Leading organizations require a unified and validated view of business capabilities that aligns initiatives,

investments, and strategy in order to compete in their industry.

An industry reference architecture helps accelerate your
strategy design process and enhances IT’s ability to align
people, process, and technology with key business
priorities.

This research is designed for:

 CIOs, heads of EA, or chief architects who need to improve their
organization’s understanding of business capabilities and how IT can
support them.
 Organizations that want to sharpen their focus by using architecture to
better inform their IT governance, stakeholder management, and IT
strategy capabilities.
This research will help you:
 Leverage a validated set of models and maps for your industry.
 Learn how to incorporate your reference architecture across your core
IT areas.
 Learn how to analyze how well business capabilities are supported by
people, process, and technology.
 Accelerate the development of your enterprise architecture, IT strategy,
application portfolio, and data architecture capabilities.
A high-level analysis of how A visual representation of the The specific set of activities
the industry creates value for organization’s key capabilities. an industry player undertakes
the consumer as an overall This model forms the basis of to create and capture value
end-to-end process. for and from the end
strategic planning discussions.
consumer.

A set of standard strategic A visualization of the alignment Based on people, process, and
objectives that most between the organization’s technology, a heat-mapping
industry players will feature strategic direction and its key effort that analyzes the strength
in their corporate plans. capabilities. of each key capability.
K-12 education in the United States and Canada comprises
primary or elementary school and secondary school. K-12
education is compulsory for all children in the United States
and Canada. In the US, 87% of school-age children attend Manage School Operations
public schools (10% attend private schools and around 3% are Deliver Curriculum
homeschooled), and in Canada, around 94% of school-age Develop Learning Experiences
Provide Learning Resources
children attend public school. In the United States, state
governments set education standards. Similarly, in Canada,
education is a provincial responsibility. In both countries,
funding for education comes from a combination of local, state
or provincial, and federal funding.

Equipping student with 21st century skills – seen as required

for success in the 21st century society and workplace – is
becoming a major focus for the modern curriculum. These
skills, which are loosely grouped into learning and innovation,
digital literacy, and career and life skills, differ from traditional
academic skills and require a different curriculum.
Personalized learning through technology, including mobile
learning and bring-your-own-device (BYOD) policies, is another
important trend in the industry. The education technology (Ed-
tech) industry is a major site for innovation, with the Ed-tech
industry valued at over 1 billion dollars.

Source: The Atlantic Figure above: Value Chain for the Education industry
STEP 1:
DEFINE THE
ORGANIZATION’S
VALUE STREAMS
Review the value streams and come
to a consensus as to how your
organization creates and captures
value.

DEVELOP A BUSINESS
CAPABILITY MAP
Involve your key business stakeholders
to validate a set of business
capabilities in order to unify the
organization’s perspective.

Context Slides:

Visual Slides:

Instruction Slides:
Step 1-A: Context

Value streams connect business goals to the organization’s value realization activities. They enable an organization to create and capture value in the market
place by engaging in a set of interconnected activities. Those activities are dependent on the specific industry segment an organization operates within. Value
streams can extend beyond the organization into the supporting ecosystem, whereas business processes are contained within and the organization has
complete control over them.

There are two types of value streams: core value streams and support value streams. Core value streams are mostly externally facing: they deliver value to
either an external or internal customer and they tie to the customer perspective of the strategy map. Support value streams are internally facing and provide the
foundational support for an organization to operate.

An effective method for ensuring all value streams have been considered is to understand that there can be different end-value receivers. Info-Tech
recommends identifying and organizing the value streams with customers and partners as end-value receivers.
Industry Value Chain

Customers

Partners

Capabilities
Step 1-A: Visual

VALUE STREAM DESCRIPTIONS FOR K -12 EDUCATION

• Activities outside of traditional curriculum learning that provide

• School management comprises the daily important opportunities to learn, grown, and become leaders.
operations of an individual school, as well as
• Students often direct these activities under faculty sponsorship.
long-term strategic planning for that school.
• These activities are usually voluntary, social, and sometimes
• This comprises staff coordination,
philanthropic.
development, and assessment, as well as
community usage, school-wide initiatives • For students considering higher education, extracurricular activities
and planning, and property management. are a critical component of university applications.

Develop Provide
Manage School Deliver
Learning Learning
Operations Curriculum
Experiences Resources

• Educational instruction follows a • Schools provide support and learning resources for
set curriculum but is tailored to students through many different channels.
specific learning needs.
• Students with mental health problems or disabilities
• Alternative education paths require additional support to succeed.
prepare students with different
• Students who are identified as in crisis or at risk also
aptitudes by providing different
receive specialized support.
skillsets.
• Transition planning – students entering secondary
school or preparing for higher education – is also an
important support service.
Step 1-A: Instructions

DEFINE THE ORGANIZATION’S VALUE STREAMS

01 IDENTIFY AND ASSEMBLE KEY STAKEHOLDERS

• Who are the decision makers and key • Don’t focus on the organizational structure and
It is important to make sure the right stakeholders influencers? hierarchy. Often stakeholder groups don’t fit
participate in this exercise. The exercise of • Who will impact the business architecture the traditional structure.
identifying capabilities for an organization is very work? Who has a vested interest in the • Don’t ignore subject-matter experts on either
success or failure of the practice? the business or IT side. You will need to
introspective and requires deep analysis.
• Who has the skills and competencies consider both.
necessary to help you be successful?

02 DETERMINE HOW THE ORGANIZATION CREATES VALUE

• Who are your customers? • Don’t boil the ocean. Focus on your industry
Use the organization’s industry segment to start a • What tasks are your customers looking to segment and how you deliver value to your
discussion on how value is created for customers. accomplish? partners and customers specifically.
Working back from the moment value is realized • How does your organization’s set of products
and services help them accomplish that?
by the customer, consider the sequential steps
• What are the benefits the organization delivers
required to deliver value in your industry segment. to them?

