Capacity planning
also known as resource planning
Matching the team's available billable hours to the work in the pipeline, to avoid both overload and idle time.
For example, before signing a big new retainer, an agency checks that its designers have, say, 60 free hours a week over the next two months. If the pipeline already fills them, it either hires, pushes the start date, or staggers the work rather than over-promising.
Why it matters to agencies: capacity planning is how you protect both margin and your team's wellbeing. Plan it well and you dodge the twin killers of idle, unpaid time and overloaded, burnt-out staff - and you know exactly when growth means it is time to hire.
aim for ~70-85% booked - enough margin without burnout
- Signing new work without checking the team has the free hours to deliver it.
- Planning on headcount instead of real, available billable hours.
- Ignoring the pipeline until the work has already landed on the team.
What is capacity planning?
Matching the team's available billable hours to the work in the pipeline, to avoid both overload and idle time.
How do you do capacity planning?
Compare the team's available billable hours against the work in the pipeline over the coming weeks, then hire, stagger or decline to keep them balanced.
How does capacity planning relate to utilisation?
Utilisation tells you how full the team is now; capacity planning looks ahead to keep that number in the healthy range as new work arrives.
What happens without capacity planning?
You swing between idle, unpaid time and overloaded, burnt-out staff - both of which quietly destroy margin and quality.