Capacity insights required for a healthy Product ROI

Capacity is time plus knowledge: balance team deadlines with skill gaps for realistic roadmaps.

Capacity planning

Product management

Wouter Neyndorff

CEO

December 2, 2023

3 minutes

Many software companies fall into the trap of overlooking capacity as a crucial component. And it's not just about time - it's about Time PLUS Knowledge.

Many companies are quick to allocate resources, setting their sights on deadlines while underestimating the capabilities they possess or need. Capacity is often misinterpreted as a simple measure of time, causing the critical component of Knowledge to be overlooked.

Why does this matter? Because knowledge is the blend of your team's skills, experiences, and expertise. It’s the secret ingredient that drives innovation, efficiency and, above all, the ROI of your product.

Not factoring in the Knowledge element while planning Capacity can lead to misaligned priorities, overstretched teams, and ultimately, unmet targets.

So, how can we remedy this?

Next time you're planning your roadmap initiatives, gauge your team's knowledge capacity on things like the technical components they will use and the way they can iterate with this specific part of the product and stack. Then, set your timelines and priorities. This will make your roadmap more realistic, achievable, and successful.

We learned that a balanced approach to Capacity (Time + Knowledge) will help pave the way to a better product that contributes to CLV.

‍

Key Takeaways

Companies typically measure capacity as time only, missing that knowledge—team skills, experience, and expertise—is the critical second factor that drives ROI and innovation.

Overlooking the knowledge component leads to misaligned priorities, overextended teams, unmet targets, and poor product outcomes because timelines don't account for skill gaps.

When planning roadmap initiatives, explicitly assess team knowledge on required technical components, frameworks, and how they can iterate effectively with each part of the stack.

A balanced capacity approach (Time + Knowledge) directly improves realistic planning, achievable targets, and ultimately contributes to higher Customer Lifetime Value.