Friday, 19 April 2013

Business capability modelling

In a session on business capability modelling, which I know very little about.

Organisations often struggle with a gap between strategy and execution. High level ambitions and goals need to be translated into actions. Often just jump straight to how we need to change, without looking at what we do.
We need to understand what our organisation does, and what we need to do differently in response to strategic challenges and opportunities.
Need to understand what is commodity and what is unique and differentiating. Different set of questions for different capabilities. Differentiating ones will have more investment and be more strategic.

Can create a map of your organisation on one page. Effective tool for having discussions about where strategies need to change, and where there needs to be investment. Look at what is strategically important to your organisation, and how mature or effective the processes are within it. You can very quickly see where there is a mismatch, ie things are strategically important, but have low maturity. Helps to identify where focus for change needs to be. Difficult to describe, but some good diagrams in the presentation.

Can also map where spend/investment is happening, and compare with what's strategically important. Often see a mismatch. High levels of investment going into areas which aren't strategically important, often historical.

Business capability models can be very effective as translation devices, using a common language which is not technology based so you can have meaningful discussions with your stakeholders.

I've just had an aha moment. I can see how we can use this to discuss prioritisation with departments, especially when we get a number of requests from the same area. Also how we can test whether we're investing in the right areas.

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