What is the difference between capacity planning and resource planning?

Capacity planning and resource planning are often mentioned together, but they address different levels of project management.

Capacity planning looks at the big picture. It asks a fundamental question: Do we have enough overall time, people, and tools to handle upcoming work?

Resource planning, on the other hand, works at the task level. It focuses on assigning the right person with the right skills to the right job. If capacity planning confirms there are enough engineers overall, resource planning decides who will design the client‘s system next week and who will perform testing.

These two processes work best together. Capacity planning ensures the business does not promise more work than the team can realistically deliver. Resource planning makes sure daily assignments are well-balanced and deadlines are achievable. Without capacity planning, organizations risk overcommitting and stretching teams too thin. Without resource planning, they risk underusing talent or overloading individuals with conflicting tasks.

Modern tools like Birdview PSA bring both perspectives into one platform. Managers can view long-term capacity forecasts while also drilling down into individual schedules. This visibility makes it easier to adjust strategic plans and daily work when priorities change.

A practical approach is to begin with capacity planning before major sales cycles or portfolio reviews. Once you know the limits of your resources, use resource planning weekly or even daily to fine-tune allocations. Together, these practices keep organizations realistic, flexible, and productive.