Compendium of Resources for Capabilities Based Planning

Over the years, the success rate of traditional project management methods applied to software development projects has been underwhelming. Capabilities–Based planning provides a defined outcome that is not a conclusion but lays the groundwork for the continued delivery of value. Objectives are reached and the operational value delivered when a defined capability is available for use. 

Features and functions describe the static and dynamic behaviors of a system, but they are not directly connected to the business strategy. Milestones indicate that a position in a timeline has been reached, but do not forecast what value will be delivered to the business or how this value is traceable to the needs of the user community.

“Capabilities-Based Planning… involves a functional analysis of operational requirements. Capabilities are identified based on the tasks required… Once the required capability inventory is defined, the most cost-effective and efficient options to satisfy the requirements are sought.”

Capabilities–Based planning:

• Transforms the delivery of features and functions into the delivery of processes and technologies that support the business strategy.
• Is planning, under the conditions of uncertainty, to provide capabilities suitable for a wide range of business challenges and circumstances, while working within an economic framework.

What Are Capabilities and Why Are They Better at Describing Maturity?

Measuring project and product maturity as a function of effort and time assures project management adds value to the business. Simply controlling and measuring the expenditure of resources – scorekeeping – provides little value in the presence of change.

Capabilities–based planning provides a defined outcome that is not a conclusion but lays the groundwork for the continued delivery of value. Objectives are reached and the operational value delivered when a defined capability is available for use.  Features and functions describe the static and dynamic behaviors of a system, but they are not directly connected to the business strategy. Milestones indicate that a position in a timeline has been reached, but do not forecast what value will be delivered to the business or how this value is traceable to the needs of the user community. Capabilities provide the answer to the following question: to achieve our objectives, what capabilities must we possess?

Capabilities–based planning transforms the delivery of features and functions into the delivery of processes and technologies that support the business strategy. Capabilities–based planning is planning, under the conditions of uncertainty, to provide capabilities suitable for a wide range of business challenges and circumstances, while working within an economic framework. This approach emphasizes flexibility, adaptiveness, and robust capabilities, implying a modular building–block approach to the delivery of enterprise applications.

Capabilities are not the same as features and functions; they enable demands to be met without the explicit specification of the solution. A capability is the ability to affect an outcome, react to an input, or change an effect. Capabilities –Based Planning provides a description of what Done looks like in units of measure meaningful to the decision-makers. These measures include:

• Measures of Effectiveness (MOE) - Operational measures of success that are closely related to the achievements of the mission or operational objectives evaluated in the operational environment, under a specific set of conditions.
• Measures of Performance (MOP) - Measures that characterize physical or functional attributes relating to the system operation, measured or estimated under specific conditions.
• Technical Performance Measures (TPM) - Attributes that determine how well a system or system element is satisfying or expected to satisfy a technical requirement or goal.
• Key System Attributes (KSA) - is a system capability considered crucial in support of achieving a balanced solution/approach to a Key Performance Parameter (KPP) or some other key performance attribute deemed necessary by the sponsor.
• Key Performance Parameters (KPP) - key system capabilities that must be met in order for a system to deliver its operational goals.

A capability provides an outcome or an effect without an a priori specification. Features and functions require an a priori specification to test for their existence or conformance to the specification. Capabilities–based planning can be understood at the execution level, but it needs to be raised to the level of enterprise process analysis:

Identify a needed capability in operational terms, using the set of capability options to assess the effectiveness in an operational paradigm, and make choices about requirements and the ways to achieve the capability using an integrated portfolio framework to produce an output set of options based on these operational paradigms.

Capabilities-Based Planning addresses information, risks, and strategies to increase the probability of project success: †

• Mission or Business Strategy - The purpose(s) (objectives and end state).
• Conditions - The values of operational environment variables, including scenarios that affect task performance.
• Effect - A change in a condition, behavior, or degree of freedom.
• Capability: The ability to achieve the desired effect under specified standards and conditions through combinations of means and ways to perform a set of tasks.
• Task - An action or activity (derived from an analysis of a mission, business strategy, and concept of operations (CONOPS) assigned to an individual or organization to provide a capability.
• CONOPS - The overall picture and broad flow of tasks assigned to subordinates/supporting entities within a plan by which a stakeholder maps capabilities to effects in order to accomplish a mission or business strategy in a specific scenario.
• Scenarios - Assumptions about the business or technical context of an operation, including competitors, partners, and suppliers.
• End State - A set of conditions, behaviors, and degrees of freedom that defines the achievement of the stakeholder mission or business strategy.
• Standards: Quantitative or qualitative measures that gauge the levels of performance of a task. 

