TL;DR: With the importance of effective project management continually increasing in today’s competitive business landscape, optimised resource allocation is a key aspect of achieving project success. With their expertise in analysis, budgeting, and forecasting, finance consultants can help project managers allocate budgets effectively, assign personnel adequately, meet project deadlines and milestones, and align with strategic business objectives. They also offer services like cost-benefit analyses and risk management that can further augment project success. The unique perspectives of finance consultants in project management can establish a much more resilient and successful project management function.

Resource optimisation is a key function that contributes to a higher level of project management. In today’s competitive business landscape, the ability to allocate resources effectively while also aligning with the need for finance optimisation is a critical success factor.

Nowadays, projects are often subject to tight budgets and strict timelines, and finance consulting services have the potential to contribute to optimised resource allocations, helping project managers overcome the present-day challenges of project management.

Challenges in project management

The role of project managers in recent years has become more pronounced and complicated as the scope of projects continues to increase. One of the main challenges they continually face is maintaining the delicate balance between project budgets and project objectives.

According to research conducted by PMI in 2020, inadequate resource planning and allocation has led to 27% of projects facing budget overruns, causing inefficiencies and affecting company bottom lines.

Furthermore, Wellingtone’s annual “The State of Project Management” report revealed that only 43% of companies successfully complete their projects within the allocated budget.

This highlights the need for strategic resource allocation initiatives that incorporate financial considerations into the mix.

Finance consulting in project management

Finance consultants have the potential to ensure that projects do not encounter issues like the aforementioned, where financial constraints can spell failure for the project.

With their expertise in analysis, forecasting, and budgeting, they can assess project viability and potential financial risks accurately. This results in a much more resilient project organisation process.

Here is how finance consultants contribute to the project management function of a business.

Budget allocation

Aligning resource allocation decisions with a project’s budget and financial limitations is key to ensuring success.

55% of project managers consider budget overruns to be a factor in project failure. Finance consultants can assist in developing strategies that optimise the usage of available resources. This helps project managers allocate resources within the budget constraints, ensuring the expenditure translates to project success.

Personnel allocation

Allocating resources based on skill requirements is paramount to ensuring the overall success of a project.

70% of project managers believe that skill shortages contribute to project failures. By considering the skill and cost implications, finance consultants can suggest the appropriate allocation of personnel to relevant projects, assisting project managers in avoiding resource misallocation and enhancing project efficiency.

Timeline consideration 

Project timelines and milestones are critical markers that serve as guidelines for project success.

Only 2.5% of companies consider their projects to be 100% successful, which includes delivering projects on time. Finance consultants can offer strategic recommendations to project managers on how to allocate resources to meet deadlines and milestones. These insights can help in creating a resource allocation roadmap that ensures smooth progression toward project goals.

Strategic alignment

Considering the overall goals and objectives of the business helps establish clear goals for projects. 

44% of projects fail due to a lack of alignment between business and project objectives. As finance consultants take a strategic approach in their service delivery, they can collaborate with other aspects of the business and help project managers align their project goals with the overall goals of the business, ensuring success on all counts.

Furthermore, finance consultants can also contribute greatly to the overall project management function with in-depth cost-benefit analyses and risk management strategies.

Quantifying the potential costs and benefits of different resource allocation approaches allows project managers to make data-driven decisions that are the most ideal for project success.

40% of project managers said that risk management is the most valuable project management process. The services of financial consultants contribute to the early identification of risks, facilitating the development of response plans and other mitigation strategies.

Enhance the project management function with finance consulting services

Ultimately, the success of project management comes down to the effective establishment of processes that help internal teams. In a business environment where project management is a core consideration, effectively allocating resources is a key factor in achieving this success.

Finance consultants bring a unique perspective into project management, helping managers allocate budgets, personnel, and other resources effectively, manage timelines, and align with overall business goals.