Planning executive capacity like any other critical resource
Treat executive capacity as a constraint in the plan, not a flexible reserve that absorbs every new commitment.
The performance question
A strategy may be affordable financially while requiring the same leader to sponsor several major initiatives at once. The board should test whether oversight, stakeholder work and operational responsibilities can coexist. Resource planning is incomplete if senior attention is assumed to expand automatically.
What the evidence supports
FRC Principle A addresses the resources needed to meet objectives, and Provision 15 considers other demands on directors’ time. HSE recommends assessing capacity for additional tasks and emergencies. These apply differently across companies but support explicit capacity questions.12
A practical approach
For each strategic initiative, identify the executive decisions, preparation and stakeholder commitments required by phase. Overlay these with normal responsibilities and planned absence. Sequence conflicting initiatives, appoint competent deputies or change scope. Leave room for plausible exceptions rather than planning every hour as committed output.
How to review progress
At portfolio reviews, compare actual executive demand with assumptions and examine decisions delayed through lack of capacity. Do not convert every activity into a spurious precision score. Use estimates to expose choices about sequencing, authority and support.
Sources and references
- UK Corporate Governance Code 2024 Opens in a new tab
Financial Reporting Council
Application; Principles A, E, F, I, J and O; Provisions 2, 5, 6, 17, 28 and 29
- Human factors: Workload Opens in a new tab
Health and Safety Executive
Processing limits, task analysis, workload drift and staffing
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