† Abstracted from "MORS Workshop Capabilities Based Planning, The Road Ahead, 19-21 October 2004, Institute for Defense Analyses, Arlington Virginia, James Bexfield and Lisa Disbrow Chaors

Blog Posts on Capabilities Based Planning

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• Capabilities Based Planning - A Primer, OnLine PM Course.
• Capabilities Based Planning First Then Requirements - do not start with Requirements. Start with what capabilities do we need to possess for success?
• Capabilities Based Planning - Capabilities Based Planning is a method involving the functional analysis of operational requirements. 
• Capabilities Based Planning - Capabilities Based Planning is anchored on producing Enterprise and Software Intensive Systems focused on strategic outcomes. Progress is measured through an assessment of the effectiveness and performance of the deliverables in meeting those strategic objectives. This approach assures business value is connected with the strategy not just measures of the passage or time and consumption of money and the production of technical features. 
• The Basis of Capabilities Based Planning - The notion of Capabilities Based Planning is grounded in military planning and acquisition of weapon systems. This approach is well suited for the development or acquisition of any complex system. As well it is a near-perfect match for the Agile Development or Agile Project Management paradigm.
• Capabilities Based Planning in Agile Development - Many approaches to ERP focus on "requirements" which are not connected to the business strategy. A balanced scorecard provides the connection of project indicators of success with business indicators of success starts here.
• Capabilities-Based Planning is Foundation of All Project Success - What Capabilities does the project need to produce to accomplish the Mission or Fulfill the business strategy for those paying for the work? Without knowing that, along with the Measures of Effectiveness and Measures of Performance, the probability of project success is low.
• Eliciting Capabilities - All project success starts with knowing what done looks like in units of measure meaningful to the decision-makers. These units start with effectiveness and performance. These capabilities are the foundation of defining the technical and operational requirements of the product or service produced by the project. Without the defined capabilities, those requirements have no reason for being.
• Capabilities Based Planning - Over the years, the success rate of traditional project management methods applied to software development projects has been underwhelming.

