The PMO
Game Changer
A Value Driven Project Resource
Management
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What is a Value-Driven
Project Resource
Management?
Project resource management by PMO
has changed significantly in the last 20
Value-driven
years. It is no more a mere spreadsheet
for allocating resources to the projects
and plug the holes. It has evolved into a
highly value-driven resource manage-
resource management
helps a business reduce
project resource cost,
ment solution.
increase billable/
83% organizations
worldwide are using
one or more PMO’s
strategic utilization, beat
market volatility and
Source : PMI
more. It can potentially
become a key
component of business
profitability and
sustainability.
This
article
value-driven
aims
to
resource
explain
how
management
significantly helps a PMO become the
profit centre of the business.
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01
How can Value-Driven
Resource Management
be a Game Changer
for the PMO?
Traditionally a PMO is seen as an administrative group setting up the project management standards and generating management reports. But in the last few years, a PMO
has started evolving into a value centre. In this journey, modern resource management
has become a key player. It can potentially deliver these values to the business.
Reduce Overall Project Resource Cost by 10-30 %
Increase Billable and Strategic Utilization by 10-20%
Futureproof Your Workforce Against Market Volatility
Leverage the Skills Across Matrix Org. Boundaries
Improve Employee Productivity
Reduce Resource Acquisition Cost
These benefits might sound unreal. But they are achievable
by a modern resource management solution.
5th Gen SAVIOM Enterprise Resource
Management – A Game Changer
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02
#1
Reduce Overall Project Resource
Cost by 10-30 %
Value-driven
resource management
Minimize hiring/firing wastage:
.....
Resource forecasting can help in identifying resource shortage ahead of time.
solution has the potential
Accordingly, resourcing treatments like
to help businesses reduce
retraining internal staff and hiring con-
overall project resource
sultants or freelancers are applied. It
reduces unnecessary wastage due to
cost by 10-30%
hiring and firing.
Minimize under/over skilled resources
Utilize cost-efficient global and local
on projects:
resources:
Both over and under-skilled resources
Enterprise resource management solu-
increase the cost of the project. A
tion helps the PMO quickly identify
modern resource management solution
resources with the right competencies
can help identify & allocate the right
& utilise them across matrix boundaries.
person with the right level of skill &
experience.
Minimize last-minute hiring cost and
compromises:
Minimize Project Onboarding & Off-
Proper resource capacity planning helps
boarding Time:
forecast the future resource require-
An efficient & accurate resource plan-
ments & proactively acquire competent
ning & forecasting can help a PMO mini-
resources ahead of time.
mise onboarding and offboarding time.
Reduce Project Resource
Cost by 10-30 %
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03
#2
Increase Billable and Strategic
Utilization by 10-20%
Maximizing billable utilization of resources in a
professional service business is the key to profitability
and sustainability. Similarly, maximizing strategic
utilization of the resources is crucial to achieving the
strategic goal of the business.
Improving billable and strategic resource utilization requires deep foresight into the
overall utilization of resources. This is a challenging job , especially in a matrix organization with a continually changing resource demand. But a modern resource management
solution can help you get a real-time foresight into the future resource utilisation. So
that corrective actions can be taken ahead of time.
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04
#3
Futureproof Your Workforce Against
Market Volatility
Market volatility in the last few years is continuously
impacting the viability of every business.
Smart resource capacity planning can help you forecast shortages or excesses of resources, and
help you take actions proactively.
By 2030, 85 million jobs will be unfulfilled due to skill shortages
Source: Korn Ferry
Bridge Resource
Shortage Proactively
• Retraining existing employees
• Smoothening the project workload
• Hiring contingent resources ahead of time
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Forward Plan & Utilize
Excess Resources
• Bringing forward future projects
• Selling resource time aggressively
• Restructuring capacity in different areas
05
#4
Leverage the Skills of Resources
Across Matrix Org. Structure
In a matrix organization structure, it may be challenging to acquire a particular skilled
resource in one location compared to others. With an enterprise resource management
solution, a PMO can quickly identify a person with the right competencies and utilise
him/her in any part of the world. At the same time, a high skilled person also can be used
to provide training to a person on the bench.
#5
Employee productivity
increases by 20-25%
where employees
are connected
Improve Employee
Communication & Productivity
Source: McKinsey
A value-driven resource management solution provides seamless work management
and collaboration. It thereby ensures that employees are working productively onsite as
well as, remotely.
This solution can help a business:
• Track status and time spent on both planned and unplanned work
• Enable workflows to streamline project and resource management processes
• Enable seamless team collaboration to improve communication
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06
Best Practices of
Enterprise Resource
Management Software
Resource management has evolved a lot during the last few years. Matured businesses
have adopted well-developed and defined practices to get the best value out of their
enterprise resources. Following are the best practices adopted across the industries.
