Capability-based Strategic Planning

Colin Scott Vice-President, Strategic Business & IT Planning Fidelity Investments

Capability-based Strategic Planning

Capability-based strategic planning

Data-driven strategic planning

TBM IT Strategy & Planning Workgroup

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Key building blocks for CBSP

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Capability-based strategic planning

What the Business Needs

What IT DeliversBusiness Capabilities

StrategicPlanning

StrategyExecution

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At the core we have business capabilities and capability models

A capability model is a shared vocabulary that is used throughout the entire solution delivery lifecycle by business

and IT to describe what the business does and needs to do to deliver value to our clients

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Never underestimate the importance of a shared vocabulary

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Four key building blocks for capability-based strategic planning

What the Business Needs

What IT DeliversBusiness Capabilities

StrategicPlanning

StrategyExecution

Capability Assessments

Capability Gap Analysis Capability Improvement Plans

Capability Implementations

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Our current state is determined by assessing our capabilities

and capability implementations against standardized criteria.

Capability

Capability Assessment

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Strategic plans prioritize gaps in capability implementations

Cap 1 Cap 2 Cap 3 B T E

Capability Gaps

Where We Are Where We Want to Be

CV

TV

Value Gaps

Value Measure Gap

Capability Diagnosis - Business Practice vs. Technology Fit

RudimentaryBelow

IndustryStandard

AtIndustryStandard

DistinctiveLeader

IndustryLeader

Obstacle

Inadequate

Adequate

Enabler

Strategic

Capability Diagnosis

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A capability improvement plan closes capability gaps

By providing a holistic view of what needs to be done in order to improve the assessments of all aspects of a capability.

Capability Assessment

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We separate capabilities from their implementations

to offer views across space and time.

Business Unit 1

Business Unit 2

Business Unit 3

Same capabilities with different strategic and maturity assessments

across business units

Year 1 Year 2 Year 3

Same capabilities with different maturity assessments as investment

benefits materialize over time

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Data-driven strategic planning

Opens up a new and powerful set of visualization options and reduces the dependency on PowerPoint and Excel as “planning tools”.

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With the capability-based building blocks in place

We can raise the bar in terms of visualizing investment planning

Cost of capabilities by spend type and strategic importance

Flow of investment dollars to capabilities

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The common capability language reduces complexity

Across a portfolio of inter-dependent programs and projects

Complex program dependencies simplified by intermediate capabilities

Faceted search reveals dependencies and bottlenecks

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IT Strategy & Planning Workgroup – Goals

•  Convene thought-leaders to collaborate on how IT organizations co-operate with their business partners to maximize the value derived from IT-related investments by formulating, assessing and executing strategic plans that are aligned to the needs of the business

•  Begin to collect, define and document best practices for IT Strategy and Planning in the context of TBM

•  Intersect with the TBM Vertical Workgroups to align IT Strategy development to industry-specific needs with the TBM taxonomy (business model for IT)

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IT Strategy & Planning Workgroup – Initial Position

What the Business Needs

What IT DeliversBusiness Capabilities

StrategicPlanning

StrategyExecution

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