Resource capacity planning predicts gaps between future project demands and available workforce capacity to ensure that required resources are available for timely project initiation and delivery. Without a structured plan, firms can face skill mismatch, firefighting of resources, and expensive last-minute hirings.
That’s why managers must perform proper capacity planning, as it helps spot skill gaps early and prevent resource shortages/excesses, ensuring timely project initiation. Also, this strategic approach ensures the billability of employees, increasing business profitability.
