Centralized resource management – 5 common myths and misconceptions

Originally featured in AIT.

Achieving optimal resource management is a fundamental challenge for accountancy firms. Many have realized the value of centralizing and strategically investing in this key business function. The aim is to unify people, processes, and software across service lines and/or locations to drive efficiency and maximize overall firm performance. However, there are some common myths and misconceptions around centralized resource management which could be holding others back.

In this article, Christine Robinson, Strategic Advisor to Dayshape and former Managing Director and Head of Resource Management at Baker Tilly US, unpicks these common misconceptions. Drawing on years of resource management expertise, she also shares how firms can reap the benefits of a centralized approach.

Centralized resource management means:

Myth 1: Loss of control over resourcing decisions

“We will have no say on which jobs our people are allocated to.”

False! Resource managers design their processes around the strategic priorities of the organization and its leadership team. This typically involves connection points between the resource managers and trusted representatives from each part of the organization, to ensure feedback from multiple angles is considered. A centralized model pulls all resource data into one system to provide a single source of truth. This provides greater insight for resource managers to make (and evidence) data-based decisions in line with the strategic objectives of the firm.

Myth 2: Individual skills and preferences won’t be accounted for

‍“Team members will be forced to work on things they don’t want to do.”

False! Solid resource management hinges on understanding the career aspirations of team members. That means resource managers make it their priority to know work preferences and ensure this information is considered when making staffing alignments. Resource managers have access to certifications, experience, skills, and preference data in one central system. This enables skills-based scheduling across the firm and allows resource managers to connect people with career-focused opportunities.

Myth 3: Maximizing utilization at all costs

A singular focus on utilization means staff burnout will be through the roof.”

False! Centralized resource management can improve workforce utilization, however, that is just one of many data points considered when making staffing decisions. It is never the intention of resource managers to overburden their people. An optimal resource management strategy strives to improve staff engagement and retention by putting people at the heart of resourcing decisions. Ensuring utilization is managed appropriately so that burnout doesn’t occur is a key part of this. Centralized resource management provides firm-wide visibility of overall resource utilization, allowing resource managers to visualize capacity, prevent burnout, and improve the employee experience.

‍Myth 4: Automation will replace resource managers  

“Resource managers will become obsolete.”

False! A centralized resource management strategy requires the right technology to succeed. However, this technology is designed to elevate the role of resource managers, not replace or devalue their expertise. By embracing automation, processes can be unified and streamlined across the firm. This means replacing hours of manual scheduling with more efficient and strategic planning. Used in the right way, automation has the power to enhance invaluable resource management capabilities.

‍Myth 5: Existing client knowledge and relationships will be lost  

“Clients won’t have access to the experience and skills they need.”

False! A centralized strategy is designed to ensure clients have access to the right skills and experience at the right time. A centralized skills database is integral to matching the most suitable skills, qualifications, and experience to deliver the highest quality of work for clients. While proactively matchmaking, resource managers focus on educating themselves on requirements for roles and other client requests, such as continuity. Resource managers also leverage their knowledge of proficiency level to make strong matches and assemble the most qualified team for the project. Instead of ad hoc allocations based on local needs, short-term gains, or a first-come-first-served basis, resource centralization prioritizes projects across your full portfolio to deliver the best client results.

Is your firm ready for a centralized approach?

Adopting centralized resource management is a significant project for any firm, but a necessary step towards building a more mature and strategic resourcing model. Maturing your resource management will boost your firm’s performance and for firms aiming to thrive, it’s a crucial route to achieving success. To help you understand your firm’s resource management maturity, Dayshape has created a quiz to help you assess which of the five stages of maturity your firm’s resource management function is currently at.

Take our interactive resource management maturity quiz.