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Using Capability Assessments to Define a Strategic Roadmap Building Business Capability 2012 Ft. Lauderdale, FL October 30, 2012
Carol Scalice Sr. Professional, Business Analysis, Pfizer President, IIBA® Pharma/Biotech Special Interest Group
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What is a Capability Assessment?
How It’s Used
Building a Capability Map
Creating the Roadmap
Agenda
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“Capability” Defined
Business Capabilities are the services that a business or enterprise offers or requires.
• What a business does, separate from how the business implements or
practices that capability • Outcome of a process
• Examples – Pfizer: “compound synthesis” – Amazon: “file storage”
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Capabilities and Processes
The What vs. The How
The capability is the outcome or purpose of the process
Process Step 1
Process Step 2
Process Step 3 …
Capability
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Capabilities and Landscapes
How is a business capability different from a business landscape?
• Capability – What the organization is doing or needs to do – Typically internal to the organization
• Landscape – The environment the organization operates within – All possible options – Typically external to the organization
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The Value
Why are capabilities important? • Planning
– Translates business strategy into action plan – Identifies future capabilities
• Enables gap assessment with current state • Enables proactive strategy planning
• Facilitates prioritization – Based on importance of capability to the business
• Relatively stable
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Flexibility
Information Assets, you pick ‘em • Examples
– Business priority – Performance gap/risk – Technology gap/risk – Competition gap/risk
• Select based on need, desired outcome
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Capabilities
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Relative Importance
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Capability Performance Gaps
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Technology Gaps
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Agenda
What is a Capability Assessment?
How It’s Used
Building a Capability Map
Creating the Roadmap
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Targeted Competency Growth
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Targeted Competency Growth
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IT Planning
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IT Planning
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IT Planning
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Scatter Plot
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1
2
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0 1 2 3 4
Tech
nolo
gy G
ap/O
ppor
tuni
ty
Strategic Importance
Doability
Big Gap Pretty Doable
Relatively Important
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Agenda
What is a Capability Assessment?
How It’s Used
Building a Capability Map
Creating the Roadmap
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The Capability Assessment Process
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Describing the Capabilities
Elicit high quality business capabilities • Concise, informative short names
• Explanatory descriptions
• Functions/business activities or outcomes – Not processes – Not solutions – Not constraining
• Understandable to the masses
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Checklist Provided
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Creating the Map
Summary of Steps 1. Choose a Medium
2. Draw the Capabilities
3. Create Categories
4. Select Icons
5. Create a Legend
6. Add Information Facets
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Creating the Map
Step 1: Choose a Medium • Decide what tool you want to draw your capability map in (PowerPoint,
Visio, etc)
Step 2: Draw the Capabilities • Create rectangles or rounded rectangles for each business capability
Step 3: Create Categories • Draw labeled bands for each capability category • Place business capabilities in the appropriate category
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Creating the Map
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Step 4: Select Icons • Select visual representations for each information facet
H M L High Priority Medium Priority Low Priority
High Risk Medium Risk Low/No Risk
Current State Capability
Future State Capability
Exiting Capability
High Medium Low
Overlays
Fill Colors
Borders
NOTE: Beware of color blindness when selecting visual
representations.
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Creating the Map
Step 5: Create a Legend • Create a legend/key on your capability map so that others can read and
interpret the map
Step 6: Add Information Facets • Add the appropriate overlays, borders, fill colors, or other mechanisms
to communicate the information facets you selected for each capability
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Creating the Map
Summary of Steps 1. Choose a Medium
2. Draw the Capabilities
3. Create Categories
4. Select Icons
5. Create a Legend
6. Add Information Facets
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Agenda
What is a Capability Assessment?
How It’s Used
Building a Capability Map
Creating the Roadmap
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“Strategy” Defined
A plan, method, or series of maneuvers for obtaining a specific goal or result
"strategy." Dictionary.com Unabridged. Random House, Inc. 23 Jan. 2012. <Dictionary.com http://dictionary.reference.com/browse/strategy>.
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Strategy in Context
Hambrick, Donald C, and James W Fredrickson. "Are you sure you have a strategy?." Academy of Management Executive. 19.4 (2005): 51-62.
Vision Mission Strategy Execution
Activities Rewards
Policies Org Structure
Enablers
Customer Need Competitors & Market Trends
Internal Strengths & Weaknesses Regulations
Strategic Analysis
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The Components of a Strategy • Arenas
• Differentiators
• Economic Logic
• Vehicles
• Staging/Phasing
Hambrick, Donald C, and James W Fredrickson. "Are you sure you have a strategy?." Academy of Management Executive. 19.4 (2005): 51-62.
Vision Mission Strategy Execution
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Subject of the Strategy
Subject is the target organization, not IT
Differentiators Arenas
Vehicles Staging
Economic Logic
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Roadmap Content
Content for your roadmap • Organizational vision, mission, and goals
• Capability assessment results summary – Top 3-5 focus areas
• Recommendations
• Implementation plan – Sequence of initiatives – What, Why, When
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Questions
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Resource
q Each capability has a accompanying description that can be used to define it
q The capability label, or short name, is concise yet informative
q The capability label, or short name, describes a business function or outcome, not a process
q The capability label, or short name, describes business activities without reference referencing a technology solution
q The capability description is written in such a way that it can be understood by those not familiar with the business function
q The capability description provides information about the activity or outcome without constraining the outcome to a specific process or workflow
q The capability description does not mention technology solutions in place to support the capability
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Business Capability Checklist