Resource Allocation Plans

Glen Palmer, PSP, CFCC, FAACE and I are honored by AACE publishing another of our Top Ten series of papers in the Cost Engineering Journal. Resource management sits at the heart of project success—and, too often, at the root of costly construction claims. Why Focus on Resources? Most construction schedules are built on assumptions about production rates, durations, and quantities. But when resource planning falls short—whether due to unrealistic manpower peaks, lack of skilled labor, or poor coordination—projects risk delays, cost overruns, and disputes. Rather than waiting for claims to arise, Palmer and Carson argue for a proactive approach: plan, validate, and monitor your resources from day one. Key Takeaways from the Top Ten Approaches: 1. Validate Resources by Discipline: Go beyond surface-level schedule checks. Detailed resource validation—using field-experienced personnel—can identify unrealistic resource peaks and prevent unachievable schedules. 2. Formalize Punch and Warranty List Management: Avoid never-ending completion and warranty periods by developing comprehensive, early punch lists and using structured warranty management systems. 3. Check Resource Earning Curves: Ensure planned progress is actually achievable by comparing planned manpower curves and production rates to real-world constraints. 4. Manage Schedule Compression: When compressing schedules, understand the risks and costs of acceleration and recovery. Use structured analysis and documentation to avoid disputes. 5. Review General Conditions Labor: Monitor and budget field overhead costs carefully, and avoid relying on variable, hard-to-track level-of-effort activities. 6. Use Constructability Reviews: Always have experienced field experts review “fast-tracked” project schedules to spot resource and constructability problems early. 7. Address Trade Stacking and Overcrowding: Analyze crew concurrency and area usage to prevent inefficiencies from too many workers or trades in the same space. 8. Specify Resource Requirements in Schedules: Include resource histograms and percent curves in scheduling specifications to enable thorough schedule reviews. 9. Plan for Resource Availability: Evaluate the availability of skilled labor and specialty resources, especially on large or geographically constrained projects. 10. Minimize Inefficiencies from Disrupted Trade Work: Align procurement, sequencing, and trade starts to reduce disruption, and use targeted planning to ensure work is completed efficiently on the first attempt. Conclusion: Resource-related claims are often avoidable with disciplined planning, honest schedule validation, and ongoing monitoring. By following these ten approaches, project teams can dramatically reduce the risk of disputes, keep projects on track, and protect both profit and reputation.

“Should we add more CSMs, or add more CS Ops?” It’s the allocation question every CS leader faces as budgets tighten and expectations rise. The wrong choice can damage customer retention, blow the budget, or both. The best CS leaders are following a simple formula: Make tech investments where they create efficiency. Make human investments where they generate retention and growth. The Clear Division of Labor Technology excels at tasks requiring consistency, speed, and scale where human judgment isn’t critical: • Administrative work and data processing • Routine communications and follow-ups • Process orchestration and workflow management Humans excel at tasks requiring judgment, creativity, and strategic thinking: • Strategic guidance and complex problem-solving • Relationship building and value creation conversations • Turning satisfied customers into advocates But here’s where segmentation changes everything. Segmentation Drives Everything What works for enterprise accounts doesn’t work for SMBs: High-value segments require human investment. The impact on retention and growth justifies the cost. High-volume segments require tech investment. They value speed and reliability, and unit economics demand efficient delivery. Scaling Isn’t Just Automation — It’s Trust Many CS leaders assume scaling means automating everything. But trust - the foundation of customer success - scales through a strategic blend of tech and human touch: Trust scales through consistency- Reliable delivery of promises, whether automated or human Trust scales through competence- AI-powered insights helping CSMs provide better guidance Trust scales through transparency- Proactive updates that keep customers informed Trust scales through personalization - Understanding unique needs at scale The Resource Allocation Framework Your segmentation strategy drives your resource allocation decisions. Map your customer journey by segment and classify touchpoints as either: • Efficiency-focused (perfect for tech) • Growth-focused (requiring human investment) Then audit where you’re using expensive human resources on automatable tasks, and where you’re using automation for interactions that demand human judgment. CS organizations that execute this principle operate with fundamentally better unit economics. They deliver personalized, strategic value to high-value customers while serving high-volume customers efficiently. They aren’t choosing between efficiency and growth - they’re achieving both. The framework is simple: tech for efficiency, humans for growth. But applying it requires knowing your customers well enough to understand which approach builds the most trust with each segment. Where are you misallocating resources between tech and human investments?

