{"id":3459,"date":"2022-07-07T11:06:55","date_gmt":"2022-07-07T11:06:55","guid":{"rendered":"https:\/\/resourceguruapp.com\/blog\/?p=3459"},"modified":"2023-11-23T12:16:13","modified_gmt":"2023-11-23T12:16:13","slug":"avoid-project-delays","status":"publish","type":"post","link":"https:\/\/resourceguruapp.com\/blog\/project-management\/avoid-project-delays","title":{"rendered":"Avoid project delays with these capacity planning tips"},"content":{"rendered":"<p>Just 34% of project managers report <a href=\"https:\/\/wellingtone.co.uk\/wp-content\/uploads\/2021\/03\/The-State-of-PM-2021.pdf\" target=\"_blank\" rel=\"noopener\">completing projects<\/a> \u201cmostly or always\u201d on time. So, most project managers are getting tripped up by project delays, which put a strain on everyone involved and also <a href=\"https:\/\/adaptmethodology.com\/cost-of-delay\/\" target=\"_blank\" rel=\"noopener\">strain the bottom line<\/a>.<\/p>\n<p>Recurring project delays are red flags signaling clashes between resource demand and availability. When you can\u2019t accurately match up project needs with your team members\u2019 bandwidth, you end up being bogged down by delays as you scramble to find coverage or reallocate work. You\u2019ll also deal with <a href=\"https:\/\/resourceguruapp.com\/blog\/how-to-schedule-employees-effectively\">burnt-out and disengaged employees<\/a>\u2013which contributes to further delays\u2013as well as frustrated clients and project stakeholders.<\/p>\n<p>If this sounds like your life as a PM, we promise that there\u2019s good news! You can skip all of this mess just by improving your capacity planning.<\/p>\n<p>By addressing problem areas in your capacity planning, you&#8217;ll be able to better resolve issues between capacity and demand that lead to project delays. And with the right resources and the right skills scheduled for the right amount of time (phew), you\u2019ll stay ahead of the game and see greater project success.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">In this article \ud83d\udcd6<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/resourceguruapp.com\/blog\/project-management\/avoid-project-delays\/#Use-70-80-utilization-as-the-foundation-of-your-plan\" >Use 70-80% utilization as the foundation of your plan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/resourceguruapp.com\/blog\/project-management\/avoid-project-delays\/#Base-your-capacity-planning-on-data-not-guesswork\" >Base your capacity planning on data, not guesswork<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/resourceguruapp.com\/blog\/project-management\/avoid-project-delays\/#Calculate-individual-and-team-capacity\" >Calculate individual and team capacity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/resourceguruapp.com\/blog\/project-management\/avoid-project-delays\/#Keep-an-updated-team-matrix-for-optimal-resource-allocations\" >Keep an updated team matrix for optimal resource allocations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/resourceguruapp.com\/blog\/project-management\/avoid-project-delays\/#Decrease-project-delays-with-capacity-planning-software\" >Decrease project delays with capacity planning software<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Use-70-80-utilization-as-the-foundation-of-your-plan\"><\/span>Use 70-80% utilization as the foundation of your plan<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Conducting capacity planning with too-high or too-low <a href=\"https:\/\/resourceguruapp.com\/blog\/project-managers-resource-utilization\">utilization targets<\/a> sets your projects up for delays, with team members either drowning in work or waiting around for assignments.<\/p>\n<p>A <a href=\"https:\/\/www.gartner.com\/smarterwithgartner\/avoid-overloading-project-team\" target=\"_blank\" rel=\"noopener\">70-80% utilization rate<\/a> is the ideal zone to keep things on track. This rate of work keeps people engaged without burning them out, and it also creates a more flexible buffer zone to account for any disruptions.<\/p>\n<p>While 100% is often seen as being \u201cthe best,\u201d using it as your <a href=\"https:\/\/resourceguruapp.com\/blog\/resource-management-plan-mistake\">team\u2019s maximum capacity<\/a> is one of the worst things you can do when trying to complete projects on time. You\u2019ll create project timelines with the idea that employees will spend every minute of their day on billable work\u2013which just isn\u2019t true. So, you\u2019ll inevitably see delays because your project deliverables are based on productivity that\u2019s impossible to achieve (unless you\u2019re a robot).<\/p>\n<p>A 70-80% target is more realistic, factoring in time for non-billable work tasks as well as general downtime. Without this buffer window, your team members will frantically juggle too much, and things will fall through the cracks.<\/p>\n<p>Delayed projects can also happen if people call out sick unexpectedly from the stress or, in the worst-case scenario, they completely <a href=\"https:\/\/builtin.com\/recruiting\/cost-of-turnover\" target=\"_blank\" rel=\"noopener\">burn out and quit<\/a>.<\/p>\n<div id=\"attachment_2803\" style=\"width: 2058px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-2803\" class=\"wp-image-2803 size-full\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/02\/resource-guru-resource-utilization.png\" alt=\"individual resource utilization\" width=\"2048\" height=\"1156\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/02\/resource-guru-resource-utilization.png 2048w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/02\/resource-guru-resource-utilization-943x532.png.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/02\/resource-guru-resource-utilization-1042x588.png.