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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

3

4

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