Plan Resources

When you have identified all the resources you will need for a project, and have estimated your costs in detail, document these and seek your stakeholders’ agreement to every element before proceeding.

Of all the things I’ve done, the most vital is co-ordinating the talents of those who work for us, and pointing them towards a certain goal.

—Of all the things I’ve done, the most vital is co-ordinating the talents of those who work for us, and pointing them towards a certain goal.

A full study of the resources you will need to implement the project is vital. Its feasibility depends on comparing an accurate estimate of the resources required with the benefits it will bring to the organization.

Estimate People Costs

The major cost of implementing a project is often the cost of the people involved. Think about who you will need for each activity and for how long you will need them. The project will have to bear the entire cost of the full-time members of the team. The cost of part-time members can be worked out by establishing the length of time they will spend working on the project.

Identify Other Essential Resources

There are resources apart from people that will have an impact on your budget. Look carefully at all the other resources you will need, for example market research, facilities, equipment, and materials. Examine the details of your requirements. If you will need to reserve a training room, it is not enough simply to know that you will need a training room for a period of a month during the project. You need to assess how large the room needs to be, the equipment you will need, who will supply any necessary catering, and what the costs will be. Do not avoid the detail of your requirements. Knowing the detail ensures that you get the cost right and avoid a small error in each resource requirement causing a large error overall. The more detail you have at this stage the more likely you are to avoid problems during implementation. Making good estimates of resources now will enable your team to focus on achieving the project’s objectives rather than on fixing problems caused by bad planning.

At the early planning stages of your project discuss your resource requirements with suppliers.

Techniques to Practise

The ability to estimate resources and to calculate accurate budgets is vital in project management.

Practise your skills on a DIY project at home.

• Plan the detail of the project down to the number of screws you will need.

• Keep an eye on your budget as you do the project.

• Write down your actual expenditure against each item in your budget to see how accurate a budget you were able to prepare.

• If you went over budget, what did you fail to anticipate?

Make Effective Use of External Resources

While many resources will come from within the team or organization, you will probably need to go outside for others. External contractors can offer a cost-effective and efficient resource to a project.

Contractors may have skills and experience that your organization lacks and needs only temporarily. Form a good relationship with your contractors so that they feel that they are part of the team and committed to the objectives of the project.

• Obtain competitive quotes from more than one potential supplier. Aim for three, since more than that will take a lot of time to evaluate and may prevent potential suppliers putting in the necessary effort to win the business.

• Reach an agreement on performance that is easy for both parties to monitor. There should be an overall aim, an effective measure of their success, and agreement on when they should reach certain milestones.

• Fix the list of costs against what the contractor expects to deliver. Make contingency for the additional things that will inevitably crop up.

• Negotiate the best deal by making it clear that you have other options. Get help if you’re an inexperienced negotiator and the deal is a complex one.

Do not be afraid of getting into very detailed discussions with a contractor. The tighter the agreement, the less likely it is that there will be conflict during the project. For complex projects you and your contractor may want to create a list of risks, how they will be managed, and who they will be managed by.

Make the Most of Scarce Resources

Your organization will always look for the best return from the deployment of its resources. Be prepared to compromise on the resources you need for your project. Look for compromises that do not threaten your objectives. For example, you may be able to use someone less qualified if she is supervised by a key team member.

Create a Resource Matrix

The end product of resource planning is a document showing when you will need all the resources. This document is the basis for the commitment of all the stakeholders to supplying the necessary resources. Write this down in a matrix showing all the activities, the resources involved, who is responsible for what, and the cost. No organization or stakeholder can guarantee that events will not interfere with their commitments; but you are much more likely to obtain and retain resources if you can reach this agreement before starting the project.