Resource management Organization (RMO) refers to the entity or a structure that effectively and efficiently manages the tangible (employees, projects, skills etc.) and intangible (customer relationships, Employee Engagement and Morale etc.) resources of the organization.
Unfortunately, for years, RMOs have been undersold with its conceptual definition around ‘on-time staffing’. However, RMOs are much more beyond staffing and bench management! They create crucial business processes and tooling that enable organizations to solve, strategize, and scale their workforce needs, directly impacting productivity and profitability.
So, you might wonder, if RMOs are pivotal in managing People, Productivity, and Profitability, shouldn't the role of a Resource Manager be highly visible, with a seat at every strategic meeting within the organization? 😊 Well, not every RMO reaches this coveted strategic phase during its lifecycle. In my 20 years of experience, working with and consulting for numerous organizations, I've found that fewer than 5% of the companies operate their resource management function in a truly transformational capacity.
Why is this the case? it often boils down to the lack of another 'P' – 'Purpose'. The absence of a purposeful vision, deliberate planning, and a well-defined setup frequently leaves RMOs at a backfoot. Without a clear sense of purpose guiding their efforts, RMOs struggle to achieve their full potential and integrate seamlessly into the organization's strategic framework.
Often times, Resource Management Organizations (RMOs) are formed ‘very late in the game’ by ‘visionary’ leaders who recognize the importance of dedicated teams to staff projects, monitor employee utilization, and ensure technical teams stay focused on delivery quality rather than being burdened with revenue tracking. Consequently, RMOs arise out of the necessity to streamline business operations, yet they often operate independently from core business functions such as Human Resources, Finance, or Operations within organizations. While this separation from core functions allows RMOs to quickly transition from a 'tactical' to an 'operational' stage, progressing to a 'Post Operational' or 'Transformational' stage proves challenging. Mostly because this isolation from integral business operations does not provide RMO a strategic seat on the table! They are always seen as a secondary support function. How to make your RMO a strategic organization? Let’s uncover it in the next week… 😊
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