Enterprise Resource
Scheduling
Resource Utilization
Forecasting
Replace Silos with a Single Plan
Maximize Billable & Strategic Utilization
Replace silos of spreadsheets or
Get foresight into the future utilization
home-grown tools with a single
of resources with real-time forecasting
real-time resource plan across the
and analyse how effective they are.
whole enterprise. Establish a single
Accordingly, move employees from
source of truth about resource alloca-
non-billable work to billable or strate-
tions to the projects or non-project
gic work. Improvement in effective
work such as BAU, Support, admin,
utilization has a direct impact on the
operation, and more.
profitability of the business.
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07
Workforce
Optimization
Resource Capacity
Planning
Allocate Right Resource to the
Minimize Shortfall or Excesses of
Right Project
Resources
Identify cost-effective, competent
Forecast shortfall and excesses of
resources with the click of a button
resources ahead of time by identifying
across a matrixed organisation struc-
the gap between resource capacity
ture. So that the right resource can be
against demand. Accordingly build
allocated to the right project at the
strategies to bridge this capacity gap
right time at the right cost.
by juggling around project timelines,
retrain current employees or hire a
contingent workforce.
Pipeline Project
Management
End-to-End Project
Forecasting
Forecast Proactively for Future Projects
Gain Real-Time Foresight into Future
Forward plan resource requirements
Resource supply and demand scenari-
for future or pipeline projects. Start
os change fast in almost every busi-
identifying and acquiring cost-efficient
ness. So, it is critical to have a real-time
competent resources ahead of time.
forecasting capability and get an early
Avoid last-minute hiring and reduce
warning at every stage of the project
the overall cost of the project.
life cycle. It helps in informed decision
making and taking corrective actions
proactively.
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08
Team Collaboration
Resource Modelling
Streamline Communication and
Simulate and Improve Decision
Reduce Chaos
Making
Enable team collaboration with the
Use what-if analysis to get the best
modern-day solution. It can seamlessly
possible project resourcing outcome
bring a remotely distributed team on a
within the existing constraints. This
single platform. Minimize the waiting
analysis helps you in moving around
period and complete tasks efficiently in
the project’s timelines based on priori-
less time.
ties & puts low priority projects on hold.
Business Intelligence
Real-Time Multi-Dimensional Data Analysis
Get real-time business intelligence for dynamically changing business scenarios. Multi-dimensional analysis using configurable filters
as per the specific requirements of the stakeholder, provides a granular view of data.
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09
How to Select a
Resource Management
Software ?
Although the fundamental principles of resource management might be similar, , every
business has a set of unique requirements for the software. It depends upon the industry
and type of business. So, selecting the right resource management tool is a complex
process which requires several careful considerations.
The following criteria can help to evaluate the right resource management
software: -
User Interface and User Experience
The essential part of the software selection process is that the end-user of the product has a user-friendly interface. It should help navigate
through the system effortlessly without going through too many clicks.
Manages Complexity of Matrix Organization
Structure
Matrixed organization structure has multiple reporting lines making
resource identification, allocation, utilization very hard. So, the software
should be capable of overcoming matrix complexities & manage
resources efficiently while
taking
care of different stakeholder’s
needs.
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10
Needs to be Configurable, Expandability
& Scalable
The software should be highly configurable to meet the specific needs
of the business without making any compromise. So that the company
would have a competitive edge against the rivals. The software should
be also expandable & scalable as per the growing needs of business.
Capability to Reduce Resource Cost
Resource management software should help your business to do
multi-dimensional forecasting. So that the business can get real-time
business intelligence to improve business performance, profitability,
and productivity.
Provides Real-Time Business Intelligence
Resource demand changes every minute in real life. So, it is crucial to
have real-time business intelligence, i.e. reports, analytics, and dashboards. This enables the management to make decisions based on the
latest information.
Integrates with Other Legacy Systems
Most businesses have already invested in enterprise-level systems.
They hold quite a bit of data required by a resource management solution, i.e., resource profile, competencies, project detail, etc. So, the
resource management system must integrate seamlessly with existing applications.
Provides High Return on Investment
Select a tool that offers a high return on the investment in a short time.
It should be possible to have a small phase of implementation without
lots of investment. It minimises the risk of investment and aversion to
change management.
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11
About
The
SAVIOM
SAVIOM
Solution
SAVIOM provides a state of the art tool for supporting
value-driven PMO.
It has more than 20 years of experience working with high valued
global companies around the world. SAVIOM also provides tools
for enterprise resource management, professional service automation, and workforce planning software. So, SAVIOM can help
your business to establish an efficient system geared towards your
specific business challenges.
BOOK A DEMO TODAY
Explore Saviom’s popular resource
management solution by scheduling
a quick demo today.
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