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This video is based on our article on best practices for resource capacity planning: https://acuityppm.com/best-practices-for-resource-capacity-planning/

Resource capacity planning is one of the most frequently mentioned functions of project portfolio management. Senior leadership rightly wants to know whether they have sufficient resources to take on more project work and whether their existing work will be completed on time. Recognizing the scarcity of resources to do project work, most companies are looking to portfolio capacity views to answer these two key questions:

1) When can we take on new projects?
2) Can we get our existing work done?

Best practices for resource capacity planning (project planning):
Ensure consistent planning for all projects
Regardless of the methodology, clarify the high-level scope for each project
Involve project team members in planning and estimating
Learn techniques that will help improve the estimate over time
Communicate with Resource Managers about team assignments; never rely on software to replace good old communication

Best practices for resource capacity planning (project resource planning):

Keep it simple
Estimate resource time at the project level (or phase level if applicable)
Don't try to capture detailed usage at the task level
For starters, don't try to capture skill-based information; Knowing key roles is good enough to get started
Start with simple 'top-down' resource forecasting over the required time frame and adjust usage as necessary (also called resource profiling)
Monthly usage is often good enough for portfolio capacity planning
Don't try to estimate everyone's time; concentrate on those critical resources that are in high demand. This will still provide high value from a portfolio capacity perspective.
Resource plans should be developed in the initiation or planning phase of a project
During the execution of the project, the resource plans should be updated periodically (keeping the resource plan simple makes it easier to maintain)
The goal is 'good' data, not 'perfect' data

Best practices for resource capacity planning (Portfolio Manager):
Identify at least one person responsible for coordinating and analyzing resource data
Provide the Portfolio Manager with oversight of the process
Data analysis skills
Soft leadership skills for working with project managers
Develop recommendations for the Portfolio Governance team based on resource analysis
Share the resource capacity analysis as part of the portfolio communications plan

Best practices for resource capacity planning (Resource Data Analysis):
Use simple categories for resource usage, such as 'Available', 'Risk', 'Overutilized'
Define thresholds for when roles and individuals are “available,” “at risk,” or “overutilized”; this makes the analysis much easier.
Start by looking at the overutilized roles and then drill down to specific people. It's possible for a team to be overstaffed but still have at least one person who can take on more work (this usually means someone else has too much work that needs to be reallocated).
Resource teams with average utilization that leaves them “at risk” or “overutilized” represent a real resource risk to the portfolio.
Keep it simple; filter out noise by focusing on the key roles of resources and a few specific individuals; too much data will overcomplicate resource analysis.

Best practices for resource capacity planning (Portfolio Governance Team):
Leverage resource capacity information during key decision-making meetings, such as reviewing new proposals or Phase-Gate reviews
Have the Portfolio Governance team assess options based on resource capacity information to make better decisions

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