Resource Scenario Planning and Impact Analysis

What is Resource Scenario Planning

Resource scenario planning involves creating hypothetical scenarios that explore the potential impact of changes in resource allocation on project outcomes.

For example, a project manager may create a scenario that looks at the impact of increasing or decreasing the number of resources assigned to a project or project schedule. By analyzing these scenarios, project managers can identify the most effective resource allocation strategy for achieving project goals.

What is Resource Impact Analysis

Impact analysis is a technique used to assess the potential impact of changes to project resources on project outcomes. It involves analyzing the impact of a change on various project factors such as cost, schedule, quality, risk, and scope.

For example, if a project manager needs to reduce the number of resources assigned to a project, they may conduct an impact analysis to identify the potential impact on project milestones, budget, and quality. By doing this, they can make more informed decisions about resource allocation and manage stakeholder expectations.

Examples of scenario planning and impact analysis

“If you want to make God laugh tell him your plans”, project managers are more than aware of this saying. Your project will deviate from the original plan, that’s the reality, and the ability to anticipate and plan for the potential changes and their consequences is what sets a really successful project manager from the rest.

Here are some real-life examples of cases when a project or resource manager can benefit from a robust resource management platform that offers impact analysis and scenario planning capabilities.

• Our organization needs to choose what projects to implement the following year. There are 15 potential projects and initiatives in the pipeline, however, the available budget can support only 5 or 6. Can we see multiple scenarios of which projects to do based on giving priority to different criteria: budget, timeline, and resources?
• We need to produce multiple resource allocation scenarios across 5 upcoming projects based on the selected optimization strategy: minimal cost, minimal timeline, project’s strategic value.
• If we make a schedule change to a project (change dates, dependencies, duration), we need to understand how this change will impact resources in other projects.
• If we make a resource change to a project (re-assign people between projects), we need to understand how this change will impact resources in other projects.

As you can see, together, resource impact analysis and scenario planning provide project managers with a proactive approach to risk management, allowing them to identify potential issues before they occur and take action to mitigate their impact. This not only increases the likelihood of project success, but also helps to minimize delays, reduce costs, and improve stakeholder satisfaction.