The key is to engage the whole organization in knowing and understanding the direction and capacity planning of the business, build the momentum, increase the tempo of operations, and improve the strategy management success of the organization.
In today’s business reality, too many organizations operate in reactive mode and get stuck at a lower level of maturity. The planning fallacy is common inside and outside of the business. Capacity planning and modeling are critical activities that are required for running a high performing organization in the long run.
A quality capacity planning program will enable the business to switch to a proactive mode and bring you in control when experiencing high velocity and uncertainty: Organizations have limited assets, resources, talent, and time, capacity planning needs to be part of the corporate initiatives around continuous improvement. It’s important for business leaders to improve organizational capacity management effectiveness by keeping the process transparent, enforcing accountability at all levels, and focusing on long term strategy management. It’s also imperative for the management to understand the business as a complex adaptive system with different functions, structures, layers, and teams. So the business capacity planning needs to be dynamic, and make adjustments accordingly.
In specific, to make capacity planning effective and practical, the management should do the data based forecast, ensure that business investment and application development does not proceed without a "clear business rationale"; take a proactive approach to figure out what the business need, share unique business insight as to what capacity can provide, work out if it makes financial sense, shorten the project management cycle, strike the right balance of opportunity and risks, enhance governance practices so everyone knows what they are to execute on, and bring the value to achieve high-performance business results.
Capacity planning will not lower the workload, but give management a true picture of activities so a decision can be made on the ideal workload: For any company to succeed, it is essential for the entire company to be pulling in the right direction, develop a holistic capacity planning to improve business efficiency and maturity. Methodologically, to make capacity planning effective and practical, it is important to get the bigger picture, make decisions about the ideal workload, and be clear on what, who, when, and how to achieve business goals based on the financial value and available resources, to maximize business value via operation excellence.
In practice, enforce capacity planning management via iterative communication, incremental goal implementation, customer-centric viewpoint, and make a necessary delegation and implementation plan collaboratively and seamlessly. Take a deep look at the underlying business functions and processes, as well as take a wider look around at what’s going on inside and outside the organization and how it might affect the organization and identify opportunities and threats accordingly. The management can have a big picture of what’s going on so that they can justify the capacity planning properly to ensure smooth business management.
Capacity planning allows for a transparent view from across the organization that should help level the playing field: Capacity planning needs to be part of the corporate initiatives around continuous improvement. Create liaison and business partnership, figure out what the business needs, share unique business insight as to what capacity can provide, retool management to model powerful collaboration, and ensure that the business capacity plans are in line with the corporate direction to achieve the well-defined business goals.
Forward-thinking and well-managed companies need to keep planning and keep improving. To avoid planning fallacy, it’s important to practice self-awareness and accept vulnerability. In reality, there's nothing to be done about an uncontrollable situation although a good plan can identify the external factors, and a scientific process can enable a company to work around the externals. Technically, the arrival of capacity and capability on demand helps to move closer to enhance organizational harmony and efficacy. If all the departments in an organization practice capacity planning, you will be a step further to improve business transparency and the overall organizational maturity.
Planning and forecasting become challenging, and planning fallacy is a business reality. The degree of planning has a positive correlation with the degree of uncertainty and unpredictability. The key is to engage the whole organization in knowing and understanding the direction and capacity planning of the business, build the momentum, increase the tempo of operations, and improve the strategy management success of the organization.
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