capacity planning software

Rocks in the river

When selecting projects for the portfolio, practitioners of Strategic Capacity Planning often exclusively consider financial constraints. Though the terminology varies across industries–outside costs, out-of-pocket expenditures, external expenditure–the concept is the same: money spent on something other than staff. If internal resources are considered at all, it is usually at a very cursory level.

From an operational standpoint, ignoring resource considerations can be hazardous. Resource constraints are like rocks below a river’s surface–they’re usually found only after we run into them! Without conducting at least a high-level analysis of resource needs, we won’t know if sufficient internal resources exist to complete the selected projects. Furthermore, experience shows that resource forecasts typically increase as projects are delayed or require more resources than were forecasted, which increases the risk that problems will arise. This can lead to bottlenecks that severely stretch the capabilities of the organization, causing still further delays.

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