Resources for Capabilities Based Planning

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• 8 Steps to Effective Capabilities Based Planning, Ben Chamberlain
• Evolutionary Acquisition – A Complementary Approach to Capability Based Planning for the Delivering of Aerospace Power, LCol C. R. J Desgagné, Canadian Forces College, 24 April 2009
• TOGAF V9.2, 28 Capabilities-Based Planning
• Guide to Capability-Based Planning
• Capability-Based Planning, Is It Still Viable?
• Chapter 4: Capability-Based Planning and the Royal Canadian Air Force
• Toward an Enhanced Capability Based Planning Approach
• "MORS Workshop Capabilities Based Planning: The Road Ahead," 19-21 October 2004, Institute for Defense Analyses, 
• "Defense Governance and Management: Improving the Defense Management Capabilities of Foreign Defense Institutions A Guide to Capability-Based Planning (CBP)," Institute for Defense Analyses, February 2019.
• "Prerequisites of CBP," Aaron C. Taliaferro, Lina M. Gonzalez, Mark Tillman, Pritha Ghosh, Paul Clarke, and Wade Hinkle, Institute for Defense Analyses (2019)
• "Embedding Strategic Agility A Leadership Agenda for Accelerating Business Model Renewal," Yves L. Doz and Mikko Kosonen, Long Range Planning, 43, pp. 370-382, 2010
• "Rapid Architecture Alternative Modeling (RAAM): A Framework for Capability-Based Analysis of System of Systems Architecture," Joseph V. Iacibucci, Georgia Institute of Technology, 2012.
• "How Can a Structured Representation of Capabilities Help in Planning?" Yolanda Gil and Jim Blythe, AAAI Technical Report WS-00-07, 2000.
• "Lessons for C2 Investment from Capabilities-Based Planning Implications for C2 in Difficult Environments," Paul K. Davis, RAND Corporation, 18th Annual International Command and Control Research & Technology Symposium, June 19-21, 2013
• "Analytical Architecture for Capabilities-Based Planning, Mission-System Analysis, and Transformation," Paul K. Davis, RAND Corporation
• "Capabilities and Requirements Engineering: Research Challenges," Gonçalo Antunes, Ricardo Vieira, and José Borbinha INESC-ID/IST, Lisbon, Portugal
• "Capabilities-Based Engineering Analysis (CBEA)," Mike Webb, The MITRE Corporation
• "Capabilities-Based Planning," Tom Hone, OSD/OFT, NPS Seminar 21, September 2004, Monterey, CA
• "Capabilities Based Planning: A Methodology for Deciphering Commander's Intent," Pete Kossakowski, Evidence Based Research, Inc. 
• "Improving Integration of Department of Defense Processes for Capabilities Development Planning," Dr. John T. Hanley, Jr., Task Leader, Mr. Michael F. Fitzsimmons, Mr. James H. Kurtz, Mr. Lance M. Roark, Mr. Vincent P., Roske, Jr., and Mr. Daniel L. Cuda, Institute for Defense Analyses.
• "White Paper on Capabilities Based Planning," LTC Boyd Bankston and LTC Todd Key, March 30, 2006.
• "Capabilities Development and Systems Acquisition Management, Executive Primer, 2007, Army Force Management School, February 2007, Version 12.0.
• "Capability Suprise for U.S. Naval Forces: Initial Observations and Insights: Interim Report, Committee on Capability Surprise for U.S. Naval Forces," Naval Studies Board; Division on Engineering and Physical Sciences; National Research Council.
• "Capabilities-Based Planning - How it is Intended to Work and Challenges to its Successful Implementation," Colonel Stephen K. Walker, US Army, and Colonel Scott T. Forster, U.S. Army War College, 18 March 2005.
• "Capability Engineering for Strategic Decision Making," M. Lizotte, C. Necaille, and C. Lalancette, Systems Section, Defence R&D Canada, Systems Engineering: Shining Light on the Tough Issues INCOSE 2006 - 16th Annual International Symposium Proceedings.
• "Capability Strategy: Your Primary Strategic Tool," William T. Scheuer, Carlson School of Management, University of Minnesota.
• "Capability-Based Planning for Australia's National Security," Leung Chim, Rick Nunes-Vaz, and Rober Prandolini, Security Challenges Vol. 6, No. 3, pp. 79-96, Spring 2010.
• "Capability-Based Planning with TOGAF and Archimate," Papzoglou Anastasios, University of Twente, July 2014.
• "Capability-Based Planning," https://pubs.opengroup.org/architecture/togaf91-doc/arch/chap32.html 
• "Capability Based Planning - an Acquisition Perspective," Glenn F. Lamartin, MORS CBP Workshop
• "Competing on Capabilities: The New Rules of Corporate Strategy," George Stalk, Philip Evans, and Lawrence F. Shulman, Harvard Business Review, 1992.
