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118 RESOURCE AND WORKFORCE MANAGEMENT

Management (MPM), the traditional view of resource management was that it
was schedule-driven. That is, we defined the work first, then we scheduled the
work, and then we adjusted the schedule to consider resource limitations. This
was fine for typical project-driven conditions, where resources existed primarily
to execute projects. More recently, a new model has emerged, where greater em-
phasis is placed on the management of resources (than on the management of
project schedules). This is not to say that the latter is given short shrift. But rather
the primary focus is on workforce management.

There is a subtle, but very significant difference between project resource
management and workforce management. This difference stems from the type of
organization that is involved and its primary focus. When we talk about project re-
source management, we are usually focusing on an organization whose business
strategy is built upon executing projects. The profit focus (if a for-profit organiza-
tion) is on completing successful projects, on time, and within budget, thereby
preserving the planned margin. When we talk about workforce management, we
are usually focusing on a service operation. The firm consists of skilled individu-
als, who will be applied to work, at billing rates that provide for margin over their
actual costs. These service organizations will focus on maximizing the applied
time of these skilled individuals, as well as seeking the most productive opportu-
nities for each person—that which will generate the maximum margin.

In each case, we are dealing with the assignment of resources to work. But in
the first case, project resource management, we tend to focus on the work, and
meeting project objectives. In the other case, workforce management, we tend to
focus more on the resources, improving productivity. Nevertheless, the approach
that we take to schedule and monitor resources on tasks is not all that different,
and we can address the practices and issues in a common section of this book.

As noted above, the algorithms that are built into most of the traditional CPM
programs usually fail to deliver the optimal resource loading solution. Recently,
this has been improving somewhat. In Chapter 4.3, Resource Leveling and
Games of Chance, we present the results of some testing that was conducted a
few years ago, and comment on these results. In this chapter, we find fault with
how many of these products deal with resource scheduling. But, we also advise
ways to make the processes useful.

Ever mindful of our objective to provide guidance for the practical application
of project management, our final chapter in this section offers advice for resource
scheduling and management. Recognizing some of the limitations in the full
value of traditional resource scheduling, we still feel that it is a worthwhile and
important part of project planning and project management. In Chapter 4.4, we
extract all the usable aspects of these tools, to provide some guidance for practical
resource scheduling.