What is one benefit capacity allocation?
a. It allocates developers and testers to an initiative
b. It ensures all Value Streams in the Portfolio appropriately
c. It prevents different types of backlogs from being compared
d. It enables effective time-tracking
Answer:- The correct option is b. It ensures all Value Streams in the Portfolio appropriately
In agile portfolio management, capacity allocation is a process of allocating the capacity or resources among different value streams in the portfolio. When capacity is allocated in the right manner, organizations will ensure that all value streams have sufficient resources such as people with desirable skills and adequate funding to be able to offer the same.
Some key benefits of effective capacity allocation include:
Strategic alignment – A formula is applied where capacity gets assigned to value streams according to strategic priorities and goals. This eliminates haphazard allocation of resources which may not follow the strategy.
Balanced investments –balance capacity allocation of investment and funding across value streams. As a result, some initiatives may be either over or under-funded without it.
New allocation of resources– capacity allocation reduces resource contention problems that occur when different teams or projects fight for the same limited number of resources.
Enhanced forecasting capacity – With the ability to assign capacity across initiatives, it is possible to make better predictions regarding delivery capability and throughput of value streams.
Capacity allocation enables the optimization of resources through all initiatives for maximizing returned value delivered by any portfolio.
To sum up, capacity allocation is one of key agile portfolio practices that support enterprise agility by providing all value streams with access to sufficient resources for delivering value according to strategies. It ensures that capacity is balanced with strategy and avoids resources being allocated sub-optimally.
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