Resource capacity planning benefits and why you need to get it right

resource capacity planning benefits

To those in the know, the benefits of resource capacity planning are self-evident.

Most organizations have too many projects and not enough resources – they are resource constrained.

So an organization’s ability to align its demand for work with its ability to deliver work is key.

The problem we face is that resource capacity planning is a complicated process to get right.

So more often than not it is ignored or done badly and this has major implications.

But the truth is:

The benefits for organization who crack the resource capacity planning problem are immense.

Cost savings, improved project throughput, improved resource morale, better ability to innovate and improved customer satisfaction are all cited as benefits.

Now, let me share something with you that I read recently…

Andy Jordan, writing on projectmanager.com talks about an interesting example where an organization overcame major project delivery problems and improved the amount of work done on projects by 11%.

Not by recruiting more resource but by implementing an effective capacity planning process.

If you are ready to take the next steps on your resource capacity planning journey take a look at resource capacity planning best practice or our guide to selecting the best resource capacity planning software. And for a deeper dive, our resource capacity planning ultimate guide.

An organization overcame major project delivery problems and improved the amount of work done on projects by 11% by implementing an effective capacity planning process.

Manage unrealistic expectations

Another less obvious benefit of resource capacity planning is to be able to reign in unrealistic expectations about your organization’s ability to deliver.

Without any clear vision of resource capacity, all too often there is the temptation to just keep piling more projects onto the organization which just leads to unrealistic expectations about deadlines.

Sounds familiar?

With a good resource capacity planning process it is simple to point at the facts and ask the question “you want a new project delivering, tell me which project you want us to stop working on”.

resource capacity planning overallocated

Software tools like Kelloo provide a simple way to manage your capacity planning process.

Spot bumps in the road earlier

Good resource capacity planning gives you the ability to look at things with a long lens.

Which means you will not constantly be hitting problems with resource issues. Yes there will be short term bumps in the road – after all capacity planning will not be 100% accurate.

However, by looking 3 to 6 months down the line it gives you plenty of time to steer the ship around the rocks and make adjustments to resources if required.

Kelloo's resource management tools

Resource planning, forecasting and reporting in one place. We help you get the most from your projects and people.

Resource management statistics to back this up

To put some figures behind these statements, in an authoritative study on the state of resource capacity planning, respondent organizations cited the following outcomes they experienced due to not addressing resource capacity planning properly:

  • Inability to compete projects on time – 52%
  • Inability to innovate fast enough – 39%
  • Increased project costs – 38 %
  • Missed opportunities – 34 %
  • Dissatisfied customers or clients – 32 %

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