Overestimating the availability of internal resources to manage and execute project reflects a common pitfall in project management, where organisations tend to believe that their existing workforce and internal resources (time, skills, manpower, tools) can handle more than they can. There are several reasons why this overestimation occurs, that have significant impacts on the success of projects.
Resource Availability Misjudgements
Companies often have a limited understanding of how many resources are actually available for a new project. Internal teams may already be overloaded with ongoing work or have responsibilities that stretch across multiple projects. Often, organisations overestimate the flexibility of these teams and their ability to take on additional tasks.
- Employees may be busy with other projects or maintenance work that doesn’t get factored into the new project’s resource planning.
- Time estimates for project tasks might be too optimistic, especially if the organization assumes resources can “shift” quickly without considering the real time and effort required for knowledge transfer, project ramp-up, or the need for training.
Over-Optimism about Employee Flexibility
The belief that employees can simply adjust and allocate more time to new projects is a common mistake. The assumption that a team can handle multiple priorities simultaneously often ignores the reality of cognitive load, burnout, and task-switching inefficiency.
- Juggling too many tasks at once reduces productivity and quality of work.
- Employees who are overburdened with tasks are more likely to experience burnout, which can lead to delays, poor performance, and even turnover.
Misallocation of Resources
Moving people to projects without careful consideration can leave critical tasks or highly skilled roles unsupported. Team members may not be well-equipped for specific challenges.
- Internal teams are allocated to projects that require skills they don’t possess or are already overworked in their current roles.
- Organisations assume their internal systems, software, or processes are adequate for the new project’s demands, but lack of modern tools and even more often lack of standards and training on how to use these tools, can slow things down.
Internal Politics and Organisational Challenges
Companies also fail to account for internal dynamics like politics, competing priorities, or communication breakdowns, which can prevent resources from being allocated efficiently.
- Different departments or projects might compete for the same internal resources, leading to conflicts or delays in project delivery.
- Teams may operate in silos with limited collaboration, meaning that even if the right people are available, they may not effectively work together, which can lead to inefficiencies or missed opportunities.
Underestimating Project Complexity
Organisations often build projects with high “right first time” expectations however unforeseen challenges always arise.
- Technical difficulties, unforeseen market changes, or evolving project requirements can emerge, requiring more time and effort than initially planned.
- Insufficient risk assessment at the start of a project can lead to an underestimation of the resources required and a lack of contingency planning.
Short-Term Thinking vs Long-Term Sustainability
There’s often a focus on immediate project deadlines and costs, causing organisations to overlook the long-term health of their workforce and infrastructure. While internal resources may be available in the short term, their sustainability over the duration of a long or complex project can be compromised.
- Overloading employees to meet short-term goals can lead to attrition, disengagement, or lower-quality work in the long run.
- The focus may be on completing tasks on time with the existing workforce rather than ensuring high-quality outcomes, which can hurt the company’s reputation or future opportunities.
Failure to Consider External Support
Last, companies may overlook the potential need for external support or expertise. When internal resources are overestimated, there is often no contingency plan to bring in third-party contractors or consultants when the team is stretched too thin or when there is a knowledge gap.
- Projects might run into trouble when leadership realises that scaling up with external expertise or resources would be the optimal solution, but the company may have already committed internal resources, leading to delays in bringing in the right support.
- In many cases, internal resources may be unavailable when project timelines slip or when employees need to take unexpected leaves.
- Organisations often believe that it is cheaper and faster to bridge a knowledge gap by asking internal resources to research and learn instead of simply hiring external expertise.
Conclusion
Ultimately, the overestimation of internal resources will lead to several negative outcomes across the triple constraints of project deliverables: time, cost and scope.
The real shame of underestimating the capacity of internal teams to deliver projects is how leadership ends up losing credibility and demoralising teams. This can last years after the end of a project and often leads to the departure of good people. These are devastating legacies for subsequent projects.
This is a leadership failure pure and simple. Leadership must take a more realistic approach to resource planning early on—factoring in the existing workload, potential complexities, and external contingencies. Having clear, honest conversations about resource limitations, recognising the need for flexibility, and planning for unexpected challenges are key to improving project outcomes.
