Resource Management vs. Performance Management
Organizations have different focuses for their Project Management efforts. Two typical focuses are resource management and performance management. We can define resource management as concentrated at the portfolio level or at the team level. Performance management is almost always project or program oriented.
From the portfolio/resource perspective we’re typically talking about tools like Oracle Primavera Prosight, Planview, CA Clarity or Microsoft Project Server. For performance management we can think of Earned Value Management tools such as Oracle Primavera Cost Manager, Deltek Cobra, Deltek MPM, SAFRAN, or Artemis Costview.
In addition to different tools used in this space there are also differences in objectives, work breakdown, scheduling, statusing, cost collection, Estimate To Complete (ETC) and Estimate At Complete (EAC), and change management.
Some specifics of these differences are detailed below:
| Resource Management | Performance Management |
| Focuses on resource utilization and optimization | Focuses on achieving cost & schedule commitments |
| Supply Driven: Attempts to balance resource demand (project needs) with supply (resource capacity) across multiple projects or programs | Demand Driven: Generally focused on a single project's resources needed to achieve cost/schedule goals |
| Tracks all resource work (both project & non-project) | Tracks only project work |
| Resource Management | Performance Management |
| Work Breakdown Structures represent grouping of work (often by project phase) | Work Breakdown Structures are decompositions of a product or system (MIL-HDBK-881A standard) |
| Tasks may exist as different levels of the schedule, and are often summarized in a way that best suits how the PM wants to see the data | Tasks rollup to Work Packzges or Planning Packages, which have specific performance measurement objectives, and do not exist outside of these constructs (Some milestones and "duration-omly" events may be exceptions) |
| Resource Management | Performance Management |
| Project schedules represent the effort resources need to be assigned to work on | Project schedules represent deliverables, goals, or measurable accomplishments |
| Schedules are always resource loaded | Schedules may or may not be resource loaded |
| Named individuals are assigned to near-term tasks; future effort may use roles to represent needed skills | A time-phased profile of budget is developed over the duration of the project by Element of Cost (EOC) |
| Tasks durations vary as needed to model resource commitments (from 1 day to several months) | Task durations vary based on:
|
| Resource Management | Performance Management |
| Schedule status driven by individuals with timesheets | Schedule status is independent of timesheets |
| Work % Complete = Actual Work / Work (AC / EAC) | Performance % Complete = EV / BAC |
| % complete is calculated by actual hours on timesheets | EV is determined by EV Technique
|
| Tasks are started when actual hours are reported | Tasks are started when work is authorized and effort is expended (Can use timesheets in some cases) |
| Tasks are completed when all planned work is consumed | Tasks are completed when objective completion criteria have been met |
| Resources Management | Performance Management |
| Interested in how much time individuals have spent on tasks | Interested in how much cost has been incurred for the work performed |
| Actual cost is usuallly in hours, by individual, by tasks | Actual cost is usually in dollars (but could be hours), by EOC, by charge # (mapped to a WBS element such as Control Account or Work Package) |
| Hours are collected from timesheets interfaced with the schedule | Hours are reported through a formal labor accounting system |
Actual costs are approximate
| Actual costs are usually imported from an accounting system and reconciled |
| Non-labor costs are usually not recorded | Both labor and non-labor costs are tracked |
| Resource Management | Performance Management |
| Remaining Work (ETC) is added by resources working on a task | ETC is determined by the responsible manager using a number of factors, including:
|
| Resource Management | Performance Management |
| Tasks are added to the schedule as work assignment evolve | Tasks are added to the schedule in a controlled manner, usually restricted to scope changes and/or planning package conversions |
| Baselines may or may not be required | A Performance Measurement Baseline (PMB) is required for all scope that is to be measured |
If you are implementing Portfolio Management, Resource Management, Performance Management or Earned Value Managment contact Pinnacle.