03 DEFINE AND VALIDATE THE ORGANIZATION’S VALUE STREAMS

• How does the organization deliver those • Don’t start with a blank page. Use Info-Tech’s
Write a short description of the value stream that benefits? value stream definitions on the previous slide
includes a statement about the value provided and • How does the customer receive the benefits? as a starting point and customize from there.
a clear start and end for the value stream. Validate • What is the scope of your value stream? What
will trigger the stream to start and what will
the accuracy of the descriptions with your key
the final value be?
stakeholders.
Step 1-B: Context

Business architecture consists of a set of techniques to create multiple views of an organization; the primary view is known as a business capability map.
A business capability defines what a business does to enable value creation, rather than how. Business capabilities are business terms defined using
descriptive nouns such as “Marketing” or “Research and Development.” They represent stable business functions, are unique and independent of each other,
and typically will have a defined business outcome.

A business capability map provides details that help the business architecture practitioner direct attention to a specific area of the business for further
assessment. A business capability mapping process should begin at the highest level view of an organization, the level 0, which presents the entire business on
a page. Please see the next slide for a business capability map designed for the K-12 education industry.

An effective method of organizing business capabilities is to split them into logical groupings or categories. At the highest level, capabilities are either “core”
(customer-facing functions) or “enabling” (supporting functions). As a best practice, Info-Tech recommends dividing business capabilities into the following
categories:

These capabilities are staff and student facing and may be performed

CORE
differently at individual schools. These capabilities support specific value
streams. Each value stream provides value to a different part of the student
experience.

These capabilities span every value stream. They comprise relationship building
outside of the schools and school board.

Support services comprise activity at the board level. These capabilities demonstrate how you
are different from the competition and can support multiple value streams simultaneously.
 Step 1-B: Visual
BUSINESS CAPABILITY MAP FOR K-12 EDUCATION

Manage Develop Provide

Deliver
School Learning Learning
Curriculum
Operations Experiences Resources

School Teaching & Learning Education Athletics Support Services

Management Development Management
Continuing & Apprenticeship Cooperative Hearing & Vision Autism Resource
Community Strategic Instructional
Adult Education Programs Education Student Services Team
Liaison & Usage Planning Design
Government Mgmt.
Core Curriculum Resource Early Years Child and Youth Transition
Green Staff Student
Learning Services

Delivery Teacher Programs Counseling Planning

Student
Instructional &

Initiatives Development Assessment

Club Mgmt.
Summer School Dual Credit Gifted Psychology Social Work
Planning & Staff 21st Century Programs
& Programs Program Services Services
Property Mgmt. Coordination Learner Strategy Parent Volunteer
Coordination
International ESL Child Care Speech & Mental Health &
Student Teacher Data & Education Language Addiction
Admissions Assessment Analytics Staff Extracurricular Pathology Strategy
Coordination
IEP (Individual Library
Data & &
Resource Education Resource Early Assistive
Analytics
Material Selection Plans) Student Volunteer
Teacher Intervention Technology
Coordination Program Services
CORE

Special Needs Crisis

Resource Management
Team Team

Community Committee Parent Community Council Post-Secondary Student

Engagement Engagement Engagement Management Transition Support Team
Partnerships Planning Process

Logistics Governance & People Business Risk

Board Administration Management Services Management
Boundary Facility Design &
Strategic Policy Benefits Employee Accounting Financial Security &
Review Construction
Planning Setting Administration Relations Services Services Surveillance
Communications
Transportation Transportation Systems Contract Labor Relations
Board of Safe & Caring Supply Chain Legal & Emergency
Management Design Trustees Liaison Schools Negotiations Management Compliance Planning

Professional Leadership
Services

21st Century Ministry Corporate Records Procedures &

Support

Technology Management Education Reporting Development Development Communications Management Protocols

Web & Client Network
Budget Research & New Staff Staff Student Health &
Applications Infrastructure
Prioritization Accountability Orientation Recruitment Information Safety
Website Communications
Systems Equity, Broader Public Staff Staff
Administration
Accessibility, & Sector Supervision Coordination
Educational & Diversity Guidelines
Assistive Tech
Step 1-B: Instructions

DEVELOP A BUSINESS CAPABILITY MAP

01 DETERMINE WHICH BUSINESS CAPABILITIES SUPPORT VALUE STREAMS

• What is the objective of your value stream? • Don’t do this alone. Make sure the right
Analyze the value streams to identify and This can highlight which capabilities support stakeholders participate. The exercise of
describe the organization’s capabilities that which value streams. identifying capabilities for an organization is
support them. This stage requires a good • What are the activities that make up the very introspective and requires deep analysis.
business? It is challenging to develop a common
understanding of the business and will be a
• Segmenting your value stream into individual language that everyone will understand and be
critical foundation for the business capability stages will give you a better understanding of able to apply. Don’t waste your efforts building
map. the steps involved in creating value. an inaccurate depiction of the business.

02 ACCELERATE THE PROCESS WITH AN INDUSTRY REFERENCE ARCHITECTURE

• What are the activities that make up your • Don’t repeat capabilities. Capabilities are
The business capability map on the previous business? typically mutually exclusive activities.
slide can be used as an accelerator. Assemble • Can these activities be tied to outcomes? If • Don’t include temporary initiatives. Capabilities
the relevant stakeholders – business unit leads not, they might not apply to your organization. should be stable over time. The people,
• Are there any capabilities on the map that processes, and technologies that support
and product/service owners – and modify the
don’t fit the organization? Deselect them if yes. capabilities will change continuously.
business capability map to suit your
organization’s context.

03 VALIDATE THE BUSINESS CAPABILITY MAP

• Are there any sensitive areas of the • Don’t delay validating the maps with top-level
Validate the capability map with the executive organization that may take this effort the executives. Without their support, your
team (those who were not included) and other wrong way? Engage them to get their input as architecture practice won’t be taken seriously.
key stakeholders. Use validation of your early as possible to ensure they don’t feel left • Don’t leave anyone out on the assumption that
out or alienated. they won’t be interested. This process will
business capability map as an excuse to start a
foster alignment between organizational silos.
conversation regarding the organization’s
overall strategy.
STEP 2:
DEFINE THE
ORGANIZATION’S
KEY CAPABILITIES
Determine which capabilities
should be prioritized based on their
strategic value to your
organization.

