A method of managing capacity in a business process on demand for providing a service to a service requester. The method comprises the steps of providing a business process having one or more service inputs, at least one service output, at least one capacity constraint having a capacity level and a queue located ahead of the capacity constraint having an upper queue threshold and a lower queue threshold. The method further comprises gathering with a performance monitoring subsystem a set of business process data, and adjusting with a capacity management subsystem the capacity level of the capacity constraint in response to the set of business process data gathered by the performance monitoring subsystem.