Capabilities Based Planning focuses on assessing the increasing maturity of business capabilities needed to implement enterprise strategy, rather than just delivering features and functions. It emphasizes flexibility and adaptability by taking a modular approach. Program events evaluate the maturity level of capabilities and their effect on the business, separating results from effort. This allows progress to be measured in terms of capabilities rather than just the passage of time.

1. Capability Based Planning for
Enterprise Services
Prepared by Capability based planning fits
Niwot Ridge, LLC naturally with Strategy Based
May 2005
Planning and Business
Process Improvement
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2. Risk management is the delivery of a positive
outcome in the presence of uncertainty
Political disorders can be
quickly healed if they are
seen well in advance; when,
for lack of a diagnosis, they
are allowed to grow in such
a way that everyone can
recognize them, remedies
are too late.
Niccolo Machiavelli,
Il Principe, 1513
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3. “End to end” delivery of Enterprise Services rests on
the keystone of Project Portfolio Management,
balanced by a Scorecard and a Capabilities Plan
Project
Portfolio
Management
“Demand” “Done”
 Business Mission and Vision  Capabilities Based Planning
drives capabilities need defines business outcomes
 Balanced Scorecard defines  Event based tasks are the
the testable strategies for basis of increasing
delivering business value capabilities maturity
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4. The supporting elements must be in place to enable
Capabilities Based Planning to succeed. This
presentation focuses Capabilities Based Planning
Project
Portfolio
Management
“Demand” “Done”
 Project Portfolio Management  Capabilities Based Planning
defines the “trade space” for defines business outcomes
decisions that impact value resulting from these decisions
 Event based tasks are the
delivery mechanisms for
increasing maturity of the
capabilities
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5. Capabilities Base Planning transforms enterprise
services from the delivery of features and functions to
the delivery processes that support strategy
 Capabilities Based Planning is planning, under
uncertainty, to provide capabilities suitable for a
wide range of business challenges and
circumstances, while working within an
economic framework
 Capabilities Based Planning emphasizes
flexibility, adaptiveness and robust capabilities,
implying a modular building-block approach to
Enterprise Services
 When transformation takes place it is because
new modules have come into use
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6. Capabilities Based Planning is understood at the
execution level, but needs to be raised to the level of
enterprise process analysis
1. Identify a needed capability in operational
requirements terms;
2. using the set of capability options to;
3. assess the effectiveness in a operations
paradigm, and;
4. make choices about requirements and ways to
achieve the capability using an integrated
portfolio framework;
5. to produce of output set of options based on
these operational paradigms.
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7. For a requirement (1) consider the options (2), apply
mission system analysis (3) to circumstances (4) to
generate assessment of options (5)
2
Optional
Capabilities
1
3 5
Business
Analysis of Assessment
Mission and
Capabilities of Options
Vision
4
Scenarios
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8. Many enterprise projects focus on the delivery of
improved features and functions; ignoring the delivery
of the capabilities needed to implement strategy
Standish Chaos Report Failure Modes Capabilities Based Planning
Absence of a clear vision and statement Maturity assessment program events
of the requirements expectations provide visibility of progress independent
of effort or time
Estimating difficulties and organizational Capability assessment points define
politics result in unrealistic expectations “done” using agreed on measures of
progress
Poor project decomposition Master Plan and Master Schedule
vertically and horizontally integrated
Inadequate staffing Resource loaded schedules
Lack of stakeholder involvement Capabilities defined by business needs
Lack of strategic focus Capabilities connected to Balanced
Scorecard
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9. Putting Capabilities Based Planning to work requires
a change in our approach to planning – a business
process improvement maturity focus
 Emphasis on operations rather than features
and functions
 Operational capabilities are the building blocks of
change
 Emphasis on evaluating capabilities under
conditions of uncertainty
 Deploying robust building blocks
 Analysis illuminates the feasibility of alternatives
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10. Capabilities Based Planning starts with business
scenarios, the tasks needed to implement the
scenarios, and testable capability outcomes
Scenarios Work Tasks Capabilities
The business units The individual work The planned capability of
operational needs in processes needed to fulfill the Business Units at each
scenario terms the scenarios level of maturity
Merge a General Ledger 1. Define the data to be “Acquire a $100M business
from a 3rd party database acquired from the new unit in 90 days or less”
through a data firm
conversation process 2. Verify data “Process 100% AP invoices
conversation can take from tier 1 vendors saving
place $9M annually”
3. Verify that business
operations can
continue
Business Process
Project Management Strategy Management
Improvement
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11. Balanced Scorecard is augmented through a
capabilities based planning process by mapping
strategies to assessment maturity events
 Balanced Scorecard is a framework with
intrinsic stakeholder focus – placing emphasis
on internal alignment and elimination of projects
with little or no strategic value
 Balanced Scorecard does not adequately
reflect a project management focus, instead on
objectives and their process indicators
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12. Defining the desired maturity of a business processes
is the starting point for integrating Balanced Scorecard
with the Enterprise Services deployment processes
 The Integrated Master Plan (IMP) for Enterprise
Services starts with the identification of
increasing maturity of capabilities
 The successful delivery of supporting features
and functions can be measured by the
completion of the Significant Accomplishments
and their Criteria
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13. The focus of Capabilities Based Planning is on
assessing the increasing maturity of functionality
defined by the Balanced Scorecard strategy
 Planning under uncertainty, provides
capabilities suitable for a wide range of
challenges and circumstances while working
within an economic framework that necessitates
choice
 Focus on “possibilities” rather than features
 “What features do we need to achieve the desired
capabilities?”
