Don’t leave project resource allocation to chance. Be proactive by creating a resource allocation plan - your project stakeholders will thank you.
Before we talk about how to create a resource allocation plan, let’s sense-check what resource allocation is.
Resource allocation is all about how you assign people, materials, and equipment to a project.
The aim is to have the right resources available at the right time, so you can complete your project in a cost-efficient and timely way.
It means no wasting time or money – twiddling your thumbs – waiting for team members to be needed or tools to be available.
This doesn’t happen by chance. Unless you were born under a lucky star, it’s unlikely the fates will simply align to make all your puzzle pieces fit together perfectly.
This is where a resource allocation strategy comes into play.
A resource allocation plan is – you guessed it – a plan that helps you allocate resources to a project. They’re usually written by project managers – or resource managers if you have them.
It is a project management tool that simply provides a framework to think about the resources a project needs – so you can be more structured and strategic about allocating resources.
For example, consider an app development project. You will probably need software developers, UX designers, copywriters, quality assurance testers - just to name a few roles.
But ‘probably’ isn’t going to cut it. You need to forecast resource needs accurately to ensure you have the right number of the right people at the right time. Otherwise you might end up with:
In contrast, a resource allocation plan helps you understand exactly who you need and when by:
We’ll go into all of this in more detail later.
Effective resource allocation in project management is essential. We’ve already touched on this a little. Like all resource management techniques, it’s about getting the right people in the right place at the right time, so you can complete your project on time and on budget.
Put simply, the benefits of creating a resource allocation plan are the same as the benefits of resource allocation itself – like more accurate forecasting, less schedule variance and budget variance, better client outcomes, etc. – so check those out now if you need a refresher.
But what about the benefits of actually writing the plan? Of doing that work instead of winging it?
Doing a resource allocation plan is actually an investment in your time (and mental wellbeing). Getting everything down on paper will make your life easier in the long run, as you’ll have greater clarity and confidence in your project.
You’ll know exactly who you need, when, and why. This puts you in a stronger position to monitor and manage the project effectively, especially if project scope changes, as they’re prone to do!
With a resource allocation plan in place, stakeholders can see how project resources are being used. This helps build trust and confidence in the project. The process of writing the plan also provides an opportunity for stakeholder input and feedback. This helps make your plan more accurate, which helps ensure better outcomes and client satisfaction. Happy days!
A clear resource allocation plan also provides clarity for your project team. Everyone knows their roles, responsibilities, and deadlines and there’s less risk of confusion or resource clashes.
Part of a resource allocation plan is assessing the priority levels of different project tasks. This is helpful later in your project if you need to make tough decisions about resource allocation. And it ensures resources are allocated in line with both project and organizational goals.
Documenting how you allocate resources provides valuable insights for future projects. You can refer back to past resource allocation plans to understand what resources were used, and make better decisions based on lessons learned.
This gives you a headstart on project forecasting and resource planning, meaning it takes less time to do better work. You can even use past documents as a literal resource allocation template, so you’re not starting from scratch.
Now you’re sold on the benefits of creating a resource allocation plan, you need to know what to include.
Essentially, a resource allocation plan includes a breakdown of the project, a project timeline, and a prioritized list of project resources required. Here’s a checklist of what you’re going to need to create an accurate allocation plan.
Break down the project into the key phases, milestones, or tasks. This makes it easier to work out when everything needs to happen and what resources you’ll need. For example, research phase, development phase, design phase etc.
Further reading: How to Create a Work Breakdown Structure ➡️
Create a draft timeline so you can begin to estimate when and how long each resource is needed. This will help with resource scheduling and budget. Don’t forget to account for task dependencies, meaning certain tasks have to happen in a certain order. And always build in some buffer time to account for the unexpected. Like true love, the path of projects never runs smooth.
Assign each task a priority level – thinking both about how important they are to successful project delivery and whether there are dependencies between tasks. This helps you understand how to prioritize resources in your plan. It also helps later if conflicts arise.
