Overcome Resource Management Challenges
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Tips to Balance Supply with
Demand #1: Centralize
the Resource
Management
Organization
• Determine skills inventory criteria
• Educate PMs on how to estimate and load
projects
• Create a staffing plan or RACI (Responsible,
Accountable, Consulted, Informed) matrix for
each project so PMs, managers, and staff know
who is working on what
• Establish an organizational resource leveling
and analysis process
*Adapted from the Resource Management round table discussion at the Strategy & Projects Summit, Boston, MA, May 2009
© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

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Strategies
#2: Practice
Portfolio
Management
at the
Enterprise
Level
© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

13. 3 Strategies to Overcome Resource Management Challenges
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Portfolio Management at the #2: Practice
Enterprise Level Portfolio
Management at
the Enterprise
Level
• Full visibility into resource
requirements across the organization
• Portfolio planning aligned with
resource skills and capacity
• Ability to apply appropriate assets to
the highest priority projects/programs
© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

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PPM: Where Resource Management #2: Practice
Portfolio
Fits In Management at
the Enterprise
Level
Project Portfolio Management Lifecycle
Active & Business Prioritization &
Funded
Proposed Decision Resource
Projects
Work Criteria Capacity
• Reallocate Resources
• Remove Completed Projects
Portfolio Health & Project Portfolio
• Cancel Projects Value Management
• Sunset Products Contribution System (PPMS)
© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

15. 3 Strategies to Overcome Resource Management Challenges
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Strategies
#3: Create a
Results‐Driven
Culture
© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

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Dilbert on Resource Management
Source: www.dilbert.com – originally published on June 11, 2007
© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

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Create a Results-Driven Culture #3: Create a
Results‐Driven
Use your PMO to: Culture
• Facilitate and optimize portfolio
• Understand, analyze, and forecast resource
productivity
• Provide comprehensive insight into organizational
demand
© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

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Create a Results-Driven Culture #3: Create a
Results‐Driven
Culture
DEMAND MANAGEMENT
Service EXAMPLE:
%
Program
% Maintenance 30
%
25
# of Resources
20
Operations 15
Project
%
%
0 10
5
0
Months
*Percentages are meant to be representations of average time
spent in the various work areas.
© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

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Create a Results-Driven Culture #3: Create a
Results‐Driven
Use your PMO to: Culture
• Facilitate and optimize portfolio
• Understand, analyze, and forecast resource
productivity
• Provide comprehensive insight into organizational
demand
• Establish internal/external positioning
• Provide insight for cost allocation and pricing
• Monitor portfolio performance against
organizational strategies
© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

20. 3 Strategies to Overcome Resource Management Challenges
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Resource Management Action Plan
• Assess organizational readiness to adopt resource
management governance and practices
• Get the pre‐requisites in place first
– Standard methodology
– Consistent estimating and planning of projects across the
portfolio
– Capable PMs and project support
• Inventory resources and skills across the enterprise
• Align resource allocation with portfolio prioritization
• Plan to factor in service, operational, and maintenance
resource demands
© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

21. 3 Strategies to Overcome Resource Management Challenges
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Strategies
#1: Centralize
the Resource
Management
Organization
#2: Practice
Portfolio
Management
at the
Enterprise
Level
#3: Create a
Results‐Driven
Culture
© 2010 Project Management Solutions, Inc. | www.pmsolutions.com

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Thank You!
Kent Crawford
kcrawford@pmsolutions.com
+1 (484) 450‐0115
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