What's the best way to link business capabilities to outcomes and metrics?

1 Define your outcomes and metrics

Before you can link your capabilities to outcomes and metrics, you need to define what they are and how they relate to your strategic goals. Outcomes are the desired results or benefits that you want to achieve from your capabilities. Metrics are the quantifiable indicators that show how well you are achieving your outcomes. For example, if your outcome is to increase customer satisfaction, your metrics could be customer retention rate, net promoter score, or complaint resolution time. You should have clear and SMART (specific, measurable, achievable, relevant, and time-bound) outcomes and metrics for each capability.

2 Map your capabilities to outcomes and metrics

Once you have defined your outcomes and metrics, you can map them to your capabilities using a matrix or a diagram. This will help you visualize how your capabilities contribute to your outcomes and metrics, and identify any gaps or overlaps. You can use different colors, symbols, or labels to indicate the level of alignment, impact, or priority of each capability-outcome-metric relationship. For example, you can use green for high alignment, yellow for medium alignment, and red for low alignment. You can also use arrows, lines, or boxes to show the dependencies, influences, or boundaries of each capability-outcome-metric relationship.

3 Analyze your capability-outcome-metric map

Once you have mapped your capabilities to outcomes and metrics, you can analyze your map to gain insights and make decisions. Your map can help you determine which capabilities are most critical for achieving your outcomes and metrics, which need improvement or investment to increase their alignment or impact, and which are redundant or irrelevant for your outcomes and metrics. Additionally, it can help you compare your capabilities to those of your competitors or best practices in terms of outcomes and metrics, as well as evaluate how your outcomes and metrics align with stakeholder expectations and needs.

4 Communicate your capability-outcome-metric map

Finally, you need to communicate your capability-outcome-metric map to your stakeholders and partners. You can use your map to demonstrate the value and performance of your capabilities, and to justify your strategic choices and actions. You can also use your map to solicit feedback and input from your stakeholders and partners, and to align them with your vision and goals. You can present your map in different formats and levels of detail, depending on your audience and purpose. For example, you can use a dashboard, a report, a presentation, or a workshop.

5 Review and update your capability-outcome-metric map

Your capability-outcome-metric map is not a static document. It is a dynamic and evolving tool that reflects the changes and challenges in your business environment. You should review and update your map regularly, at least once a year, or whenever there is a significant change in your strategy, processes, or resources. You should also monitor and track your outcomes and metrics, and adjust your capabilities accordingly. By doing so, you can ensure that your capabilities are always aligned with your outcomes and metrics, and that you are delivering value and results to your stakeholders and customers.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?