2016 Resource Management and Capacity Planning Executive Insight

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Business leaders are focused on growth, as they should be. However, many wonder whether their organization's people resources – their most important asset – are focused on the right work to keep pace with growth objectives. They are also focused on innovation initiatives, and currently, many are in the midst of the digital transformation maelstrom. These, too, are often resource- constrained. The sad truth is; in most organizations, growth and innovation are at risk due to poor capacity planning. Research shows that organizations at a high level of capacity planning maturity reduce time-to-market risks by 16%. They are better able to prioritize demand with capacity in mind. They reduce unplanned projects by 50%, are 35% better at prioritizing shared resources, and are 17% more likely to be able to run what-if scenarios on demand. By every measure, they are better able to make more informed, faster decisions to optimize their portfolio and resources in support of growth objectives. Organizations at a lower level of maturity deem capacity planning important, but 61% find it extremely difficult. These organizations are at risk of falling further behind the innovation capacity curve. Benchmark Research Findings More than 400 leaders representing product development, IT, and enterprise program management participated in the latest benchmark study on the state of resource management and capacity planning. The study identified risks and pain points through a lens of proficiency and maturity in the two disciplines. Higher maturity organizations have become capacity-centered throughout their organization and their process. They continually take capacity into account, thereby creating agility and ensuring proper resource commitment and execution. Business Risks of Inaction Portfolio and resource leaders are connecting their resource management and capacity planning capabilities to business risks. Without improvement, lower-maturity organizations risk stunting growth (Figure 1). Capacity Planning Fuels Innovation Speed: Research Confirms Capacity-Centered Organizations Reduce Time-to-Market Risks Based on the 2016 State of Resource Management and Capacity Planning Benchmark Study Top Business Risks of Not Addressing Resource Management and Capacity Planning with Improved Processes and Tools Inability to complete projects on time Increased project costs Inability to innovate fast enough Dissatisfied customers or clients Missed business opportunities 52% 39% 38% 34% 32% * n=4083 "The risk of poor capacity is the inability to resource projects. We have a need for speed and need the right resources at the right time in the life cycle of a project. It's what we're solving for to meet growth objectives." – Senior Program Manager, Global CPG Company Figure 1

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