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/02\/resource-guru-resource-utilization-1536x867.png 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/02\/resource-guru-resource-utilization-943x532@2x.png.webp 1886w\" sizes=\"auto, (max-width: 2048px) 100vw, 2048px\" \/><p id=\"caption-attachment-2803\" class=\"wp-caption-text\"><em>It&#8217;s a good idea to keep a close eye on both individual and team utilization rates<\/em><\/p><\/div>\n<p>On the other hand, targeting below 70% leads to situations where you have team members frequently \u201con the bench\u201d instead of contributing to billable tasks they had the ability to take on. This can lead to lost revenue from reduced project scopes or turned-down projects. Additionally, employees may quickly grow stagnant and look for other work if they aren\u2019t being challenged.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Base-your-capacity-planning-on-data-not-guesswork\"><\/span>Base your capacity planning on data, not guesswork<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The last thing you want in the middle of a project is to realize you miscalculated the number of people needed for the project and the timeframe to complete it. Accurate resource and project data gives you accurate <a href=\"https:\/\/resourceguruapp.com\/features\/project-forecasting-reports\">capacity forecasts<\/a>, which is key for minimizing issues with your <a href=\"https:\/\/resourceguruapp.com\/blog\/project-scheduling-101\">project schedule<\/a>.<\/p>\n<p>Let\u2019s look at an example. When project planning for next month, Jared takes an educated guess that his team should be able to finish all their projects in 100 hours.<\/p>\n<p>However, Jared\u2019s plans quickly fall to pieces when it becomes clear that one project requires at least 25 more hours, and two of his engineers are on vacation\u2013something he never factored in when determining availability. What does this equal? <em>Project chaos<\/em>.<\/p>\n<p>In an ideal world, all PMs have access to a <a href=\"https:\/\/resourceguruapp.com\/features\/resource-management\">single source of truth<\/a> that houses their historical and real-time data, making it easy to accurately calculate employee capacity and compare it against upcoming project needs. But we know that\u2019s not the reality for everyone.<\/p>\n<div id=\"attachment_2849\" style=\"width: 2020px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-2849\" class=\"wp-image-2849 size-full\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/02\/resource-guru-project-client-report-2.png\" alt=\"track scheduled hours to avoid project delays\" width=\"2010\" height=\"998\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/02\/resource-guru-project-client-report-2.png 2010w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/02\/resource-guru-project-client-report-2-943x468.png.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/02\/resource-guru-project-client-report-2-1042x517.png.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/02\/resource-guru-project-client-report-2-1536x763.png 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/02\/resource-guru-project-client-report-2-943x468@2x.png.webp 1886w\" sizes=\"auto, (max-width: 2010px) 100vw, 2010px\" \/><p id=\"caption-attachment-2849\" class=\"wp-caption-text\"><em>It&#8217;s easier to plan ahead when you have a single source of truth that tracks scheduled time<\/em><\/p><\/div>\n<p>If you struggle to glean concrete employee and project information across spreadsheets and task-based apps, pull what numbers you can and then talk to your project team members. Since they\u2019re the ones \u201con the ground,\u201d they can give you a more accurate idea of what certain deliverables require, from team member experience to hours. When in doubt, ask\u2013your team and projects will thank you.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Calculate-individual-and-team-capacity\"><\/span>Calculate individual and team capacity<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Once you have your numbers, calculating individual capacity is pretty straightforward. Multiply your employee\u2019s available billable hours with your utilization target.<\/p>\n<p>For example, for a full-time employee, working 40 hours per week and taking no time off in August, with a utilization target of 80% (as we recommend), the calculation would be 160 x .80. Based on this, this individual has the capacity for 128 available hours of billable work that month.<\/p>\n<p>Calculating team capacity is a bit more involved since not everyone works the same amount of hours every month. The simplest way to do this is to group people with the same availability together in your calculations and then deal with individual outliers separately:<\/p>\n<ul>\n<li>Six full-time employees with no time off next month: 6 x 160 x .80 = 768<\/li>\n<li>Two FTEs taking off five days each next month: 2 x 120 x .80 = 192<\/li>\n<li>One FTE taking off one day next month: 1 x 152 x .80 = 121.6<\/li>\n<li>One part-time employee with no time of next month: 1 x 80 x .80 = 64<\/li>\n<\/ul>\n<p>Then add the totals, and you\u2019ve got your maximum team capacity for the month. Here, it\u2019d be 1,145.6 hours. Exceeding that limit means demand outstrips resources, causing you to put people on overtime or hire freelancers. Being too far under means you didn\u2019t optimize resources to their full potential.<\/p>\n<div style=\"background-color: #fcf2fe; padding: 30px 40px; margin-top: 40px;\"><em>Looking for a simpler way to calculate utilization rates and capacity? <a href=\"https:\/\/app.resourceguruapp.com\/signup\">Try Resource Guru for free for 30-days<\/a> (no credit card required) and make project delays a thing of the past.<\/em><\/div>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Keep-an-updated-team-matrix-for-optimal-resource-allocations\"><\/span>Keep an updated team matrix for optimal resource allocations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Just because someone has the capacity to take on a project doesn\u2019t necessarily mean they should.