• "Core Competencies for Sustainable Competitive Advantage: A Structured Methodology for Identifying Core Competence," Khalid Hafeez, YanBing Zhang, and Naila Malak, IEEE Transactions on Engineering Management, Vol. 49, No. 1 February 2002.
• "Explicating the Dynamic of Project Capabilities," Andrew Davies and Yim Brady, International Journal of Project Management, Volume 34, Issue 2, pp. 314-327, February 2016.
• "Guide to Capability-Based Planning," The Technical Cooperation Program, Joint Systems and Analysis Group, Technical Panel 3, MORS Workshop, Alexandria, VA, 19-21 October 2014.
• "Capabilities-Based Assessment (CBA) Handbook, A Practical Guide to the Capabilities-Based Assessment," Office of Aerospace Studies, Air Force Materiel Command, Kirtland AFB, 10 March 2014.
• "The Measures Handbook: A Practical Guide for Developing and Analyzing Measures in the Capabilities-Based Assessment, pre-Materiel Development Decision Analysis, and Analysis of Alternatives," Office of Aerospace Studies, Air Force Materiel Command, Kirtland AFB, 6 August 2014.
• "A Methodology for Capability-Based Technology Evaluation for System-of-Systems," Patrick Thomas Bilgen, Ph.D. Thesis, School of Aerospace Engineering, Georgia Institute of Technology, May 2007.
• "Modeling and Simulation Foundation for Capabilities Based Planning," Kenn Atkinson, SAIC
• "Portfolio-Analysis Methods for Assessing Capability Options," Paul K. Davis, Ruddell D. Shaver, and Justin Beck, RAND Corporation, 2008
• "Reframing the Governance Debate: A Multilevel Performance Measurement Approach Based on Capabilities," Daniel Fuerstenau
• "TOGAF 9 Capability Based Planning Ver 1.0"
• "Portfolio Influences on Air Force Capabilities-Based Assessment and Capabilities-Based Planning Activities," Cheryl M. Strube and J. Loren, 6th International Conference on System of Systems Engineering, 2011
• "Capabilities-Based Planning – How It Is Intended to Work and Challenges to Its Successful Implementation, Colonel Stephen K. Walker and Colonel Scott T. Forster, USAWC Strategy Research Project, 18 March 2005
• "Implementing Capability-Based Planning within the Public Safety and Security Sector, Lessons from the Defence Experience," Doug Hales and Dr. Paul Chouinard, Defence R&D Canada – Centre for Security Science DRDC CSS TM 2011-26, December 2011.
• "Capabilities-Based Engineering Analysis (CBEA)", Mike Webb, The MITRE Corporation
• "Capabilities Based Planning: A Methodology for Deciphering Commander's Intent," Peter Kossakowski, Evidence-Based Research.
• A Metric Framework for Capability Definition, Engineering and Management Seventeenth Annual International Symposium of the International Council On Systems Engineering (INCOSE) 24 - 28 July 2007.
• A Model for Strategy and Tactical Steps that Create Enterprise Capability Capability Strategy: The Six-Factor Model, William T. Scheurer, Carlson School of Management, University of Minnesota.
• Joint Capabilities Integration and Development System (JCIDS) A Primer, Patrick, Defense Acquisition University. 
• "Capabilities Development and System Acquisition Management - Executive Primer," Army Force Management School (AFMS) February 2007 (version 12.0)
• "Air Force CONOPS & Capabilities Based Planning," Lt Col Nathan Titus, Resource Analyses Directorate, Air Force Studies and Analyses Agency, 19 March 2004.
• "Beyond the Task Force CONOPS: The Path to a Capabilities-Based Modernization Framework for the Air Force," James B. Planeaux, Lt Col, USAF
• Analytic Architecture for Capabilities-Based Planning, Mission-System Analysis, and Transformation, Paul K. Davis, RAND National Defense Institute.
• Capabilities-Based Planning: A Methodology for Deciphering Commander’s Intent, Peter Kossakowski, Evidence Based Research, Inc. 1595 Spring Hill Road, Suite 250 Vienna, VA 22182.
• "Capability engineering for strategic decision-making," M. Lizotte, C. Nécaille, C. Lalancette, Systems Engineering: Shining the Light on the Tough Issues, INCOSE 2016 - 16th Annual International Symposium Proceedings
• Capability Strategy: Your Primary Strategic Tool," by William T. Scheurer Carlson Executive Development Center, Carlson School of Management, University of Minnesota.
• "Capitalizing on Capabilities," by Norm Smallwood and Dave Ulrich, Harvard Business Review, June 2004.
• Competing on Capabilities: The New Rules for Strategy, George Stalk, Philip Evans, and Lawrence E. Schulman, Harvard Business Review, March-April, 1992.