Performance Management: Maximizing Year-End Goal Achievement through Resource Reallocation As we enter the final two months of 2024, teams are working hard to meet or exceed performance goals. Recently, I shared my infographic with tactics for leaders, managers, and employees to drive year-end performance. Today, I’m focusing on one tactic for leaders: 𝗿𝗲𝘀𝗼𝘂𝗿𝗰𝗲 𝗿𝗲𝗮𝗹𝗹𝗼𝗰𝗮𝘁𝗶𝗼𝗻: ensuring financial and talent resources are directed toward the most critical areas. 𝗧𝗼 𝗯𝗿𝗶𝗻𝗴 𝘁𝗵𝗶𝘀 𝘁𝗮𝗰𝘁𝗶𝗰 𝘁𝗼 𝗹𝗶𝗳𝗲, 𝗜’𝗺 𝗶𝗻𝗰𝗹𝘂𝗱𝗶𝗻𝗴 𝗺𝘆 𝗼𝗻𝗲-𝗽𝗮𝗴𝗲 𝘄𝗼𝗿𝗸𝘀𝗵𝗲𝗲𝘁 𝘁𝗼 𝘀𝘂𝗽𝗽𝗼𝗿𝘁 𝗹𝗲𝗮𝗱𝗲𝗿𝘀 𝗶𝗻: 1) Listing remaining projects/initiatives 2) Prioritizing based on stakeholder value 3) Indicating project status (e.g., behind schedule, ahead of schedule). 4)Tracking current budget utilization (e.g., $25k of a $100k project budget represents 25% utilization) 5) Tracking talent utilization (e.g., if 3 out of 4 team members are working on the project, this shows 75% utilization) 6) Identifying opportunities to reallocate resources for maximum impact Both my infographic and worksheet are in the comments. If you found this post helpful, please reshare, comment, or tag others who might benefit. For more resources, follow me, Brian Heger #hr #performanceManagement #leadership

[Management] Have you ever heard of 5W1H2C5M? (Part 2) 🔷The 5W1H2C5M model is purposefully arranged as it is written:  → 5W1H: defines the overview of the project → 2C: ensures the quality and reduces risks → 5M: allocates resources effectively for each stage of the project Dig deep into 5M, we have: 🔶Man (Human Resources) - What roles does each member take? - What are their personalities, qualifications, experience, and capabilities? - If preventive resources are needed, are sufficient human resources available? 🔶Money (Finance/Budget)  - What is the budget for implementation?  - How could the project team get money? - How the team is going to allocate and use the budget for particular activities? 🔶Material (Raw Materials/Suppliers)  - Which are the needed materials? How many/much? - What are the standards for raw materials and suppliers? - Which delivery method, delivery term, and payment method should be applied? 🔶Machine (Technology and Equipment) - What technological methods (apps, websites, tools, etc) need to be applied to carry out the work? - Is the compatibility level between various technical equipment suitable for the task requirements?  - Are these tools or equipment easy and quick to adapt or require training? 🔶Method (Processes and Procedures) - What is the work process and work rules? - What best practices and methodologies are available and applicable? (Agile, Waterfall, Lean, etc.) - How will communication be managed among project team members and with stakeholders? I highly recommend the project managers/leaders be careful and mindful of the “Method” part. The work process seems to be simple but can cause huge problems and conflicts. Therefore, prepare the work rules, make sure you communicate them clearly and all team members agree to obey the rules before working. The 5M in 5W1H2C5M framework is more than a tool; it's a mindset shift that empowers project managers to navigate the complexities of modern projects with confidence and precision. Whether you're looking to refine your resource allocation strategy, enhance project clarity, or simply elevate your project management game, integrating this framework could be the key to unlocking new levels of success. #management #planning #leadership #projectmanagement #tips

