Decoupling Time Allocation from Capacity Allocation: The Key to Improved Team Efficiency

2025-09-19
Decoupling Time Allocation from Capacity Allocation: The Key to Improved Team Efficiency

This article explores the misconceptions surrounding team capacity allocation. Many companies equate time allocation with capacity allocation, overlooking systemic factors affecting team capabilities. The author points out that capacity is not merely the sum of hours worked but encompasses team skills, tools, processes, and more. Focusing solely on time allocation while neglecting system optimization leads to inefficiency. The author recommends distinguishing between 'time allocation' (where the team spends its hours) and 'capacity allocation' (the team's true ability to deliver outcomes), considering various disruptive factors, for improved team efficiency.

Development capacity allocation