Capability Planning Matrix

The Capability Planning Matrix is a strategic tool used in business management to assess and plan organizational capabilities. It helps identify strengths, weaknesses, opportunities, and threats by categorizing capabilities into four quadrants based on their current performance and future potential.

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

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What is the Capability Planning Matrix?

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

  1. High Performers: Capabilities that are currently strong and have high future potential. Example: Advanced data analytics team.
  2. Emerging Potentials: Capabilities that are not currently strong but have high future potential. Example: Emerging AI research team.
  3. Underperformers: Capabilities that are currently weak and have low future potential. Example: Outdated manual processing unit.
  4. Sustainers: Capabilities that are currently strong but have low future potential. Example: Established but declining product line.

What is the purpose of the Capability Planning Matrix?

The Capability Planning Matrix is a strategic framework designed to help organizations evaluate and plan their capabilities effectively. This 2x2 matrix categorizes capabilities into four quadrants based on two dimensions: current performance and future potential. By plotting capabilities in this manner, businesses can identify areas that require investment, divestment, or maintenance.

Use Case: A company looking to innovate its product line can use the Capability Planning Matrix to assess its R&D capabilities. By categorizing these capabilities, the company can identify which areas are performing well and have high future potential, and which areas need improvement or should be phased out.

The matrix helps in making informed decisions about resource allocation, strategic focus, and capability development. It is particularly useful during strategic planning sessions, mergers and acquisitions, and organizational restructuring.

The four quadrants of the Capability Planning Matrix are:

  • High Performers: Capabilities that are currently strong and have high future potential. These are the organization's core strengths.
  • Emerging Potentials: Capabilities that are not currently strong but have high future potential. These require investment and development.
  • Underperformers: Capabilities that are currently weak and have low future potential. These may need to be divested or significantly restructured.
  • Sustainers: Capabilities that are currently strong but have low future potential. These should be maintained but not heavily invested in.


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What templates are related to Capability Planning Matrix?

The following templates can also be categorized as business, strategy, management and are therefore related to Capability Planning Matrix: Product-Market Matrix, 4 Ps Marketing Mix Matrix, AI Capability-Value Proposition Alignment Matrix, AI Innovation-Value Alignment Matrix, AI Maturity Matrix, AI-Value Proposition Alignment Matrix, AI-Value Proposition Matrix, AIDA Marketing Matrix. You can browse them using the menu above.

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