DEVELOP A
STRATEGY MAP
Insert your organization’s corporate
strategic objectives (or adopt the ones
provided) and map them to your value
streams and capabilities to
communicate how objectives are
realized.

Context Slides:

Visual Slides:

Instruction Slides:
Step 2-A: Context

A discussion about the key or most critical capabilities is an excellent opportunity for IT leaders to review, refresh, and even reset expectations from the business as
to what value IT should be providing to the organization. There is often misalignment as to whether, or to what extent, IT should be making strategic investments to
help the business enhance its capabilities through technology. Some IT leaders believe they should be transforming the organization while their CEO wants them to
focus on operational efficiencies.

Depending on the mandate from the business, an IT leader may focus on developing a cost advantage for the organization by directing technology efforts to
capabilities that deliver efficiency gains. This is often the case for many IT leaders for whom the primary role for IT is to enable the business to deliver its
products/services to the end consumer at the lowest cost possible. These capabilities are known as Cost Advantage Creators.

Organizations can develop a competitive advantage over their industry counterparts by creating a differentiated experience for the organization’s customers.
Increasingly, this is facilitated and made possible through technology. IT can direct investment on capabilities that will improve their organization’s competitive
position in its market by delivering unique or enhanced experiences for the organization’s end customers. IT can focus on developing a competitive advantage by
directing efforts on capabilities that are end-customer facing. These are known as the organization’s Competitive Advantage Creators.

Business Capability Map

Focusing on these Focusing on these

capabilities will help the capabilities will deliver
organization derive differentiated end-
operational efficiencies. customer experiences.
Case Study for
K-12 Education
Hamilton-Wentworth District School Board deploys an app for anonymous reporting.

BACKGROUND TACTICS IMPACT

• Creating schools that are respectful, • It is an HWDSB policy to have a way Which key capabilities should another
caring, and safe is an essential receive anonymous reports of school board should focus on to enable a
mandate for all K-12 schools. bullying: the app scrambles a similar strategy?
Bullying, especially cyberbullying, is senders’ phone number for
anonymity. Students can share tips See next slide for a visual representation
of paramount concern.
without the fear of reprisal, of these capabilities.
• Hamilton-Wentworth District School judgment, or discovery.
Board (HWDSB) deployed an app
called TipOff. Schools use the TipOff • TipOff can receive reports by text
service for anonymous reporting of message, phone call, smartphone In the case of K-12 education, Cost
bullying and other incidents that app, or web chat – and this Advantage Creators are also often
may make schools unsafe. information is shared with the Competitive Advantage Creators. For the
school for next steps based on following map, we have highlighted “Key
• This information service helps board or school protocols. Capabilities.”
HWDSB schools collect tips and
then address them in the same way • The app does not provide
a school would address a face-to- counseling service, but if necessary,
face tip. will direct students in crisis to 911.

Source: HWDSB, “TipOff”

 Step 2-A: Visual
ILLUSTRATIVE EXAMPLE: DEFINING KEY CAPABILITIES Key Capabilities
FOR K-12 EDUCATION
Manage Develop Provide
Deliver
School Learning Learning
Curriculum
Operations Experiences Resources

School Teaching & Learning Education Athletics Support Services

Management Development Management
Continuing & Apprenticeship Cooperative Hearing & Vision Autism Resource
Community Strategic Instructional
Adult Education Programs Education Student Services Team
Liaison & Usage Planning Design
Government Mgmt.
Core Curriculum Resource Early Years Child and Youth Transition
Green Educator Student
Learning Services

Delivery Teacher Programs Counseling Planning

Student
Instructional &

Initiatives Training Assessment

Club Mgmt.
Summer School Dual Credit Gifted Psychology Social Work
Student Staff 21st Century Programs
& Programs Program Services Services
Admissions Coordination Learner Strategy Parent Volunteer
Coordination
International ESL Child Care Speech & Mental Health &
Planning & Teacher Data & Education Language Addiction
Property Development & Analytics Staff Extracurricular Pathology Strategy
Management Assessment Coordination
IEP (Individual Library
Data & &
Resource Education Resource Early Assistive
Analytics
Material Selection Plans) Student Volunteer
Teacher Intervention Technology
Coordination Program Services
CORE

Special Needs Crisis

Resource Management
Team Team

Community Committee Parent Community Council Post-Secondary Student

Engagement Engagement Engagement Management Transition Support Team
Partnerships Planning Process

Logistics Governance & People Business Risk

Board Administration Management Services Management
Boundary Facility Design &
Strategic Policy Benefits Employee Accounting Financial Security &
Review Construction
Planning Setting Administration Relations Services Services Surveillance
Communications
Transportation Transportation Systems Contract Labor Relations
Board of Safe & Caring Supply Chain Legal & Emergency
Management Design Trustees Liaison Schools Negotiations Management Compliance Planning

Professional Leadership
Services

21st Century Ministry Corporate Records Procedures &

Support

Technology Management Education Reporting Development Development Communications Management Protocols

Web & Client Network
Budget Research & New Staff Staff Student Health &
Applications Infrastructure
Prioritization Accountability Orientation Recruitment Information Safety
Website Communications
Systems Equity, Broader Public Staff Staff
Administration
Accessibility, & Sector Supervision Coordination
Educational & Diversity Guidelines
Assistive Tech
Step 2-A: Instructions

DEFINE THE ORGANIZATION’S KEY CAPABILITIES

01 DETERMINE COST ADVANTAGE CREATORS

• What is the source of your cost advantage? IT • Don’t focus on capabilities that create an
If your organization has a cost advantage over should support the capabilities that drive the unsustainable cost advantage. Take a long-
competitors, the capabilities that enable it should cost advantage. term perspective and allocate your resources
be identified and prioritized. Highlight these • Is the industry you operate in sensitive to prices? wisely.
capabilities and prioritize the programs that
support them.

