Using Capability-Based Planning to Balance Competing Priorities

Capability-based planning isn’t just for high-level business strategy - it’s a powerful tool for prioritizing work and making better decisions at any level, including IT and individual departments. Some enterprise architects assume this approach only applies to broad business value streams, but that’s not the case.

By scaling it down, you can apply the same principles within a department to organize work, align with business goals, and make smarter investment decisions. This ensures teams stay focused while maintaining a strong connection to the company’s overall strategy.

These insights come from my personal experience and do not represent my employer’s views. I’ve used this approach time and again to bring structure to unclear priorities, whether for my own team or in cross-functional efforts.

You don’t have to use this approach exactly as outlined - just take the parts that work best for your team. Hopefully, you’ll find some useful tools to enhance alignment and teamwork.

Keep It Simple

When defining capabilities, I always recommend using a "Verb > Noun" format (e.g., Manage Inventory, Deliver Mobile Experience). This makes it clear what work is being performed, while keeping it understandable for both stakeholders and teams.

Now, I won’t lie - getting this right takes practice. It’s a balance between being specific enough to drive action without getting lost in too much detail. Over time, I’ve learned that capability mapping isn’t about being a purist; it’s about what works. The goal is consensus and clarity, not perfection.

Why Use Capability-Based Planning?

When done right, capability-based planning offers several key benefits:

• Strategic Alignment – Ensures that all work directly supports business goals.
• Resource Optimization – Helps focus resources where they create the most value.
• Objective Prioritization – Prevents investment based on internal politics or market trends.
• Gap Analysis – Identifies critical weaknesses that need attention.
• Better Decision-Making – Provides a structured way to evaluate investments.
• Future-Proofing – Helps guide roadmaps by identifying what needs development.
• Risk Management – Helps assess dependencies and potential risks during transformation.

Let’s walk through an example to make this more concrete

Imagine a company called Widget Co. with a new CEO. Their leadership team has set the following strategic goals:

• Market Leadership – Capture 25% market share within two years.
• Digital Transformation – Shift 50% of revenue to digital channels by 2026.
• Customer Satisfaction – Maintain a 4.8/5.0 rating.
• Operational Excellence – Reduce operational costs by 15% while improving delivery speed by 30%.

To align work with these goals, I typically map them to specific capabilities, creating a direct link between strategy and execution.

This first pass helps teams see the connection between their work and company goals. It also makes it easy to track progress and adjust when things don’t go as planned. And trust me - things never go exactly as planned, so having a clear map makes recalibrating much easier.

Breaking Down Capabilities Further

Once we have the high-level capabilities, the next step is breaking them down into specific, actionable areas:

At this stage, the capabilities follow the Verb > Noun format. However, at higher levels, I’ve learned that flexibility is key. While I used to debate over definitions, I’ve realized it’s better to focus on what works rather than being overly rigid.

Assessing the Current State

Before making any big investments or changes, it's important to assess where things stand today. I always recommend working closely with leaders from each area to validate these assessments - getting their buy-in early makes all the difference. Ideally, nothing in your assessment should come as a surprise to them. Instead, you’re looking for their support, since they’re the ones who should define their current level of maturity and where they need to be.

You can use CMMI capability mapping to structure these assessments (you can look it up if you're unfamiliar). However, you could also take a simpler approach by identifying pain points and evaluating how each area aligns with business goals - like the example provided here. CMMI models might work better for your team, as they provide clear, standardized definitions for maturity levels. This can also help frame discussions objectively - aligning with an established model can reduce friction and make it easier for teams to accept where they stand without taking it personally.

At the end of the day, the key is using the right tools to be effective - whether that’s a formal maturity model or a straightforward pain-point analysis. The goal is clarity, alignment, and progress.

Setting Priorities

Once we have a clear picture of our current state, the next step is prioritization - and this is where capability-based planning really makes a difference. It helps remove bias, keeping teams focused on what truly matters instead of getting caught up in less impactful work.

To make this process more visual, I usually overlay a heatmap on top of all capabilities. This helps quickly highlight the areas that need attention within the larger ecosystem of capabilities the team or organization manages. I also like to include all relevant capabilities, not just the ones directly in scope. Why? Because sometimes, we uncover projects or investments that no longer align with current priorities. In these cases, they may need to be de-prioritized in favor of initiatives that better support the strategy.

