Get a Free Deliverable

Business Capabilities Framework

Business Capabilities Framework

Capstera Business Capabilities Framework

Business Capabilities Framework or Enterprise Business Capabilities Framework, or a Capability Modeling Framework: Whatever name you want to call this discipline, it is an outline of principles, practices, and perspectives on how individual business capabilities are defined and enriched to form a holistic enterprise-wide business capability model.

What Capstera Business Capabilities Framework?

It is how business capabilities are conceptualized, created, detailed, managed and harnessed. You can call it Enterprise Business Capabilities Framework, or a Capability Modeling Framework. Whatever name you want to call this discipline, it is an outline of principles, practices, and perspectives on how individual business capabilities are defined and enriched to form a holistic enterprise-wide business capability model.

And individual business capability is the core of “What” business does, and each capability implicitly embeds certain attributes and is further enriched by “How” “Where” “When” “With What” “Why” “Where” et al.

Capstera Business Capability Framework is simple, intuitive and offers an integrated and multidimensional perspective of a capability. Go here to craft a capability map or use want a business architecture software.

Business Capabilities Framework Elements:

Crafting a business capability map is just the beginning. Once you have a validated set of business capabilities, the real work begins.

  • Inputs: Internal Factors and External drivers influence (and often influenced by) business capabilities. Eisenhardt and Martin stated that dynamic capabilities as “organizational routines of strategic nature through which firms obtain new configurations of resources when markets emerge, collide, divide, evolve and die.”
  • Definition: A capability is an abstraction of what a business does, and hence a precise definition is paramount to remove any ambiguity or fuzziness about what it is and what it means. A clear boundary is an essential underpinning of the description.
  • Ownership: In a vast and complex firm, with overlapping roles, and myriad of titles, it ‘s hard to pinpoint who owns the capability. Specifying ownership – business, technology, architecture et al. – will be useful. And this applies to standard and shared capabilities, perhaps more so, which are used by many divisions and business units.
  • Goals and Outcomes: You don’t need to go overboard, but what is the current and desired state of a capability, as well as key goals and desired outcomes. The crisper and simpler the items, the better. Practicing SMART (Specific, measurable, attainable, realistic, and time-bound) goal techniques would help.
  • Associations and Relationships: This is a critical and integral part of capability modeling – relationship mapping between different entities to gain a deeper understanding of the interplay between capabilities and related entities.
    • Strategy Mapping: Capability to strategy mapping involves identifying which capabilities support what strategies and the magnitude of impact and level of importance.
    • Value Streams and Processes: Identifying which value streams and which processes orchestrate, and execute the capabilities bridges the “what” and the “how” gap.
    • Systems and Services: Which IT Services or Applications support and realize the capabilities. The link of capabilities to systems/services provides a view into fragmentation or concentration and the level of IT support for business capabilities.
    • Data: One of the most significant challenges in IT enablement of capabilities is fetching, normalizing, rendering and saving data. Mapping which capabilities need what data entities to perform will provide visibility and clarity.
    • Roles: Which functions relate to the capability and what is the level of involvement.
    • Locations: For most capabilities, the site may not be super important, but in some cases, in global corporations, it becomes necessary to identify areas.
  • Assessments: The key evaluations are how important are the capabilities, the maturity of the capability, the level of IT enablement, and the resource sufficiency and adequacy.
  • Metrics and Measurement: How do you know you are moving the needle? Or whether you are slipping behind. Having simple KPIs assigned to capabilities will help measure progress or lack thereof.
  • Governance: A capability steering committee to govern and harness capabilities and propagate the adoption and usage is essential to the success of a capability mapping endeavor.

If you are looking to start with business capability modeling, the Capstera Business Capabilities framework is a starting point. Don’t try to do it all and boil the ocean. Instead, focus on two things: a) what will generate the highest-level impact; and b) How do I accelerate time to value.

If you’ve other ideas on how to improve Capstera business capability framework, please share your thoughts.

Please also consider some additional tools and templates from Capstera. 

Sign up for Newsletter

[mc4wp_form]