You know that resource allocation is critical for the success of your project deliveries. It impacts customer satisfaction and your profits. Resource allocation choices also trigger chain reactions that can impact profits and employee morale.
This two-part series describes how the PSA software for IT companies helps in preventing profit leaks due to misallocation of resources.
In this first part, let us take a look at various practices in project planning and resource planning and their impact on profits. Let us see how IT PSA software helps in improving these practices.
Smart resource planning prevents profit leakages and delays
ProductDossier IT PSA helps project managers in planning their projects smartly. The IT PSA software helps them to access the experience of similar projects. They can learn from the effects of resource mix in the completed projects and determine an optimal mix for the project under planning.
Project managers can plan their projects realistically using the competency analysis and resource demand forecast for all live projects.
“Unforeseen resource shortages can either trigger allocation of costlier resources or they can cause missed revenues. Both lead to profit leakages.”
ProductDossier IT PSA helps project managers identify potential bottlenecks and risks and helps them to make the project plans robust. Such robust project planning reduces the risks of resource shortages.
Chain reactions due to misallocation of resources
Project managers prefer the best resources available. If your best people are used for tasks that don’t need their level of competency, it affects their morale. Attrition of your best resources means your organization is being set up for domino effects in the future.
Your best people are costlier. If they are used in lower levels of tasks your profitability suffers.
On the other hand, if people are given tasks that match their skills, they improve their morale. Motivated people perform better, learn faster, and tend to stay in their jobs longer.
Misallocation of resources is a ticking time bomb! It is best to avoid it. The PSA software can help!
ProductDossier IT PSA helps in optimal resource management -a key profit driver
The IT PSA maps resources for their location, experiences, and skills. The software uses algorithms based on machine learning and artificial intelligence to match demands for resources with their availability.
The resource management group or the head of delivery can rationally deal with exceptional situations well ahead of time. This also gives better guidance to the talent acquisition team for recruiting the right people.
The above is not possible when various departments rely on their spreadsheet-based information.
IT PSA provides person-wise profitability – a crucial metric
ProductDossier IT PSA pools together resource-wise and project-wise information across the enterprise. It provides profitability per individual employee. As an employee becomes experienced, his or her costs go up but do the revenues go up? The IT PSA provides the answer quickly and reliably.
“Assessment of person-wise profitability can be used to identify exceptions and analyze root causes to prevent further misallocation of resources, loss of morale, attrition, revenue loss, and profit loss.”
In this part 1, we examined how ProductDossier PSA software for IT companies helps in implementing best practices in projects’ planning and resource allocation phase and how they help in preventing profit leakages and negative effects on employee morale.
In part 2 coming up next, let us discuss what happens during the execution of projects.
To know more or witness a demo of productDossier IT PSA software, please write to us at sales@productdossier