The Capacity Quadrant: 4 Keys to Demystifying Resource Planning
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The document discusses the Capacity Quadrant 2.0 framework, which focuses on resource planning and management in organizations, emphasizing visibility, prioritization, optimization, and integration. It highlights the importance of aligning project priorities with organizational strategy while maximizing resources and productivity amidst changing demands. Additionally, the document presents methods for effective portfolio planning and managing resource allocation to enhance overall business performance.
The Capacity Quadrant: 4 Keys to Demystifying Resource Planning
- 1. The Capacity Quadrant 2.0 4 Keys to Demystifying Resource Planning
- 2. On a scale of ZERO VISIBILITY to CLEAR SKIES, where does your organization stand?
- 3. * Ref: 2016 RMCP Benchmark Study – Appleseed Partners Benchmark Study Pain Points: 2014-2016 3
- 4. New Considerations Impacts “The Great Resignation” (The New Normal) (Retention, New Tech & Fill Gaps) (It’s here!) “Virtual Agility” Forecasting Supply vs Demand Employee Engagement Productivity Considerations Collaboration Methods Skill Analysis The Capacity to Get Work Done
- 5. “The ability to simplify means to eliminate the unnecessary so that the necessary may speak.” ~ Hans Hoffman
- 6. The Process at a High Level New Request Classify, Scope and Size the Request Project? Submit for Approval Receive Project into Portfolio Rank and Prioritize Project in Portfolio Accept/Reject/Hold Deliver the Project Wait Portfolio Planning & Staffing Intake Execution (Project) Execution Lifecycle Spend & Capacity Capacity Planning Resource Allocation Execution & Allocation Portfolio Performance Review Lessons Learned & Process Improvement Iterative or Predictive?
- 7. PORTF RM BR PM The 10,000 Foot View = Value People Skills Productivity Plans Execution Leadership Goals Metrics Results Strategies Budget Targets Priorities
- 8. PORTF RM BR PM = Value People Skills Productivity Plans Execution Leadership Goals Metrics Results Strategies Budget Targets Priorities 1) Doing the right work 2) Doing the right work with the right people at the right time 3) Doing the work right 4) Measuring & maximizing the results The 10,000 Foot View
- 9. PORTF RM BR PM Traditional PMOs Only Look at Half the World = Value People Skills Productivity Plans Execution Leadership Goals Metrics Results Strategies Budget Targets Priorities 4) Measuring & maximizing the results 3) Doing the work right 2) Doing the right work with the right people at the right time 1) Doing the right work
- 10. From Classic PMO to Something More What’s in a Name? PMO: Program/Portfolio Management Office? RMO: Results Mgt Office? RMO: Resource Mgt Office? SIO: Strategic Integration Office? ADO: Alignment & Delivery Office?
- 11. Resource Management Maturity Matters • A strong correlation between resource management maturity and organizational performance • A strong correlation between resource management maturity and an effective PMO • A strong correlation between resource management maturity and project portfolio management maturity Source: Resource Management Challenges: A Benchmark of Current Business Practices. Center for Business Practices, 2009. Benchmark Studies show:
- 12. Ownership of the RM Process Define Process & Maturity Path Facilitate Data Building Gain Management Buy-In Recommend Sourcing Strategies Report on Capacity & Demand Monitor Adoption
- 13. Effort Forecast Resource Data & Capacity Project Schedule Project Status/Issues Task Assignments Financial Forecast Financial Data Strategy Mapping Prioritization Project Data Ensure Constituency-Based Data Ownership
- 14. FocusonResourceManagement Why is it so difficult? Balancing changing demand within available capacity while trying to meet strategic and emergent needs, --- AND --- maximizing productivity to its fullest effect.... is not child’s play. 14
- 16. The Capacity Quadrant Visibility Prioritization Optimization Integration Broadening Your View Understanding What’s Important Focusing on Efficiency and Value Planning at Multiple Levels
- 17. The Demand Lens The Capacity Lens The System Lens Visibility: Broadening Your View
- 18. The Demand Lens: Broaden Your Horizons Strategic Projects Regular Projects Other Planned Work Unplanned & Base Work Innovation Projects * Based on a model used in “Taming Change with Portfolio Management” (Greenleaf Book Group, 2010) Level of Governance Degree of Rigor
- 19. The Capacity Lens Work Capacity Throughput Capabilities
- 20. The System Lens: What else impacts supply/demand?
