To answer the question of how to increase a team’s capacity without compromising on the value it delivers, I’d like to propose a 4-step framework for effective capacity planning.
Step 1: Start with the business outcome
Define what is relevant at the moment, whether it’s growth, retention, or something else. Agree upon the desired outcome with your team.
Step 2: Identify problems worth solving
Uncover opportunities that could drive the desired outcome. Focus on problems that are worth solving and aligned with your goals.
Step 3: Define the value you stand to create
Evaluate exactly what value you stand to create by crafting a meaningful solution. Assess how many customers care about it, how much they care, and how often that happens.
Step 4: Work backward
Set the context and work backward with the team. Estimate how much investment is required to create the desired value and decide whether it’s worth pursuing.
By following this framework, you can ensure that your team is working on high-value tasks that align with your business goals, without getting bogged down in predictability and output.
Additionally, here are some principles that can drive better results:
- Outcome over output: Focus on creating value beyond features.
- Evidence over opinions: Use data to inform your decisions.
- Problem understanding over defining solution: Take the time to understand the underlying problems before proposing solutions.
By prioritizing these principles and using the 4-step framework, you can increase your team’s capacity while delivering more value to your customers.