Define the Purpose and Scope
Purpose
Establishing a clear purpose is essential for developing a Business Capability Model. A well-defined purpose ensures the model delivers value by focusing on the right aspects of the organisation and aligning with its long-term objectives. Whether the BCM is used for future planning, improving efficiency, or supporting decision-making, the purpose must be clear from the start
What to do?
- Consult with stakeholders to understand why the BCM is needed. Engage leadership and key decision-makers to get their perspectives on what the model should achieve.
- Align the BCM with organisation objectives. Is it for assessing current operational capabilities, future growth, or better technology integration? Having a clear link to organisation strategy will ensure that the BCM remains relevant and useful.
- Obtain consensus on the purpose from all involved stakeholders. Misalignment at this stage can cause problems later on.
Things to Consider
Audience Type (Technical vs. Non-Technical): Tailor the level of detail based on the audience. A technical audience might require more detail in sub-capabilities, while a non-technical audience might only need high-level categories.
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- Non-Technical Audience: Keep it simple and concise, focusing on broad capabilities and their value to the organisation.
- Technical Audience: Go deeper with sub-capabilities, but avoid including processes, technical systems, or detailed operational specifics in the base model. Processes and systems are handled in separate overlays and process models, as they change more frequently.
Potential Issues
- Overcomplicating the Model: If the purpose isn’t clear, or if you try to incorporate too much (e.g., mixing capabilities with processes or focusing on who performs the tasks), the Organisation Capability Model can become overly complex. Focus on defining what the organisation does, not how it does it or who does it. Both processes and personnel frequently change, and their inclusion would undermine the stability of the model.
- Lack of Long-Term Stability: Organisation Capability Models should remain relatively stable over time. If you start incorporating changeable elements such as processes or personnel, the model will require constant updates, diminishing its long-term usefulness.
Scope
With the purpose established, defining the scope of the BCM ensures that it is neither too broad nor too narrow. The scope dictates how much of the organisation the model will cover and how detailed each section should be.
What to do?
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Determine the breadth: Decide whether the BCM will be organisation-wide or focused on specific functions (e.g. Finance, Marketing). For a high-level enterprise BCM, ensure all major organisation functions are represented.
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Include outsourced functions: Even if certain activities (e.g., payroll, IT support) are outsourced, they still need to be included in the BCM, as they are essential to organisation operations. Make sure these functions are clearly marked but incorporated into the model.
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Define the depth: Depending on the audience, decide how detailed the model should be. For non-technical audiences, high-level capabilities with minimal sub-capabilities are sufficient. For a technical audience, more detailed sub-capabilities are required, but avoid including processes or systems, as these belong in separate models or overlays.
Things to Consider
Modular structure: Design the Organisation Capability Model to support overlays (e.g., technology overlays for mapping systems), allowing the base model to remain stable while supporting more detailed views for specific purposes
Potential Issues
- Scope creep: Without a clear scope, the model can become too detailed or include elements like processes or systems that don’t belong in a Organisation Capability Model. Regularly verify the model against its scope and purpose to stay on track.
- Missing essential capabilities: Ensure no key organisation functions are omitted, especially outsourced ones, as they remain part of the core structure and must be reflected in the Organisation Capability Model.
Next Step: Engage Stakeholders
Engaging key stakeholders is critical to ensuring the BCM accurately reflects your organisation’s capabilities and secures the necessary buy-in for successful implementation.