{"id":4242,"date":"2018-10-23T02:07:21","date_gmt":"2018-10-23T02:07:21","guid":{"rendered":"http:\/\/totalsynergy.com\/?p=4242"},"modified":"2022-09-19T15:43:29","modified_gmt":"2022-09-19T05:43:29","slug":"forecasting-and-resourcing-right-people-right-project-bright-future","status":"publish","type":"post","link":"https:\/\/totalsynergy.com\/forecasting-and-resourcing-right-people-right-project-bright-future\/","title":{"rendered":"Forecasting and resourcing \u2014 right people, right project, bright future"},"content":{"rendered":"\n\n\n\n\n\n\n\t<div class=\"content-row row no-padding-top\" style=\"border-color: #ededed; background-color: #fff;\">\n\t\t<div class=\"row-bounds\">\n\t\t\t<div class=\"single ww \">\n\t\t\t\t<p>It\u2019s true that in many architectural, engineering and construction design firms&#8217; staff alternate between states of overwork and underutilisation. Neither situation is ideal \u2014 for the practice, employee or client. In the perfect world, all staff would be busy to their capacity with no idle time.<\/p>\n<p>Large and small AEC practice alike, it\u2019s vital to ensure your team is allocated to <a href=\"\/features\/projects\">projects<\/a> adequately both now and in the future. To do this, built environment design businesses need <a href=\"\/features\/advanced-forecasting\">forecasting<\/a> and <a href=\"\/features\/resource-planning\">resourcing<\/a> capabilities.<\/p>\n<h3>What is forecasting and resourcing?<\/h3>\n<p>Forecasting and resourcing go hand-in-hand to help AEC businesses answer two important questions:<\/p>\n<ul>\n<li>Do we have enough business in the pipeline to run the practice and pay the staff?<\/li>\n<li>Do we have enough of the right staff to deliver the projects we expect to win?<\/li>\n<\/ul>\n<p>Forecasting and resourcing helps you interpret your historical work, your current team composition, and the work you have coming in the future. It gives project managers confidence in delivering the projects for the clients.<\/p>\n<h3>How forecasting and resourcing works<\/h3>\n<p><strong>Revenue forecast<\/strong><\/p>\n<p>In order to ensure balanced cash flow, directors, practice managers and project managers need to see a <a href=\"\/features\/advanced-forecasting\">forecast of revenue<\/a> for future projects. At an early planning stage, this is typically estimated based on the proposed project fee and the practice\u2019s primary rates. This is a \u2018rough\u2019 calculation of the number of hours each different role is expected to work to complete the project in a given timeframe.<\/p>\n<p>Once you\u2019re ready to be more precise \u2014 either the proposed project opportunity requires additional labour analysis, you\u2019ve won the project, or you\u2019re close to winning it and need to be more specific \u2014 you need to create a work breakdown of the project phases, stages and tasks, create a budget for the project stages, and assign invoice values to each stage that you expect to bill during the project.<\/p>\n<p>At this point, your budget can be based on the types of roles you\u2019ll have for those project stages \u2014 the specific people can be assigned to tasks in the resource planning stage. Which roles you need, and at which level of utilisation, depends on the nature of the work and the project timeline \u2014 a shorter timeline means more people and\/or higher individual utilisation, a longer project timeline means fewer people spread out and possibly at lower individual utilisation.<\/p>\n<p>Now that you have a project timeline and have determined the fees you intend to invoice, you can set up your detailed revenue forecast. During the planning stage of a project, your revenue forecast might be a simplification, simply splitting the fee across a number of months. There\u2019s also the reality with design and construction projects that start and end dates will ebb and flow, and even the project size can change during the whole lifecycle of the project, being able to adjust these quickly and see how that affects capacity requirements is a significant benefit.<\/p>\n<p>Once the project is active, however, increased financial accuracy is required and your project managers will want to specify exactly how much will be invoiced from month to month.<\/p>\n<p><strong>Resource planning and allocation<\/strong><\/p>\n<p>Once you have a forecast of the project revenue \u2014 based on a detailed work breakdown and budget \u2014 you\u2019ll have a good forecast of capacity requirements or issues. Assuming you have enough of the right staff to deliver the project in that timeframe, you now have to allocate your staff to the project. This is called\u00a0<a href=\"\/features\/resource-planning\">resource planning<\/a>\u00a0and is also where an individual\u2019s utilisation comes into it. If, for example, you only have one person who is BIM trained and your project has heavy BIM demands, that person is likely to be overutilised (this is an extreme hypothetical, of course \u2014 who would do that?). Your capacity to delivery a project depends on having the right balance of skills to meet the project requirements.<\/p>\n<p>If you don\u2019t have the capacity to deliver a particular project, a resource forecast highlights this early and you can plan to either hire the right resources, bring in contract workers for a set time, or outsource part of the project. Equally, the revenue and resource forecast tells you if you have excess capacity compared to the jobs in your pipeline \u2014 your options here are either to win more business or lay people off.<\/p>\n<h3>Best guess<\/h3>\n<p>A forecast for revenue and resourcing is a &#8216;best guess&#8217; at varying levels of sophistication \u2014 for example, you might write it all out on a napkin (low sophistication, low accuracy, quick), spend hours working it all out in a series of spreadsheets (medium sophistication, error-prone, laborious and time consuming), or use a cloud forecasting and resourcing application that does all the complex calculations in the background (high sophistication, high accuracy, flexible, fast).<\/p>\n<p>Whatever your approach, it\u2019s important to remember that any forecast of revenue and resources is only as good as the data you put into it \u2014 the more accurate you make it, the better the outcome.<\/p>\n<p>Find out more about Synergy <a href=\"\/features\/advanced-forecasting\">advanced forecasting<\/a> and <a href=\"\/features\/resource-planning\">resource planning<\/a>\u00a0for architecture, engineering and construction design businesses and projects.<\/p>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n\n\n\n","protected":false},"excerpt":{"rendered":"<p>Do your staff alternate between states of overwork and underutilisation? Neither situation is ideal \u2014 for the practice, employee or client. In this short guide, learn how forecasting and resourcing solves that issue for built environment design businesses.<\/p>\n","protected":false},"author":10,"featured_media":4246,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2,6740],"tags":[],"webinar-categories":[],"type-of-webinar":[],"industry":[],"region":[],"class_list":["post-4242","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-synergy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The importance of forecasting and resourcing for your AEC business<\/title>\n<meta name=\"description\" content=\"Forecasting and resourcing for architects, engineers and construction designers \u2014 what it is, how it works, and why it matters.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/totalsynergy.com\/forecasting-and-resourcing-right-people-right-project-bright-future\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Forecasting and resourcing - right people, right project, bright future\" \/>\n<meta property=\"og:description\" content=\"Forecasting and resourcing for architects, engineers and construction designers \u2014 what it is, how it works, and why it matters.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/totalsynergy.com\/forecasting-and-resourcing-right-people-right-project-bright-future\/\" \/>\n<meta property=\"og:site_name\" content=\"Total Synergy\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/totalsynergy\" \/>\n<meta property=\"article:published_time\" content=\"2018-10-23T02:07:21+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-09-19T05:43:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/totalsynergy.com\/wp-content\/uploads\/Synergy-Enterprise-project-management-FandR-social-big.gif\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/gif\" \/>\n<meta name=\"author\" content=\"Paul Hemmings\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Forecasting and resourcing - 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