{"id":2952,"date":"2021-03-11T00:00:05","date_gmt":"2021-03-11T00:00:05","guid":{"rendered":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/?p=2952"},"modified":"2023-12-20T08:27:28","modified_gmt":"2023-12-20T08:27:28","slug":"beat-market-volatility-with-efficient-resource-capacity-planning","status":"publish","type":"post","link":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/beat-market-volatility-with-efficient-resource-capacity-planning\/","title":{"rendered":"Beat Market Volatility With Efficient Resource Capacity Planning"},"content":{"rendered":"

Market volatility<\/strong> is the new norm. The last few years have seen ups and downs that are impacting market conditions continuously. The global market has constantly been having a roller-coaster ride. It is making it harder to predict what next will threaten the very growth and profitability<\/a> of an organization.<\/p>\n

In such conditions, most firms resort to reactive measures such as abrupt layoffs<\/strong> and halting new initiatives<\/strong>. It works in the short term but affects business sustainability adversely. When the situation improves, they end up hiring people whose profiles and duties are similar to whom they fired. In other words, the upfront costs of wasteful hiring and firing cycle go up<\/strong>.<\/p>\n

There is a better way to deal with this challenge, which begins with establishing an effective Resource Capacity Planning<\/a> solution. More and more businesses have started adopting resource planning<\/a> to beat the adverse effect of market volatility.<\/p>\n

\"Beat<\/a><\/p>\n

What is Resource Capacity Planning?<\/h2>\n

Resource capacity planning<\/strong><\/a> is the process of forecasting the gap<\/a> between the capacity and the demand for resources. It also depicts an action plan to bridge this gap. Resources in an enterprise can be people, assets, facilities, equipment, vehicles, etc.<\/p>\n

Resource capacity planning<\/strong> requires centralizing information<\/strong> from various systems. These are human resources, capacity, skills, current\/future pipeline projects, resource demand\/ allocation<\/a>, vacations, and non-project activities. It helps you build a single source of truth<\/strong>, enabling real-time forecasting<\/a> of resource capacity vs. demand.<\/p>\n

A business that gets early warnings about resources shortage\/ excesses, utilization<\/a>, project vacancies, on the bench, revenue, margins, etc. is better equipped to take corrective actions ahead of time.<\/span><\/p>\n

\"The<\/a><\/p>\n

What Does Resource Capacity Planning Include?<\/h2>\n

In modern business, resource capacity planning<\/strong> goes much beyond the basics of measuring the demand against capacity<\/a>. It includes all these areas.<\/p>\n

Forecast Resource Capacity vs. Demand by Timeline<\/h3>\n

A business should be able to forecast capacity vs. demand<\/a><\/strong> from multiple dimensions<\/strong>, i.e., by role, department, team, location, skills, etc. It helps in identifying short or long-term shortage\/excess of resources ahead of time<\/strong>.<\/p>\n

\"Workforce<\/a><\/p>\n

Tracking Competency Matrix Across the Enterprise<\/h3>\n

It is critical to track and keep competency<\/strong><\/a> information about the workforce up to date<\/strong>. The right talent<\/a> can be thus identified, and resource allocation<\/strong><\/a> can be done to the right work. It will be based on skill, experience, qualifications, individual preferences, etc.<\/p>\n

Forecast and Plan for the Projects in the Pipeline<\/h3>\n

The system should keep track of future potential pipeline projects<\/a><\/strong> and their resourcing<\/a> requirements. It will ensure that the resource pool is optimally balanced, skilled, and readily available to meet the demand for new projects.<\/p>\n

Forecast Overall, Strategic and Billable Resource Utilization<\/h3>\n

The system should be able to provide short- or long-term forecasting<\/strong> of billable<\/a>, strategic, and overall utilization<\/a>. Corrective actions can be taken to ensure high utilization and protect the profitability of the business<\/a>.<\/p>\n

\"Getting<\/a><\/p>\n

Forecast Project Vacancies and People on the Bench<\/h3>\n

The system should give your business the foresight into future project vacancies<\/strong>. It will also highlight people who will end up on the bench due to being under-allocated, or not actively allocated. It helps the resource manager<\/a> to mix and match available people against project vacancies.<\/p>\n

How Does Resource Capacity Planning Help You Beat the Market Volatility?<\/h2>\n

Bridge Resource Shortage Proactively<\/h3>\n

Forecasting capacity vs. demand<\/a><\/strong> provides foresight into a shortage of resources ahead of time. This will efficiently bridge the gap by:<\/p>\n