The 5 Biggest Barriers to Resource Management Governance

Most professional services (PS) companies know they need better resource management, but they find themselves running into the same obstacles over and over again. Despite investing in new systems and processes, their efforts keep getting derailed.

To help these organizations better understand the role governance plays in their long-term success, Kantata has sponsored new research from the Resource Management Institute (RMI) centered on resource management governance practices. RMI surveyed 56 companies worldwide, from consulting firms to marketing agencies, and the resulting survey reveals that companies aren’t failing because they don’t understand the importance of resource management; they’re failing because of specific, recurring obstacles that prevent good practices from taking hold.

Let’s explore the five main challenges RMI found that PS organizations face when it comes to resource management.

1. Poor Data Quality

According to the study, 27% of PS organizations cite poor data quality as their biggest barrier to good governance. And nearly half of the companies surveyed (47%) say the reliability of their resource management data changes dramatically depending on where the information comes from.

This points to a fundamental issue: companies struggle to maintain consistent data quality across systems, directly hurting their ability to make smart decisions and perform well.

Supply and demand data further highlights this inconsistency. While 78% of companies have some kind of supply and demand data, just 58% update it every single day. And when it comes to whether or not their data is good, only 24% of respondents shared that their data is actually high quality.

RMI suggests “perhaps we have a data quantity over quality issue that effective [resource management] governance can help redirect and correct.” Because when teams can’t trust their data, they fall back on manual processes, gut decisions, or simply avoid the problem as much as possible — all of which can damage profits and client satisfaction.

2. Unclear Processes

Poorly-defined processes are another key barrier to effective governance, according to 23% of companies surveyed. This isn’t surprising, considering that 62% of respondents revealed they don’t have methods in place to monitor that their team is actually following the right processes. 

Successful governance needs processes that are crystal clear and easily tracked. Without these, projects become messy and inconsistent — making it nearly impossible to get reliable results.

3. Lack of Resource Management Data Monitoring

For 19% of respondents, weak data monitoring hinders successful governance. Having the right technology is key to surfacing and analyzing resource management data, but while 40% of respondents are satisfied with the tech tools they’re currently using to enable and control data and processes, 34% of respondents are dissatisfied and 26% are neutral. 

It’s clear that most organizations see room for improvement when it comes to the role technology plays in monitoring their data. That’s why they need purpose-built solutions that understand the unique challenges of resource allocation, project management, and capacity planning — and how to provide the level of insight and control to address these needs.

4. Lack of Resource Management KPIs

Not measuring the right things is a common problem for 11% of respondents, who say there aren’t enough key performance indicators (KPIs) related to resource management to help drive governance. While this percentage may seem small, these organizations are missing huge opportunities to improve how they work. 

Most companies focus on broad KPIs, like staffing efficiency and productivity. But there are so many other metrics that could drive meaningful change: compliance, data accuracy, skill utilization, client satisfaction, and even predictive indicators to help ensure project success.

5. Unavailable or Siloed Data

The final challenge affects 10% of companies, who reveal they can’t get to the data they need when they need it. This becomes an even bigger obstacle when you consider that 42% of companies store their resource data across multiple systems, scattered among different teams, departments, and practices.

When important data is scattered everywhere, it becomes unavailable or unreliable exactly when you need it most. This forces managers to make resource decisions with incomplete information, which can hurt project success, client satisfaction, and profits.

How You Can Overcome These Obstacles

Every company faces different challenges, but RMI’s research shows that any obstacle can be overcome with the right solution. And there’s one thing that can help with all of these problems: developing a well-defined charter for your Resource Management Office (RMO). 

When you have a clear, company-approved focus for your RMO, your organization gains the clarity it needs to create a budget and support new processes and software to improve data governance.With stronger, more reliable data and processes in place, your RMO can make smart decisions based on real insights instead of guesswork.

But fixing your governance problems takes more than just buying new software. You need a complete approach that tackles data quality, process clarity, monitoring capabilities, performance measurement, and information accessibility. Companies that target these areas will see real improvement in their resource management, which will lead to better project outcomes, happier clients, and stronger financial performance.

Fine-tune Your Resource Management Governance With RMI Insights

Learn more in the Kantata-sponsored research report “RMI Survey Series: Resource Management Governance” and uncover the data-driven insights that will help you support your teams in the ways they need most.