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How do you know if you need resource management?
Resource management

How do you know if you need resource management?

Estelle Barthés
Content manager
December 8, 2023
6 min

There are two typical resource management solutions. Basic solutions, such as Excel, or informal ones (oral exchanges and memory!) often characterize IT services companies and fledgling consultancies. Structured solutions, on the other hand, are based on the implementation of a real approach and the adoption of a dedicated resource management tool / assignment

At what point do you make the switch from a limited or even non-existent resource management approach to a truly comprehensive approach and the associated solutions? 

To find out, you need to observe a number of symptoms. Napta describes them, and shows you how to implement a structured resource management approach. 

Signs that you need a resource management approach

Loss of customers

Losing customers is often the first alarming sign of poor resource management. For example, IT services companies may have to withdraw from a project, and thus lose a customer for good as a result of a poorly managed project. 

The causes of this failure can be numerous: missed deadlines, service quality below expectations, etc. 

What do they have in common? Each cause generally corresponds to one of the symptoms of poor resource allocation. Often, negative feedback from customers, particularly concerning late deliveries and insufficient quality of the work delivered, is directly linked to shortcomings in the management of human and technical resources (assigning an assignment to a consultant who is incompetent on the subject, lacks motivation, etc.).

These shortcomings translate into an inability to retain loyal customers. And when you consider that acquiring a new customer costs 7 times more than keeping one and that the same loyal customer spends on average 2.5 times more than a new customer, we can't recommend enough that you think about a real resource management approach for your firm.

Reduced profitability for your consulting firm

Inefficient resource management inevitably leads to lower profitability. 

In a consulting firm, for example, misallocation of resources can lead to an increase in overtime in order to fill gaps and meet deadlines. This has a direct impact on operating costs: expenses rise, while profit margins on the projects concerned fall. 

When a team doesn't have the right skills or is overloaded with work, efficiency falls, prolonging project times and increasing costs. 

This dynamic creates a vicious circle where resources are constantly under-performing, exacerbating financial deficits and undermining the company's overall profitability.

Decline in the quality of projects delivered

There are several reasons for the drop in quality of deliverables, all of which are linked to poor or absent resource management. 

The mismatch between employee skills and project requirements is a major cause. When employees don't have the required skills, service quality inevitably suffers. 

It can also be due to work overload. The resulting fatigue and concentration problems inevitably lead to errors. Conversely, too much inactivity on the part of consultants between assignments leads to demotivation, which in turn impacts on the quality of deliverables. 

The decline in service quality affects the company's reputation and undermines customer confidence. 

High employee turnover

A high employee turnover rate is often a sign of poor resource management management. 

In the consulting field, the repeated assignment of consultants to projects for which they do not have the necessary skills, or their prolonged inactivity between two assignments, can cause considerable stress. 

This frequently results in an increase in sick leave, revealing underlying problems in personnel management. Consultants constantly deployed in environments unsuited to their skills can feel undervalued and overworked, affecting their health and well-being. 

This situation creates a vicious circle where stress and dissatisfaction lead to frequent departures, forcing the company to constantly invest in recruiting and training new employees. This is obviously an additional cost, and a brake on the company's stable growth.

Do you recognize one or more of these symptoms applicable to your IT services companies or consulting firm? This means you need a real resource management approach, and to stop relying on Excel.

The need for a structured resource management approach

Optimal resource management is a matter of survival for the company, but it must not be rushed. 

There are several stages to the process: 

  • Step 1: Conduct an internal audit. This audit assesses the current state of the company's human and technical resources, clearly identifying areas for improvement. 
  • Step 2: Develop a strategic plan for resource allocation. This may involve, for example, setting up a targeted in-house training program to develop employees' skills in key areas for whichIT services companies is regularly called upon. 
  • Step 3: Adopt a resource management solution / . assignment. You benefit from a clear dashboard, defining priorities and enabling effective monitoring of KPIs. A system of assignment allows you to assign consultants to projects according to their skills and availability, while monitoring performance indicators.
  • Step 4: Regularly review and adapt strategies. This enables the company to keep in step with its objectives. This dynamic approach also contributes to responsiveness to market changes and internal needs.

Integrating resource management into the company's overall strategic planning offers a number of advantages several advantages

  • Improved employee satisfaction
  • Optimizing profitability
  • Increased service quality
  • Increased customer loyalty, etc. 

Things to remember

There are several signs that should alert you to the need to implement a genuine resource management approach. Overloading or under-utilization of resources is an obvious warning sign, leading to delays and a drop in service quality. 

The consequences of ineffective management are manifold: loss of customers, reduced profitability, high employee turnover. These impacts are exacerbated as companies grow, making structured resource management essential.

Implementing a resource management approach involves auditing existing resources, developing a plan, adopting a dedicated tool and constantly monitoring strategies. Selecting an appropriate solution is certainly the most critical stage, as it determines the success - or failure - of resource management. 

Our advice? Compare and choose a modular tool like Napta.

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