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Business Capability Map and Heatmap Template

Capability modelling rules, L1 to L3 hierarchy, definitions catalogue, maturity and importance scoring, heatmap, value stream and app mapping

アーキテクチャ・システム設計フルTOGAF Series Guide: Business Capabilities, Version 2 (G211)businesscapabilitymap

使い方: Use it when leadership needs a stable view of what the business does to steer investment or rationalize applications. Fill the modelling principles and the L1 and L2 hierarchy first, with business owners, before any scoring. The main pitfall is naming departments, processes or systems as capabilities, which makes the map unstable.

プレビュー

Business Capability Map: [Organisation or business unit]

Business capability map and heatmap for one organisation or business unit: modelling principles, an L1 to L3 capability hierarchy, a definitions catalogue with stable IDs, maturity and strategic importance scoring, a heatmap, mappings to value streams and applications, and the investment recommendations that follow. The structure is aligned with the concepts of the TOGAF Series Guide: Business Capabilities, Version 2 (G211, April 2022), part of the TOGAF Standard, 10th Edition. Replace every [bracketed] value and every row marked Example.

Document control

FieldValue
Document ID[BCM-ORG-001]
Organisation or scope[Organisation, business unit or domain]
Planning cycle supported[FY YYYY strategy / portfolio review YYYY-QN]
Version[0.1]
Status[Draft / In review / Approved / Superseded]
Owner[@business-architect]
Business sponsor[@executive-sponsor]
Approvers / reviewers[@cio, @coo, @strategy-lead]
Last updatedYYYY-MM-DD
Next scheduled refreshYYYY-MM-DD
Classification[Internal / Confidential]

Approvals

RoleNameDecisionDate
Business sponsor[@name][Approved / Approved with comments / Rejected]YYYY-MM-DD
Chief architect[@name][Decision]YYYY-MM-DD
Head of strategy or portfolio office[@name][Decision]YYYY-MM-DD
Capability owners (L1)[@names][Decision]YYYY-MM-DD

Revision history

VersionDateAuthorChange summary
0.1YYYY-MM-DD[@name]Initial L1 and L2 model from leadership workshops
0.2YYYY-MM-DD[@name]Example: Added L3 for Claims Management; first maturity scoring
1.0YYYY-MM-DD[@name]Example: Baseline approved for the FY portfolio review

Contents

1. Introduction

1.1 Purpose

This capability map gives [Organisation] a single, stable description of what the business must be able to do to deliver its strategy, independent of the current organisation chart, processes and systems. It is used to [prioritise the FY YYYY change portfolio, locate duplicated applications, scope the target architecture, assign capability ownership].

1.2 Scope

  • In scope: [all customer-facing and supporting capabilities of the retail insurance business unit].
  • Out of scope: [group-level treasury, which has its own map].
  • Depth: L1 and L2 for the whole scope; L3 only where an investment decision needs it (currently [Claims Management, Customer Management]).
  • Time frame: current state as of YYYY-MM-DD, target maturity for YYYY-MM-DD.

1.3 Questions this map answers

  1. Which capabilities differentiate us and which only need to be reliable at reasonable cost?
  2. Where is the gap between current and target maturity largest for the capabilities that matter most?
  3. Which capabilities are supported by several overlapping applications, and which by none?
  4. Where should the next planning cycle invest, sustain or reduce spend?

1.4 Related documents

IDDocumentRelationship
REF-01[Business strategy YYYY to YYYY]Source of strategic importance ratings
REF-02Architecture Principles Catalogue (architecture/architecture-principles)Constraints on target state
REF-03Application Portfolio Rationalization (architecture/application-portfolio-rationalization)Uses the capability IDs in section 8
REF-04OKRs (business/okr)Key results that capability investments support
REF-05TOGAF Architecture Vision (architecture/togaf-architecture-vision)Consumes the heatmap for scope and priorities

2. Capability modelling principles

The following rules apply to every capability in this map. Reviewers reject a capability that breaks a rule unless a recorded exception exists.

IDPrincipleTest a reviewer applies
CMP-01Outcome-named: name capabilities as nouns describing an ability, for example "Claims Assessment", not "Assess claims in system X"Does the name survive a reorganisation and a system replacement?
CMP-02Stable: a capability changes only when the business model changes, not when processes, teams or tools changeWould this capability have existed five years ago, and will it in five years?
CMP-03Non-overlapping: each capability has one parent and no two capabilities at the same level describe the same abilityCan any piece of work be placed in exactly one L2?
CMP-04Complete at each level: the children of a capability together cover all of the parentIs anything the parent does missing from its children?
CMP-05Organisation-neutral: no department names, roles or locations in capability namesCould the same capability be performed by a partner?
CMP-06Technology-neutral: no application, vendor or channel namesWould the name still fit if the work were manual?
CMP-07Business vocabulary: use terms business leaders recognise; record synonyms in the catalogueDid a business owner, not only an architect, approve the name?
CMP-08Bounded depth: three levels by default; a fourth only where a decision requires itIs the extra level tied to a named decision?

