6 benefits of advancing resource management maturity

Originally featured in AIT.

In the dynamic landscape of the accountancy industry, optimizing growth is a constant pursuit for firms seeking sustained success.An often overlooked function that plays a pivotal role in achieving this goal is resource management. The effective allocation and utilization of people significantly impacts a firm's efficiency, client and employee satisfaction, and profitability. Therefore, improving or (as we like to call it) maturing your firm’s resource management function is imperative to stay ahead of the competition.

6 benefits of maturing your resource management function

Optimizing resource management is essential for firms looking to improve efficiency, profitability, and employee satisfaction. As your firm matures its resource management function, you gain greater visibility into resource allocation, enhance project performance, and create a more balanced work environment. Below, we explore six key benefits of advancing your firm's resource management practices and how they contribute to long-term success. 

1. 1. How resource management increases utilzation and efficiency

A lack of visibility into resource availability, siloed software and data, and different approaches to scheduling results in underutilised resources. Using a dedicated resource management solution that consolidates engagement and resource data in one place enables efficient, balanced allocation of work on a large scale, with full visibility of resource availability and suitability.

2. Optimal staffing

Optimal staffing decisions lead to increased utilization as well as better client outcomes, project quality, and employee satisfaction. The organised and effective processes prevent a culture of resource hoarding. With AI-powered scheduling, resource managers can work through recommended resource matches and utilize intelligent scheduling to build a big-picture, fully optimized plan.

3. Maximizing revenue & margins with effective resource management

Having firm-wide visibility into resource availability has an immediate impact on increasing utilization. It provides insights into pockets of both underutilisation and overutilization, and it prevents resource hoarding through enhanced capacity planning. If your firm relies on delivery teams for resourcing instead of a centralised resourcing team, optimizing and streamlining the process results in a more efficient operation. This, in turn, frees up the chargeable time of fee-earners within these teams.

4. Proactive project performance tracking for resource management

Mature resource management functions empower teams to make strategic decisions by providing visibility into real-time project performance. By bringing operations and finance together in one system, resourcing decisions are aligned with margin and other engagement goals. In addition, engagement managers receive real-time, configurable alerts if engagements are going off track. This ability to track and monitor actuals against the budget is not possible in less mature firms with siloed finance and scheduling systems.

5. Increased talent retention

Maturing your resource management function leads to proactive planning through the creation of stable and well-balanced workloads. Adopting firm-wide allocation opens doors to diverse learning and development opportunities and the integration of modern, user-friendly technology makes work an enjoyable experience. Together, these aspects collaboratively foster a people-centric environment that aligns operational activities with the career aspirations of employees, encouraging them to remain with the firm and flourish in their professional journey.

6. Improve strategic decision-making

Mature resource management systems use data not only to optimize resource allocation but to provide reports powered with real-time data to assist with operational decisions and strategies. With reliable engagement management information and reporting in one place, or exported to a system like Power BI, it’s easy to visualise what is happening in the firm and give your team the tools needed to make important decisions.

The implications of not implementing resource management in accounting firms

Without a structured approach to resource management, accounting firms risk inefficiencies, financial losses, and operational challenges that can impact both employees and clients.

• Poor resource allocation: Without clear visibility, staff may be underutilized or overloaded, leading to inefficiencies and burnout.
• Missed deadlines and project delays: Ineffective planning can result in missed client deadlines, damaging relationships and reputations.
• Reduced profitability: A lack of control over billable hours and resource usage can lead to financial inefficiencies and revenue loss.
• Increased operational risk: Without proactive planning, firms are more vulnerable to unexpected resourcing issues that can disrupt workflows.
• Higher employee turnover: Unbalanced workloads and excessive stress can lead to dissatisfaction and increased staff attrition.
• Inconsistent client service: Inadequate resource allocation can compromise service quality, leading to client dissatisfaction and potential loss of business.
• Limited scalability and growth: Firms without proper resource management struggle to adapt to increasing workloads or expansion opportunities.

Failing to implement effective resource management can create long-term challenges that affect both business performance and client relationships, making it a critical investment for modern accounting firms.

Take the first step in your resource management maturity journey

Maturing your resource management will boost your firm's performance and for firms aiming to thrive, it’s a crucial route to achieving success. Improving your resource management function empowers you to expedite decision-making, optimize outcomes, minimize risks, and ultimately optimize your firm’s growth. For an indication into how close or far your firm is to realizing these Stage 4 to Stage 5 benefits, Dayshape has created a resource management maturity guide to help you assess which of the five stages of maturity your firm’s resource management function is currently at.