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Software Architecture Guide

Business Capability Map

Explanation

Section titled “Explanation”

A business capability is something the business must be able to do. It says nothing about how the work is done or who does it.

A capability map arranges these capabilities in a hierarchy. Maps usually have seven to ten level-1 capabilities. Three levels are typically enough for enterprise analysis. The aim is traceability without overcomplication.

Stable by design

Capabilities stay stable for years. Processes, systems and organizational structures change around them. So update a capability only when the business model changes. Do not update it because a team, a process or an application shifts.

What it is not

  • Process model: a capability does not describe activities, workflows or systems. It describes what is needed.
  • Org chart: org charts change often. Capabilities should stay stable.
  • Value chain: a value chain shows the sequence of activities, which is the “how”. A capability map shows what the business does.

Building a first draft

Start from strategic documents. Examples are annual goals, transformation roadmaps and investment themes.

Keeping it sound

Treat the map as a living asset. Review it regularly, at least once a year.

For related ideas, see the articles Business Capability, Capability Map Development Method, Capability Heat Map and Capability versus process.

Example

Section titled “Example”

A small online retailer drafts its map from its annual goals. Level 1 has areas such as “Customer”, “Product” and “Finance”. Under “Customer”, level 2 might hold “Customer Service”. A level-3 capability there could be “Handle Complaints”.

Later the retailer moves complaints to a new team and buys a new ticket tool. The capability “Handle Complaints” does not change. Only the team and the tool change.

Trade-offs

Section titled “Trade-offs”

Keeping the map abstract and stable means it does not show how work flows or who does it. You need process models, value chains or org charts for that. Adding more levels gives more detail but works against the aim of avoiding overcomplication. A map that is never reviewed stops matching the business.

A generic three-level capability map as a hierarchy.

Diagram source 
mindmap
  root((Business))
    Customer
      Customer Service
        Handle Complaints
    Product
      Product Development
    Finance
      Accounting

Checks

Section titled “Checks”
  • Each capability states what the business must be able to do, not how it is done or who does it.
  • The map has about seven to ten level-1 capabilities and uses three levels or fewer.
  • The map was drafted from strategic documents such as annual goals, roadmaps or investment themes.
  • The map has a review schedule, at least once a year.
  • Capabilities change only when the business model changes, not when teams, processes or applications change.
Section titled “Related”

Sources

Section titled “Sources”