<\/p>\n<p>Besides being able to accurately <a href=\"https:\/\/resourceguruapp.com\/blog\/resource-allocation-guide\">allocate resources<\/a> to meet project demand, part of effective capacity planning is determining which people have the right skills and will be able to best meet project goals. And an up-to-date employee directory will help you make those optimal decisions.<\/p>\n<p>Once you determine who\u2019s available for certain projects, consider their current primary and secondary skills as well as their career goals. If team members feel stuck doing the same tasks over and over with no chance to explore their interests, their <a href=\"https:\/\/www.weekly10.com\/is-slow-career-progress-destroying-employee-engagement-in-my-business\/\" target=\"_blank\" rel=\"noopener\">morale, quality of work, and productivity will suffer<\/a>. This will quickly derail projects and can also lead to <a href=\"https:\/\/resourceguruapp.com\/blog\/great-resignation-resource-management\">turnover<\/a>\u2013which further impacts project staffing and delivery.<\/p>\n<p><a href=\"https:\/\/resourceguruapp.com\/blog\/teamwork-alternatives\">Project management tools<\/a> often give you the option to search employee profiles based on their departments and skill sets, making it easier to find someone who has the right blend of availability, experience, and interest.<\/p>\n<div id=\"attachment_3011\" style=\"width: 2464px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-3011\" class=\"wp-image-3011 size-full\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2012\/02\/resource-guru-skill-filters.png\" alt=\"filter your team by skillsets\" width=\"2454\" height=\"1142\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2012\/02\/resource-guru-skill-filters.png 2454w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2012\/02\/resource-guru-skill-filters-943x439.png.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2012\/02\/resource-guru-skill-filters-1042x485.png.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2012\/02\/resource-guru-skill-filters-1536x715.png 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2012\/02\/resource-guru-skill-filters-2048x953.png 2048w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2012\/02\/resource-guru-skill-filters-943x439@2x.png.webp 1886w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2012\/02\/resource-guru-skill-filters-1042x485@2x.png.webp 2084w\" sizes=\"auto, (max-width: 2454px) 100vw, 2454px\" \/><p id=\"caption-attachment-3011\" class=\"wp-caption-text\"><em>Software can help you keep track of the skillsets and experience on your team<\/em><\/p><\/div>\n<p>If you don\u2019t have this kind of platform, though, check in with team managers as well as your team members to identify their strengths and professional development goals. Not only will this help ensure that the right people staff your projects, but showing you want to <a href=\"https:\/\/resourceguruapp.com\/blog\/team-management-101\">help employees grow<\/a> will also improve their job satisfaction.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Decrease-project-delays-with-capacity-planning-software\"><\/span>Decrease project delays with capacity planning software<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While solid capacity plans can prevent a lot of project delays, unfortunately, they can&#8217;t prevent all of them.<\/p>\n<p>The key to keeping your projects on track when unexpected delays arise is to keep an eye on capacity as the project progresses. This way, you can proactively adjust workloads when needed, like if an employee calls out sick or a client sends back more revisions than expected.<\/p>\n<p>Data-backed capacity planning allows you to make the most of your employees\u2019 time\u2013and Resource Guru helps you make the most of yours. Our lightning-fast <a href=\"https:\/\/resourceguruapp.com\/features\/capacity-planning-software\">capacity planning software<\/a> gives you a clear overview of staff availability, and you can easily dig into past and present project data to accurately forecast resource needs.<\/p>\n<div style=\"background-color: #f9f8f8; padding: 30px 40px; margin-top: 40px;\">See for yourself by starting a <a href=\"https:\/\/app.resourceguruapp.com\/signup\">free 30-day trial \u2192<\/a><\/div>\n<p>&nbsp;<\/p>\n<h3>Related Resource Guru content:<\/h3>\n<ul>\n<li><a href=\"https:\/\/resourceguruapp.com\/blog\/great-resignation-resource-management\">How resource management can save you from The Great Resignation<\/a><\/li>\n<li><a href=\"https:\/\/resourceguruapp.com\/blog\/resource-management-techniques\">6 resource management techniques for successful projects and happier employees<\/a><\/li>\n<li><a href=\"https:\/\/resourceguruapp.com\/blog\/how-to-schedule-employees-effectively\">Your staff aren\u2019t robots: how to schedule employees effectively<\/a><\/li>\n<li><a href=\"https:\/\/resourceguruapp.com\/blog\/capacity-planning-tools\">5 best capacity planning tools for successful project management<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Just 34% of project managers report completing projects \u201cmostly or always\u201d on time. So, most project managers are getting tripped up by project delays, which put a strain on everyone involved and also strain the bottom&hellip;<\/p>\n","protected":false},"author":29,"featured_media":3461,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","mc4wp_mailchimp_campaign":[],"footnotes":""},"categories":[38],"tags":[],"class_list":["post-3459","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-project-management"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Avoid Project Delays with These Capacity Planning Tips<\/title>\n<meta name=\"description\" content=\"Some project delays are unavoidable. 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