As a business leader or project manager, with every new project or initiative, your main focus is on meeting the objectives. But you can only do that when you have an adequate mix of resources and tools to meet the desired levels of performance. Also, how do you know if you have the right resources? You need to do a resource gap analysis.
A resource gap analysis will give you a detailed insight into where you stand and what is required to bridge any deficiencies. Learn what a resource gap analysis is, its benefits, and how to conduct one for your team or business.
Gap analysis is a tool that can be used by managers, business heads, and small business owners to understand whether their current resources (including employees, equipment, time, and money) are helping them meet their goals.
It identifies the “gaps” between the resources you need to achieve your goals and the resources you currently have. Resource gap analysis also takes into consideration the estimated resources needed in the future.
A resource gap analysis can be conducted for a variety of purposes, such as:
Planning a new project
Launching a new product or service
Expanding into a new market
Improving efficiency
Reducing costs
Once you know your goals and your current resources, you can identify the gaps. What are you lacking in resources? Do you need more money? Do you need to hire more people? Do you need to buy new equipment? Do you need more time? In addition to identifying the gaps, also ask how did these gaps come about? Was it a training issue? Hiring issue?
An effective way to fill in gaps between required and future resource needs is by using temporary placeholders. By putting in placeholders for roles, you can see which positions you need to hire to make sure future projects can be completed.
Inadequate resources or poorly scheduled resources are the biggest reason why the majority of projects are derailed or completed at inflated budgets.
A gap analysis is a valuable tool to have in your toolkit as it will allow you to properly plan and execute projects without any setbacks or glitches. It serves as a preventative measure that will help you minimize risks and improve overall performance.
Here are some additional benefits of conducting a resource gap analysis:
A resource gap analysis can help you identify potential risks and challenges to your project. For example, if you are planning to launch a new construction project, you may need to conduct research on all materials required, alongside listing the technical employees (civil engineers, structural engineers, etc) needed to head the project. If you don’t have the right resources available, then you might need to hire or delay the project timeline.
A resource gap analysis can help you make better decisions about how to allocate your resources. For example, if you are short on time, you may need to prioritize your tasks and focus on the most important ones. You may also need to consider outsourcing some of your work to free up your time. It will help you take a call on hiring more employees or training existing ones.
A resource gap analysis can help you avoid overspending or undershooting your budget. By understanding your needs and your current resources, you can create a realistic budget and track your progress against it.
A resource gap analysis can help you improve your project's chances of success. By identifying and addressing potential risks and challenges beforehand, you can increase your chances of completing your project on time and within budget.
So, you are sold on conducting a resource gap analysis. But where does one begin? Fear not, performing a gap analysis doesn’t need a genius IQ level. Follow our four steps and you’ll be well on your way to identifying and minimizing potential project bottlenecks.
The first step in conducting a resource gap analysis is to have a clear picture of what your goal or desired state is. Is it to take on projects X and Z and deliver them on time? Or is it to improve the ROI on resources or launch a new project within a specific timeframe? Writing SMART short and long-term goals will help you define your desired level of performance.
Once you have identified your goals, it’s time to assess your current resource pool. How many people do you have on staff? What equipment do you have? How much time do you have? To accomplish this you need to not only have insight into your entire resource pool (across departments and locations) but also their short and long-term availability.
A resource management software will be able to provide these details in a jiffy as it has a centralized dashboard that captures all information related to employee strength, skillset, availability, and work preference.
eRS, an enterprise employee management tool, provides you with a visual insight into all your company’s resources in real time. There’s a 14-day free trial you can avail that will demonstrate how easy it is to manage your project resources effectively.
Once you know your goals and your current resources, you can identify the gaps. What are you lacking in resources? Do you need more money? Do you need to hire more people? Do you need to buy new equipment? Do you need more time? In addition to identifying the gaps, also ask how did these gaps come about? Was it a training issue? Hiring issue?
An effective way to fill in gaps between required and future resource needs is by using temporary placeholders. By putting in placeholders for roles, you can see which positions you need to hire to make sure future projects can be completed.
The final step is to develop a plan to close the gaps. How are you going to get the resources you need? Once you have an action plan, you can begin to implement it and track your progress.
It’s important to not only have a strategy in place but also set a deadline to implement it because otherwise the change initiatives will be forgotten or overlooked.
Here’s a free resource gap analysis template you can keep handy.
While a resource gap analysis is a valuable tool, it’s not without its disadvantages. Some of the potential disadvantages of conducting a resource gap analysis are:
Conducting a resource gap analysis can be a time-consuming and expensive process. It requires gathering data, analyzing data, and developing a plan to close the gaps. This can be a significant investment of time and money, especially for large organizations.
The accuracy of a resource gap analysis depends on the accuracy of the data that is gathered. This data can be difficult to obtain, especially if it is not already being collected. Also, the data may be outdated or inaccurate, which can lead to inaccurate results.
However, here are some tips for mitigating the disadvantages of resource gap analysis:
If you are new to resource gap analysis, start with a small project or initiative. This will help you learn the process and identify the challenges involved.
If you are not sure how to conduct a resource gap analysis, or if you need help gathering data, consider hiring a consultant.
The results of a resource gap analysis may change over time. Be prepared to adapt the analysis and the recommendations as needed.
If you are looking for ways to improve your business or organization, conducting a resource gap analysis is a great place to start. It’s a simple yet effective tool that can be used in a variety of settings. Follow the resource analysis guide we listed, and it will give you valuable insight into the steps you need to take to see an improvement in overall performance.
eRS can help you identify and bridge the gaps between your target level of performance and your current state. To automate and ease your resource planning, start our free 14-day demo today!
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