02 DETERMINE COMPETITIVE ADVANTAGE CREATORS

• Are there any products or services your • Don’t determine the competitive advantages
If your organization does not have a cost organization provides that customers consider alone. Incorporate various perspectives from
advantage over competitors, determine if it can superior to competitive offerings? throughout the organization to truly
deliver differentiated end-customer experiences. • Which capabilities enable the competitive understand how the organization competes in
advantage? the marketplace.
Once you have identified the competitive
• How easy is it for competitors to neutralize your
advantages, understand which capabilities enable competitive advantage? Focus on the capabilities
them. These capabilities are critical to the success that are difficult to replicate by competitors to
of the organization and should be highly supported. create a more sustainable advantage.

03 DEFINE KEY FUTURE-STATE CAPABILITIES

• Are your competitors doing anything to give them • Don’t blindly copy your competitors’ strategies.
In addition to the current cost and competitive a competitive advantage? Can your organization It is important to understand that each
advantage creators, the organization may have the easily replicate the capabilities needed to organization is unique; before focusing on key
intention to enhance new capabilities. Discuss and neutralize that advantage? capabilities that might neutralize your
• How is the external environment (political, competitors’ advantages, ensure they fit well
select the capabilities that will help drive the
economic, social, or technological) likely going to with your overall strategy.
attainment of future goals. change in the future? How might these changes
impact your current key capabilities?
Step 2-B: Context

Articulating a clear strategy that not only aligns IT with business objectives, but also enables IT to adapt to changing business needs, is the most important activity
a CIO can do for the IT department and organization. A strategy map is a tool to help narrow the focus onto what matters most. With ever-changing resources,
business strategies, and external environments, the strategy map can ensure IT is consistently providing value through the enhanced prioritization of IT programs.

Strategy mapping is a technique that helps the executive suite communicate the business strategy to other levels of the organization by visually representing the
organizational strategic objectives and mapping each of them to value streams, business capabilities, and ultimately, to specific IT programs. There are four layers
to a strategy map: strategic objectives, value streams, business capabilities, and IT programs.

• Strategic objectives are the outcomes that the organization is looking to achieve.
• Value streams enable an organization to create and capture value in the market through interconnected activities that support strategic objectives.
• Business capabilities define what a business does to enable value creation in value streams, rather than how.
• IT programs are actionable descriptions of how the IT department will enable one or multiple business capabilities in its target state.

To maximize value, each IT program should be prioritized according to the strategic objective it enables. Business capabilities also help sequence IT programs.

Capability 1
Value Stream 1

Capability 2
Value Stream 2

Capability 3
Value Stream 3

Capability 4

Figure above: Strategy Map

Step 2-B: Visual

ILLUSTRATIVE EXAMPLE: STRATEGIC OBJECTIVES FOR K-12 EDUCATION

“To support our students’ ability to apply critical and innovative thinking in
all subjects we will use differentiated instruction to ensure that individual
01 learning needs are accommodated and to engage students fully in their
learning.”
– Toronto Catholic District School Board

“As leaders in public education, we commit to taking responsibility for the

students and resources entrusted to our care by providing access to
02 resources, technology and experiences that meet students' strengths and
needs.”

– Thames Valley District School Board

“Invest in people by developing comprehensive professional learning

03 opportunities to help educators improve their communications to parents

about what their children are learning.”

– Hamilton-Wentworth District School Board

Step 2-B: Visual

ILLUSTRATIVE EXAMPLE: STRATEGY MAP FOR K-12 EDUCATION

Strategic (are realized Value (are enabled Key (are enhanced IT

through…) by…) by…)
Objectives Streams Capabilities Programs

Deliver Curriculum

Community Partnerships

Provide Learning Support

School Management

Support Services
Step 2-B: Instructions

DEVELOP A STRATEGY MAP

01 IDENTIFY THE STRATEGIC OBJECTIVES FOR THE BUSINESS

• Who are the decision makers and key • Don’t simply go with the existing documented
influencers? strategic objectives for the business. Ensure they
It is important to make sure the right strategic • Who will impact the strategic objectives for the are up to date and interview the decision makers to
objectives of the organization have been identified and business? get the most updated objectives if needed.
• Are there external forces that will impact the
are well understood. Engage the right stakeholders to
current strategic objectives?
help identify and document the key strategic objectives
for the business.

02 MAP THE STRATEGIC OBJECTIVES TO THE IT PROGRAMS THAT SUPPORT THEM

• Focus on the value streams that truly drive the • Don’t be too granular. The audience for a strategy is
Starting with strategic objectives, map the value strategic objectives. interested in a higher-level understanding of what
streams that will ultimately drive them. Next, link the key • Are there any capabilities that are not tied to IT is doing. As such, keep things at the program
capabilities that enable each value stream. Finally, map outcomes? level as opposed to the individual projects that
• Are all strategic objectives supported with IT programs are composed of.
the IT programs supporting those capabilities. This
programs?
process will help you prioritize IT programs that deliver
the most value to the organization.

03 VALIDATE THE STRATEGY MAP AND PROGRAM PRIORITIZATION

• Are all strategic objectives equally important? If • Don’t delay validating the strategic maps with top-
Validate the strategy map in layers. Start with IT and not, get a prioritized list of strategic objectives. level executives. A proactive approach will save you
confirm which IT programs enable particular • Do any of the programs have critical dependencies time in terms of rework and maximize alignment.
capabilities. Next, work with the business departments that influence sequencing? • Don’t leave anyone out on the assumption that they
• If there are strategic objectives that do not have won’t be interested. It is easy to miss key
to validate the capabilities that support the value
any IT programs mapped to them, consider adding stakeholders – be careful and organized.
streams. Finally, validate the strategic objectives of the new programs. Conversely, reconsider upcoming
organization with the C-suite and communicate the programs that do not have a connection to
value streams that support them. strategic objectives.
STEP 3:
ORGANIZATIONAL
ANALYSIS
The better aligned an organization is
from a structural, role, process, and
capability perspective, the more
effective it will be.

