Resource Projection Best Practice 2 – Begin with the Work

The business planning process of balancing what the organization will do with its limited resources is an iterative one. However, resource owners too often focus on the amount of resources they have and alter work estimates so the activity portfolio they are responsible for fits within the resource pool under their immediate control. This practice frequently leads to under-estimating resource needs as managers continually strive to expand their activity portfolios; resulting in reduced quality, late deliveries, and a diminished bottom line.

Beginning with the work emphasizes the need to make quality resource estimates, both in terms of personnel and financial resource needs. While estimators will undoubtedly be aware of the resource limitations of the organization, they should focus their attention on making quality resource estimates thereby allowing the organization, through the use of its work prioritization system, to appropriately rank and select activities for inclusion in the overall corporate portfolio. Only when this is done, does the organization have a high probability of accomplishing all of its approved activities on time, on budget, and at the desired quality level. Managers focusing first on the resource portfolio often find themselves shorthanded, taking shortcuts, and ultimately failing to accomplish overall goals and objectives.

Additional Resources

StrategyDriven contributors recommend the following resource that elaborates and compliments the Begin with the Work best practice:

A Guide to the Project Management Body of Knowledge, Third Edition
by the Project Management Institute

About the Author

Nathan Ives is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.