- Business capability analysis is usually done for an enterprise to assess what is it able to do which can result in business advantages or achieving its business objectives.
- This is done to assess performance, set goals and identify gaps. This helps in prioritizing investment.
- Capabilities may be assessed for performance and associated risks to identify specific performance gaps and prioritize investments
- Capabilities describe the purpose or outcome of the performance or transformation
- Does not describe how the performance or transformation is performed or the process part of it.
- Only unique capabilities are presented in the organizational capability map
- Similar capabilities existing across multiple LOBs do not find multiple places in the capability map
- Capability analysis should impact value by revenue enhancement or cost reduction or improving service or customer satisfaction or achieving compliance or positioning of the company
- Capabilities are assessed for current and expected performance. Gap performance of capability is used as input for strategic planning
- This analysis may be done across the organization or within LOBs or units such as sales and marketing, customer service, production, post delivery support etc.
- Capabilities do not have any inherent risks however the performance of capabilities or lack of it may cause risk.
- Capability Maps – Denotes strengths and Weaknesses
- A 2*2 grid or map of capability with criticality as depicted in the image below can quickly unveil the areas/capabilities that need to be taken up on priority.
- Capability improvement initiatives should be taken up at an org level and not unit level
- Capability map analysis require a collaborative model and suggest to develop common capabilities together
- Does not work well if leaders/stake holders do not agree on a collaborative model or to work together.
- Enterprises/businesses that spend more time on assessing the capability and work towards strengthening their critical capability always perform better in the long run.
If you like my posts please like/share/comment and spread the word in your network.
Would love to hear from all professionals here, please leave a comment with your feedback.
You can see all my posts By Ananya Pani
I write on Business analysis and other management related concepts/tools and day to day ideas, you can reach me at Ananya.firstname.lastname@example.org
About Adaptive US (Think BA. Think Adaptive.)
Adaptive Processes provides CBAP, CCBA, ECBA, CPRE, Agile BA and other business analysis certification training online and consulting needs for Individual or Corporate either online or offline. Adaptive Processes is an endorsed education provider of IIBA®, Canada and IREB®, Germany.