Capacity planning = The new capital budgeting
Digitalization has pushed an exponentially increasing number of initiatives and projects into the wide end of the yearly PPM funnel. Budgets are limited, but resources, capacities and skills even more so.
Portfolio management, with its origin in financial theory, once represented the most efficient allocation of budgets and resources, and could be matched to the individual corporate appetites for risk. But why is it that budgets are commonly known, whereas the vibrant potential of your resources´ skills and their capacities remains mainly in the unknown? Why is it that dealing with resources is so much harder than dealing with budgets? The answer is that resources have so much more dimensions than a simple currency value, that we must take into account for sustainable business value. In addition to that, companies who have a low resource management maturity and use the wrong tools for resource planning, will more likely be overpassed by their competitors.