 “How much of each capability to we need at this
point in time?”
 “How robust, flexible, and capable should we be at a
point time to provide the needed capability?”
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14. Capabilities Based Planning takes a near term and
long term view of the emerging functional maturity
needed to implement the Enterprise Services strategy
 Near term effective use of processes, tools,
features and functions
 Future use of sound infrastructure and system
capabilities
 Joint solutions to problem by identifying vertical
connections between business processes
 Risk tradeoff assessment of vertical solutions within
and across business processes
 Build capability to respond to a wide variety of
possible demands
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15. The difference between capability and function is the
difference between the delivery of a solution and the
creation of the foundation for change
 Focus on outcomes is important
 Focus on the underlying tasks that produce
outcomes is all important
 Defining the needed maturity and assessing its
presence provides feedback to the business
strategy in ways KPI’s can’t
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16. Six trusted friends of a project based organization are
the basis of capabilities based planning and balanced
scorecard
Why are we doing this? Balanced Scorecard
What is it we’re doing? Program Events
How is this going to be accomplished? Significant Accomplishments
When will we know it is done? Accomplishment Criteria
When will we be done? Tasks
Who going to do the work at what cost? Resources
Where will the work take place? Teams
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17. Start the hierarchy of Enterprise Services processes
with strategy and end with plans; traceable to this
strategy through portfolios of projects
Strategies define the desired outcome
Capabilities enable the strategy
Portfolios manage capabilities
Plans manage the delivery effort
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18. The measure of Enterprise Services Business Effect’s
is made visible at each maturity assessment point.
“Is this want done looks like?” must be the question
Business Business
Capability 1 Capability 2
Effect Effect
Sub- Sub- Sub- Capability Capability Capability
Capability Capability Capability
Sub-Sub- Sub-Sub- Sub-Sub-
Capability Capability Capability Sub-
Capability Sub-
Sub-Sub- Sub-Sub- Capability
Sub-Sub-
Capability Capability Sub-
Capability Sub-
Capability Sub-
Capability
Capability
 Functional decomposition of capabilities  Derive business effects from capabilities
 Capabilities must be Collectively Exhaustive  Link capabilities to effects
and Mutually Exclusive  Explicitly identify cross links and
 Provide a “menu” from which operations can interdependencies between capabilities
choose required capabilities  Highlight “enabler” capabilities
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19. Evidence that the strategy is being fulfilled is tested in
the “units of measure” of the capabilities of a project
whose maturity is assessed at periodic events
Program Maturity What are the maturity assessment points
Assessment along the way to completion?
Events
Significant What accomplishments must take place in
Accomplishments order for this maturity to have occurred?
Accomplishment What is the evidence that the
Criteria accomplishments occurred?
Tasks What effort must take place for the
accomplishments to have be completed?
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20. Capabilities Based Planning separates effort from
results, measuring an assessment event’s effect on
the organization, rather than the passage of time
 The passage of time does not mean progress;
delivery of capabilities does
 Measuring increasing maturity of capability
makes visible the systems value in terms the
business units can directly assess
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21. The process drivers for Capabilities Based Planning
starts with functionality and ends with deliverable
effects on the business process
 Functional or feature planning does not deliver
the real value to the business units
 Features are not connected to strategy
 Balanced Scorecard connections are capabilities not
features
 Testing strategy involves a capabilities impact not the
presence of a feature
 Features are not connected to business value
 Business strategy is tested through scenarios and
capabilities
 Delivered value results from the use of a capability in a
scenario
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22. Capabilities Based Planning augments features with
business value, traceable to strategy through a
portfolio of projects and their Program Events
 Plan the delivery of capabilities rather than the
delivery of features and functions
 Features and functions are the raw materials of
Capabilities
 Capabilities enable the delivery of the strategy
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23. Program Events are evaluation points in the project
for assessing the maturity of the capability and its
effect on the business
 Program Events are Celebratory Opportunities
along the path to maturity
 Significant accomplishments enable a new capability
that supports a strategy
 The maturity of the derived effects are assured
through the assessment of the Significant
Accomplishment
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24. Significant Accomplishments describe the delivery of
capability needed to fulfill a business strategy using
work processes of the system
 A Capability is the deployment or delivery of a
feature or function in support of a business
process, product or service initiative
 Significant Accomplishments deliver this
