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MSP Capacity Planning Guide: How to Prevent Overload and Hit Deadlines

Written by Wim Kerkhoff | Oct 2, 2025 4:41:06 PM

Summary 

Most MSPs lose money when they can't see their team's real capacity. The problem isn't managing current work; it's not knowing when you can actually start new projects. MSPs using visual capacity planning for their entire team report 70% fewer project overruns and discover 30% hidden capacity. The key isn’t a perfect daily schedule nobody follows, but it’s having a clear weekly view of each team member’s workload. 

The Common Challenge 

 

Do you know exactly when your team can start that next project and actually deliver it? 

If you're like most MSP owners, that question probably made you uncomfortable. Maybe you're thinking about that client who's been waiting three weeks for a project start date, that engineer who just put in their notice after months of 60-hour weeks, that project you promised would be done last month but is still sitting at 85% complete. 

If this sounds familiar, you are not alone in this struggle, and you are not crazy for thinking something is wrong. 

What nobody talks about at project management seminars is that MSP capacity planning does not fit into neat little boxes the way traditional resource management assumes it should. 

You cannot predict: 

  • When that emergency ticket will eat half your team's week 

  • How many hours that "simple" migration will take when surprises hit 

  • Which client will have a crisis during your carefully planned project time 

  • When your best engineer will decide they've had enough and quit 

Yet, the industry keeps pretending that MSP work can be scheduled like building widgets in a factory, which is fundamentally flawed thinking. 

What Our MSP Client Did Instead 

 

Here is what happened when one of our MSP clients implemented visual capacity planning to help improve their project management and service delivery. 

An MSP with 20-30 employees had over 15 technical staff working under rigid time blocks. Every task got a predetermined time slot, and technicians had exactly that amount of time regardless of actual task duration. One employee spent their entire day rearranging schedules whenever urgent requests arrived. 

After implementing Kanban through TopLeft, the company saw significant improvements: 

  • Ticket queue decreased from 180 to under 100 tickets 

  • Several technicians increased their utilization from 30% to over 60% 

  • Eliminated one full-time scheduling position entirely 

  • Urgent items get addressed immediately without schedule disruption 

  • Technicians began selecting more challenging tickets to expand their skills 

The fundamental shift was achieving higher productivity while reducing stress. Previously, technicians who finished a five-minute task in a 30-minute window had no productive work for the remaining time. Now, they immediately move to the next prioritized ticket. In addition, the company accomplishes more work with fewer resources, and the team experiences less pressure than ever before. 

The Framework These MSPs Used

 

1. They Made Everything Visible

This does not mean using complicated software that only managers look at. Instead, they use a screen (that is integrated with their PSA) that everyone can see throughout the day. 

Along with the Kanban section, the capacity parts of the board displays: 

  • Available Capacity shows each engineer's weekly hours 

  • Committed Work displays current project allocations 

  • Overload Alerts highlight when someone's at capacity 

  • Neglected work shows up as tickets miss time entries and progress updates.

2. They Set Realistic Buffers for Reactive Work

This part feels wrong at first, but it is crucial. If your Level 2 techs spend 60% of their time on tickets, don't schedule them for 40 hours of project work per week. Block that ticket time upfront. 

When someone insists a project must start immediately, point to the team’s actual capacity. Commitments in progress get finished first, then the next highest priority is taken on. That discipline is what makes delivery reliable.

3. They Plan in Weekly Windows (Not Daily)

These are not detailed hour-by-hour schedules that break the moment reality hits. Weekly capacity planning gives engineers flexibility while maintaining management visibility. 

The approach works because: 

  • Weekly planning matches how MSPs operate 

  • Engineers get flexibility to handle urgent tickets within the week 

  • Managers see capacity at the right level of detail (and on one dashboard) 

  • Clients get realistic timelines they can count on

4. They Built Forward Visibility


Instead of only seeing today's workload, successful MSPs look ahead 3 months: 

  • Weeks 1-4 show confirmed commitments and known constraints 

  • Weeks 5-8 include pipeline projects and average ticket loads 

  • Weeks 9-12 reveal upcoming capacity needs and hiring decisions 

This means that they know exactly when new project requests can realistically start instead of guessing and disappointing clients later. 

The Tools 

Everyone asks about tools, and there are several options that work. TopLeft gets mentioned frequently because it syncs with ConnectWise, Autotask, and HaloPSA, automatically pulling project data and eliminating duplicate data entry. 

While a spreadsheet or tools like MS Planner or Smartsheet can work for very small teams, MSPs quickly hit a wall. These tools are never in sync with the PSA, so project data is out of date, metrics are hard to track, and remote teams lose visibility into real capacity patterns. 

The tool does not matter nearly as much as the discipline to use it consistently. The fanciest software in the world will not fix a broken process. 

Can another resource management tool work better? 

Many MSPs think better resource management software will solve capacity problems. However, this thinking is completely backwards. 

The false assumption states, "More detailed resource scheduling and utilization tracking will make our capacity planning more accurate." 

This approach crashes and burns because: 

  • Your detailed schedules go out the window within hours because MSP work is unpredictable 

  • Those fancy utilization tools might help you track work from the past, but they don't help you track work in the future 

  • Adding more complexity just creates more paperwork without better results 

Here is what really happens. When you try to schedule every hour and track every minute, everything slows to a crawl. A project that should take 10 focused weeks gets stretched to 15 weeks when you're constantly updating capacity spreadsheets instead of doing actual work. 

But here is what happened with visual capacity planning: 

  • Engineers realized they could focus and finish things instead of constantly context switching between projects 

  • Managers learned to see bottlenecks before they became crises 

  • Clients discovered they could trust project timelines because they were based on reality 

Conclusion 

You do not need better resource management software to fix your capacity problems nor more detailed planning that nobody follows. 

The solution is to plan less precisely to deliver more reliably. Stop assigning specific hours to specific people for specific tasks. Instead, visualize your team's total capacity as a pool and let technicians pull work when they have bandwidth and the expertise to take the task on. This requires trusting your team and accepting that you cannot predict exactly when each task will be completed. 

The MSPs making the most money use simple visual capacity planning. They use basic Kanban boards, limit work in progress to what the team can actually handle and focus on throughput instead of micromanaging when each task gets done. When you manage workflow instead of time slots, projects complete faster because technicians work on what they can finish rather than what their schedules dictate.