- 21. Visibility ofCapacity and Demand PutsYouinthe Driver’s Seat Effort Forecasting plots out demand, attempting to keep it in line with capacity.
- 22. 3 CommonProblemswithLackof Visibility All lead to unwanted surprises! • Planning to infinite capacity • Unanticipated demand • Blindly shifting priorities
- 23. Do You Feel Lucky?
- 25. Summary: Visibility Visibility Prioritization Optimization Integration Broadening Your View Understanding What’s Important Focusing on Efficiency and Value Planning at Multiple Levels • Demand Lens • Capacity Lens • System Lens
- 26. Strategic Alignment Scoring: Benefits and Risks Categorizing the Work Prioritization: Understanding What’s Important
- 27. With Limited Resources, Prioritization is Key • Doing everything dilutes your resources • Read Essentialism: The Disciplined Pursuit of Less, by Greg McKeown
- 28. Aligning with Strategy • Missions (Broad Goals) • Objectives (Measurable Outcomes) • Strategies (the high level “How”) • Programs/Projects (the “What”)
- 29. Regulatory / Mandatory Strategic Alignment Financial Return Competitive Advantage Operational Efficiency Quality / Reliability Probability of Commercial Success Strategic Leverage Technical Complexity Program Complexity Existing Skill Base Available Resources Benefits Risks Scoring: Assessing Benefits and Risks
- 30. Work Category • Mandatory • Discretionary • Base Services/Operations Business Driver • Growth • Efficiency • Enhancements • Reliability • Regulatory Categorizing the Work Work Types • Strategic Projects • Regular Projects • Other Planned Work • Unplanned Work • Base Services Business Units / Divisions Mission/Objective/Strategy Urgency/Importance
- 31. Summary: Prioritization Visibility Prioritization Optimization Integration Broadening Your View Understanding What’s Important Focusing on Efficiency and Value Planning at Multiple Levels • Demand Lens • Capacity Lens • System Lens • Alignment • Scoring • Categorization
- 32. Staffing Strategy – Maximizing Resources Portfolio Planning – Maximizing Value Productivity – Maximizing Your People Optimization: Focusing on Efficiency & Value
- 33. Staffing Strategy – Maximizing Resources • Resource Distribution • Resource Sourcing • Direct Full Time Staff • Offshore • Outsourced • Supplemental Consulting
- 34. Sourcing Strategy Example: Contractor/Consultant Strategy • Consider Consultants for: • Volatile and unpredictable work where it doesn't pay to staff FTEs • Revenue-producing work that you can’t staff internally (where the cost can be absorbed) • A one-time flurry of work for a special project • Outside advice or specialized skills
- 35. Portfolio Planning: Maximizing Value Inputs: Your Organization’s Values, Objectives, & Strategies Financial & Capacity (FTE) Targets – Based on Investment Strategies Project Priorities (based on alignment, scores, categorizations, business case) Available Capacity Goal: Best Portfolio Mix (highest value for a reasonable cost that aligns with your strategic goals) This should be ongoing!