2.1 Capability categories

Group L1 capabilities into three bands so that leaders read the map at a glance:

  • Strategic (direction-setting): capabilities that set goals, govern and plan, such as Strategy Management and Risk Management.
  • Core (customer-facing value delivery): capabilities that create and deliver the value customers pay for, such as Product Management, Policy Administration and Claims Management.
  • Supporting (enabling): capabilities every organisation needs but which rarely differentiate, such as Finance, People and Facilities.

2.2 Capability versus process versus value stream

A capability is an ability; a process is the sequence of activities that exercises it; a value stream is the end-to-end set of stages that deliver a result to a stakeholder. One capability is used by many processes and many value stream stages. Keep processes in the process catalogue and value streams in section 7; link them to capabilities by ID instead of copying them into the map.

3. Capability hierarchy

3.1 L1 and L2 overview

The mindmap shows the three bands from section 2.1, the L1 capabilities and their L2 children. Regenerate it from the catalogue in section 4 whenever the structure changes.

3.2 L3 decomposition where required

L3 is maintained only for capabilities selected for investment analysis. The table is the source of truth; the diagram above is a view of it.

L1L2L3 IDL3 capability
CAP-06 Claims ManagementCAP-06.01 Claims IntakeCAP-06.01.01 (Example)First Notice of Loss Capture
CAP-06 Claims ManagementCAP-06.01 Claims IntakeCAP-06.01.02 (Example)Claim Triage
CAP-06 Claims ManagementCAP-06.02 Claims AssessmentCAP-06.02.01 (Example)Coverage Verification
CAP-06 Claims ManagementCAP-06.02 Claims AssessmentCAP-06.02.02 (Example)Fraud Detection
CAP-06 Claims ManagementCAP-06.02 Claims AssessmentCAP-06.02.03 (Example)Loss Estimation
CAP-06 Claims ManagementCAP-06.03 Claims SettlementCAP-06.03.01 (Example)Payment Authorisation
CAP-06 Claims ManagementCAP-06.03 Claims SettlementCAP-06.03.02 (Example)Recovery and Subrogation
[CAP-nn][CAP-nn.nn][CAP-nn.nn.nn][L3 capability]

3.3 ID convention

  • L1: CAP-NN, L2: CAP-NN.NN, L3: CAP-NN.NN.NN.
  • IDs are never reused. A retired capability keeps its ID with status "Retired" so that historical heatmaps still resolve.
  • When a capability is split, the original ID is retired and the parts receive new IDs; record the lineage in the catalogue.

4. Capability definitions catalogue

Each definition states the ability, the business object it acts on and the outcome it produces. Owners are accountable business leaders, not system owners.

IDCapabilityDefinitionKey business objectsOwnerBoundary notesStatus
CAP-03.01 (Example)Customer OnboardingAbility to establish a verified new customer relationship ready for sale or serviceCustomer, identity evidence[@head-of-distribution]Excludes credit checks, which sit in CAP-05.01Active
CAP-04.02 (Example)PricingAbility to set and adjust the price of products based on risk, cost and marketRate table, price[@chief-actuary]Excludes discounts at point of sale (CAP-03.03)Active
CAP-06.01 (Example)Claims IntakeAbility to receive, register and route a claim from any channelClaim, loss event[@head-of-claims]Ends when a claim is assigned for assessmentActive
CAP-06.02 (Example)Claims AssessmentAbility to decide whether and how much a claim is payableClaim, policy, evidence[@head-of-claims]Includes fraud detection at L3Active
CAP-06.03 (Example)Claims SettlementAbility to pay, close and recover claims accuratelyPayment, recovery[@head-of-claims]Payment execution sits in CAP-07Active
[CAP-nn.nn][Name][Definition][Objects][@owner][What it excludes and where that lives][Active / Proposed / Retired]

4.1 Synonyms and lineage

IDSynonyms used in the businessPrevious IDs or namesReason for change
CAP-06.01 (Example)First notice of loss, claim lodgementCAP-06.04 "Claims Registration" (retired)Merged into intake to remove overlap
[CAP-nn.nn][Synonyms][Lineage][Reason]

5. Assessment method

5.1 Maturity scale

Maturity describes how well the organisation performs the capability today, across people, process, information and resources (tools and assets). Score the weakest of the four dimensions, not the average, when they differ by two or more levels.

