The maturity of a business capability would be based on the abilities to deliver on customer needs or to achieve the desired capability outcome.
Enterprise capabilities are typically expressed in generally high-level terms and require a combination of people, processes, and technology to achieve. Top business leadership or management team needs to make an objective assessment of their investment on business capability development, making an objective assessment of "importance," "performance," and "maturity" attached to enterprise capability.
Importance: The organization leverages business capabilities to understand the markets/environment, create new products and services, and deliver values to their customers. To improve business competency, it is important to have a good understanding of current and future capabilities as well as their impact on implementing the strategic business goals. There are tactical capability necessities that keep the lights on; there are strategic capability differentiators that build unique business competencies. An objective assessment of capability includes the importance of each capability to the enterprise; different weighting may be applied to the capabilities of shaping organizational competency.
Transactional capability keeps the daily business on; transformative capability enables the business to monitor or seek disruptive opportunities, and make a large scale of changes. Some capabilities are linear or static; some are integral and dynamic. Integral capability is often nonlinear and synthetic in nature, combining the modular capabilities exposed in a platform to create new experiences and expand its impact, embedding agility in processes and focusing on building long-term business competency. Compared to process view, capability view keeps you from being dragged into too many details that the top management is perhaps not interested in. Assessing the importance or criticality of capability helps the business management set the right priority by balancing short-term and long term perspectives, to enable the strategy and build their business long term advantage.
Performance: Business capability is an acquired and organized "ability" within a company and takes hard work to put in place. Capability can contain many services, processes, and functionalities to perform a set of activities for achieving successful outcomes, whether financial, brand, or double bottom line. So the performance evaluation of capability helps to clarify: What the business does - capabilities; how the business does it - processes/functions, and what performance results have been achieved; how to fine tune capabilities to improve business performance.
To make wise investment on capability development, create a business initiative brief that describes business objectives, scope, outcomes, business and technical capabilities within scope, approach, costs, time frames, risks, etc as the initial basis for launching the business initiative. Conduct a fit/gap analysis of capability vs requirements, facilitate the process of deep analyzing, to identify areas in a capability portfolio that can be changed and optimized, such as duplicated capability or ineffective capability, etc. Also, be aware of the integration of a single functional capability into a holistic portfolio of capabilities across all enterprises, to build unique and sustainable business advantages.
Maturity: Either at the individual or organizational level, the capability is considered one of the fairer criteria to differentiate leaders from laggards. Business Capabilities are the abilities to produce specific goods or services for serving customers, gaining market shares, and building business competency. Capability maturity evaluation includes analyzing capability gaps in the context of future need, capability dependency or business capability reliance on technology capability, investment calculation, etc. The often described maturity attributes of business capabilities include, such as robustness, speed, comprehensiveness, responsiveness, agility, optimization, quality, resilience, etc.
The maturity of a business capability would be based on the abilities to deliver on customer needs or to achieve the desired capability outcome. Since a capability is made up of people, processes, and technology, you can use overall process maturity as one part; you can measure the percentage of business units engaging the capability on a year by year basis. To improve the overall maturity of a corporate capability portfolio, it’s important to map business capabilities and strategies, re-purpose well-designed components and systems for designing and configuring dynamic business capabilities, to ensure that strategic goals can be accomplished quickly and consistently to reach high-level business maturity.
The organization’s competency is based on the set of differentiated and cohesive capabilities and how fast and effective they can be built upon. An organizational capabilities today are the result of its history and this history constrains what capabilities the firm can perform in the future. Thus, organizational leaders should spend reasonable time on making an objective assessment, fine tuning organizational capability and increasing capability coherence.
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