Organisations that handle capacity planning better, are 47 per cent more likely to have a better look into pipeline demand and capacity, according to new report by Plainview and Appleseed Partners. What this allows them is to better evaluate whether to take on new projects and to better understand the what-ifs.
Consequently, it allowed 80 per cent of them to respond to innovation opportunities much faster – in hours and days, instead of the usual weeks, or months. Also, higher maturity organisations reduce their time-to-market risks by 16 per cent, it was said.
On the other side of the spectrum, there are ‘lower maturity organisations’, among which capacity is a key element in project approval processes in just 31 per cent of cases (less than a third). Almost a fifth (19 per cent), never do. Among those that do evaluate capacity, more than half (58 per cent) said it takes weeks, months even, to decide if a new project can be taken or not.
“As a result, lower maturity organizations are in the midst of a costly over-commitment epidemic”, the report says, as they are deciding on taking on projects, not knowing if they have the capacity to deliver.
“Not enough companies are connecting the dots about the impact of resource over-commitment and the ability to deliver on innovation to meet growth objectives,” said Maureen Carlson, partner, Appleseed Partners and chief researcher on the study.
“The research shows that companies are working on products or projects that are at risk of delayed delivery because there was not enough capacity to take them on in the first place. Mature organizations are in a position to evaluate capacity in real-time to make critical business trade-offs and see continued investment in this area as a competitive differentiator.”