capability
 Stating the needed maturity connects the
capability with strategy
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25. Accomplishment Criteria are the “exit criteria” for the
Significant Accomplishments, assuring the intent of
the Accomplishment is met
 Exit criteria are the evidence that the significant
accomplishment has been achieved
 The gathering and assessment of the Balance
Scorecard KPI in support of a Significant
Accomplishment
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26. Tasks are the raw material to implement the
functionality needed for the business process to
deliver on the capabilities
 The effort expended to deliver the
Accomplishment Criteria in support of the
Significant Accomplishment
 Short duration activities (20 to 40 working days)
with clearly defined deliverables
 0% or 100% credit for the deliverables
 No partial completion of tasks
 Predefined technical outcomes
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27. Management consists of Capabilities Assessments
(Events), the Significant Accomplishments (SA) and
the Accomplishment Criteria (AC)
Defines Events State of the
Business Strategy Project
Team Status
Customer/Program
Direction
Demonstrates Accomplishments State of the Something
WBS Element or Maturity
Subsystem Capability Completed
Significant
Accomplishments
(SA)
Program/Team Team Status
Direction
State of the
Subsystem Identifies
Criteria Process
End Item
Accomplishment
Criteria (AC)
Performance
Team Direction
Deliverables Effort
Expended
IMP Process Step How Tasks
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28. A set of concise capability specific phrases provide a
“stand alone” description of “done” independent of the
existence of individual features
Maturity Action Capability State
Adjective Verb Noun Verb
Demonstrates Closure Perform
Maturity Step in the Process End Item State Work
Preliminary Close General Ledger Successful
“A01B02a: Preliminary Month End Close of the General Ledger Successful”
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29. Starting with a “mini-Kaizen,” the maturity Assessment
Points (Events) are gathered along with the Significant
Accomplishments and Accomplishment Criteria
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30. A mini-Kaizen transfers “Sticky’s” to a Mind Map, then
to a Master Schedule then, to a Hanging PERT –
producing a “Wall of Truth” for Enterprise Services
Working session Sticky’s
A Mind Map™ of the Sticky’s PERT Chart Expert™ on the Wall of Truth
MS Project™ export of
the Mind Map
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31. The three levels of the Integrated Master Plan define
the granularity of the deliverables, report progress to
plan and project the future cost and effort of tasks
Monthly statusing:
– Validate schedule status WBS
(start/complete/slip) IMP
– Validate work package
Levels
% complete 1, 2, 3
– Claims earned value
– Identify/process cost ETCs
Funding Profile
Weekly statusing: Near term RW period
– Roll up of lower level WBS Planning Package
Future RW periods
schedule Levels
status 4, 5 Schedule tasks
– Roll up of lower level %
complete (at Work Package
or level)
– Milestone start/complete
– Milestone slip (early/late, 20 to 40
start/complete)
WBS’s Workday tasks
Schedule tasks
– % complete of tasks
Below (one/two levels
Weekly statusing: Work
– Milestone start/complete below WP level)
– Milestone slip (early/late,
Package Or even
weekly tasks
start/complete)
– % complete of tasks
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32. A simple example of vertical and horizontal linking of
the capability — provisioning a new employee
illustrates the assessment of maturity
Capability: Provide Buying Authority within 10 working days of hire
Human Resources
Information Technology
Finance
Supply Chain Management
New Employee Ready to Work
Charge account setup
Laptop Account Setup
Buying authority available
Insurance
Orientation
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33. Maturity assessments allow progress to be measured
in how terms of “capability” effects the business; not
just the consumption of time and resources
 Define the desired maturity points along the
path to completion
 Measure the accomplishments
 Assess the effect on business improvement
 Engage all participants in a conversation about
capability
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34. The deployment of Capabilities Based Planning is the
basis of managing the deployment of Enterprise
Services
 What does done look like in terms of
operational capabilities?
 How can we measure the increasing maturity of
Enterprise Services in terms of “done,” rather
than the passage of time?
 How can the user community define their
operational needs in terms of capabilities rather
than features and functions?
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35. References
 Miller, Roger and Donald R. Lessard, The Strategic Management of
Large-Scale Engineering Projects: Shaping Institutions, Risk, and
Governance, MIT Press, 2001.
 Guide to Capabilities Based Planning, The Technical Cooperation
Program, Joint Systems and Analysis Group, Technical Panel 3.
 Allen, Tom, Analysis to Support Capabilities-Based Planning,
Capabilities-Based Planning Workshop, October 19-21, 2004.
 Davis, Paul K., Analytical Architecture for Capabilities-Based
Planning, Mission-System Analysis, and Transformation, RAND
Corporation, MR1513
 Davis, Paul K., “Exploratory Analysis Enabled by Multiresolution,
Multiperspective Modeling,” Proceedings of the 2000 Winter
Simulation Conference.
 Machiavelli, Niccolo, The Prince and The Discourses, Introduction by
Max Lerner, Modern Library,1950
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