Episode 26: How to Get Your Capacity Plan Humming
“As Jamie uses that analogy with the glass of water you want to, if you want to grow, you've got to have that cup, not at the full at the ring...”
In this episode of The Wize Guys, Brenton Ward, Jamie Johns, and Ed Chan talk about Capacity Plan – The most critical tool for a high-performing and profitable production and discuss how having a capacity plan in place is one of the fundamental tools they recommend for scaling a practice. They provide some insight into capacity planning and why it's so important to the growth of the business.
They also discuss what are the most common reasons for overcapacity. What are the negative outcomes because of this and what are suggested approaches to correcting this? Learn more on this episode to get you started to work on your capacity plan in place!
Timestamps:
1:11 - Understanding the context of a capacity plan
2:25 - The importance of having a capacity planner
5:04 - How to science right with your people
8:54 - The rule of thumb
10:20 - Tips for capacity planning
13:12 - Most common reasons for overcapacity
17:38 - Key points to work in capacity planning
23:29 - Reasons why you need spare capacity
28:02 - How to allocate productivity with training
30:12 - Is it ok to disclose staff salaries to the team?
32:04 - How to determine charge-out rates
Quotations:
“In our industry, productivity really gets the clarity because between charging right and productivity and the number of hours a person works, this is what your capacity is per person and wallet. It’s not an exact science. It's a really good guide, particularly if you're trying to grow your firm.” - Jamie Johns
“So just getting the balance rights important between servicing and growth. If you want to grow, you've got to spend more time in front of your clients.” - Ed Chan
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