Audit & Accounting Firm: Beating Market Volatility with Efficient Resource Capacity Planning

- By Om Gupta | June 12, 2020
Jump to Section
Jump to Section

Market volatility is the new norm. The last few years have seen ups and downs that are impacting market conditions continuously. The global market has constantly been having a roller-coaster ride. It is making it harder to predict what next will threaten the very growth and profitability of an organization.

In such conditions, most firms resort to reactive measures such as abrupt layoffs and halting new initiatives. It works in the short term but affects business sustainability adversely. When the situation improves, they end up hiring people whose profiles and duties are similar to whom they fired. In other words, the upfront costs of wasteful hiring and firing cycle go up.

There is a better way to deal with this challenge, which begins with establishing an effective Resource Capacity Planning solution. More and more businesses have started adopting resource planning to beat the adverse effect of market volatility.

Capacity planning software GIF

What is Resource Capacity Planning?

Resource capacity planning is the process of forecasting the gap between the capacity and the demand for resources. It also depicts an action plan to bridge this gap. Resources in an enterprise can be people, assets, facilities, equipment, vehicles, etc.

Resource capacity planning requires centralizing information from various systems. These are human resources, capacity, skills, current/future pipeline projects, resource demand/ allocation, vacations, and non-project activities. It helps you build a single source of truth, enabling real-time forecasting of resource capacity vs demand.

A business that gets early warnings about resources shortage/ excesses, utilization, project vacancies, on the bench, revenue, margins, etc. is better equipped to take corrective actions ahead of time.

Read More
The Comprehensive Guide to Resource Capacity Planning
The Comprehensive Guide to Resource Capacity Planning

What does Resource Capacity Planning Include?

In modern business, resource capacity planning goes much beyond the basics of measuring the demand against capacity. It includes all these areas.

Forecast Resource Capacity vs Demand by Time Line

A business should be able to forecast capacity vs demand from multiple dimensions, i.e., by role, department, team, location, skills, etc. It helps in identifying short or long-term shortage/excess of resources ahead of time.

Tracking Competency Matrix Across the Enterprise

It is critical to track and keep competency information about the workforce up to date. The right talent can be thus identified, and resource allocation can be done to the right work. It will be based on skill, experience, qualifications, individual preferences, etc.

Resources and Capabilities Analysis: The Human Resource Perspective
Read More
Resources and Capabilities Analysis: The Human Resource Perspective

Forecast and Plan for the Projects in the Pipeline

The system should keep track of future potential pipeline projects and their resourcing requirements. It will ensure that the resource pool is optimally balanced, skilled, and readily available to meet the demand for new projects.

Forecast Overall, Strategic and Billable Resource Utilization

The system should be able to provide short- or long-term forecasting of billable, strategic, and overall utilization. Corrective actions can be taken to ensure high utilization and protect the profitability of the business.

Maximize Profitable Resource Utilization with Modern Resource Management Solution
Read More
Maximize Profitable Resource Utilization with Modern Resource Management Solution

Forecast Project Vacancies and People on the Bench

The system should give your business the foresight into future project vacancies. It will also highlight people who will end up on the bench due to being under-allocated, or not actively allocated. It helps the resource manager to mix and match available people against project vacancies.

Save resourcing cost with capacity planning

How Does Resource Capacity Planning Help You Beat the Market Volatility?

Bridge Resource Shortage Proactively

Forecasting capacity vs demand provides foresight into a shortage of resources ahead of time. It will efficiently bridge the gap by:

  • Retraining existing employees
  • Smoothening the project workload
  • Hiring contingent resources ahead of time

Forward Plan and Utilize Excess Resources

Forecasting capacity vs demand foretells excesses of resources ahead of time, so that surplus resources are not wasted. It can help you in:

  • Bringing forward future projects
  • Selling resource time aggressively
  • Restructuring capacity in different areas

Build On-Demand Workforce

With an efficient capacity planning, a business can foresee and build an on-demand workforce by hiring flex workers. Some of the examples of flex workers are contractors, casuals, part-timers, freelancers, etc. It helps in meeting the temporary shortage of resources without any permanent cost overhead and minimizes hiring/firing costs.

Reduce project resourcing cost across the enterprise

With the help of efficient capacity planning, overall resourcing cost can be reduced drastically:

  • Eliminate under/over skilled resources on projects
  • Utilize cost-effective global resources without compromising quality
  • Avoid last-minute hiring cost with proper capacity planning
  • Minimize wastage due to on-the-bench resources

Improve Billable Resource Utilization

The capacity planning system forecasts billable utilization of resources ahead of time so that you can transfer resources from non-billable or low priority work to billable or high priority projects.

Reduce Resourcing Cost by 10-30% with Modern Resource Management Solution
Read More
Reduce Resourcing Cost by 10-30% with Modern Resource Management Solution

The SAVIOM Solution

SAVIOM is the market leader in providing an Enterprise Resource Capacity Planning solution. It has more than 20 years of experience working with high valued global companies around the world. SAVIOM also provides tools for project portfolio management, professional service automation, and workforce planning software. So, SAVIOM can help your business to establish an efficient system geared towards your specific business challenges.

Get resources to your inbox directly!

Recommended Articles

Book Your Free Customized Trial Today!

See how intuitive and effective our Resource Management Solution is by booking a free, custom-configured trial.

Press Esc to close
Press Esc to close
Press Esc to close