Capacity Conquered: Realigning Resources to Respond, React and Recover

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Capacity Conquered
Realigning Resources to Respond, React, & Recover
A KeyedIn Webinar

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TIM SHORT
TODAY’S PRESENTER
Global CX & Operations Leader, KeyedIn
As Senior Vice President of Global Operations, Tim oversees the customer
lifecycle end-to-end and is responsible for ensuring KeyedIn customers
achieve their long-term business objectives and form a lasting partnership
with the KeyedIn team. In executing those responsibilities, Tim leads teams
of experienced sales managers, services consultants, support technicians,
training and education practitioners, and customer success managers.
Tim brings 20+ years of executive leadership, project, portfolio and customer
success management experience to KeyedIn. Having led global, cross-
functional project management offices (PMOs) at businesses such as Twinlab
and CHG Healthcare, Tim has a keen sense of the struggles IT and portfolio
management leaders face in fulfilling their demanding roles.

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Challenges of resource management and capacity planning
The Changing Landscape
Topics for today’s event
AGENDA
Knowing what needs to be done vs. actually doing it
What We Need to Do About It
You’ve always wanted to do this – but now you actually have to.
The Business Impact
Action items and takeaways
Conclusion & Questions

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WHAT IS RESOURCE CAPACITY PLANNING?

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https://www.businessinsider.com/study-on-financial-impact-of-star-wars-death-star-2015-12

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LET’S ROLL BACK
THE TAPES
“We always approve more projects than we can
complete.”
“There are never enough people to do all the work.”
“We always struggle to get access to specialist skills.”
“Leadership just doesn’t understand how much project
work we have going on.”
BACKGROUND

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TAKE 2(00)
BACKGROUND
Resource capacity planning requires a lot of
information
• Portfolio level capacity
• Contingency
• Reliable prioritization
Learning from experience
• Avoid making the same mistakes repeatedly
• Finding the balance of utilization vs. availability

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Capacity Planning Maturity Model
Level 1
Basic resource management
and little to no capacity
planning. Project-by-project
basis of resource
assignments and high level
of program or portfolio level
planning.
Level 2
Basic resource capacity
planning — a cyclical
balancing of resource
capacity against demand for
those resources. As these
organizations develop and
mature, they can advance
into resource management
— the capability to
dynamically optimize
resources to meet demand
for those resources
Level 3
The level where the PPM
function proactively identifies
resource interdependencies
across initiatives to reduce
bottlenecks and uses a
dedicated resource
management tool.
Level 4-5
The PPM function proactively
maps and maintains skills to
identify substitutes for
bottlenecked roles. Also at
Maturity Level 5, the PPM
function adopts a cross-business-
unit, portfolio-level view of
resources, and coaches sponsors
and initiative managers on
effective resource management.
Source: Resource Capacity Planning for PPM Leaders: Crawl Before You Walk, November 2019

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• Digital Transformation is no longer optional.
• Transformations that have been years in the
making are happening overnight
• Adaptation is the new norm.
• Every business is adapting in some way and
everyday life is different
• Stability isn’t reasonable.
• Environments are changing and no one has
the answers
• Changes are constant and driven from
multiple sources
• Competitors, customers and technology are
key change drivers
BUSINESS IS CHANGING

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THE CHANGING LANDSCAPE
THIS DRIVES A
CHANGE IN PROJECTS
Change
Autonomy
Business Focus
Turnover
Prioritization
Communication
Adaptive Planning
Repeatable Patterns
Command & Control
Project Focus
Team Stability
First in / First out
Hierarchy
Rigid Planning
PMO as the center of change
Change management
Rapid adoption / minimal
disruption

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And Requires Agile Resource Management
Allocation typically only accounts for
individual project needs
Changes only happen when problems
occur – not best fit at any given time
Reactive and doesn’t consider long term
impact of change
Case by case basis
Allocate resources and analyze changes at
the portfolio level
Identify red flags and key indicators early
and often – don’t get caught on your heels
Proactive resource allocation – contingency
plans and impact analysis
Centralized resource management and
scenarios across projects
Project Oriented Resource Management Product Focused Resource Management

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RESOURCE MANAGEMENT IN 3D
THE CHANGING LANDSCAPE
Portfolio Level
Resourcing
Agile Resource
Management
Effective Change
Management
Frameworks
Product-Focused
Delivery Models

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Change is Hard
• We don’t have everyone on board
• We don’t have a systemic way to manage change
• There’s already a lot going on
We Know This is a Problem
I Have Bigger Fish to Fry
• Chaos is our new normal and we’re still not on solid ground
• Rolling out a new approach will be behind our list of fires
• What was that about prioritization again?

