Overallocation is assignment of more tasks than a resource can handle or reasonably complete with a standard eight hour workweek. When a company has many projects, overallocation is a risk, especially when individuals are involved in multiple projects.
Overallocation is most likely to occur when there are multiple projects in a company and when software is used to allocate tasks to resources. Overallocation occurs is when project managers have been encouraged to meet unreasonable expectations. Project managers then push their resources beyond their limits in order to meet constrained schedules and budgets. Overallocation puts unreasonable pressure on resources and can be costly not only in overtime monies but in resource burnout.
The most obvious way overallocation can be avoided is by setting up a project schedule that is realistic. Avoiding pushing employees through an unreasonable or aggressive project schedule can be the first defense in thwarting overallocation. Scheduling the project in a realistic way is part of creating an effective project plan.
Here are five other ways to avoid overallocation in projects:
1. Resource Leveling – In this method, the project manager can either level resources by hand (complicated, but perhaps more sound) or use a software program such as Microsoft Project to level resources for you. This method requires the project manager to be truly on top of his game – and to recognize areas for concern before they become problematic.
2. Prioritize Projects -- By prioritizing projects, when a resource has a task conflict, it can be resolved without piling pressure on the individual (or requiring the individual to put in a couple twelve-hour days). In this way, when you find a resource has been overallocated, decisions as to which tasks he should focus on are easier to make.
3. Linking Tasks – Linking tasks is more of a logistical solution. If the resource has been assigned to research the markets for project A and project B, these tasks could be linked. In this manner, when it appears that a resource has been overallocated, really the tasks are similar enough to count for two projects. By linking these tasks from the different projects, the problem can be resolved.
4. Leaving Breathing Room – When scheduling the project, it is vital to leave breathing room between tasks. However, it is important to not under-allocate resources as this could lead to a loss of budget monies. A fine balance must be achieved between breathing room and not moving forward quickly enough.
5. Avoid the “Putting out fires” approach to project management – If your team is consistently putting out fires, it makes it difficult to focus on the project. Moreover, by putting out fires, the team becomes knee-deep in ash, while project tasks pile up. This is where project management techniques such as Scrum come in handy.