The Optimal Capacity equation
Updated: Feb 6, 2021
Do I need to hire more resources, or do I need to increase efficiency?
Optimal workforce Capacity equals total workforce hrs, less Uncontrollables and inefficiencies
Total working hrs for year 2021 equals 2008hrs
Less Uncontrollables which include holiday leave, sick leave, ad hoc calls, meetings and unscheduled events etc. impact every workforce. These equate to circa 20% of workforce capacity leaving a total capacity of circa 80% of your workforce.
The next major impacts to capacity are:
Inefficient or undocumented processes, duplication of activities, lack of decision making, inadequate communication, teams not knowing who does what etc.
I have seen inefficiencies consume over 30% of available capacity within a business.
Optimal capacity of an organisation is around 80% of workforce hours, inefficiencies can consume >30% capacity resulting in a true capacity of around 50% of your overall workforce total hrs.
Take the RACI Questionnaire and see if you are suffering the inefficiency monster. https://www.raci.com/questionnaire