Capability management

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Capability management is a high-level integrative management function, with particular application in the context of defence. Capability is the quality of being capable; to have the capacity or ability to do something, achieve specific effects or declared goals and objectives. Enterprises in essence consist of a portfolio or matrix of capabilities that are used in various combinations to achieve outcomes. Within that portfolio, a capability will be transient unless managed and maintained over time. Therefore, a typical capability lifecycle spans needs, requirements, acquisition, in-service and obsolesence/disposal phases. While a highly developed management discipline within several national military organisations, the concepts, principles and practices of capability management are readily adaptable and effective for wide-ranging application in the strategy and operations of many other enterprises.

Capability management aims to balance economy in meeting current operational requirements, with the sustainable use of current capabilities, and the development of future capabilities, to meet the sometimes competing strategic and current operational objectives of an enterprise. Accordingly, effective capability management:

assists organisations to better understand, and effectively integrate, re-align and apply the total enterprise ability or capacity to achieve strategic and current operational objectives; and

develops and provides innovative solutions that focus on the holistic management of the defined array of interlinking functions and activities in the enterprise's strategic and current operational contexts.

The interlinking functions and activities of the enterprise may be defined under several best-practice paradigms or frameworks, such as the Balanced Scorecard (BSC), or the US Department of Defense Architecture Framework (DoDAF). Typically, capability is assessed and managed in several dimensions. The US military analyses its capabilities in the dimensions of 'DOTLMPF', being:

Doctrine
Organizations
Training
Leader Development
Materiel
Personnel
Facilities

The UK MoD uses a similar breakdown of Defence Lines of Development (DLoDs) as follows:

Training
Equipment
Personnel
Information
Concepts and Doctrine
Organisation
Infrastructure
Logistics

The UK MoD cites Interoperability as an overarching theme that must be considered when any DLoD is being addressed.

The Australian Defence Organisation analyses its capabilities in similar dimensions of:

Command and Management
Organisation
Major Systems
Personnel
Supplies
Support
Facilities
Collective Training

These latter constitute the so-called Fundamental Inputs to Capability (FIC). These FIC must be tightly integrated and managed holistically to realise and sustain a capability: a deficiency in any one adversely impacts the whole.

In military contexts, capabilities may also be analysed in terms of Force Structure and the Preparedness of elements or groupings within that Force Structure. Preparedness in turn may be analysed in terms of Readiness and Sustainability.

In both the military and commercial contexts, net-centric operations and related concepts are playing an increasingly important role in leading and driving business transformation, and contemporary capability management needs to have close regard of those factors. The level of interoperability, both technical and organisational/social, is a critical determinant of the net-centric capability that is able to be realised and employed.

Due to the complexities of system-of-systems integration, interoperability, and the dynamic nature of operations, capability management is greatly assisted by modelling and simulating realistic strategic scenarios and contexts, in order to inform business cases and decision-making. Through those considerations and practices, the enterprise and its performance can be continuously assessed and projected into the future. Well executed capability management therefore clearly informs strategic and operational decisions, and aids in the development of diverse but well-considered strategic and operational options, so they are readily available off-the-shelf. This should also endow significant agility to an enterprise, providing enhanced "contingency capital" and risk mitigation.

Capability management therefore centres around: