During the past decade, the growth of services as part of the revenue and profit mix of technology companies has changed how these companies must think about managing human capital. Interestingly, internal IT operations and other shared services teams are often being viewed by their users as ‘internal service providers’ again creating a deeper focus on efficient and effective use of labor. Just as manufacturers learned through advanced inventory planning techniques to have parts available in the right place at just the right time, services providers (internally and externally focused) are now challenged to identify a similar approach to human resource management.
Just-in-Time Resourcing® is RTM Consulting’s brand for human capital management services, helping companies build the right set of capabilities to accomplish the most efficient use of human capital for professional, consulting and shared services (e.g. internal IT) operations. RTM Consulting introduced Just-in-Time Resourcing® solutions to help companies with the complex task of getting the right person with the right skills in the right place at the right time. Getting the right person with the right skills in the right place at the right time, effectively and efficiently, has become mission critical.
Global Resource Management (GRM)
Global Resource Management (GRM), a standard process methodology, was developed for achieving highly efficient deployment of human capital as part of the Just-in-Time Resourcing® brand of human capital management services. Whether your company is large or small, efficiently managing human capital will mean the difference between success and failure.
Key Resource Management Challenges Today
- Project Performance – Recent research shows project failure rates for both billable services (consulting, professional services) and internal IT operations exceeding 35 – 40%. These failures result in billions of rework costs, poor resource utilization, and customer satisfaction issues. A lack of good resource management is a leading cause of these project failures.
- Labor Costs – Bottom line of services project based operations is that most costs are invested in labor. The company that best manages labor costs (and quality) wins. How do I accurately forecast demand and build a workable capacity plan? How do we improve project performance? How do I manage to control or reduce costs each year, while maintaining or growing revenues? Where (geographically) should I hire people and what are the considerations? Can I really use offshore/near shore labor for something other than software or hardware development? How do I maintain high utilization for billable or non-billable type projects?
- Talent Management – How do I hire and manage the best people effectively and efficiently? How do I go about on-boarding people quickly with proper training and get them productive quickly? What are the best methods to retain my best talent?
- Forecasting – Learn the principles of how to forecast your project demand and resource supply, as well as the critical data and activities to keep the two aligned.
- Time, distance and Reach Issues – How do we effectively staff teams working across multiple time zones? Can we really move people across countries and continents and do so affordably and in a timely way? What are the bounds of my geographic reach, and how important is physical presence e.g. local facilities, local labor?
- Increasing Competition – Rapidly growing cost pressure is accelerating the use of labor from low cost regions. Client demands for quality and speed however are not being lowered.
- Internal Fiefdoms – Many, if not most companies have regionalized pools of labor that have become protected fiefdoms. These fiefdoms work in opposition to the need to share the resource pool requiring the breakdown of fiefdoms and a process to enable effective resource sharing.
- Regional Needs – Sometimes local regulations or real client needs differ region to region. What are the resource implications and how do we manage these differences?
- Specialization – Depth of resource and thought leadership are needed particularly in areas where our competitive beachheads are. How do we affordably do this while serving a geographically disperse customer base?
Internal IT teams seeking to improve project performance and utilization of human capital can benefit greatly from optimized resource management. At Alberta Health Services we needed to deepen our knowledge of resource management so we started by investing in the RMCP® program. The RMI vision to build a community and body of knowledge around resource management is another big step forward in helping internal IT teams gain valuable insights and provide collaborative opportunities with industry peers.