Ultimate Step-by-Step Guide For Better Business Resource Allocation- image

Ultimate Step-by-Step Guide For Better Business Resource Allocation

Team Onstro on December 1, 2023 in Booking & Scheduling

Highlights

  • The optimum utilization of business resources is between 70 to 80%.
  • You need to track, analyze, and evaluate your project for better allocation of resources.
  • It is only through the right software that you can manage growing business resources.

Effective allocation of resources is often considered the backbone of the business. Now, the million-dollar question arises: What is proper allocation of resources? According to Gartner analyst Robert Handler, the optimum utilization rate of a resource is between 70-80%. Resources that are not utilized for at least 70% of the time are considered underutilized. Similarly, if resources spend more than 80% of their time on tasks, they are likely to be less productive, which ultimately costs the company time and money. Therefore, there is a need to balance between these two points for optimum utilization of resources.

That’s exactly where you need a solid resource allocation plan to overcome this situation. Keep on reading to understand all you need to know to draft a resource allocation plan.

Also Read: Why is Resource Management Software Important in Business?

7 Steps to Allocate Your Business Resources

Small business resources are often scattered. A strategic approach to resource allocation is the perfect solution to address this problem. Now, let’s get right into the question: What are the strategies for resource allocation?

  1. Evaluate your resources

    First of all, calculate the resources available at your business for a project. Then, consider their ability to contribute to the overall productivity. A simple measure to calculate this is by tracking the time and effort made by a particular resource to complete a similar task in history. This will help you a lot to allocate resources in such a manner that it results in optimum productivity.

  2. Analyze your project

    The first thing you need to do after taking up a project is to divide it into simple tasks just like chewing food for easier digestion. Then, record these milestones into the resource management system for better execution.

    Now, refer briefly to your project to identify the work involved in it. It helps you to have a rough estimation of the allocation of resources for the project.

  3. Assign the tasks

    The next step is to assign the resources to the tasks, as per estimation. Consider the skillsets of the resources while assigning to ensure that the right tasks are allocated to the right people. It is better to set working hours during allocation for deadline management. This helps you to avoid the chances of overworking or underutilization while allocation of resources.

  4. Get Feedback from the Team

    Do not assume that your resource allocation plan is perfect. There is always room for improvement. Try to get feedback from the team members on whether they are happy with the allocated tasks.

    This helps you to check whether the right tasks are allocated to the right people with the necessary skills. All you need to do is to contact the team heads or even the members directly and encourage them to open communication.

  5. Track your projects

    After the allocation of resources, you need to keep an eye on the project’s progress to ensure everything is right. The key to ensuring project success itself is efficient performance tracking of resources.

    Unfortunately, Hubspot’s Marketing Research report states that just 58% of businesses do timely tracking of resources which is the primary reason for project failure. Only an efficient tracking system could ensure whether you have maintained a proper balance between work overload and underutilization of resources.

  6. Make contingency plans

    The golden rule for every business is to always be prepared for the unexpected. Consider common situations like sick leave, holidays, and all that could create a disruption to the workflow.

    It is better to address such situations before they happen. One effective measure is to maintain a list of outsourced staffs who are willing to take up the work in case of any emergencies. The effort involved in searching for someone in the hour of need could be saved by maintaining such a list.

  7. Run an evaluation

    At the end of every project, it is important to conduct a post-project evaluation. Some basic points to consider in this analysis are:

    • Efficiency of allocation of tasks
    • Any delays or discrepancies in work
    • Ensure a balance of work structure.
    • Identify the areas of improvement.

    Resource management software would be of great help in this step. It helps you to track and record the usage of business resources efficiently for a better analysis.

Also Read: 5 Reasons Your Business Needs a Resource Tracking System

Conclusion

Now, you might have found out how are resources allocated effectively.

Management of business resources is an important aspect, and it is true that project managers play a crucial role in that. However, it is important to keep in mind that humans have limitations to grow up with the business and its resources.

Well, this does not apply to the right business software. Onstro is a multi-functional resource management platform that integrates all functions related to the allocation and tracking of resources essential for project execution.

Contact us now for an all-in-one technological platform.

Team Onstro