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Hi this is Jesper and i make videos on youtube for\h
those who like to challenge mindsets and make a\h\h
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difference in the workplace i like explaining\h
consulting management and data frameworks\h\h
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i make youtube videos to explain how to use them\h
and today i'm going to explain capability mapping\h\h
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a secret framework hidden on google\h
search to solve a 50 year old mystery\h\h
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computers have been in business for more than\h
50 years but when they were introduced 50 years\h\h
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ago another silo was immediately created a silo\h
consisted of technology people or technology nodes\h\h
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so already from the beginning that started\h
to be a bit of a communication problem\h\h
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with business people and technology\h
people trying to understand each other\h\h
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and it hasn't got much better which is quite\h
surprising considering the very very big\h\h
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leaps and bounds that were made in\h
terms of technology in the last 50 years\h\h
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but today busy strategy and i.t strategy are still\h
misaligned and quite frankly dysfunctionally so\h\h
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the problem is different language and different\h
terminology a business may you terms like growth\h\h
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market share profit productivity and the business\h
goal may be to increase productivity if you are\h\h
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a manufacturing company for example from 50\h
000 units per year to 100 000 units per year\h\h
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a corresponding it goal or technology goal may\h
be to increase system availability from 99.5 to\h\h
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99.7 percent or to ensure that all calls that\h
are taken on a help desk are answered within 15\h\h
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seconds instead of 30 seconds all kind of it\h
goals tend to revolve around something to do\h\h
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with the service level this tends to be the\h
essence of many technology strategies today\h\h
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simply to keep the lights on and making sure the\h
systems are working and available when needed\h\h
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but there is no significant connection between\h
business and technology goals and considering\h\h
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the increasing importance of digital and\h
digital technologies this is concerning
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digital companies often called digital disruptors\h
are emerging everywhere what makes them different\h\h
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is the ability to use technology and how\h
to align business and technology outcomes\h\h
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hence it is critical to incumbent organizations\h
to better align technology and business operations\h\h
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and strategies to remain competitive and this is\h
where capability mapping comes into the picture\h\h
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it creates a new view of the organization that\h
both business and technology can understand\h\h
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and it provides a common language so both\h
can be understood so if you want to be hero\h\h
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solve the 50 year old mystery and bring capability\h
mapping into your organization but wonders how\h\h
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well then i've got you covered and in four\h
simple steps i'm going to explain and show\h\h
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you how you can become an expert we're going\h
to talk about what capability mapping is\h\h
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and we're going to talk about why it's\h
different and why to use for white so good\h\h
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we're going to talk about how it works by\h
unpacking a real case study and actually\h\h
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looking at the real capability map and lastly\h
i'm going to share some of my own experiences\h\h
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and practitioner trips so that you can learn as\h
quickly as possible and get up to speed as quickly\h\h
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as possible and go out there and practice how does\h
that sound let's start and if you like what you've\h\h
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seen so far please hit the like and subscribe\h
button below so i can make more of these videos\h\h
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so let's start with capabilities a capability\h
describes what an organization does at its core\h\h
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capability mapping is used to identify\h
capabilities needed for an organization to\h\h
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execute on its strategy and run its operations it\h
has three core benefits firstly it is easy to use\h\h
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and practice as you will see in example shortly\h
second its static it doesn't change often so\h\h
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once you have invested a time to develop it it\h
stays current with very little upkeep and third\h\h
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as i mentioned previously it provides a language\h
that with business and technology can understand
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there are actually several other benefits i'm\h
talking about the core benefits when it comes\h\h
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to mapping business and i.t strategy but there\h
are a number of business benefits in their own\h\h
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right that i'm going to touch on throughout\h
this video surface is fantastic why aren't\h\h
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more people using it well that's a million\h
dollar question it's not that it's hidden\h\h
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if it's hidden it's hidden in plain sight well\h
regardless of reason or other people may or\h\h
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may not be using it don't let it stop you from\h
using it in your organization to do great things\h\h
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let's look at some simple rules behind capability\h
mapping firstly it is not an organizational\h\h
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structure although as you will see in the second\h
it might look like an organizational structure\h\h
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because it looks like a hierarchy but they are not\h
the same and the answer very different questions\h\h
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language is important a capability is always\h
expressed as a noun whereas for example a process\h\h
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is expressed as a verb for example a\h
capability might be product development\h\h
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whereas the process would be develop product\h
another important rule is that capabilities\h\h
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are unique they are atomic and they cannot\h
be replicated regardless of how large the\h\h
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organization is they can only exist once and once\h
only it's not like a geographic organization that\h\h
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may have the functional structure and the\h
processes duplicated in three regions in\h\h
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the capability map regardless of the organization\h
the capability can only exist once and once only
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because it focuses on what the organization does\h
rather than how it does it it remains static and\h\h
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resistant to change for example an organizational\h
structure will not affect the capability map\h\h
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the only thing that affects a capability map\h
if there is a major shift in our strategy\h\h
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so how is the capability map developed these are\h
the core steps yet depending on purpose the status\h\h
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may vary slightly let's unpack each stage in\h
more detail before jumping into a case study\h\h
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first we map current business\h
capabilities using a structure-like format\h\h
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high-level capabilities go on top which are then\h
broken down into more granular capabilities second\h\h
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current capabilities are rated in how well or\h
not they support the organization this forms\h\h
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the current state view and is often shown as a\h
heat map third to support the strategy capability\h\h
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uplifts are identified including new capabilities\h
needed this forms the future state view and is\h\h
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also often shown as a roadmap fourth capability\h
uplifts and new capabilities are prioritized which\h\h
