The Resource Capacity Conundrum
Why Solving It is Essential for Growth
Steve Beaumont
Solutions Marketing Executive EMEA & APAC
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2014 Planview, Inc.
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Definition
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Resources Are Core to Every Business
“Resources are often trapped
in unproductive uses… Only
20% of managers say their
organizations do a good job of
shifting people to support
strategic priorities.”
“A company typically
reallocates only a tiny fraction
of its resources from year to
year, thereby sentencing
innovation to a stagnating
march of incrementalism.”
“Only 11% of managers believe
that all their company’s
strategic priorities have the
financial and human resources
needed for success.”
“Firms that actively reallocated
capital expenditures achieved an
average shareholder return 30%
higher than companies that were
slow to shift funds.”
Sources: McKinsey Quarterly, 8 Essentials of Innovation, April 2015 and and Harvard Business Review, Why Strategy Execution Unravels, March 2015
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The Capacity Conundrum
How to reconcile resource investments with growth objectives?
Executives should ask:
• Are we confident that resources
are assigned to the right work to
meet corporate objectives?
• Do we know what’s at risk when
resources are overcommitted or
underutilized?
• Do we know what best performers
do differently?
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Do executives and
resource leaders
have a clear picture
of capacity and
demand?
The Relevant Questions
Capacity Planning asks:
How can we be confident that we will have the
capacity to meet strategic business goals with
our current, finite resources?
Resource Management asks:
How can we ensure the right people are
assigned to the right projects at the right time?
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?
A Lack of Clarity Persists
What are our resources working on?
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Risks of Murky Capacity Planning
Poor management impacts the bottom line
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Maturity Level Matters
Best performers master capacity planning by maturing
processes and tools
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Business Risks
of NOT Addressing Resource Mgmt and Capacity Planning
Implications
to the bottomline and
growth goals?
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Innovation, Project Delivery & Revenue
A peer review of risks with the status quo
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The Tipping Point
What’s making Executives take action?
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Best Performers
Sharpen the view of capacity and demand
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Customer Case Study
Newell Rubbermaid drives unprecedented growth
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The Challenge:
Improve Project Prioritization, Resource Management &Product Execution
• 2102 “Growth Game Plan,” Multi-year strategy
• A commitment to superior products and differentiated
high-impact innovation
• Consolidated the highly-segmented holding company into
a single operating company
• The company lacked a product commercialization and
delivery approach
• The company needed a way to make sure team
members were focused on the right projects
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The Solution:
• Implemented Planview Enterprise® for Product
Development, all R&D resources and new product
development programs.
• Phase gates were put in place to provide direction,
enforce a standardized process, and evaluate and make
decisions to kill products before dollars and resources
were invested
• It provide the structured, standardized process Newell
Rubbermaid needs to further its Growth Game Plan and
build its product and commercialization process
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The Benefits:
Reliable Data, Optimized Resources, and Proven Processes
• Balance resources, predict future resource capacity, prioritize
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projects, and align the right people on the right projects at the right
time
Visualize project and resource status enabling proactive
intervention to manage bottlenecks creating a culture of
collaboration
Connect stakeholders in the product development process across
the company
Measure progress using one consistent solution with one
reference point
Report investment planning, resource allocation, and
understanding of where people are spending time based on work
type and the quality of projects
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Phases of Successful, Iterative
Capacity Planning
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Move to Continuous Reprioritisation
Explore your options to connect strategy and execution
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Continuous Re-prioritisation
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What’s Next?
Moving up the maturity scale
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Explore with Executives
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Next Steps
 Evaluate RM and CP maturity: rmcp.planview.com
 Explore executive concerns around capacity and
growth
 Put in a foundation to support iterative planning
 Develop a holistic view into capacity and demand
 Calculate the ROI of resource efficiency for IT
projects
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Calculate the Impact at:
efficiency.planview.com
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Share the eBook
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Planview.info/execRMCP
Thank You
sbeaumont@planview.com
infouk@planview.com
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