Cutbacks in the number of associates, staff, and now partners along with reductions in salary, attempts to increase rates while delivering the same service, closing offices or hiring people just to generate enough cash-flow to cover rent are all examples of capacity solutions. Capacity solutions are best suited to solving capacity problems.

“Capacity problems are those that require more, fewer or different resources,” Ron Ashkenas, managing partner of Robert H. Schaffer & Associates in Stamford, Conn., wrote in a blog post for Harvard Business Publishing. For example, if you have an abundance of a product at a profitable price that is in high demand by consumers, then you need sufficient resources to create and distribute the product to effectively meet the need and realize a reasonable profit.

LAW FIRMS FACE A COMPLEXITY PROBLEM

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