Using Capability Planning and Analysis

This report looks at various ways in which Capability Planning and Analysis might be applied in specialized scenarios and service portfolio planning.

Introduction

In an associated report we looked at the activities in Capability Planning and Analysis (CP&A) and considered the various types of meta data that could be collected to aid planning and decision making.

In this report we look at the various uses to which CP& might be applied.

Objectives

There are a number of business and IT objectives that drive a need for CP&A.

• Business Improvement. To better understand which as-is capabilities need improving and to plan the set of to-be capabilities. May result in need for Portfolio Rationalization and/or Modernization
• Portfolio Rationalization. To determine how capabilities – and often their implementation(s) - can be rationalized to reduce duplication and improve consistency. Providing cost savings and quality improvements.
• Portfolio Modernization. To identify as-is capabilities that require modernization in detail, and to plan the to-be.
• New Venture. To provide a logical decomposition of the capabilities required in support of a new venture, and to map which as-is capabilities might be reused.
• Merger and Acquisition.
  • Pre M&A. To determine fit. To consider if the two organizations a good match, what degree of overlap there is, or how one extends the other.
  • Post M&A. Portfolio Rationalization of the combined resources as above.

These objectives are likely to shape the approach taken.

Generic Scenarios

Scenarios such as business improvement and new ventures will require a ‘top down’ approach. Start with the desired business and IT outcomes. Then identify the to-be capabilities that will be needed to achieve these outcomes. Then look at how the as-is capabilities meet these requirements.

Whereas, rationalization and M&A scenarios might be considered more ‘bottom-up’ in nature.  These require an understanding of what as-is capabilities already exist, how they are realized and how they compare. Here, a bottom up approach is not only pragmatic but necessary in terms of understanding the existing portfolio and measuring duplication and consistency.

Of course these scenarios might be combined. For example, in order to support a new venture it may be decided that some M&A activity is the expedient way to take advantage of the opportunity.  Or that a goal of M&A is to reduce the combined execution costs by rationalizing duplicated capabilities.

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