Industry Capacity — Matching Marketplace Realities

Capacity Times Three

Let's turn our attention to capacity for a moment. There are three kinds of capacity and each must be handled differently.

1) Core competency capacity. This is the activity that your company does well and usually is the centerpiece of your business. It must be what "lights your fire." Generally, you want enough capacity in your core competency areas to do the work available during busy periods, but not so much that you never outsource. This generally is the capacity you do not want to reduce or emasculate in any way.