Most of us know the importance of sticking to a budget. In order to do that, you need to understand what money is coming in and what money is going out. You need to make sure that you aren’t committing to more than you can spend or you can end up in serious financial trouble. Astute businesspeople also know that financial acumen is key to making a business successful and keeping it that way.

I find myself constantly surprised that this same concept doesn’t always get applied to a development team’s capacity for work – either by the client or the dev management. The same skills that allow people to be successful at their budgeting and account balancing, both personally and professionally, can and should be applied directly to the capacity handling of development teams.

It all boils down to living within your means. It is important for individuals and companies alike. If you are a people manager, and want to be respected by your employees, you must understand your capacity balance sheet.

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