LevelLabelDescription
1InitialPerformed ad hoc, depends on individuals, outcomes unpredictable
2RepeatablePerformed consistently in some areas, little measurement
3DefinedDocumented and consistent across the organisation, basic measures
4ManagedMeasured against targets, variations understood and controlled
5OptimisedContinuously improved, benchmarked, adapts quickly to change

5.2 Strategic importance scale

Strategic importance describes how much the capability contributes to the strategy in REF-01. Derive it from the strategy, not from current spend.

ScoreLabelMeaning
3DifferentiatingSource of competitive advantage named in the strategy
2CoreMust be performed well for the business model to work, but not a differentiator
1CommodityNeeded at acceptable cost and risk; standard market solutions fit

5.3 Additional assessment dimensions

DimensionScaleSource of evidence
Target maturity1 to 5, set by the capability owner for the target dateStrategy, regulatory demands
Maturity gapTarget minus currentDerived
Business riskLow / Medium / HighRisk register, audit findings
Technology supportAdequate / Partial / Poor / NoneSection 8 and application health scores
Annual run costCurrency amountFinance cost allocation

5.4 Priority rule

Investment priority is the strategic importance multiplied by the maturity gap. With importance 1 to 3 and a gap of 0 to 4, the result ranges from 0 to 12. Treat 6 and above as "Invest", 3 to 5 as "Improve selectively", and below 3 as "Sustain or reduce". Adjust these bands only by a recorded decision of the governance forum in section 10.

5.5 Assessment evidence

Record for every score who scored it, when, and on what evidence (metrics, audit reports, interviews). A score without evidence is marked "Provisional" and is not used for funding decisions.

6. Capability heatmap

6.1 Heatmap table

Legend for the "Heat" column: Red priority 6 or more, Amber 3 to 5, Green below 3. Add a cross mark in the "Risk" column for any capability rated High business risk regardless of colour.

IDCapabilityImportanceCurrentTargetGapPriorityHeatRiskNotes
CAP-03.01 (Example)Customer Onboarding32426RedManual identity checks, high drop-off in digital channel
CAP-03.02 (Example)Customer Information Management22424AmberXFour customer masters, data quality issues in audit
CAP-04.02 (Example)Pricing33526RedRate changes take eight weeks; strategy needs weekly
CAP-05.01 (Example)Underwriting23300GreenMeets current needs
CAP-06.01 (Example)Claims Intake32426RedPhone-only intake out of hours
CAP-06.02 (Example)Claims Assessment33413AmberXFraud detection relies on manual rules
CAP-06.03 (Example)Claims Settlement23300GreenStable
CAP-07 (Example)Finance Management13300GreenCandidate for cost reduction
[CAP-nn.nn][Name][1 to 3][1 to 5][1 to 5][Gap][Importance x Gap][Red / Amber / Green][X or blank][Evidence summary]

6.2 Heatmap view

The diagram colours each L2 capability by its heat value from table 6.1; keep the two consistent by updating the table first.

6.3 Reading the heatmap

  • Red differentiating capabilities are the first candidates for change investment.
  • Green commodity capabilities with high run cost are candidates for standardisation, outsourcing or cost reduction.
  • Amber capabilities marked with a risk cross need a risk owner decision even if they are not funded for improvement.

7. Capability to value stream mapping

7.1 Value streams in scope

IDValue streamTriggering stakeholderValue delivered
VS-01 (Example)Acquire Insurance CoverageProspective customerCustomer is insured
VS-02 (Example)Resolve ClaimPolicyholderClaim is settled fairly and quickly
[VS-nn][Value stream][Stakeholder][Value]

7.2 Stage to capability cross-map

Value stream stageEnabling capabilitiesWeakest capability (heat)
VS-02.1 Report Loss (Example)CAP-06.01, CAP-03.03CAP-06.01 (Red)
VS-02.2 Assess Claim (Example)CAP-06.02, CAP-05.02CAP-06.02 (Amber)
VS-02.3 Settle Claim (Example)CAP-06.03, CAP-07None red
VS-01.1 Get Quote (Example)CAP-04.02, CAP-03.01CAP-04.02 (Red)
[VS-nn.n Stage][CAP IDs][CAP ID (heat)]

A value stream stage is only as strong as its weakest enabling capability. Use the third column to explain customer-visible problems in capability terms.