A word of caution: Not everyone will be happy about this. Surfacing an outdated or low-priority capability can ruffle feathers, especially if teams have invested time and effort into it. But the goal isn’t to call out bad investments - it’s to stay focused. A strong strategy isn’t just about deciding what to do; it’s also about knowing what not to do so resources are used effectively.

For Widget Co., priorities might look like this:

1. High Priority – Develop mobile app, optimize last-mile delivery (critical gaps).
2. Medium Priority – Upgrade online shopping platform (important but not urgent).
3. Low Priority – Improve in-store experience and warehouse operations (already performing well).

A Gantt chart is a great way to visualize work over time and ensure high-priority initiatives are addressed first. However, keep in mind that some lower-priority tasks may serve as essential building blocks for high-priority work. Your planning should highlight these dependencies, so don’t be too rigid with priority levels - make sure to account for these nuances in your approach.

Aligning People, Process, and Technology

When managing a large portfolio of initiatives and capabilities, it’s easy to overlook dependencies. Every initiative affects people, processes, and technology, and for a plan to be truly effective, all three must be considered.

I get skeptical when I see a strategy that only focuses on technology without a plan for how the people using it will develop over time to make the capability stronger. No one becomes an expert overnight - people and processes evolve gradually, while technology can be implemented immediately. That’s the key difference, and it’s why a successful plan must account for the time it takes to change behaviors and workflows alongside the technical rollout.

That’s why I prefer to lay everything out upfront. This includes not just the technology, but also the people who need training and the processes that need refinement to ensure long-term success. A well-rounded plan isn’t just about launching new technology—it’s about making sure the right support and structure are in place to sustain and improve it over time.

People

• Mobile App Team: Product Managers, Developers, UX Designers, QA Engineers.
• Last-Mile Delivery Team: Logistics Managers, Route Planners, Delivery Partners.

Process

• Customer Experience: Agile development, user testing, phased rollouts.
• Supply Chain: Route optimization, partner onboarding, performance tracking.

Technology

• Mobile Platform: App development framework, digital payments, push notifications.
• Delivery Operations: Route tracking, partner management, customer updates.

Overlooking these factors can create blind spots - I’ve seen it happen too often. A strong capability plan connects all the dots upfront, ensuring a clear and structured approach.

I haven’t gone into detail about specific work packages tied to the examples, but you’ll need a clear plan for how to tackle them effectively. To make this happen, collaborating with a project or program partner is essential for hashing out the details and ensuring smooth execution.

And let’s not forget - stakeholder management is a critical skill. Success isn’t just about having a solid plan; it’s about working with the right people in your organization to drive meaningful change.

Using a Capability Map for Continuous Improvement

One of the biggest advantages of capability-based planning is that it’s not a one-time exercise. Business needs change, markets shift, and priorities evolve. That’s why it’s crucial to continuously review your capability map and track progress against your plan.

Here’s how to make sure your capability map remains a valuable tool:

• When circumstances change, use the map to assess the impact and adjust accordingly.
• When new priorities arise, update your plan to ensure alignment.
• When something isn’t delivering results, rethink the approach instead of forcing a failing strategy.

The strength of this method lies in its ability to provide both structure and flexibility. Organizations that can adapt quickly and pivot when necessary are the ones that consistently stay ahead.

Final Thoughts…

I’m a strong advocate for capability-based planning because it brings clarity to work. While I’ve used it extensively in enterprise architecture, the same approach can be applied at any level to help teams gain visibility, improve alignment, and strengthen collaboration. You don’t need to be an enterprise or business architect to use this method - anyone can apply these principles to bring structure and focus to their work.

Too often, teams struggle to see how their daily tasks tie into broader business goals. A capability map bridges that gap, creating a clear connection between strategy, execution, and investment decisions - so everyone understands the bigger picture.

Beyond just planning, this approach helps future-proof organizations. A well-defined capability map doesn’t just guide today’s decisions - it lays the foundation for long-term growth and adaptability.

If you’ve used capability-based planning in your organization, I’d love to hear how it worked for you.