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A Capacity-Based Governance Method for Improving Engineering Performance

Location: Your office

Date: Wednesday, January 24, 2007

Time: 1:00pm - 2:30pm ET

Overview

In this audio session, Ross Seider, a senior partner of On-Fire Associates describes a visual, spreadsheet-based model for capacity governance that looks at capacity planning from the standpoint of the complete project portfolio. This capacity management process creates a visualization that allows participants to prioritize activities, allocate resources, and evaluate shifting resources.  Eventually, the participants in this process agree on the drawing of two horizontal lines on the visual model that distinguish between high priority projects, which are likely to be fully funded, a second level of partially-funded projects, and projects that will not be given resources during the planning horizon. This process is owned by engineering and product management; it encourages participation from all other groups in the development chain and from other stakeholders; it runs periodically; it is very efficient in terms of management time since it is performed multiple times per year; it is a distributed process that expects subject matter experts to make 80 percent of the decisions and focuses senior management on the boundary conditions where there are conflicts. Finally, it is a zero-based activity – each project must re-certify its importance to the company relative to all other projects and potential projects at every iteration.
(10 pages)

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