capacity: it’s the number of hours a staffer is expected to work in a month. In BigTime, this number is usually 160, since the average full-time staffer works 40 hours each week for four weeks each month. There are two views in BigTime’s resource allocation: by task or staff member. “View by staff member” helps you make informed capacity-related decisions about your staffers. Using the image below, consider the details we can glean about our staffer, Jason:
- He should work 40 hours each week (noted in gray font next to his name).
- He’s allocated 28 hours during the week of 12/3 (noted next to “Totals”).
- He’s allocated a total of 113 hours (noted next to “Allocated”) for this project.
- Prevent taking on too much work,
- Determine if you need to make additional hires, and
- Think about how you’ll allocate your resources appropriately when busy times hit.
Plus, it’s simple to shift allocations around if needed, which we’ll address next.
Second, run reports using resource allocation data. They’re a simple, but powerful way to get the details you need to make effective decisions. Perhaps you need to add more staffers to a project or adjust the amount of time you’re spending on it. Third, use revenue projections to forecast revenue by project or across staffers. Find out which months you’ll be cash flow positive. Or learn which staffers are bringing in the most revenue during the next three months. There are two ways to forecast revenue:
- Hourly (Rate*Budget): revenue projections based on your staffer’s hourly billing rate.
- Fixed Fee (% of Overall Budget): revenue projections based on the fixed amount that’ll be billed to the client for the work you do or services you provide.
Project management has a lot of moving parts, so sometimes mistakes happen. But many can be avoided with resource allocation.