Business Capability Model

Unlocking Strategic Agility with the AlignedX Model Business Capability Model

In today’s rapidly evolving digital economy, organizations must possess a clear understanding of what they do—not just in terms of processes or systems, but in terms of core capabilities. The Business Capability Model (BCM) in the AlignedX Model provides a structured, outcome-aligned lens to define, assess, and transform these capabilities for sustained business value.

What Is the Business Capability Model?

The Business Capability Model is the foundational layer of the AlignedX Model. It articulates what an organization must be able to do to achieve its strategic objectives. Unlike process maps or organizational charts, the BCM is stable over time and independent of how activities are performed, who performs them, or which systems support them.

Within the AlignedX Model framework, capabilities are:

• Stable anchors for business transformation

• Modular units of business value creation

• Aligned with strategy, customer experience, and technology enablement

This model enables organizations to shift from reactive, siloed transformations to holistic, value-driven execution.

Why Capability Modeling Matters

Most transformation efforts fail not due to a lack of ambition, but because of misalignment. Business strategies are often not clearly connected to executional levers. The Business Capability Model closes this gap by serving as the common language between strategy, operations, technology, and change.

With a well-defined capability map, organizations can:

• Identify gaps and redundancies

• Prioritize investments based on capability maturity and business value

• Align initiatives with strategic intent and customer outcomes

• Enable agility by designing modular business architecture

Structure of the AlignedX Business Capability Model

The AlignedX BCM is:

• Organized by Value Stream – Each capability is linked to a stage in the enterprise Value Stream Model, enabling end-to-end alignment.

• Tiered and Granular – Capabilities are structured hierarchically (e.g., Level 1-3), allowing both strategic overview and operational detail.

• Customer-Connected – Aligned with the Customer Capability Model to ensure outside-in thinking and experience-driven transformation.

• Assessable – Equipped with capability maturity indicators and heatmaps to guide capability uplift.

Applying the Capability Model

1. Baseline the EnterpriseStart with a capability inventory mapped to your core value streams. Identify ownership, KPIs, systems, and key pain points.

2. Assess MaturityUse the AlignedX Capability Assessment Heatmap to evaluate maturity, importance, and urgency for improvement.

3. Align with Strategy and OutcomesMap capabilities to strategic goals from the North Star Goal and Outcome Model and operationalize them through OKRs and Initiatives.

4. Drive TransformationPrioritize capability improvement projects. Integrate with execution layers using the AlignedX Execution Model and Technology Model.

Sample Use Case: Airline Transformation

In an airline transformation scenario, capabilities such as "Customer Booking Management", "Flight Scheduling Optimization", and "In-Flight Experience Management" are assessed for their contribution to the customer journey and business outcomes. Each is rated for maturity, investment need, and alignment to transformation goals like “Increase NPS by 20%” or “Reduce operational delays by 15%.”

Conclusion

The AlignedX Business Capability Model transforms how organizations define, align, and evolve their core capabilities. By serving as the connective tissue between strategy, execution, customer experience, and technology, the BCM enables organizations to orchestrate transformation with clarity and confidence.