8. Capability to application mapping

CapabilitySupporting applicationsCoverageDuplicationTechnology support
CAP-03.02 (Example)APP-012 CRM, APP-031 Policy admin, APP-044 Broker portal, APP-050 Data warehouseFullHigh (four customer masters)Partial
CAP-04.02 (Example)APP-020 Rating engine, spreadsheetsPartialLowPoor
CAP-06.01 (Example)APP-061 Claims system (agent screens only)PartialNonePartial
CAP-06.02 (Example)APP-061 Claims system, APP-070 Rules engineFullLowPartial
CAP-07 (Example)APP-090 ERPFullNoneAdequate
[CAP-nn.nn][APP IDs and names][Full / Partial / None][None / Low / High][Adequate / Partial / Poor / None]

8.1 Findings from the mapping

IDFindingCapabilitiesFollow-up
FND-01 (Example)Customer data mastered in four applicationsCAP-03.02Rationalization review of APP-012, APP-044
FND-02 (Example)Pricing changes depend on spreadsheets outside change controlCAP-04.02Technology selection for rating capability
[FND-nn][Finding][CAP IDs][Follow-up]

9. Investment recommendations

IDCapabilityRecommendationTypeMaturity changeIndicative costSuccess measureOwner
INV-01 (Example)CAP-06.01 Claims IntakeAdd digital and out-of-hours intake with automated triageInvest2 to 4[USD range]Share of claims registered digitally[@head-of-claims]
INV-02 (Example)CAP-04.02 PricingReplace spreadsheet rating with a governed rating platformInvest3 to 5[USD range]Lead time for a rate change[@chief-actuary]
INV-03 (Example)CAP-03.02 Customer InformationConsolidate customer masters to oneImprove2 to 4[USD range]Duplicate customer rate[@head-of-data]
INV-04 (Example)CAP-07 Finance ManagementStandardise on ERP processes; stop customisationReduce3 to 3[Saving]Run cost per transaction[@cfo]
[INV-nn][CAP ID][Recommendation][Invest / Improve / Sustain / Reduce][From to][Cost][Measure][@owner]

9.1 Traceability

Strategic objective (REF-01)CapabilityRecommendationKey result (OKR)
Example: Settle simple claims within 48 hoursCAP-06.01, CAP-06.02INV-01[KR ID]
Example: Launch usage-based productsCAP-04.02INV-02[KR ID]
[Objective][CAP IDs][INV IDs][KR ID]

10. Governance and refresh

10.1 Roles

RoleResponsibility
Map ownerMaintains the model, chairs reviews, keeps IDs and lineage clean
Capability ownerAccountable for the definition, the scores and the target maturity of an L1 or L2
Architecture boardApproves structural changes and checks that change initiatives cite capability IDs
Portfolio officeUses the heatmap and recommendations in funding rounds

10.2 Change rules

  1. Structural changes (add, split, merge, retire) need a change request with rationale and approval from the architecture board.
  2. Score changes need evidence and the capability owner's approval.
  3. Every funded initiative names the capability IDs it changes and the expected maturity change.

10.3 Refresh cadence

ActivityFrequencyNext date
Structural review of L1 and L2Annually, before strategy planningYYYY-MM-DD
Maturity and importance rescoringAnnually, plus after major initiativesYYYY-MM-DD
Application mapping updateQuarterly, from the application inventoryYYYY-MM-DD
Heatmap publicationWith each portfolio reviewYYYY-MM-DD

11. Glossary and references

11.1 Glossary

TermMeaning in this document
Business capabilitySomething the organisation is able to do to produce an outcome, described without reference to who does it, how or with which system
Capability mapA structured, hierarchical model of all capabilities in scope
HeatmapA capability map coloured by an assessment dimension
MaturityHow well a capability is performed today across people, process, information and resources
Strategic importanceHow much a capability contributes to the strategy
Value streamEnd-to-end stages that deliver a result to a stakeholder
Capability ownerBusiness leader accountable for a capability

11.2 References

  • The Open Group, TOGAF Series Guide: Business Capabilities, Version 2 (G211, April 2022), part of the TOGAF Standard, 10th Edition: concepts of capability, capability map and heat mapping.
  • Business Architecture Guild, A Guide to the Business Architecture Body of Knowledge (BIZBOK Guide): concepts of capability, value stream and their cross-mapping; check the current version at the Guild's site.
  • Related templates: Application Portfolio Rationalization (architecture/application-portfolio-rationalization), Architecture Principles Catalogue (architecture/architecture-principles), Technology Selection (architecture/technology-selection), Legacy Modernization Assessment (architecture/modernization-assessment), Architecture Roadmap and Transition Architectures (architecture/architecture-roadmap-transition).

Standard and licence note

Structure aligned with the concepts of the TOGAF Series Guide: Business Capabilities, Version 2 (The Open Group, G211, April 2022), part of the TOGAF Standard, 10th Edition, and with business architecture concepts described in the BIZBOK Guide of the Business Architecture Guild. Both works are copyrighted; this template reproduces no text, definitions, tables or reference models from them, and all wording, scales and examples are original. Check the current official versions for their guidance. TOGAF is a registered trademark of The Open Group; BIZBOK is a registered trademark of the Business Architecture Guild. Template licence: MIT.

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