Capability-based Planning in 7 moves! (1/7)

Move #1: Identify and model business capabilities

After knowing what is CBP and why is it effective, let’s start…

If you don’t already have a Business Capability Map (CapMap) in place, start creating one. You need to identify your organization’s BCs and arrange them in a one-page map. In order to identify BCs, there are several approaches:

• Start with the organization’s business model canvas, value chain model, or other strategic documents and analytically extract required capabilities to fulfill business strategy;
• Analyze value streams and identify needed BCs to support every value stage;
• Extract BCs from the current organization structure. Although organization structures must be designed based on CapMap, in reality, there are many organizations with defined explicit org structure and no CapMap. So, it is a good idea to reverse designing CapMap from the explicit structure of org units and their functions;
• Use an (or many) applicable reference models to define your BCs. Some industries have generic reference capability models (e.g., BIAN for banking, or Panorama 360 for insurance, to name a few). Some other industry-specific reference models do not have explicit capability maps (TMF-Frameworx for telecom, etc.) but one can use top-level process groupings to draft the initial capabilities list.
• Usually, it is necessary to use more than one approach to compile the draft CapMap. Then go to the field and communicate this draft with business owners and iteratively refine and finalize the CapMap.

Cover all required BCs to fulfill the mission and strategy, whether they already exist and functioning or not. It means that your CapMap could include non-existing capabilities, as well. ?

Following is a simplified CapMap, for example:

Start with a top-level CapMap with up to 30-50 BCs and break each BC down to more detailed sub-capabilities, to model level-1 and level-2 CapMaps, if needed. Usually, there is no need to go further than 3 levels. Move down and up capabilities between levels to assure that all BCs in a certain level are of the (relatively) same level of detail and granularity.

Support the CapMap by filling in a Capability Profile for each BC, describing the capability definition, related business unit(s), process(es) and application component(s), strategic elements, measures, etc.

Next move: Assess maturity…