(Hours worked by employee 1) + (hours worked by employee 2) + (add hours worked by additional employees…) = total hours worked per week
(total hours worked per week) / 40 (average working week) = FTE
Consider this your “Plan B.” The contingency plan definition is a pre-defined strategy that details what you should do in the event that your original plan doesn’t work. This can apply to a project, company, or even a government.
But doesn’t contingency planning mean you’re preparing for failure? No, not at all. Instead, it’s a smart strategy every project should have. So, what is a contingency plan exactly? And why do you need one? A contingency plan is a tool a manager uses to ensure they reach the all-important end goals of their project, even if it doesn’t go by plan A.
Contingency plans take into account project risk and help negate it. This could be anything from negative PR to poor staffing choices to force majeure. So, no matter what business you’re in, make sure you have a project contingency plan in place.
To create your contingency plan, you first need to risk assess your current plan. From there, you highlight which areas of your plan are vulnerable and come up with an alternative strategy. This helps ensure that even if the worst happens, you and your business are prepared.