Recently, I shared my thoughts on Clutch about the topic of "Effective Resource Planning in DevOps: How to Avoid Overloads and Increase ROI". In my article, I mentioned the key principles but I would like to delve deeper into the topic. For example, I would like to analyze 10 practical tips in detail for sustainable management of DevOps resources, from flexible planning to long-term strategies. In the fast-paced world of DevOps, resource management isn’t just about cutting costs—it’s about building efficiency, resilience, and scalability. Sustainable practices ensure your team thrives without burnout or wasted effort. Here’s how to set your DevOps team up for success: Be Flexible DevOps landscapes shift rapidly. Adopt tools and workflows that adapt to changing priorities, whether scaling infrastructure or pivoting project goals. Flexibility prevents bottlenecks and keeps innovation flowing. Align on Team Goals Start with clarity. Define shared objectives (e.g., reducing deployment time by 20%) to ensure everyone works toward the same outcomes. Alignment eliminates duplicated efforts and silos. Establish Strong Communication Channels Use platforms like Slack or Microsoft Teams for real-time updates. Regular stand-ups and retrospectives keep teams in sync, especially in hybrid environments. Periodically Review Resource Plans Audit resource allocation quarterly. Are cloud costs ballooning? Are underused tools draining budgets? Adjust based on data, not guesswork. Develop Detailed Timelines Break projects into sprints with clear milestones. Tools like Jira or Trello visualize progress, helping teams stay on track and managers anticipate delays. Implement Priority-Based Task Management Not all tasks are equal. Use frameworks like MoSCoW (Must-have, Should-have, Could-have, Won’t-have) to focus on high-impact work first. Regularly Evaluate Team Skills Identify skill gaps through feedback or performance metrics. Invest in training (e.g., Kubernetes certifications) to keep your team ahead of tech trends. Develop Backup Plans Expect the unexpected. Automate failovers, maintain redundant systems, and document disaster recovery protocols to minimize downtime during outages. Embrace Agile Practices Agile isn’t just for devs. Apply iterative workflows to ops tasks—test automation, incremental deployments, and continuous feedback loops optimize efficiency. Plan for Long-Term Needs Balance immediate demands with future growth. For example, choose scalable cloud providers or modular architectures that support expansion without overhaul. Sustainable DevOps isn’t a one-time fix—it’s a mindset. By combining agility with strategic planning, teams reduce waste, boost morale, and deliver value consistently. #TechTrends #clutch #devops #software #Agile #Operationalexcellence

Resource planning separates successful firms from those constantly scrambling to meet deadlines 📊 Most finance teams operate in reactive mode, putting out fires instead of preventing them. I've worked with dozens of clients who struggle with this exact problem. They're always stressed, always behind, and wondering why profitability suffers despite working harder than ever. ➡️ CAPACITY PLANNING FOUNDATION You know what I've learned after years of helping firms optimize their resources? It all starts with forecasting your hours correctly. See, when you can predict workload based on historical data and upcoming client needs, you avoid that feast or famine cycle that absolutely crushes profitability. Monthly recurring revenue clients need consistent attention too. Don't make the mistake I see so many firms make by forgetting about them during busy season. Client volume scaling requires a completely different approach. Growing your client base means different staffing patterns and retention strategies. Plan resources based on both current clients and realistic growth projections. ➡️ BUDGET VS ACTUALS Track your planned versus actual resource utilization religiously. Variance patterns tell you exactly where your assumptions are off. Sometimes it's scope creep eating up resources. Sometimes it's inefficient processes slowing everyone down. Sometimes it's just unrealistic estimates from the start. Your resource planning gets better when you learn from what actually happened versus what you expected. Create accountability across your team so everyone understands how their work impacts overall capacity. ➡️ TIME TRACKING Without accurate time data, resource planning becomes pure guesswork. Monitor your billable versus non-billable ratios to understand true capacity. That administrative time still consumes resources and needs planning. Track project profitability in real-time so you can course-correct before it's too late. Waiting until project completion to assess profitability costs money. Use time data to identify productivity bottlenecks. Maybe certain work takes longer than expected, or specific team members need additional training. ➡️ STANDARD OPERATING PROCEDURES Document your repeatable processes and workflows. This dramatically reduces training time for new team members. Consistent processes mean more predictable resource requirements. When everyone follows the same approach, you can actually forecast capacity accurately. ➡️ CLIENT SCOPE DEFINITION Clearly define project boundaries upfront. Scope creep destroys resource planning faster than anything else I've seen. Set realistic client expectations from the start and stick to them. When clients want additional work, have a system to price and resource it properly. === Resource planning isn't glamorous work, but it's what separates profitable firms from those working harder for less money. What's your biggest resource planning challenge?