BUSINESS PROCESS
REVIEW
Use process analysis and
assessment to drive collaboration
and integration.

TECHNOLOGY
OPPORTUNITY
IDENTIFICATION
New technologies create opportunities
for business agility and help develop
resilience to changing market
conditions.

Context Slides:

Visual Slides:

Instruction Slides:
Step 3-A: Context

The better aligned an organization is from a structural,

role, process, and capability perspective, the more
effective it will be.

For optimal results, the structure of the organization should match its strategy. All
too often, however, organizations will grow to meet the needs of the day and not
by strategic design. As such, it can be advantageous to perform an analysis to
determine whether key capabilities are supported by multiple business units and Business Unit 1 A R
partners or if they are potentially unsupported in some cases, leaving important
gaps in the organization’s strategy and value offerings. Business Unit 2 R
An organization is able to increase efficiency and productivity when compatible,
comparable activities are grouped together. By contrasting business units with key Business Unit 3 A R R
capabilities, an organization can uncover specific areas where business units have
overlapping, conflicting, or complementing focuses.
Business Unit 4 A R R
This insight can inform decision making pertaining to the centralization of
processes, services, and human resources, as well help pinpoint the key areas, Business Unit 5 A A
from IT’s perspective, that should be emphasized in order to better enable
business decision making.

For instance, in situations where many business units share accountabilities or Figure above: Contrasting Key Capabilities with Business Unit
responsibilities to deliver key capabilities, IT may need to focus on collaboration, Responsibilities and Accountabilities
knowledge sharing, and dissemination in order to ensure that best practices
become the norm (highlighted in green, horizontal across capabilities).

Conversely, when a key capability is not supported by enough business units (or
any), that capability should potentially be given priority (unless it has been
outsourced) and will likely need more investment from a change management
perspective (highlighted in red, vertical across business units).
Step 3-A: Visual
ILLUSTRATIVE EXAMPLE: BUSINESS UNIT ACCOUNTABILITY AND RESPONSIBILITY TO KEY
CAPABILITIES

Support Staff
R R R R
Administration
R R R R
IT
A
HR
R R R R
Principals
R R R/A R
Teachers
R R R R
Superintendents
R/A R A A A A

A = Accountable for the delivery of the capability R = Responsible for the delivery of the capability
Step 3-A: Instructions

ASSESS YOUR ORGANIZATION’S KEY CAPABILITIES TO DETERMINE YOUR PLANNING

PRIORITIES

01 IDENTIFY KEY BUSINESS UNITS

• Is the documented organizational structure up • Don’t re-invent the wheel. The formal
Understanding how the organization is structured to date and accurate? Validate the information organizational structure/chart and P&L
can help optimize the allocation of resources you have gathered with other employees to statements are great sources of information
based on the key capabilities they support. Start capture any additional business units. and can be used as a starting point.
with making an exhaustive, mutually exclusive list
of all business units within the organization.

02 MAP BUSINESS UNITS TO KEY CAPABILITIES

• Does the current organizational structure • Don't leave important gaps in the organization’s
Review the list of key capabilities and document match the strategic goals and priorities of the strategy and value offerings. Ensure that all key
the business units that are accountable or organization? capabilities have at least one business unit
responsible for them. Accountable, in this case, • Are there any key capabilities with only one responsible for them and one business unit
business unit both responsible and accountable for them.
refers to the units mandated to manage the
accountable? Consider facilitating an
performance of a capability. Responsible refers to enhanced reporting structure for them.
the mandate to support a capability.

03 IDENTIFY PLANNING PRIORITIES TO SUPPORT EFFECTIVE ORGANIZATIONAL DESIGN

• Are there any key capabilities where business • Don’t overcomplicate it! Having too many
Perform both a horizontal analysis to determine units have overlapping, conflicting, or business units responsible and accountable
where there are shared accountabilities and complementing focuses? for the same key capability is not effective. If it
responsibilities for key capabilities. Perform a • Does the IT department effectively enable all is absolutely necessary, ensure that
the supporting business units? collaboration and knowledge sharing
vertical analysis to determine which key
• Are there some business units that are applications support these key capabilities as
capabilities are unsupported by business units in responsible and accountable for too many key effectively as possible.
order to inform effective organizational design. capabilities? If possible, spread the
accountabilities and responsibilities to
multiple business units to harness their unique
perspectives.
Step 3-B: Context

Use process analysis and assessment to drive

collaboration and integration.

Organizations undergoing growth, either organically or through M&A, tend to develop

in a piecemeal and short-sighted fashion in an attempt to preserve their view of
agility. This can lead to the following pains: LEVEL 1: No documented process
exists.
• Duplicated or conflicting business activities.
• Processes that create bottlenecks by involving too many business units.
• Manual re-keying of data into multiple systems. LEVEL 2: Processes have been
• Inefficient process for producing standard reports. documented, but have not been
effectively communicated and
These organizations are driven by the desire to effectively manage existing business may be in conflict.
processes while recognizing the need for a faster ability to share data, information,
and insight across multiple systems and business units to support increasing
demands for more rapid response. LEVEL 3: LEVEL 2 + processes are
explicitly defined and have been
A primary goal of a strategy is to provide a framework that enables the current formally communicated. There is
business environment to function as seamlessly as possible, allowing for flexibility minimal overlap between
when processes need to evolve. processes.

Through effective strategy design, IT can provide integration across business units
by performing an analysis of how well the organizational capabilities are supported LEVEL 4: LEVEL 3 + processes are
by processes. Specifically, IT should analyze and assess processes on the basis of enforced and regularly monitored
adherence, enforcement, and overlap and on the presence of effective monitoring for deviations. Users typically
measures. adhere to the process.