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Change is Necessary
• Teams are adapting to new ways of working
• Change is the only standard
• Go further, faster, with proper capacity planning
We Know This is a Problem, But…
I Need Better Results
• Equip your organization to make better decisions
• The only way to move forward is with a solid plan
• Put your best people on the highest priority work

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RESPOND
YOUR FORMULA
FOR CAPACITY
PLANNING
REACT
RECOVER
Your portfolio is blown. Reprioritize with information you have now.
Unexpected shifts require better scenario modeling
Identify options, make a plan to move forward
Restructure and evolve
Adjusting to the new normal
Product-focused portfolio and resourcing
REPLACE
NEW normal to structure

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Remember that Maturity Model?
Level 1
Basic resource management
and little to no capacity
planning. Project-by-project
basis of resource
assignments and high level
of program or portfolio level
planning.
Level 2
Basic resource capacity
planning — a cyclical
balancing of resource
capacity against demand for
those resources. As these
organizations develop and
mature, they can advance
into resource management
— the capability to
dynamically optimize
resources to meet demand
for those resources
Level 3
The level where the PPM
function proactively identifies
resource interdependencies
across initiatives to reduce
bottlenecks and uses a
dedicated resource
management tool.
Level 4-5
The PPM function proactively
maps and maintains skills to
identify substitutes for
bottlenecked roles. Also at
Maturity Level 5, the PPM
function adopts a cross-business-
unit, portfolio-level view of
resources, and coaches sponsors
and initiative managers on
effective resource management.

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GARTNER’S CRAWL, WALK, RUN APPROACH
ADAPTING TO CHANGE
Gartner estimates
most organizations
are here

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1. Accurate depiction of how many
people you have to work on
projects and how much
availability they have
2. Determine resource
requirements for each project
3. PRIORITIZE the projects
4. Allocate resources based on
priority until resources are
exhausted
5. Identify the scare skills/resources
6. Address any tradeoffs – this is
where things get interesting.
Getting a handle on where you stand
RESPOND

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REACT
Align projects to new business
strategy
Lead business to portfolio level
resourcing
Model scenarios and identify
risks
Make more tradeoffs
Generating a plan to move forward

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Adaptive planning
Digital, agile
resourcing
Product vs. project
portfolio management
Communicating the plan and keeping
updated
RECOVER

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REPLACE
Forecast comparison and
updates for accurate planning
Scenario modeling to ensure
informed decision making
Risk tracking and analysis
Feedback loop of project
performance and portfolio
insights
Actionable insights to get (and stay) ahead
of the curve

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Capacity cannot be
considered without also
addressing capability
Factors must drive
portfolio selection
decisions
Elements evolve with
circumstances and must
be reviewed regularly
Multiple approaches to
addressing capacity /
capability gaps
Not all approaches will
generate the same
results
Management must
consider portfolio and
enterprise impact, not
just project
Capacity management
requires business
partners to address –
Finance, HR, L&D
Integrating capacity
management into core
business functions
elevates it to a long-
term, strategic function
Day 5
Modern Capacity Planning
Formula for effective capacity planning
Capacity and capability
is impacted by every
completed project
Operational impact also
affected by tolerance for
change
Can be single biggest
determinant of success
or failure
Capacity & Capability
Gap Management
Business Integration
Beyond the Project

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Business Impacts of Capacity Planning
Examples of capacity planning in action
GREATER
ORGANIZATIONAL
AGILITY
ABILITY TO ADOPT
AN ADAPTIVE
BUSINESS MODEL
IMPROVED
INVESTMENT
PLANNING
STRATEGIC
IMPACT ON
BUSINESS GOALS

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Retail Revamp
As all storefronts were required to shut down for this large
global retailer, they had to pivot to online only ordering. Their
capacity plan was to hire and build out stores in malls and high
end outlets and needed to manage a shift in business priorities
to increase their online presence and distribution.
Restaurant Supply Shift
A large manufacturer and distributor of restaurant supplies,
capacity planning helped this company re-plan not only their
people but equipment and supply chain. They quickly shifted
their manufacturing to take-out materials, disposable and one-
time use packaging for their customers.

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Healthcare organization — experiencing a major shift
requiring all employees, not just frontline workers, to help
take shifts at their hospitals and clinics. Even IT team
members ended up being on the front lines helping with
mobilizing tents, helping with projects to ensure social
distancing, sanitization, regulations at their facilities, etc.
Equipment manufacturing and reseller — they had to
pivot and figure out how to handle resourcing with forced
furloughs. Basically, everyone in the company was
required to take 2 weeks off in May and they used
capacity planning to figure out how to schedule, re-
schedule, and plan to get through the month.
Healthcare Heroes
Furlough Falter

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Summary
Creating a strategic model takes time and commitment
• Fundamental change to how organizations operate
• Integration of capacity management into every aspect of business
Capacity management must be a strategic discipline
• Managed at the business and portfolio levels
• Addressed as part of a long-term plan that incorporates capability
Capacity management must be integrated
• Only one resource pool – the employees
• Cause and effect occurs at every level – change is disruptive

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Speed of Reporting
IMPROVEMENT
50%
Forecast Accuracy
INCREASE
60%
Total Portfolio Value
REINVESTMENT OF
20%
For ESOs
PROFITABLILITY
2x
Project Management Cost
SAVINGS
50%
Hundreds of global customers across a diverse set of industries.
including:

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THANK YOU

Capacity Conquered: Realigning Resources to Respond, React and Recover

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