Using your breakdown and timeline, identify resources you need at each stage. We focus on human resources in this article. What different skills and roles do you need to succeed? How many hours are required? Do you have available resources? Someone specific in mind? Who’s your back-up plan if a specific team member isn’t free?
Knowing which project resources you require, you need to check whether they’re available. This is resource management 101. If they are, you can provisionally book them. But if they’re not, you may need to submit a request to recruit with HR, or negotiate with other projects to secure the people you need.
Once you have collected, collated and created the information you need, it’s time to bring it all together in a formal resource allocation plan. But what does that look like…?
Learn more about how to allocate resources here ➡️
There’s no set format for a resource allocation plan – you can do what works for you.
They can be presented in a Gantt chart format, for instance. Some folks find this approach helpful, because you can create a visual timeline and map dependencies easily.
You might use a spreadsheet to create and present your resource allocation plan. That’s fine if you don’t have access to dedicated project planning or resource management tools. But it does mean you’ll have more manual admin and data entry to do – which is both boring and prone to typos.
We’ve got some advice on resource allocation tools to use below. In the meantime, here’s how a resource allocation plan looks in Runn.
If you’ve never created a resource allocation plan before, it can seem daunting.
We’re here to reassure you – so long as you put in the brain work, allocating resources isn’t scary. Here are some best practices to help you get it right.
Successful project management depends on securing the right resources, so don’t leave your resource allocation plan until the last minute. As soon as you get the project scope, start thinking about resource allocation. You’ll be more likely to secure your preferred people. And have more time to work out a Plan B if they’re not available.
Don’t reinvent the wheel. If your organization has delivered a project like this before, look back at the resource allocation plan for that. What project resources were needed and in what quantity? Did the project run smoothly or hit bottlenecks?
These insights can reduce the trial-and-error in your forecasting and improve the accuracy of your schedule and budget from the very start.
If you don’t have historic data and plans to refer to, ask the experts. You’re probably pretty knowledgeable, but you can’t know EVERY detail or every task.
If in doubt, speak to colleagues about the skills needed for particular project tasks. How long do they think they’ll take? Is a senior or junior team member more appropriate? Are there any potential pitfalls to be aware of?
Involve relevant stakeholders in your resource allocation process – it’ll help you get the information you need for a solid plan. Plus their feedback may highlight issues or constraints you haven’t thought of, which will improve the accuracy of your plan overall.
Remember your resource allocation plan is a living document. You don’t just write it, file it, and forget it. Refer to it as you monitor project progress to check you’re sticking to schedule and budget. If not, you may need to adjust your resourcing plans.
If a task over runs, for example, you’ll need to change when future resources are scheduled. And if you go over budget, you may need to consider more cost-efficient allocations.
There’s a lot of project progress metrics to track. But we want to flag resource utilization rates in particular, as they’re so key to project success. If your utilization rate is too high, it means team members are working too hard and at risk of burnout. As well as being morally wrong, this is a serious risk to project success.
Exhausted employees are less productive, more prone to making mistakes, and at risk of higher absences. So keep a weather eye on utilization and make adjustments as needed.
We’ve mentioned above that spreadsheets are OK for resource allocation planning – but they’re slow, manual, and prone to error. Project management tools and resource management tools will make the process faster and more accurate. Check out the next section for a better way 👇
You’re reading this on the Runn blog so you knew this was coming… Resource management software makes it SO much easier to create an accurate and agile resource allocation plan.
Resource management software has:
It’ll make it much quicker and easier to create an accurate resource allocation plan – and to confidently adjust it when change inevitably happens.
See how easy it can be to create accurate resource allocation plans in Runn.
Thousands of project managers – from IT, software development, construction, consulting and other professional service firms – love how easy Runn makes their lives.
But don't just take our word for it. Take a look at what our customers say about how Runn makes resource allocation a piece of cake:
