Organising Productivity: Insights for Capacity Planning

Capacity planning is crucial for any organization's smooth operation. When integrating a new supply of associates into your plan, seasoned capacity planners focus on productivity. The central question is whether these new associates will be as productive as the existing core team on day one. If not, it's essential to understand why and how to account for this loss in productivity. Here are key considerations for capacity planners:

1. Attrition Rate Expectations: Anticipate attrition at various stages. Some associates may drop out before training, during training, or in the early months of production due to various reasons, such as finding other opportunities or a poor fit with the company. Plan for attrition accordingly.

2. Productivity Ramp-Up: Don't assume new hires will be as productive as existing associates right away. There's usually a ramp-up time. Delineate productivity KPIs between core and new associates, blending them into a final KPI for your capacity plan.

3. BPO Productivity: Recognize that Business Process Outsourcing (BPO) associates may have lower productivity compared to internal staff. Factors like technology integration challenges, training quality, and communication disparities can contribute to this difference. Account for this variation in productivity rates.

A successful capacity plan hinges on a nuanced understanding of productivity factors. By considering attrition rates, productivity ramp-up, and differences between internal and BPO staff, capacity planners can build more accurate and effective plans for their organizations.