Figure above: Process Assessment Legend

 Step 3-B: Visual
ILLUSTRATIVE EXAMPLE: BUSINESS PROCESS LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4
SUPPORT OF KEY CAPABILITIES
Manage Develop Provide
Deliver
School Learning Learning
Curriculum
Operations Experiences Resources

School Teaching & Learning Education Athletics Support Services

Management Development Management
Continuing & Apprenticeship Cooperative Hearing & Vision Autism Resource
Community Strategic Instructional
Adult Education Programs Education Student Services Team
Liaison & Usage Planning Design
Government Mgmt.
Core Curriculum Resource Early Years Child and Youth Transition
Green Educator Student
Learning Services

Delivery Teacher Programs Counseling Planning

Student
Instructional &

Initiatives Training Assessment

Club Mgmt.
Summer School Dual Credit Gifted Psychology Social Work
Student Staff 21st Century Programs
& Programs Program Services Services
Admissions Coordination Learner Strategy Parent Volunteer
Coordination
International ESL Child Care Speech & Mental Health &
Planning & Teacher Data & Education Language Addiction
Property Development & Analytics Staff Extracurricular Pathology Strategy
Management Assessment Coordination
IEP (Individual Library
Data & &
Resource Education Resource Early Assistive
Analytics
Material Selection Plans) Student Volunteer
Teacher Intervention Technology
Coordination Program Services
CORE

Special Needs Crisis

Resource Management
Team Team

Community Committee Parent Community Council Post-Secondary Student

Engagement Engagement Engagement Management Transition Support Team
Partnerships Planning Process

Logistics Governance & People Business Risk

Board Administration Management Services Management
Boundary Facility Design &
Strategic Policy Benefits Employee Accounting Financial Security &
Review Construction
Planning Setting Administration Relations Services Services Surveillance
Communications
Transportation Transportation Systems Contract Labor Relations
Board of Safe & Caring Supply Chain Legal & Emergency
Management Design Trustees Liaison Schools Negotiations Management Compliance Planning

Professional Leadership
Services

21st Century Ministry Corporate Records Procedures &

Support

Technology Management Education Reporting Development Development Communications Management Protocols

Web & Client Network
Budget Research & New Staff Staff Student Health &
Applications Infrastructure
Prioritization Accountability Orientation Recruitment Information Safety
Website Communications
Systems Equity, Broader Public Staff Staff
Administration
Accessibility, & Sector Supervision Coordination
Educational & Diversity Guidelines
Assistive Tech
Step 3-B: Instructions

ASSESS YOUR ORGANIZATION’S KEY CAPABILITIES TO DETERMINE YOUR PLANNING

PRIORITIES

01 ASSESS HOW WELL PROCESSES SUPPORT CAPABILITIES

Begin by assessing whether each key capability • What processes are documented? • Don’t waste time. Only evaluate processes that
has a documented processes supporting it. • Have the documented processes been are documented and communicated, and then
Then evaluate whether the documented communicated to the business users? evaluate them for exclusivity.
processes have been communicated and the • Are some of the processes redundant? Has • Don’t do this in a vacuum. Validate that you
that been done on purpose or can you have captured all existing processes by
extent to which there is process overlap.
optimize them? speaking to other employees.
• Are there key capabilities that lack processes
all together?

02 EVALUATE USER ADOPTION OF PROCESSES FOR KEY CAPABILITIES

• Is there regular monitoring for deviations from • Don’t think the lack of process adherence is
The next level of analysis involves assessing the defined process? Is this recorded and simply the employees’ fault. In some cases the
whether defined processes are being adhered acted upon? processes might not be well designed or out
to. Confirm if the organization enforces • Are there certain groups of users that are not dated, thus warranting the need for
following the processes in place? Why? refinement.
adherence and that regular monitoring for
deviations is occurring.

03 PRIORITIZE PROCESS REFINEMENT FOR KEY CAPABILITIES SCORING LEVEL 2 OR BELOW

• Is business process management in your • Don’t create redundant processes. Ensure there
Key capabilities should be well supported by mandated area of influence, responsibility, or is minimal overlap with existing processes if
processes. If there are any capabilities that accountability? If not, consider who you may you are creating a new one.
scored Level 2 or below, prioritize delivering need to recruit for support from the business • Don’t forget to think about user adoption and
side to drive refinements. governance when creating new processes. This
effective process support, improving user
• Communicate any new processes or changes might be more challenging, but will ultimately
adoption, and establishing effective process to existing ones through a variety of mediums. ensure long-term success.
governance. Make it easy for the users/employees to
reference them if needed.
Step 3-C: Context

New technologies can create opportunities for business

agility and help develop resilience to changing market
conditions.

Business agility is essential to stay competitive. However, the application portfolio of LEVEL 1: Capability is typically
unsupported by applications. The
many organizations cannot sufficiently support the flexibility and efficiency the
likelihood of legacy applications
business needs because of legacy challenges.
supporting these capabilities is high.

Organizations experience application sprawl over time caused by many factors that LEVEL 2: Capability is somewhat
can end up costing more for licenses, operational resources, and maintenance. supported by applications. There is
typically a mix of legacy and
Organizations are looking for ways to modernize their applications, but want to develop purchased applications supporting
options without introducing additional risks. Adopting a capability-based approach to these capabilities.
assessing applications will enable the IT department to identify opportunities to:
LEVEL 3: Capability is moderately
• Automate tasks through the strategic selection and implementation of applications. supported by applications.
Organizations do not have to build
• Integrate applications that have cross-capability implications.
their own applications; however,
• Rationalize the application portfolio.
there aren’t many solutions to
• Eliminate redundant or legacy applications that don’t deliver enough value. choose from.

The market availability for software applications dedicated to supporting a specific LEVEL 4: Capability is well supported
capability (or set of capabilities) can serve as an indicator of the presence of legacy by applications. Organizations can
challenges. Where there is a lack of application availability, it may be a signal that choose from a variety of solutions
many industry players have had to develop their own. that will meet or exceed their needs.

