What Is A Resource Allocation Model? Benefits & Types

Having limited resources is a common challenge in project management. A resource allocation model can help you do more with less and manage your resources more consistently and sustainably. Here’s how it works, and what resource management software tools to use.

What Is A Resource Allocation Model?

A resource allocation model is a framework that helps you distribute resources to projects, departments, or other initiatives. It can help you more strategically distribute available resources to achieve your goals and complete project work.

Is the project managing you?

Sign up to get weekly insights, tips, and other helpful content from digital project management experts.

Your email*

This field is hidden when viewing the form

Consent

Yes, I want to sign up to receive regular emails filled with tips, expert insights, and more to build my PM practice.

By submitting you agree to receive occasional emails and acknowledge our Privacy Policy. You can unsubscribe at any time. Protected by reCAPTCHA; Google Privacy Policy and Terms of Service apply.

Comments

This field is for validation purposes and should be left unchanged.

Types of Resource Allocation Models

There are different types of resource allocation methods that you can use depending on the type of project and the way your organization is structured. These include:

• Top-down allocation: Top-down allocation can mean two different things. The first is that senior leaders or other stakeholders are allocating resources (from the top of the organization down). The second is that resources are allocated at the highest level of the project without as much specificity. You look at project needs broadly and then match those needs with resource availability.
• Bottom-up allocation: In this method of resource allocation, individual departments plan their resourcing needs and bubble them up within the org. Teams resource projects, share with department heads, who pass updates up to management and the C-suite.
• Fixed allocation: In a fixed model of resource allocation, you have to make do with what you have. In essence, you get what you get, and you don’t get upset. This method may lead to over- or under-allocation and does not allow for resource optimization (if you’re too busy or not busy enough).
• Variable allocation: Variable resource allocation models might be among some of the most popular. They allow you to change your resourcing as your needs change. Unlike the fixed allocation model, this kind of model will let you optimize based on your real needs. You can request more resources when busy or reallocate them if things slow down.
• Hybrid: Like other project management methodologies and techniques, a hybrid resource allocation model is exactly what it sounds like. It is a combination of two or more resource allocation models. By using a hybrid methodology, you can take the best of each and come up with a technique that works best for you and your project needs.

Benefits of Resource Allocation Models

As with most aspects of project management, you get better results with a defined model (or by taking parts of different models) than you do when you try to reinvent the wheel. By choosing the right model for doing your resource allocation, you get:

• Consistency: By using a model to create a resource allocation process, you can make sure you’re allocating your resources consistently. While picking a model isn’t the only thing you need to do to allocate resources consistently, it can be a big help.
• Efficiency: Using a repeatable model to allocate resources can make you more efficient. A broader project planning process is important, but choosing a specific model for resource allocation helps you allocate efficiently.
• Transparency: Choosing and sharing a resource allocation model lets you be transparent with the team and stakeholders. Clear, consistent resource allocation reduces confusion and limits questions from your team. It helps prevent talk about favoritism in project assignments or team pairings.

Challenges With Resource Allocation Models

Like every tool, technique, and methodology, resource allocation models aren’t one size fits all and it’s not a one-and-done activity. Here are a few common challenges you may run into when selecting and using a resource allocation model and how to overcome them.

• Resourcing needs can change over time: The resource requirements at the beginning of a project are seldom the same as the project moves through its phases. Choose a model that is adaptable as you go through planning cycles. A fixed allocation model may seem straightforward, but it can present additional challenges when resourcing needs change.
• Models may not be flexible with changing project requirements: Evolving requirements, like law shifts or stakeholder changes, can quickly affect your resourcing needs. A rigid resourcing model may require extra effort to meet new project needs effectively.
• You may need to use more than one allocation model to get it right: There is not one perfect model to help you with resource allocation. Balancing strategic objectives, resource availability, and even your budget takes skill and is more of an art than a science. You can use these models to evaluate scenarios, but they won't automatically solve your resource allocation issues.

Tools For Resource Allocation

Resource allocation doesn’t just happen in your spreadsheet, brain, or Miro Board. There are many resource allocation systems baked into some of the project management tools and software you are already using.

Here’s our list of the best resource management software.

1. 1. Scoro — Best for forecasting team utilization
2. 2. Float — Best for intuitive resource management
3. 3. Kantata — Best for real-time resource utilization
4. 4. Productive — Best resource planning and capacity forecasting
5. 5. Resource Guru — Best for hassle-free resource booking
6. 6. Wrike — Best for scalability
7. 7. Bonsai Agency Software — Best for workload optimization
8. 8. monday.com — Best for simple workload planning
9. 9. Hub Planner — Best for midsize and large companies
10. 10. Acuity PPM — Best for project portfolio resource management

Best Practices For Using Resource Allocation Models

If you’re looking to master resource allocation, here are some best practices to help refine your methods and better manage resources.

• Choose the most ‘pessimistic’ model: Projects face changes—time off, new tasks, shifting requirements—so choose a pessimistic resource allocation model. This will let you make sure you aren’t under-resourcing your team and that they’re able to complete their work as scheduled.
• Check your allocation approach with your team: The people doing the work can give you the best feedback regarding your resource allocation methodologies. Regularly confirm team resources and review historical timesheets and budget reports to assess your methods. While this may not be helpful for past or current projects, you can take your learnings into future projects.
• Question your model: Plans on paper don't always work; professional athletes adjust their plays based on the game's realities. Strategies differ greatly when leading comfortably in the first quarter versus trailing by seven with two minutes remaining.

Join For More Resource Allocation Insights

If this article inspired you to question your current practices or make a change, consider joining our community for more resource allocation insights. Sign up today to get access to our tools, templates, and community of experienced project managers; get help with your resource management challenges; and grow as a project manager.