- 36. Portfolio Planning: Resolving Capacity Issues Delay/Stagger/Shift: Push out certain projects until the resources have availability Reduce Demand: Cancel or reduce the scope of certain projects Get Help: Change sourcing strategies, such as using external resources
- 37. Maximizing Productivity Strengths Attention (limit multitasking) Flow (ability and challenge) Enablement (Training, Tools, Info, Support)
- 38. Team Productivity is Important, too! • Complementary Strengths • Generalists vs. Specialists • Relationship-focused vs. Results-focused
- 40. 1) Safety 2) Courtesy 3) Show 4) Efficiency * Source: Disney Institute: Walt Disney Company Prioritized Service Standards: Values Drive Remote Teams
- 41. Ask for Help Bonus Tips for Better Engagement
- 42. Why Should They Care? “If you want to build a ship, don't drum up people together to collect wood and don't assign them tasks and work, but rather teach them to long for the endless immensity of the sea.” ~Antoine de Saint-Exupery
- 43. Engage People “By involving people in the standardization of work, we can remove some of the oppressiveness of it. People are less likely to balk at standards they have devised.” ~ Peter Scholtes
- 44. Summary: Optimization Visibility Prioritization Optimization Integration Broadening Your View Understanding What’s Important Focusing on Efficiency and Value Planning at Multiple Levels • Demand Lens • Capacity Lens • System Lens • Alignment • Scoring • Categorization • Staffing Strategy • Portfolio Planning • Productivity
- 45. Top-Down and Bottom-Up Planning Tiered Governance Managing Change Integration: Planning at Multiple Levels
- 46. * Ref: Harvard Business Review: “Why Strategy Execution Unravels—And What To Do About It” * Coordinate across the business. Keep the message simple. Rapidly adapt to change in line with strategy (Don’t chase every opportunity) Keep reallocating resources
- 47. The Organizational Planning Cycle Quarterly Prioritization & Allocation Monthly Portfolio Review Weekly Steering & Stage Gate Meetings Advisory Councils & SIGs Annual Planning Strategies AOP & LRP Prioritized Resource Allocation Voice of the Customer (VOC) Portfolio-Level Actions Project Guidance & Go/No-Go
- 48. Managing Change Innovations Digital Transformation Market Shifts Artificial Intelligence Competitor Intel Technical Issues Vendor Changes Customer Changes Organization Changes Staff Changes Economic Changes Regulatory Changes Strategy Changes
- 49. Summary: Integration Visibility Prioritization Optimization Integration Broadening Your View Understanding What’s Important Focusing on Efficiency and Value Planning at Multiple Levels • Demand Lens • Capacity Lens • System Lens • Alignment • Scoring • Categorization • Staffing Strategy • Portfolio Planning • Productivity • Top-down/Bottom Up • Tiered Governance • Managing Change
- 50. “Intelligenceistheabilitytoadapttochange.” ~ StephenHawking Visibility -> Prioritization -> Optimization -> Integration The Capacity Quadrant framework facilitates the ability to shift gears when you need to. It eliminates blind spots and aids in decision-making and the requisite tradeoffs.
- 51. BonusResource The Capacity Quadrant Action Plan • A one-page checklist to put the CQ framework into action for breakthrough resource planning and management.
- 52. For More Information www.jerrymanas.com Twitter: @jerrymanas www.pdware.com jerry.manas@pdware.com “… a new path for leaders.” – Pat Williams, Author & Senior VP, Orlando Magic “Today’s greatest guide for team success.” – Angela Ahrendts, CEO Burberry “… an approach to maximizing the ‘people power’ in your organization that’s easy to understand and apply.” – Dave Garrett, President & CEO, ProjectManagement.com “The ultimate case study in effective project management.” – Kirkus Reviews
Editor's Notes
- #4: Jerry
- #14: Of course there is a broader portfolio management context to consider beyond resource management. ResourceFirst brings four major groups of constituents into the process with distinct data ownership roles. PMO managers are responsible for acting in proxy (or in partnership with) senior management to set the broader portfolio standards. This includes strategy definition and mapping, prioritization models, and official project and resource attribute data for reporting. Financial Managers are responsible for setting project financial standards and pulling together the overall financial forecast. Project managers own the schedule, task level resource assignments and all status and issue reports. Resource Managers continue to own the official effort forecast and requests for additional capacity through their respective organizations.
- #41: These are hierarchical service priorities. Show trumps efficiency. Courtesy trumps show. And safety trumps all. Staff at Disney theme parks have these four simple priorities ingrained in their heads, which guides day to day actions. These aren’t empty words. They’re augmented with training. Imagine if they used this policy with the Titanic?