Business Capability Matrix

The Business Capability Matrix is a 2x2 matrix used to evaluate the capabilities of a business. It is used to identify areas of strength and weakness and to prioritize areas for improvement.

At a very high level, the Business Capability Matrix is used in the context of business, strategy.

Business Capability Matrix quadrant descriptions, including examples
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What is the Business Capability Matrix?

A visual explanation is shown in the image above. The Business Capability Matrix can be described as a matrix with the following quadrants:

  1. Current State: The current level of capability that the business has achieved, e.g. 'Marketing Strategy' or 'Customer Service'
  2. Desired State: The level of capability that the business is aiming to achieve, e.g. 'Data Analytics' or 'Product Development'
  3. Gap Analysis: The difference between the current state and the desired state, e.g. 'Leadership Development' or 'Process Improvement'
  4. Prioritization: The order in which the business should focus on improving its capabilities, e.g. 'Marketing Automation' or 'Supply Chain Management'

What is the purpose of the Business Capability Matrix?

The Business Capability Matrix is a 2x2 matrix used to evaluate the capabilities of a business. It is used to identify areas of strength and weakness and to prioritize areas for improvement. The matrix is divided into four quadrants, each representing a different aspect of a business's capabilities.

The top-left quadrant represents the 'Current State', which is the current level of capability that the business has achieved. This quadrant is used to identify areas of strength and weaknesses in the current state of the business. Examples of entries in this quadrant include 'Marketing Strategy' or 'Customer Service'.

The top-right quadrant represents the 'Desired State', which is the level of capability that the business is aiming to achieve. This quadrant is used to identify areas of improvement that the business should focus on in order to reach its desired state. Examples of entries in this quadrant include 'Data Analytics' or 'Product Development'.

The bottom-left quadrant represents the 'Gap Analysis', which is the difference between the current state and the desired state. This quadrant is used to identify the areas where the business needs to improve in order to reach its desired state. Examples of entries in this quadrant include 'Leadership Development' or 'Process Improvement'.

The bottom-right quadrant represents the 'Prioritization', which is the order in which the business should focus on improving its capabilities. This quadrant is used to identify the areas that should be addressed first in order to reach the desired state. Examples of entries in this quadrant include 'Marketing Automation' or 'Supply Chain Management'.


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What templates are related to Business Capability Matrix?

The following templates can also be categorized as business, strategy and are therefore related to Business Capability Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

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