Capability-Based Budgeting Matrix

The Capability-Based Budgeting Matrix is a 2x2 matrix used to allocate resources to projects and initiatives based on their strategic importance and the organization's ability to execute them.

At a very high level, the Capability-Based Budgeting Matrix is used in the context of business, finance.

Capability-Based Budgeting Matrix quadrant descriptions, including examples
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What is the Capability-Based Budgeting Matrix?

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

  1. Important & Feasible: Projects that are both important and feasible for the organization, such as launching a new product line.
  2. Important & Not Feasible: Projects that are important but not feasible for the organization, such as launching a new product line in a foreign market.
  3. Feasible & Not Important: Projects that are feasible but not important for the organization, such as a minor website redesign.
  4. Not Important & Not Feasible: Projects that are neither critical nor feasible for the organization, such as launching a new product line in a market with no demand.

What is the purpose of the Capability-Based Budgeting Matrix?

The Capability-Based Budgeting Matrix is a 2x2 matrix used to allocate resources to projects and initiatives based on their strategic importance and the organization's ability to execute them. It is based on the idea that resources should be allocated to projects that are both strategically important and feasible for the organization. The matrix is divided into four quadrants, each representing a different combination of importance and feasibility.

The top-left quadrant is for projects that are both important and feasible. These are the projects that should be given the most resources. The top-right quadrant is for projects that are important but not feasible. These projects should be given resources, but with the understanding that they may not be successful. The bottom-left quadrant is for projects that are feasible but not important. These projects should be given some resources, but not as much as the projects in the top-left quadrant. The bottom-right quadrant is for projects that are neither critical nor feasible. These projects should not be given any resources.


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What templates are related to Capability-Based Budgeting Matrix?

The following templates can also be categorized as business, finance and are therefore related to Capability-Based Budgeting 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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