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creates a business roadmap and fifth the business\h
roadmap is mapped against applications and systems\h\h
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existing and you which generates an i.t roadmap\h
which forms the basis of an i.t strategy\h\h
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voila we have done it we have made the\h
connection between business strategy and\h\h
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i.t strategy with this background on capability\h
mapping we cannot apply it in the real world\h\h
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edison cars a pioneer in hydrogen propulsion\h
builds 50 000 cars annually this ceo has\h\h
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recently given the leadership team the goal of\h
increasing production to 100 000 cars annually\h\h
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within the next two years the ceo has also given\h
the leadership team the task of coming up with\h\h
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the transformation plan in three months the\h
leadership team has decided to use capability\h\h
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mapping and business architecture as a tool and\h
framework for developing the transformation plan\h\h
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it is well known in the business that the\h
major obstacle to increased production\h\h
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is the lack of i.t systems technology systems\h
and the integration with the rest of the\h\h
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organization and with outside ecosystem the\h
leadership team developed the capability map\h\h
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based on their own terminology they were using in\h
their business and in that industry and the high\h\h
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level capabilities were product management build\h
management marketing management dealer management\h\h
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after market management procurement management and\h
the bundled all of the corporate functions like\h\h
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finance i.t and hr into corporate management\h
product management were further divided into\h\h
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research management concept development\h
design management estimating management and\h\h
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pricing management product management is often\h
referred to as level zero capability because\h\h
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it's a top level capability whereas the next level\h
capabilities referred to as a level 1 capability\h\h
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and each level 1 capability was\h
further decomposed into more granular\h\h
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level 2 capabilities and this is our starting\h
capability map for the rest of this case study\h\h
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next the leadership team conducted a current\h
state assessment of all existing capabilities\h\h
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to understand how well they supported the\h
current operations after understanding the\h\h
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current state capabilities the leadership team\h
next wanted to understand what capability uplifts\h\h
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and new capabilities were required to\h
double production to 100 000 cars annually\h\h
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next the leadership team prioritized\h
capability uplifts and new capabilities\h\h
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once completed they used the prioritized\h
capabilities to create the business roadmap\h\h
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and finally the business roadmap was used to\h
identify new applications application uplifts\h\h
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new cloud platforms and network and infrastructure\h
uplifts to create the connected technology roadmap\h\h
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the leadership team was very happy with the\h
technology roadmap but wanted to further\h\h
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leverage the investment in capability mapping they\h
wanted to understand the organizational impact so\h\h
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change management strategy could be developed so\h
they mapped each detailed capability against the\h\h
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organization to understand the organizational\h
impact of the transformation roadmap\h\h
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it also provides a number of\h
other benefits for example\h\h
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it identifies inefficient and\h
duplicated processes influences\h\h
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organizational restructures by identifying\h
silo and inefficient use of human resources\h\h
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and lastly it informs investment decisions by\h
identify the capabilities that are most needed\h\h
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to affect or to support an organizational strategy\h
and now i'm going to share practitioner tips and\h\h
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my own experience and observations having\h
practiced capability modeling for many years\h\h
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and the first one is if the organization is\h
not familiar with this concept start small\h\h
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start with a function or a group it is not ideal\h
but very difficult to start capability modeling\h\h
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with a big bang approach unless you have a\h
ceo or someone that is really keen to do it\h\h
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find a good use case or a good problem to solve\h
nothing is more powerful than using capability\h\h
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mapping to solve a real problem especially if\h
the problem is something the organization has\h\h
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struggled with in the past find a great sponsor\h
and this is really important find someone in the\h\h
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business that can see the benefit of this and\h
need it so a good sponsor in the right function\h\h
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of the organization is a fantastic start it's\h
easy to fall into the trap analysis paralysis\h\h
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stop at level 3 or level 4 capabilities\h
going deeper than a level 4 capability\h\h
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is most often not useful so stop at level 4. so\h
what are your technology choices supporting this\h\h
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well they're not that many you have two types of\h
software you have the more cheapest software like\h\h
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your microsoft vco which i tend to use myself or\h
you have the more expensive software like your\h\h
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ice solver that connects the entire enterprise\h
architecture stack which is horribly expensive\h\h
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and it's a very long investment in terms of\h
learning and really coming up to speed so\h\h
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in terms of software they not that much choice i\h
tend to go on the live trend using things like vco\h\h
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if you want something free and draw io is a great\h
little technology tool for this kind of stuff\h\h
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overall my advice is again like everything\h
start small use simple technologies and if\h\h
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it takes off in the organization then you can\h
consider investing into one of these enterprise\h\h
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grade management software tool sets and lastly\h
love frameworks or hate frameworks there are a\h\h
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number of business capability frameworks out there\h
already that can be very useful to get started\h\h
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certainly very useful in the beginning to show the\h
business how it looks like and how it works but at\h\h
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the same time adopting a framework early on can\h
make us a little bit blindsided put on blinkers\h\h
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and may not result in the best capability map for\h
the organization so i do use them sparingly in\h\h
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the beginning to show the business to explain but\h
when i start the capability mapping itself i like\h\h
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to start from a clean slate and one thing that's\h
very important is to try to use the language of\h\h
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the business because they need to own this and be\h
part of this so to use that language is critical\h\h
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but in terms of frameworks what i've done\h
is to list in the description of this video\h\h
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three or four of the industry leading frameworks\h
most of them are free one of them is not but you\h\h
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will all see that in the description so good luck\h
with everything and if you have liked this video\h\h
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please like and subscribe and i look forward to\h
seeing you in my next video take care until then
18294
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