Saturday, July 10, 2021


Capability maturity can be assessed by measuring the technology impact on capability effectiveness; the process impact on capability effectiveness, and the people factor about the collective capability maturity.

Organizational capabilities continue being considered the market-relevant bundles of resources with the potential to drive business competitiveness. There is capability necessity to “keep the lights on,” there is capability differentiator to enable growth. Organizational capability management identifies, models, develops, integrates, and optimizes a set of cohesive capabilities to achieve business goals at both strategic and operational level.

One of the beauties of working with capabilities is that it keeps you from being dragged into all the detail of the processes involved too early, allowing you to prioritize and focus on the coherence of leadership-people-process-technology-culture-resource enabled business abilities to realize business vision. Technically, Enterprise Capability Architecture is an effective tool that performs “As-Is” & “To-be” outlines with initial Gap Analysis and Risk Assessment.

Perform “As-Is” & “To-be” study: Generally speaking, business architecture is the visualization of strategy that describes how to encompass organizations from “as-is” state to future state which creates a paradigm shift in your management approach to be future driven. Capability Architecture as a subcomponent articulates business capability requirements and development for the company to transform from “as-is” to future state. When building the future state of the business, make sure that you break it down into looking at the ideal future first, followed by the practical capability view via resource, schedule, and talent assessment. Organizations should assess their current capabilities -how they impact the business performance, agility, and maturity; Then which capabilities the future of the organization should sharpen in order to design the future of business? It helps the organization take a look at what’s happening now as well as what’s coming down the pike so they can be proactive in preparing for it.

Due to increasing speed of change and frequent disruptions, future organizations need to possess certain characteristics and capabilities such as agility and resilience to survive; changeability and innovation to thrive. They need to possess speed, flexibility, and adaptability to manage customer expectations and develop and deliver intuitive products and services to their customers and stakeholders. In reality, companies have limited capital and resources to invest in and it takes time to develop talent and build their core capabilities. Thus, organizational capability/strength assessment by leveraging architecture allows budget, resources, and talent aligned with the business strategies/ objectives scientifically. An effective capability architecture brings a systematic view for business executives or designers to think outside the current constraints and comfort zones for allowing an unknown future state to emerge and shape a set of differentiated business capabilities to enable strategy management.

Gap Analysis: The capability is the ability to achieve the desired effect under specified performance, standards, and conditions through combinations of ways and means to perform a set of activities. There are gaps existing in capability development because organizations are at the different stages of the business cycle, they demonstrate various abilities to design, integration or optimization. There are capability dependencies -one is part of another or depends on another; there are risks involved. So unrealistic designs that could not be implemented in the organizational system. Capability gap analysis provides insight into the "general condition" of the various capabilities and relationship/dependency of different capabilities; a qualitative assessment and consider service, process, information, asset, people, etc, dimensions of the adequacy of the capability to fulfill their business strategy; identify capability patterns of the enterprise. By leveraging capability architecture as a planning tool, senior management gains an in-depth understanding of what the business truly does well and makes holistic investment decisions to develop their organizational capabilities in a structural way.

There is a variety of complexity in capability development. Capability evaluation includes analyzing capability gaps in the context of future need, or capability dependency or business capability reliance on technology capability, investment calculation, etc. Capability design is complex because the products of the creative design must fit inside very strict constraints and need to be done under extreme pressure of time, cost, and functionality. Also, there are no processes to handle uncertain situations, unrealistic design that could not be implemented in the organizational system. Besides those, there is integration complexity in dynamic capability development. Each organization has specific measurable goals and objectives they have to hit through investing in the right set of capabilities for driving needed changes.

Risk Assessment:
All architectures must have risk analysis/threat modeling as a part of the design processes. If you don't do this then the specifications will be incomplete, the bridge will collapse and your business goals become irrelevant. Risk assessment in capability architecture enables the business management to have the right attitude to ask good questions, take a strategic perspective and identify the capability patterns of the company, make the risk profile of the enterprise performance deficiencies, make a reasonable assessment of varying risks such as resource availability, talent proficiency, timeline for deliveries, harness connectivity (communication, coordination, and control), raise visibility and awareness for many things that are captured in capability development scenarios.

Risk reduction is a core of architectural practice and a fundamental requirement. identify loopholes or blind spots, reduce business risks in choosing to implement or fund the wrong initiatives to design or optimize business capability and achieve high-performance results. To further broaden the perspective, an architectural component does contribute in some way to the complex and tightly coupled risk equations of the business. It is a fundamental component of all architectures to identify where architecture has the most positive impact in enterprise risk management, and weather comparison of the architecture costs show ROI when compared to the value and probability of opportunities that are enabled and the value and probability of risks that are reduced.

Capability Architecture is a useful tool to improve effectiveness of business capability development and management. What matters is capability dynamism and maturity, the dynamic capabilities accelerate business speed to change; the high-mature set of business capabilities can make organizations highly adaptable to fulfill their strategy, as the key business differentiator. The capability maturity can be assessed by measuring the technology impact on capability effectiveness; the process impact on capability effectiveness, and the people factor about the collective capability effectiveness and maturity.


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