Glossary term
Capacity allocation
An explicit decision about how much time, money and team capacity will be assigned to different goals or types of work.
Also known as: investment allocation, resource allocation
Capacity allocation happens before individual ideas are prioritised.
Leadership may decide how much capacity belongs to the core product, customer commitments, mandatory work, technical health and new bets. Without that decision, the allocation still happens, but it is shaped by urgency, politics and whoever has the clearest revenue number.