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I do a lot of "Capacity Planning" for businesses - reviewing their current capacity for output and then planning future growth steps to maximise profitability,
by JacobAldridge 15y ago
I do a lot of "Capacity Planning" for businesses - reviewing their current capacity for output and then planning future growth steps to maximise profitability, achieve vision blah blah etc. I've a few tech / startup clients, but mostly I work with businesses where the pinch points are the capacity of people.
I build every model with a maximum output of 70-80% (depending on the exact business). Anything more than that is unsustainable because it relies either on perfection (no traffic jams, sick days, clients who forget to show up) or on driving staff too hard. In a professional services firm, staff billing 7.5 hours a day aren't 100% utilised - they're working 10 hours or more to achieve it.
My more fun clients are those that don't even want to get to 70% utilisation. Know your numbers and you can choose to grow faster by building in forward capacity (staff, suppliers, servers etc) right before it's needed.