Anti-Money Laundering (AML) Project Management Office (PMO)

Resource Capacity Planning
Objective - to provide guidance for enhancing the approach and documentation relating to Citi AML Consent Order project plans for a few areas where there have been questions, observations and gaps. This guidance is intended to assist in minimizing questions and feedback in areas that are common.
· Definition
· Capacity planning is an approach that enables entities to efficiently and effectively oversee operations – whilst taking into consideration the finite nature of resources.
· The relevance of capacity planning when it comes to the determination of optimal utilization of resources cannot be overstated. This is more so the case given that it plays a key role in the decision making process, especially when it comes to capacity plan execution.
· Benefits of Capacity Planning
· Capacity planning comes in handy in seeking to avert resource imbalances and resource misallocation.
· Capacity planning is key in the development of an optimal solution set by enhancing flexibility in the analysis of ‘what-if’ scenarios.
· Capacity planning enables entities to determine operational limits so as to better define frameworks within the prevailing constraints (both human and nonhuman).
· Capacity planning enhances control and visibility. Competence is critical in the execution of tasks and for this reason, capacity planning essentially standardizes an entity’s resource management processes so as to ensure that competence becomes a great efficiency source as opposed to a great cost.
· Creating the Resource Capacity Plan
· Assumptions - In the initial phase, capacity planning begins with assumptions since there are many variables and the amount of work to be completed cannot be accurately estimated beforehand.
· Identify assumptions. All angles of the assumed factors ought to be covered. Factors to be highlighted here have got to do with the relevance and completeness of training materials and approaches, availability of target personnel, a mismatch between actual and budgeted spending, continued cooperation and enthusiasm of key players (i.e. management), etc.
· Communicate assumptions with stakeholders providing resources to the project
· Highlight assumptions that are outside the project’s control and may impact its implementation/execution. Factors to be taken into consideration herein include trends in the external environment of the entity (i.e. industry and market shifts) and unanticipated AML regulatory framework adjustments/changes.
· Identify Constraints. In essence, constraints out to be inclusive of the limitations likely to be encountered in the development of the plan. Some of the most critical constraints include resource limitations, time restrictions, and scheduling shortcomings.
· Resource Commitments – Determine which business units from the three lines of defense (business management, independent control functions and internal audit) will be providing resources and how much time is required to effectively execute the project.
· Where available, conduct an assessment of similar initiatives undertaken in the past.
· Confirm number and names of staff provided by the business unit.
· Assess the competence levels of staff provided. .
· Determine if a skills gap exists and access the need for training.
· How much time an employee works a day
· Identify the employee’s job group – with regard to groupings whose job content is similar
· Establish sustainability by affirming management’s commitment and willingness to avail required resources
· Conduct an assessment of the employee’s duties and responsibilities
· Ascertain the number of hours fulltime employees work vis-à-vis their overtime hours
· Which is best criteria to adopt for training
A variety of factors should be taken into consideration when selecting the mode of training. The said factors include, but they are not limited to, the time available for training of employees, resource availability, etc.
· Have in place mechanisms of recording and tracking progress
This would come in handy in the creation of a dynamic atmosphere and in the identification of future training needs
· Managing the Capacity Plan
· Persons and processes involved in Resource Capacity Planning. Deliberate efforts ought to be taken to ensure that those involved in resource planning work and function in harmony. This is true for departmental heads and team leaders. Towards this end, to be implemented are resource coordination strategies as well as status and periodic meetings. There is need to also prioritize the various processes and undertakings that relate to the plan.
· Deviations Assessment. There is need to routinely compare actual and estimated progress in an attempt to keep efforts aligned with the long-term mandate and effectiveness of the plan. This is of great relevance in seeking to ensure that everything is properly allocated.
· Updates. While regular, updates should not become overly frequent. In essence, these could be undertaken on a quarterly, bi-annual, or annual basis. Bi-annual updates are deemed appropriate in this case.