Our aim is to help organizations build a capability-centric operating model that translates strategy into stable and dynamic components through continuous transformation across four dimensions: Strategy, Governance, Cross-Functional Teams, and Functional Teams.
Stable Component: Business Capability Building
Business Capabilities are the essential abilities an enterprise must possess to achieve its mission and strategic objectives. Capability building incorporates People, Process, and Technology, leveraging agile and waterfall delivery practices as appropriate. While business capabilities are stable, their relative importance may shift over time, requiring periodic reprioritization of investments in capability building.
A simple enterprise architecture such as the one below could capture the essential business capabilities (vertical), and IT enterprise capabilities (horizontal).
Value Streams are captured through the integration of business capabilities across the value chain, aligning the flow of activities that create value for the enterprise.
Dynamic Component: Innovation and Discovery Engine
To ensure that strategy remains dynamic, we propose an Innovation and Discovery Engine that quarterly identifies and implements new experiments along the following outline:
Identify the strategic context
Assess required business capabilities
Identify three experiments based on the two steps above
Implement the identified experiments in parallel during the quarter
Incorporate the results into the strategy and capability-building reprioritization
Continuous Transformation Across Four Dimensions
Our approach to building the above-described operating model is through continuous transformation, activated simultaneously across four dimensions, as shown in the diagram below.
These dimensions operate in unison as integrated levers to drive sustained change and execution alignment.
