Capability-Value-Probability Matrix

The Capability-Value-Probability Matrix is a 2x2 matrix used to evaluate the potential success of a business venture. It is used to assess the capability of the venture, the value it provides, and the probability of success.

At a very high level, the Capability-Value-Probability Matrix is used in the context of business, marketing, finance.

Capability-Value-Probability Matrix quadrant descriptions, including examples
Want to try this template?
Other Templates

What is the Capability-Value-Probability Matrix?

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

  1. High Capability, High Value, High Probability: This quadrant represents the ideal combination of factors for a successful venture, such as a new product with high capability, high value, and high probability of success.
  2. High Capability, Low Value, Low Probability: This quadrant represents a venture that has the capability to succeed, but is unlikely to do so due to a lack of value or a low probability of success, such as a new product with high capability, but low value and low probability of success.
  3. Low Capability, High Value, Low Probability: This quadrant represents a venture that has the potential to provide value, but lacks the capability to do so, such as a new product with low capability, high value, and low probability of success.
  4. Low Capability, Low Value, Low Probability: This quadrant represents a venture that is unlikely to succeed due to a lack of capability, value, and probability, such as a new product with low capability, low value, and low probability of success.

What is the purpose of the Capability-Value-Probability Matrix?

The Capability-Value-Probability Matrix is a 2x2 matrix used to evaluate the potential success of a business venture. It is used to assess the capability of the venture, the value it provides, and the probability of success. The matrix is divided into four quadrants, each representing a different combination of capability, value, and probability.

The top left quadrant is labeled “High Capability, High Value, High Probability” and represents the ideal combination of factors for a successful venture. This quadrant should be the goal of any business venture. The top right quadrant is labeled “High Capability, Low Value, Low Probability” and represents a venture that has the capability to succeed, but is unlikely to do so due to a lack of value or a low probability of success.

The bottom left quadrant is labeled “Low Capability, High Value, Low Probability” and represents a venture that has the potential to provide value, but lacks the capability to do so. The bottom right quadrant is labeled “Low Capability, Low Value, Low Probability” and represents a venture that is unlikely to succeed due to a lack of capability, value, and probability.

The Capability-Value-Probability Matrix is a useful tool for evaluating the potential success of a business venture. By assessing the capability, value, and probability of success, businesses can make informed decisions about which ventures to pursue and which to avoid.


Want to try this template?

What templates are related to Capability-Value-Probability Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Capability-Value-Probability 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.

How can I use Capability-Value-Probability Matrix in Priority Matrix?

You can get Capability-Value-Probability Matrix in your Priority Matrix in just a moment:

  1. Click to sign in or create an account in the system
  2. Start adding your items to the matrix
  3. If you prefer it, download Priority Matrix and take your data with you

Learn more about Capability-Value-Probability Matrix, and get free access to lots of other templates, at templates.app. Once you are comfortable with the document, you can easily export to Excel, if you prefer to work that way.

If you have any questions and you can't find the answer in our knowledge base, don't hesitate to contact us for help.