Figure above: Technology Opportunity Assessment Legend

 Step 3-C: Visual
RESEARCHED EXAMPLE: AVAILABILITY OF SOFTWARE LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4
OFFERINGS FOR K-12 EDUCATION
Manage Develop Provide
Deliver
School Learning Learning
Curriculum
Operations Experiences Resources

School Teaching & Learning Education Athletics Support Services

Management Development Management
Continuing & Apprenticeship Cooperative Hearing & Vision Autism Resource
Community Strategic Instructional
Adult Education Programs Education Student Services Team
Liaison & Usage Planning Design
Government Mgmt.
Core Curriculum Resource Early Years Child and Youth Transition
Green Staff Student
Learning Services

Delivery Teacher Programs Counseling Planning

Student
Instructional &

Initiatives Development Assessment

Club Mgmt.
Summer School Dual Credit Gifted Psychology Social Work
Planning & Staff 21st Century Programs
& Programs Program Services Services
Property Mgmt. Coordination Learner Strategy Parent Volunteer
Coordination
International ESL Child Care Speech & Mental Health &
Student Teacher Data & Education Language Addiction
Admissions Assessment Analytics Staff Extracurricular Pathology Strategy
Coordination
IEP (Individual Library
Resource
Data & & Education Resource Early Assistive
Material Selection
Analytics Plans) Student Volunteer
Teacher Intervention Technology
Coordination Program Services

Special Needs Crisis

CORE

Resource Management
Team Team

Community Committee Parent Community Council Post-Secondary Student

Engagement Engagement Engagement Management Transition Support Team
Partnerships Planning Process

Logistics Governance & People Business Risk

Board Administration Management Services Management
Boundary Facility Design &
Strategic Policy Benefits Employee Accounting Financial Security &
Review Construction
Planning Setting Administration Relations Services Services Surveillance
Communications
Transportation Transportation Systems Contract Labor Relations
Board of Safe & Caring Supply Chain Legal & Emergency
Management Design Trustees Liaison Schools Negotiations Management Compliance Planning

Professional Leadership
Services

21st Century Ministry Corporate Records Procedures &

Support

Technology Management Education Reporting Development Development Communications Management Protocols

Web & Client Network
Budget Research & New Staff Staff Student Health &
Applications Infrastructure
Prioritization Accountability Orientation Recruitment Information Safety
Website Communications
Systems Equity, Broader Public Staff Staff
Administration
Accessibility, & Sector Supervision Coordination
Educational & Diversity Guidelines
Assistive Tech
Step 3-C: Instructions

ASSESS YOUR ORGANIZATION’S KEY CAPABILITIES TO DETERMINE YOUR PLANNING

PRIORITIES

01 ASSESS HOW WELL CAPABILITIES ARE SUPPORTED BY APPLICATIONS

• How flexible are the applications? • Don’t perform a complete overhaul. Consider
Perform an application rationalization exercise on the • How well do the applications integrate? continuity in delivering business services
key capabilities to determine how well they are being • How easy are the applications to learn and before you rip and replace everything.
supported by applications. Applications should be use? • Don’t forget about shadow IT. Ask around to
• Are there overlap, un-planned redundancy, or get an accurate understanding of what
assessed on the basis of flexibility, ease of use, and
data quality issues? applications are being used to support
integration. business capabilities.

02 UNCOVER OPPORTUNITIES FOR APPLICATIONS TO CREATE VALUE

• Prioritize which unsupported key capabilities • Don’t focus on unsupported key capabilities that
to focus on based on their importance. will require too much investment.
Unsupported key capabilities are areas in which IT • Don’t build an application just because you can.
can deliver high value for the business. The key Research existing solutions before deciding to
capabilities that score Level 1 or 2 in the technology build in-house.
assessment are the ones that require the most
attention.

03 COMPARE RESULTS WITH INDUSTRY RESEARCH TO DETERMINE A PLAN OF ACTION

• What are the future needs of the business? • Don’t forget that every organization is unique.
Compare your organization’s technology assessment • What are the compliance requirements? Develop a strong understanding of how the
with the industry-specific technology assessment • How much vendor support will you require? key capability needs to be supported, who the
provided. If the capability is well supported in the • Do you have already have the underpinning users will be, and if the application will
infrastructure required to run the applications integrate well with existing solutions before
industry but unsupported in your organization,
or will an investment need to be made? you make a purchase.
purchasing applications is a viable option. Leverage • How well will the new application integrate • Buying isn’t always better than building. If you
SoftwareReviews to make an informed decision with existing applications? discover through software reviews that the
about any purchases. existing solutions will not meet your needs,
revisit the option to build an in-house solution.
STEP 4:
CONSOLIDATE
AND PRIORITIZE
CAPABILITY GAPS
Direct strategic investment based on
organizational priorities, value to effort,
and the mandate from the business.

BUILD A ROADMAP
TO ADDRESS KEY
CAPABILITY GAPS
One of the primary drivers of value
for a strategy is the provision of
intelligent program sequencing
according to the capability gaps
they address.

MAKE STRATEGY
DESIGN A CIRCULAR
PROCESS
Use the outputs of a strategy and their
impacts on capabilities as inputs into
subsequent strategy design processes.

Context Slides:

Visual Slides:

Instruction Slides:
Step 4-A: Context

Direct strategic IT investments based on the collective

output of the capability assessments.

When combined with a solid understanding of business priorities and IT’s mandate, HIGH
Prioritize Be Selective
a capability assessment can be the driving force that informs a unified perspective
on the sequencing of an organization’s strategic IT initiatives.

Assessments based on how well it is supported by people (via organizational Capability A Capability B
analysis), process (via process review), and technology (via application,
infrastructure, data, and security improvements) will inform the overall health of a
capability, or in other words, the size of a capability gap. This information, when
contrasted with the concept of difficulty to value, forms an enhanced decision- De-Prioritize Reconsider or
Outsource
making framework that can be used to determine initiative sequencing on a
strategic roadmap.
Capability C Capability D
If a capability has a large gap (is poorly supported by people, process, and/or
technology), it should be considered as high difficulty, or effort, to address. When the
capability is well aligned with business priorities and the IT mandate, the capability LOW
gap should be considered as high value to address. LOW HIGH

See the figure on the right; IT leaders should focus their efforts on the top-left
Figure above: Need-to-Difficulty Analysis
quadrant (high need, low difficulty). In the top-right quadrant (high need and high
difficulty), IT should seek business support to drive the initiative. Capability gaps on
the right side of the quadrant overall are good candidates for capability outsourcing.

