Organizational Capability-Value Creation Matrix

The Organizational Capability-Value Creation Matrix is a 2x2 matrix used to assess the capabilities of an organization and the value it creates. It helps organizations identify areas of strength and areas of improvement.

At a very high level, the Organizational Capability-Value Creation Matrix is used in the context of business, strategy, management.

Organizational Capability-Value Creation Matrix quadrant descriptions, including examples
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What is the Organizational Capability-Value Creation Matrix?

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

  1. High Capability/High Value: Areas where the capability is high and the value created is also high. Examples include a highly efficient production process or a well-trained sales team.
  2. High Capability/Low Value: Areas where the capability is high but the value created is low. Examples include a highly efficient but low-margin product line or a well-trained sales team that is not closing many deals.
  3. Low Capability/High Value: Areas where the capability is low but the value created is high. Examples include a low-cost but high-margin product line or a sales team with limited training that is closing many deals.
  4. Low Capability/Low Value: Areas where the capability is low and the value created is also low. Examples include a low-cost and low-margin product line or a sales team with limited training that is not closing many deals.

What is the purpose of the Organizational Capability-Value Creation Matrix?

The Organizational Capability-Value Creation Matrix is a 2x2 matrix used to assess the capabilities of an organization and the value it creates. It helps organizations identify areas of strength and areas of improvement. The matrix is divided into four quadrants: High Capability/High Value, High Capability/Low Value, Low Capability/High Value, and Low Capability/Low Value.

The High Capability/High Value quadrant represents the areas of the organization where the capability is high and the value created is also high. These are the areas that the organization should focus on and invest in. The High Capability/Low Value quadrant represents areas where the capability is high but the value created is low. These areas should be re-evaluated and improved.

The Low Capability/High Value quadrant represents areas where the capability is low but the value created is high. These areas should be improved to increase the capability and maximize the value created. The Low Capability/Low Value quadrant represents areas where the capability is low and the value created is also low. These areas should be eliminated or outsourced.


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What templates are related to Organizational Capability-Value Creation Matrix?

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

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