Tuesday, November 30, 2021


Capabilities are processes and competencies viewed strategically; they are also the resources required for business purpose and goals.

Organizational capability presents a high level view on how business can achieve certain goals. It provides a level of abstraction that allows more open consideration of business success factors such as people, process and technology. 

There are capability necessities and capability differentiators. Some are linear, some are integral; some are static; some are dynamic; Top business leadership teams need to set the right checkpoint, make an objective assessment of their investment on business capability development and improve the overall organizational competency.

Checkpoint is a generic progress checking that inspect different layers of capability granularity: High performing businesses depend on their differentiated sets of business capabilities which are underpinned by the well-managed business processes matrix within the organization. Business capability is synthetic in nature, embedding agility in processes and focusing on building the long-term organizational competency. A capability can be decomposed to finer grain capabilities with different layers of granularity. One capability may be implemented by multiple business processes for multiple products and services. The 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.

The digital capability is modular, dynamic, having many visible and invisible business elements. You design the capability, then model, execute, monitor, optimize then again back to design; to enhance an iterative cycle of capability development. The deliverables of business capability by which the scope and granularity of the solution models are created and information keeps updated. The management should manage large volumes of information, activities and run simulation events to identify areas in a capability portfolio that can be changed and optimized to improve coherence; as well as leverage the right information as the glue to integrate them into dynamic competencies. Loose coupling makes it possible to change the components without affecting the system; updated information makes sense to accelerate the performance.

Checkpoint = a point at which certain criteria are assessed or reassessed, so that a decision can be made about an initiative: A capability is the defined or emergent property of an organizational system. It means that the parts or components interact to create or realize the ability. The integration of a linear functional capability into a holistic portfolio of capabilities across all enterprises builds unique and sustainable business advantages. A checkpoint is what you have in agile design or capability management at the end of each iteration or intra-iteration. You check to see if you're on course what adjustments are required, and where to go next. The term is in tune with the risk-driven, adaptive nature of agile management.

Business capability is an acquired and organized "ability" within a company and takes hard work to put in place. The core components of an organizational capability are people with the appropriate skills, knowledge, experience, attitudes and behaviors, process and associated activity/decision and input/output descriptions; technology including information systems, or other tools. 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 duplication or ineffectiveness, etc. The maturity of a business capability would be based on the abilities to deliver on customer needs or to achieve the desired outcome.

Checkpoint review for capability governance
: Capability can contain many services, processes, and functionalities to perform a set of activities for achieving successful outcomes, whether financial or brand. Corporate governance is most often viewed as both the structure and the relationships for enabling business capability building or determining performance. There should be a governance mechanism embedded in all crucial business processes, and there are governance practices to enforce accountability at every level of the organization to accelerate corporate capability development and optimization.

Governance is a neutral term which is useful in having the ability to discuss bad governance with terms such as waste, corruption, inefficiency etc. In disciplined agile approaches, the team recognizes that there's more needed than just delivering potentially shippable software at each iteration. There are other risks that aren't well addressed by just doing that, and that you should have more sophisticated governance practices to enhance the structure and processes of authority, responsibility and accountability in a business. Governance shouldn’t become the other layer of complexity for its own sake, but needs to be more interactive, flexible, have a definite goal and exactly know the kind of problem they would like to solve for the business and once solved and unlock capability-based performance.

There are different views and multiple perspectives to understand a capability. Capabilities are processes and competencies viewed strategically; they are also the resources required for business purpose and goals. Top executives need to take a strategic perspective, set the appropriate checkpoints, and identify the capability patterns or gaps of the company, make the risk profile of the enterprise performance deficiencies, and assess the overall capability maturity based on the management view of the condition/suitability/adequacy/viability.


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