Capability based planning, at its heart, is used to create better mixes of underlying resources to produce different outcomes. These resources are often referred to as "people, process & tools". However this is still a little one sided and tends to be more IT focussed in nature.

In fact more often than not, its the CIO driving a capability model in order to develop a consistent business language that can be used at both business level and IT level. Some research by the corporate executive board has highlighted the success rate of this to be pretty poor.

To be fair, its often the execution arm that is trying to simplify a complex world into a language the business can understand. However, having developed a number of capability models, I can say categorically that those developed by the business are more successful, not to mention more understandable by the rest of the business.

With that in mind I thought I would drop this image in for a number of reasons:

1 - it gives a view of what a capability is and the resources that are needed to develop a capability

2- it shows who has accountability for what parts of capability

3- it also shows that capability based design is team work across a number of disciplines, its not the domain of just one

4 - It includes products and services.

The later point is the important one for me. Getting business to brainstorm the products and services required (a preliminary product architecture so to speak), and then clustering these into capabilities based upon that business language, is a sure fire way to getting great buy in to the capability model.

Problem - products are often excluded from these exercises due to the competitive and cannibalistic nature of the product world. The root cause of this being a performance model that is aligned to product profitability and not mix/offering profitability across segments and products.

So....when using capability based planning to develop a value engine. Be sure to get all the resources in the attached schematic in alignment across your teams, and don't forget products.