Agile PMOContinuous ImprovementExecution ExcellenceProject Management Office

5 Tips to Improve PMO Value through Capacity Planning

As a PMO leader, capacity planning is one of the most important tasks you can have. Inconsistent resource distribution or overlapping interdepartmental work creates an early warning sign for project failures. In this article at, Lauri Klaus shares 5 tips to improve PMO value through capacity planning.

Capacity Planning and PMO

When there is no guidance in capacity planning, it results in overworked resources, inconsistent hiring, and budget overrun. This is where your PMO comes into the picture. Following are the 5 tips to improve PMO value through capacity planning:

  1. Create Better Utilization Formulas: It is unrealistic to expect resources to adjust to a new assignment as soon as they are given the tasks. A PMO must take the adjustment factor into account for resources contributing to multiple projects. If not, poor productivity incurs costs on all the projects the resources are associated with. Create better utilization formulas that would take into account resource constraints and provide realistic capacity planning.
  2. Optimize Resources as per ROI: Not only do you need to look after capacity planning but also the ROI potential of the projects. The job of a PMO also entails deploying high-profile resources to projects that can bring in the highest revenues.
  3. Learn to Handle Resource Gaps: There will be times when it is necessary to outsource highly skilled resources. Poor capacity planning can also cost your clients. So, either train others for the resource gap or stay prepared for the cost generated due to the skill gap.
  4. Have a Top-Down Approach: As a PMO, you must enable collaboration between departments to improve cost efficiency and resource productivity. The strategy can work only when you trickle down information to relevant stakeholders to stay on the same page.
  5. Benefits Management Is Crucial: Assigning resources only to priority projects can hurt your short-term goals. Accumulate the benefits from the short-termed project while keeping a high-level view of the long-term ones.

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