Capability-Based Planning

Capability-based Planning is a strategic planning method that helps you shift focus from what an organization has to what it’s actually capable of doing. It's not just about resources like budget, IT, or staff, but about the abilities that those resources enable in the first place.

So instead of asking "What do we have?", Capability-based Planning starts with the more useful question: "What can we achieve with what we have?" That might sound a bit abstract at first, but it becomes super relevant in complex, fast-changing environments – think VUCA world.

Like many management approaches, Capability-based Planning has its roots in military planning. There, the focus has always been on what needs to be done in critical situations, not just on the resources available. This mindset was later adopted in the business world and has become a popular tool in management consulting – especially when it comes to preparing companies for the future.

If you're into strategic management, business development, or digital transformation, Capability-based Planning offers an exciting way to think beyond traditional planning.

Phases of Capability-Based Planning

There are five phases that are divided into CBP:

• Phase 1: Definition of Business Strategy
  The first step involves defining a clear and precise business strategy. This strategy should encompass the organization's long-term goals and the path to achieving these goals.
• Phase 2: Identification of Core Capabilities
  Once the business strategy is set, the core capabilities required to implement this strategy need to be identified. These capabilities include not just technical skills but also organizational and procedural competences.
• Phase 3: Assessment of Current Capabilities
  In this phase, a thorough assessment of the organization's current capabilities is conducted. This involves an analysis of strengths and weaknesses and the gaps that need to be filled.
• Phase 4: Development of a Capability Plan
  Based on the preceding analyses, a detailed plan is developed that outlines how to develop, improve, or acquire the necessary capabilities to support the business strategy.
• Phase 5: Implementation and Monitoring
  The final step is the implementation of the capability plan and continuous monitoring and adjusting of capabilities to ensure they align with the evolving business strategy.

Conclusion: Focus on What Really Matters

Capability-based Planning is a flexible, forward-thinking method that shifts attention from traditional resources to actual capabilities. If you're planning to work as a consultant or strategist, Capability-based Planning gives you a practical framework to help organizations reach their goals – even in a rapidly changing environment.

Especially if you're working on strategy, digital transformation, or organizational development, Capability-based Planning is a valuable tool to go beyond conventional planning.