🚀 Unlocking Efficiency with Template Allocation in SAP 🚀 In the dynamic world of enterprise resource planning, optimizing resource allocation is crucial. One powerful tool in SAP that often goes underutilized is Template Allocation. 🌟 What is Template Allocation? Template Allocation in SAP allows for the distribution of costs and activities based on predefined templates. This method is particularly useful for scenarios where activities need to be allocated to multiple cost objects, such as production orders or cost centers, based on specific criteria. Why Use Template Allocation? Efficiency: Streamlines the allocation process by automating the distribution of costs and activities. Accuracy: Ensures precise allocation based on actual data, reducing the risk of errors. Flexibility: Can be customized to fit various business scenarios and requirements. How Does It Work? Define Templates: Create templates that specify the allocation rules and criteria. Assign Activities: Link activities to the templates, ensuring they are allocated according to the predefined rules. Execute Allocations: Run the allocation process, distributing costs and activities as per the templates. Real-World Application Consider a scenario where you have a cost center with a consulting activity type posted on it. You want to allocate this consulting activity to a product cost collector based on the actual activity quantity posted on the machine activity type in the product cost collector. Using Template Allocation, you can distribute the consulting activity costs accurately based on the machine activity quantities, ensuring precise and efficient resource management. Benefits -Improved Resource Management: Better visibility and control over resource allocation. -Enhanced Reporting: More accurate and detailed cost reports. -Scalability: Easily adapts to growing business needs. Embrace the power of Template Allocation in SAP to drive efficiency and accuracy in your resource management processes. 💼✨ #SAP #ERP #TemplateAllocation #ResourceManagement #BusinessEfficiency

Technology Resource Pipeline Planning: The Strategic Advantage that Every Organization Needs In today's rapidly evolving tech landscape, the difference between thriving and merely surviving often comes down to one critical factor: “strategic resource pipeline planning”. Too many times I have found organizations are in a reactive mode—frantically searching for talent when projects are already underway, or discovering skill gaps when deadlines are looming. This approach not only just impact delivery timelines; it compromises innovation potential and competitive positioning. So What’s an effective technology resource pipeline planning looks like: 🔍 Skills Forecasting: Analyzing upcoming projects and technology roadmaps to identify future talent needs 6-12 months in advance. This starts at the planning phase and keeping an inventory of your current talent pool helps. 📊 Capacity Modeling: Understanding current team capabilities and mapping them against projected workloads to identify potential bottlenecks. Keeping a buffer/talent bench helps but it’s a privilege few can afford recently. 🎯 Strategic Talent Acquisition: Building relationships with key talent before you need them, not when desperation sets in. Augment the FTE pool with contractors if necessary , but as leaders always have an eye for talent in every professional interaction. 🚀 Internal Development Pathways: Creating clear progression routes that align individual growth with organizational technology evolution. Identifying potential and invest in up-skilling your team. Also this will lead to my next point, cross skill. 💡 Cross-Training Initiatives: Developing T-shaped professionals who can bridge skill gaps and provide flexibility during transitions. Your next talent hire might come from the teams you interact regularly. Consciously practicing these approaches will build sustainable competitive advantages. This will prepare organizations to launch products on schedule, adapt quickly to market changes, and attract top talent. The bottom line: Resource pipeline planning isn't just a project management task. It's a strategic imperative that requires collaboration between technology leadership, talent acquisition, and business strategy teams. #TechLeadership #ResourcePlanning #TalentStrategy #TechnologyManagement #Innovation #TeamBuilding