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A well-functioning organization provides clarity regarding the work required to achieve its objectives. It also provides a shared understanding of who will perform that work. Identifying the work to be accomplished, assigning it to the most appropriately skilled unit or function, and deciding how to group it into individual roles should be done with care, as organizational performance and operational success depend on having the right number of properly skilled people allocated to each business unit. Similarly, logically grouping work and skills simplifies organizing jobs into a structure in which governance, direction, and oversight flow naturally downward from appropriately knowledgeable and experienced leadership.
Capabilities represent the know-how and expertise that an organization needs to create the value it aspires to deliver to its customers and stakeholders. They are the backbone of the organization and, as a result, should be clearly articulated to guide their development and use, thereby optimizing the implementation of the business strategy.
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