How to Increase Revenue with Improved Resource Management

Resource Management

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Last Updated on October 6, 2021 by Work In My Pajamas

Changes in the global economic landscape have affected businesses, especially organisations which offer consulting services or sell people skills. However, it can be said that the equation for success remains the same, optimisation of people skills or improved resource management equals increased profitability. While the math seems simple at first, realisation of its potential can be difficult. Resource management is the answer to this problem, as it provides a framework within which businesses can plan and implement people skills effectively.

For effective planning and utilisation of people skills, many service organisations are now increasingly moving towards resource management software, which offers a complete solution for all your project management needs.

We will first discuss what exactly resource management is, and how using resource management software will benefit you and ultimately increase revenue.

Defining Resource Management

While project management or service organisations are familiar with resource management solutions such as PM (Project Management) and ERP (Enterprise Resource Planning), it is important to note that RM (Resource Management) is a subset of these solutions or processes.

Resource management is also commonly referred to as utilisation or people planning, but essentially it is a process which enables effective planning, managing and deployment of the right people skills at the right time and on the right project.

However, many organisations fail to recognise the value of effective resource management – in both the short term and long term. For example, many organisations do not have a long term plan for resource allocation and utilisation. In project focused companies such as project management firms, planning and managing resources for the long term – at least six to eight months in advance – can mean the difference between failure and success.

The solution to this problem is the implementation of resource management software for your business, as it can lead to effective resource planning and decision making.

Here is how:

Key Benefits of Resource Management Software

Successful businesses are always engaged in finding ways to streamline costs, eliminate waste and improve their profitability. For organisations which offer professional services, employees represent one of the most significant costs to the business. During times of economic crisis, businesses use staff lay-offs as a primary method of cutting costs.

However, the success of any business is heavily dependent on its staff members, and laying off people with experience, required skills and expertise can have an adverse effect on its future performance. Hence, it is important for businesses to focus on effective resource management solutions, as they can not only improve productivity levels, but also lead to increased revenue and profitability.

The right resource management solution for a business can help solve common problems such as lack of knowledge about the available skill sets, lack of visibility in task allocations, resourcing conflicts, increased risk in projects and over or under utilisation of employees. Standardising resource management processes can help boost visibility and control in organisations, which in turn can lead to significant benefits such as increased profitability, as the resources or staff members are also the leading source of revenue.

Specifically, the benefits of streamlining resource management, especially through resource management software can lead to the following benefits:

An Increase in Revenue

Good resource management software can provide businesses with an overview of the available resources. For example, features such as an integrated calendar system allows managers to oversee the entire staff and project deliverables in one calendar. This ensures that issues such as scheduling conflicts or under/over utilisation of staff are eliminated, leading to decreased project risk.

Quick Resolution of Conflicts

Conflict resolution is an important aspect of ensuring that unresolved issues do not lead to missed revenue opportunity or result in a negative impact on future business through decreased customer satisfaction. With features such as Planning Boards, businesses can have a complete overview of their resources and projects, enabling them to identify issues such as double bookings and scheduling conflicts for easy and quick resolution. The problem at hand can be quickly recognised and the employee, or employees, working on the task can resolve the issue before it develops further.

Improved Project Delivery

Improving project delivery can help reduce costs and increase profit margins significantly. With resource management software, businesses can create comprehensive work schedules, allowing easy allocation of resources to specific projects based on criteria such as skills, location, availability etc. If everything is allocated correctly and in good time, the project can be completed without interruptions and deadlines can be met.

This can also help businesses in realising training requirements and shortages of needed skills, thereby improving future resource management. If you were halfway through a project you came to realise that the employees working on it didn’t have the necessary skills to perform a specific task, you’d be in a difficult position and would have to find a way to work around it without impacting the deadline. This problem can be avoided with resource software as with updates in real time, organisations can oversee their resource capacity and capability, enabling improved project outcomes and increased customer satisfaction.

Reduction in Administration Costs

Trying to maintain updated Excel spreadsheets for projects and resources can be tiring, prone to errors and cumbersome to use. It’s also not very collaborative and can make working with a team more difficult. Hence, with online resource management software which gives updates in real time, shows resource availability and project deadlines, businesses can significantly reduce administration costs commonly associated with outdated systems. This can help in increasing profit margins and revenues.

Overall, in order to increase business revenue, it is important to implement a complete resource management solution which provides increased control and visibility over company resources. You need to analyse where resources are being wasted and where they need to be allocated. Failure to do so will limit visibility on cash flow and may be stopping you from putting the most qualified and valued employees on tasks that suit their capabilities.

By improving management as a whole and introducing resource software into the business, you can ensure processes are organised and projects are completed at a satisfactory standard for the client.

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