Project management vs resource management: two names for the same thing - or fundamentally different practices? Dig into the facts, and decide for yourself.
At first glance, you might be mistaken for thinking that resource management and project management are just two names for the same thing - simply more jargon to keep track of while you're just trying to do your job.
And while we're not about to say that the field of project management is free of jargon (on the contrary), we will say this: there is a reason for the distinction, because resource management and project management are in fact quite different.
And even though some responsibilities of project and resource managers overlap, these are two different roles - equally important, complementing each other, and both contributing to successful project delivery.
In this article, we will get into details and explore the nature of these processes, pointing out the differences and similarities and explaining how you can use them for business success.
In short, the answer is - no, they're not. To show the difference, let's take a look at the definitions of each of the terms:
Project management is the discipline of planning and facilitating the execution of tasks aimed towards a particular outcome (i.e. the goals of the project).
A key goal of project management is to deliver the desired project outcomes to a high standard of completion, while sticking to specific project timelines and a budget. This is achieved by making a project plan and organizing and executing tasks from the project's start to its end.
The project management process involves:
This way, the role of a project manager (or a Project Management Office) is to organize and guide the team towards a certain goal, ensure that the customer is satisfied, and help the organization achieve a profit.
While there are administrative tasks involved, effective project management is primarily about leadership, strategic decision-making, and driving the project towards its goals.
The job of a project manager is not simply to follow project plans unwaveringly. Ensuring successful delivery of the project is the ultimate goal - and sometimes initial plans have to change in order to get there.
Deviating from the original plan is not failing: after all, there will always be unexpected situations you have no control over. So instead of trying to stick to unworkable plans, it makes much more sense to be flexible and adapt to the environment in order to achieve the outcomes you want.
It’s more about communication. Only by communicating regularly, a project manager can identify risks, help deal with challenges, and update the key stakeholders.
Resource management is the process of ensuring an effective use of internal and external resources, such as team members, skills, finances, equipment, materials, etc. The responsibility of a resource manager (or a resource management office) is to ensure that there are enough resources to complete every project and that these resources are reasonably distributed.
Resource management includes:
It’s about assigning the right people to the right project – and at the right time. A resource manager must consider various factors, like availability, skill sets, and even the desire of a person to work on a particular task. The wrong choice can lead to resource over-or underutilization, missed deadlines, or quality problems - that's why resource management is really important.
Resource management is not about scrambling to staff projects in response to last-minute decisions made by other stakeholders. It’s can (and should) be strategic - but this only works when resource managers are given a seat at the table and involved in project planning operations from the outset.
When allocating resources strategically, a resource manager considers the whole picture, analyzing the current situation and, what’s important, forecasting the future. The effectiveness of the resource management strategy can be measured by resource management KPIs.
If resource managers want to allocate resources across multiple projects effectively - especially if those projects are running concurrently - they can't afford to get too caught up in the minutiae of the day-to-day project operations.
Instead, they need to keep a bird's-eye view and focus on key relevant details, such as timings, budgetary concerns, and resource risks.
While some responsibilities of project and resource managers overlap (such as ensuring project success, continuously communicating with the team, or organizing team members’ work,) these are two separate processes.
And the main difference between them is the level managers operate at:
Project managers operate at the project level: they are in charge of a project(s), working within specific timelines.
Resource managers operate at the company level: they allocate resources to multiple projects, working continuously as they’re involved in all the company’s projects.
We can also add that while project management is about breaking down the project into tasks and processes, resource management focuses on assigning people to those tasks.
In other words, project management is task-focused, while resource management is people-focused.
In smaller organizations, a project manager might also take on the role of a resource manager. However, the larger the organization, and the more projects you're working on simultaneously, the harder it is to tackle both the project and the people working on it.
In these cases, hiring a resource manager and getting buy-in for the resource management strategy would be a great idea.
Project management and project resource management complement each other, and it's best to apply both of them. However, in some situations, you should pay more attention to one than the other.
Focus on project management when:
Focus on resource management when:
Software simplifies the work of both project and resource managers, especially when working on large projects with complex dependencies and many moving parts.
However, the tools are not one and the same thing - as they are built to perform fundamentally different functions, they have a host of different features. And while some project management tools do have basic resource management functions, these are often limited.
Project management software is focused on assigning and managing project tasks, tracking KPIs and key metrics, and tracking multiple projects at the same time. The features of such software include scheduling, time estimation, priority setting, KPIs tracking, template creation etc.
The use of project management software helps organize teamwork by fostering better communication, keeping all the important information in the same place, and managing timelines.
Here’s a list of some project management tools:
In addition to that, you could also use MS project alternatives that work specifically for larger teams.
Resource management software is focused on tracking resource capacity and utilization, as well as resource skill sets and capabilities. Thanks to this type of software, it’s easier to build an effective team, avoiding under- or overutilization and make sure people are allocated tasks that fit their skills.
Resource management tools help you see a visual representation of your resource pool, skill sets and availability, utilization and project deliverable timeline etc. This lets you allocate resources based on availability and skills / knowledge, set realistic timelines, adjust projects, justify hiring needs, and even forecast workloads.
By using resource management tools, you can achieve better operational efficiency and transparency, reduce employee burnout, and create conditions for better employee retention.
Here are some resource management tools for you to consider:
Project management involves planning tasks, and resource management - planning people, so they are equally necessary for successful project delivery. By applying these processes simultaneously, you ensure structure and meaning, as well as organization and efficiency, this way encouraging and maintaining profitability.
