What is capacity planning? A 4-step framework to focus on value

Capacity planning in agile frameworks presents unique challenges due to the complex nature of digital products, where traditional methods often fall short. While complicated systems like house building can be planned predictably, complex systems such as economies or digital products involve unpredictable variables that necessitate a more iterative approach. Traditional capacity planning, which relies on metrics like velocity and story points, may provide an illusion of predictability but often fails to deliver real value because it doesn't address the complexities involved. Instead, a more effective strategy involves focusing on business outcomes, identifying valuable problems to solve, defining the value to be created, and working backward to ensure that efforts align with achieving meaningful results. This approach emphasizes outcome over output, evidence over opinions, and problem understanding over predefined solutions, encouraging teams to create value steadily rather than merely maximizing output or meeting deadlines.