Capability Modeling Guidelines | How to Structure a Capability Map

Capability Hierarchy

A capability hierarchy is a tree (whole/part relationship) of the enterprise's capabilities, from broad, high-level capabilities at the top (Level 1) to increasingly detailed, granular sub-capabilities at lower levels (Level 2, Level 3, and so on). Superordinate capabilities represent a whole and subordinates represent its parts. By tracing between the higher, more strategic level to specific capabilities hierarchies encourage iteration while supporting coarse to granular assessment of performance. This is essential in making strategy actionable.

EDGY suggests the following levels:

Capability Area:

The highest level represents the major business areas of the enterprise. May not be needed for small enterprises.

Example: “Railway Infrastructure Management”

Capability Family:

Breaks down capability areas into more specific families of capabilities.

Example: “Build Railway Assets”

Capability Group:

Makes capability families more concrete

Example: “Build Tracks”

Specific Capabilities:

Further elaborates on capability groups into very specific capabilities. Here an [[enterprise99 assesses performance, makes sourcing decisions, and addresses gaps.

Example: “Assess soil and substructure suitability”

Practical Tips

The number of levels depends on the size of your organisation

Large enterprises typically have “business areas”, which means that four levels are often apropriate. Most smaller enterprises can be modeled with the other three levels only.

Focus on specific capabilities (level 4) when designing potential future-state options

While levels 1-3 are more for the enterprise-wide, strategic view, specific capabilities are needed to discuss and design the future state in concrete design challenges (see: Indicate where to focus).