Whatever the scenario your company is facing, one thing is certain: it’s time to keep up with all the changes. Business capability mapping can help you have a clearer overview of the organization’s infrastructure and avoid overlaps and redundancies in functions.
Instead of endless meetings and long hours, how about using a capability mapping tool to understand and decide where your resources are, where they should go and why? Let’s dig in.
What is a capability map?
A capability map is a visual collaboration technique that works like a Lego set: every building block helps create an integrated and clear image of your business. The building blocks, in this case, are the business capabilities: the elements that describe what your company does — or has the skills and resources to do.
For instance, a software-as-a-service (SaaS) company can have finance services, IT management and enterprise support as capabilities — among other things. Those are departments and services that the business has. And when you put them together, you can visualize how they communicate with one another and how they relate to the services and products you provide.
This means that capability mapping is a way to display the “what” of your company:
- What it does
- What it has
- What it can do better
Why you need a business capability model
An enterprise capability model is useful for indicating relationships between business units, bottlenecks that harm workflow, and so much more — helping you drive customer satisfaction and sustainable growth.
Especially when a company faces major changes, such as a merger or a digital transformation, having all the information gathered in a concise and easy-to-read place helps make strategic decisions.
Sure, you could write a list and maybe create a spreadsheet, but our brains and our businesses thrive on visual information. In our interview with Dr. Anjan Chatterjee, a professor of neurology at the Perelman School of Medicine at the University of Pennsylvania, we learned that schemas — such as maps! — helps us to retain more information with less effort, allowing us to use our cognitive resources to create solutions to the problems we find.
A capability map example
Suppose you work at a software company and need to enhance cross-functional collaboration to streamline the product development process.
When creating the business capabilities map, you might include:
- Product development
- People operations
- Financial services
- Platform and service operations
- Enterprise support
And the list goes on and on. But that’s when the business capability mapping magic works: it helps to better organize and visualize all those departments and how they are integrated. Take a look at this capability map example:
In the image, you can see that each enterprise's capability is defined by a different color. Each color also has a lighter shade that indicates a sub-capability — a department, a process, or a physical thing (like machines, as when you work at an Industrial Company) — that helps the organization do what it does
Just by looking at this picture, you can identify the company's functional organizational structure. That information can help you decide where you need new resources if it’s time to invest in new technology, or how to create a strategic alignment.
Capability map vs. process map: Key differences and uses
While capability mapping is an efficient way to describe what a company does, a process map is used as a visual representation of the business processes. That means that capability maps show you the what, and process maps show you the how.
- Capability maps are an easy-to-read way to list your business’s structure, assets and departments, helping you visualize where your resources go.
- Process maps address recurring problems, coordinate multiple team members and understand who is responsible for what in the business’s system.
That means that mapping out your processes should come after you have an overview of your structure. This way, you know what the enterprise can do to better organize its operations on a more detailed level.
When to use capability mapping
Capability mapping can be a valuable tool in situations where your business needs to understand, align, or optimize its core functions. Here are some scenarios for using it:
Post-merger integration
If your company is managing the integration phase after a merger, creating a competence framework can help you identify overlapping capabilities and unique differentiators.
Imagine that the map indicates that both companies have robust teams dedicated to software development. In the worst-case scenario, that could lead to reallocations. In the best-case scenario, however, it could mean the creation of a stronger, unified software development team, capable of innovations.
Change in management
If a new manager comes on board, a capability assessment helps to document processes and practices that can be lost if the company relies on the knowledge of experienced collaborators. Maps can minimize that risk and also improve efficacy and long-term success.
Large-scale growth
If you're expanding your operations, you can also benefit from analyzing capabilities. With a clear overview of your company’s infrastructure, it’s easier to limit investment risk and give emphasis to the most important areas of expansion.
Product development
When you need to create new products or services, the map can help identify what departments would need more resources. It’s also an easy way to keep all the collaborators on the same track, understanding what investments and changes will happen.
Related: Get to know 4 keys to the art of product development
How to create a business capability map
It’s time to roll up your sleeves and put all the knowledge into practice. Follow the 5-step guide below to start mapping your business capabilities.
Step 1: Define the scope
First and foremost, to design a capability mapping framework, you must define your goals. So the first step is to have a clear picture of your organization's needs and business strategy.
To do so, you can rely on internal reports, use feedback from stakeholders, and observe the organization's key performance indicators (KPIs). Use a SWOT analysis template to clarify the internal and external factors that influence your scope and guide the strategic planning.
Related: Explore 5 effective strategic planning models for your business
Step 2: Gather data on existing capabilities
The second step involves understanding which capabilities can help you achieve your strategic objectives. Strategy and planning software helps you organize that information visually and concisely. You can run internal surveys and conduct a strategic analysis to better understand how each capability uses its resources and if there’s room for improvement.
Step 3: Identify key business capabilities
By this step, you probably have two different lists at hand:
- In the first one, the company’s objectives
- In the second one, the first draft of your business’s map
Combine those lists and define which capabilities are key to reaching your business goals. Try mind mapping tools and start by answering questions such as: What is missing? Is there something that can be reorganized to better use the resources available?
Step 4: Build a visual representation
This is the moment when you finally create your enterprise capability map. Using Mural’s online whiteboard, you can now build a visual representation of your company’s structure, outlining:
- Functions that are critical to the business, such as marketing, sales, operations, and customer service
- Core capabilities in more specific areas, like digital marketing, lead generation, order fulfillment, and customer support
- Processes associated with each capability, including workflows and best practices that drive operations
- Resources required to support each capability, including human resources, technology, and financial assets
Add everything that lets you have a comprehensive view, including technologies, stakeholders, performance metrics, and more.
Step 5: Evaluate gaps and opportunities
With your map in hand and your goals in mind, it’s time to strategize:
- Are there gaps in your business structure?
- Do you need to re-evaluate where the resources are going?
- Are there opportunities to help you get to your goals faster, or better?
In this final step, a business model canvas template can be really helpful in answering those questions.
Visualize your business potential with capability mapping software
With Mural, capability mapping becomes easier, as you can use our platform for visual, real-time collaboration. Our features facilitate the collaborative process by allowing your team to add comments and create custom templates. And the best part: it’s totally fun — I mean, free to get started.
Try Mural today and learn how to design capability maps with the best set of tools and templates.
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