• "A Methodology for Capability-Based Technology Evaluation for Systems-of-Systems," Patrick Thomas Biltgen, Ph.D. Thesis, School of Aerospace Engineering, Georgia Institute of Technology, May 2007
• "Portfolio-Analysis Methods for Assessing Capability Options," Paul K. Davis, Russell D. Shaver, Justin Beck, RAND National Defense Institute, 2008.
• "Naval Analytical Capabilities Improving Capabilities-Based Planning," The National Academies Press.
• "An Options-Based Approach to Capabilities Based Planning Executive Summary," Thomas Housel, Naval Postgraduate School.
• "Advanced Capabilities Builds for Aegis: Stochastic Portfolio Optimization," Dr. Johnathan Mun, Dr. Thomas Thomas Housel, and Capt Mark Wessman, Naval Postgraduate Schoo,,
• "The Influence of the Concept of Capability-based Management on the Development of the Systems Engineering Discipline." Elena Irina Neaga, Michael Henshaw and Yi Yue, 7th Annual Conference on Systems Engineering Research 2009.
• "Research Note: How Valuable Are Organizational Capabilities?" Collis, D. J., Strategic Management Journal, 15 (Winter), 143-152, 1994.
• Leading at the Edge of Chaos: How to Create the Nimble Organization, Connor, D. R., John Wiley & Sons (New York), 1998.
• “Strategy under uncertainty”, Courtney, H., Harvard Business Review, 75(6), 67-81. 1997.
• "Exploratory Analysis for Strategy Problems with Massive Uncertainty," Davis, P. K. & Hillestad, R., RAND, Santa Monica, CA, 2001.
• "Dynamic capabilities: what are they?", Eisenhardt, K. & Martin, J., 2000, Strategic Management Journal, 21, 1105-1121.
• “Scenario planning”, Glen Hiemstra, Futurist.com
• "Scenario Planning," Steven Puma, Presidio School of Management
• “Theories of the firm: contractual and competence perspectives”, Foss, N. J., 1993, Journal of Evolutionary Economics, 3, pp. 127-44.
• Systems Thinking, Gharajedaghi, J., 1999, Butterworth-Heinemann (Boston).
• "Capabilities-Based Assessment (CBA), User’s Guide Version 3 Force Structure, Resources, and Assessments Directorate (JCS J-8), March 2009.
• "Adaptive Enterprise," Haeckel, S., 1999, Harvard Business School Press (Boston, MA).
• The Complexity Advantage: How the Science of Complexity Can Help Your Business Achieve Peak Performance, Kelley, S. & Allison, M. A., 1999, McGraw-Hill (New York).
• “Conditioned emergence: a dissipative structures approach to transformation”, MacIntosh, R. & MacLean D., 1999, Strategic Management Journal, 20 (4), 297-316.
• An Evolutionary Theory of Economic Change, Nelson, R. R. & Winter, S. G., 1982, Belknap Press (Cambridge, MA).
• Surfing the edge of chaos, Pascale, R. T., 
• “Modularity, flexibility, and knowledge management in product and organization design”, Sanchez, R. & Mahoney, J. T., 1996, Strategic Management Journal, 17, Winter, 63-76.
• "Strategic Thinking and the New Science: Planning in the Midst of Chaos, Complexity, and Changes," Sanders, T. I., 1998, The Free Press (New York).
• “Product design partitions with complementary components”, Schaefer, S., 1999, Journal of
  Economic Behavior & Organization, 38(3), 311-330.
• “Toward a general modular systems theory and its application to interfirm product modularity”, Schilling, M., 2000, Academy of Management Review, 25(2), 312-334.
• “Disciplined imagination: from scenarios to strategic options”, Schoemaker, P., 1997, International Studies of Management and Organization, 27(2), 43-70.
• “The architecture of complexity”, Simon H. A., 1962,  Proceedings of the American Philosophical Society, 106, 467-482, reprinted in Simon H. A., 1981, The Sciences of the Artificial (2nd ed.), MIT Press (Cambridge, MA).
• "Competing on capabilities: the new rules of corporate strategy", George Stalk, Philip Evans, and  Lawerance Schulman, 1992,  Harvard Business Review, 70 (2), March-April, 57-70.
• “Firm boundaries, technological innovation and strategic management”, David J. Teece, 1986, in
  The Economics of Strategic Planning, edited by L. G. Thomas. Lexington Books (Lexington, MA), 187-199.
• "Dynamic capabilities and strategic management", David J. Teece, Gary Pisano, and Amy Shuen, 1997, Strategic Management Journal, 18, August, 509-533.
• "Understanding dynamic capabilities", Sidney Winter, The Warton School, 2003.
• "Capability-Based Planning for Australia’s National Security," Leung Chim, Rick Nunes-Vaz and Robert Prandolini, Security Challenges, Vol. 6, No. 3 (Spring 2010), pp. 79-96 (18 pages)