Just because a capability ranks low on the urgency spectrum does not mean that is it not important. Especially in the case of K-12 Education, all
student-facing capabilities are very important. However, the purpose of this exercise is to force prioritization based on urgency and difficulty to
implement. When communicating with stakeholders, it is essential to use sensitivity and make sure they understand all capabilities – but
especially those that are student-facing – are important.
Step 4-A: Visual

ILLUSTRATIVE EXAMPLE: NEED-TO-DIFFICULTY ANALYSIS FOR BUSINESS CAPABILITIES

URGENT
Prioritize Be Selective

Based on alignment
to goals and De-Prioritize Reconsider or
mandate
Outsource

NON-
URGENT
LOW HIGH

Based on size of
capability gap
Step 4-A: Instructions

ADOPT A CAPABILITY-BASED APPROACH TO STRATEGIC PLANNING

01 SYNTHESIZE YOUR ASSESSMENTS AND PLOT THEM ON A DIFFICULTY-TO-VALUE MATRIX

• How big is the difference between current • Don’t forget about healthy capabilities. Enhance
Gather and synthesize the priorities from the needs and the assessment of the factors that the green (low-gap) capabilities once you have
people, process, and technology assessments to support each capability? resolved the issues with the red and yellow
develop a consolidated view of IT’s planning • Are there any groups of capabilities that have (large-gap) key capabilities.
low scores from the assessments? Consider a
responsibilities.
root-cause analysis to determine what could
be impacting multiple capabilities.

02 PRIORITIZE KEY CAPABILITY GAPS BASED ON MANDATE, ALIGNMENT, AND EFFORT

• If a capability has people and process • Don’t overstep your mandate. In some
Use your mandate from the organization to challenges associated with it already, a organizations, IT is expected to have influence
inform which capabilities to focus on first. Key technology solution alone may not suffice. over business processes, but that is not
capabilities that are easy for you to enhance and • Prioritize the enhancement of key capabilities always the case. Equally, HR concerns may be
with significant gaps that are in your perceived as outside the mandate of IT. As
provide high value to the organization should be
mandated responsibilities. such, IT should focus first on the key
prioritized. • Will the future needs of the business change capabilities that have clear technology gaps to
which capabilities are most important? avoid mandate friction.
Step 4-B: Context

The primary value driver of a strategy is the provision of an intelligent sequencing of programs according to
the capability gaps they address.

The desired or target state that a strategy will seek to deliver will depend on the strategic goals and objectives of an organization and the health of the
capabilities that most closely support them. The gaps between the current state and the desired state will determine what the transition initiatives must
achieve from an outcome perspective. These gaps indicate how close or how far IT currently is from achieving the desired state for each capability. This will
help the project team identify critical risks and early-value creators and bring them to the forefront of their project timelines.

The list of initiatives will be the main output of the IT strategy. Good transition initiatives need to be well thought out before the executive team signs off on
the IT strategy. As such, thoroughly evaluating a set of options will ensure that the most appropriate programs/initiatives are selected. These
programs/initiatives are not likely to be implemented simultaneously, given resource restrictions and dependencies. As such, in order to maximize the value
of the IT strategic plan for the business, each initiative must be prioritized according to the benefit it will provide.

Capability 1

Capability 2

Capability 3 Figure below: IT Roadmap

Capability 4

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Figure above: Strategy Map
IT Program A

IT Program B

IT Program C

IT Program D

IT Program E
Step 4-B: Visual

RESEARCHED EXAMPLE: IT STRATEGY ROADMAP

Student Portal
Implementation

Wi-Fi Upgrade

Anti-Bullying App Roll-

out

Chromebook Deployment
Step 4-B: Instructions

ADOPT A CAPABILITY-BASED APPROACH TO STRATEGIC PLANNING

01 DEFINE IT PROGRAMS TO ADDRESS GAPS IN KEY CAPABILITIES

• What are the key capabilities you are • Don’t try to address all gaps in the key
Examine the gaps in key capabilities and mandated to focus on? capabilities at once. Remember to focus on the
determine what IT programs will address them. • What are the high-value and low-effort key enhancements that will provide high value yet
Understand what gaps are critical to fix based capability gaps you identified earlier? require low effort to achieve improvement.
• Given these assessments and strategic
on IT’s mandate. Stay focused on the value-to-
discussions, are there any IT programs that
effort ratio for the remaining programs. should be cancelled?

02 SEQUENCE IT PROGRAMS IN BUSINESS-PRIORITY ORDER

• What resources are going to be needed to • Don’t put too much on your plate. Consider
Develop a roadmap of enhancements to address execute on the roadmap? what you can actually achieve given your
gaps in key capabilities. Ensure the key • What are the dependencies of these key current budgetary and staffing constraints.
capabilities you are mandated to focus on are capabilities and existing IT programs? Make • Don’t be short-sighted. It is a good exercise to
sure critical dependencies between IT estimate what additional resources you might
prioritized first. Remember to factor in resource
programs inform sequencing appropriately. need to enhance all gaps in case the business
availability and existing dependencies when • Are there any current IT programs that should is willing to support you.
developing the roadmap. be put on pause until the critical capability
gaps are filled?
Step 4-C: Context

Use the outputs of a strategy – the initiatives and

programs – and their impacts on capabilities as inputs
into subsequent strategy design processes.

Principles like Lean, Agile, and Human-Centrism have proliferated and are now
integral forces influencing how business is done. Most would agree that these
concepts have shaped the way products and services are designed and delivered
for the better.

The underlying connection between these concepts is that, in order to deliver

products and services in a way that sustains a business, waste can no longer be
tolerated in our new resource-constrained environment. This reality is shaping
the way inputs and outputs are viewed in the context of processes; wherever
possible, a process’ output should be converted back into an input into the same
or an alternate process. This limits waste and promotes business model
sustainability.

In terms of strategy design as a process, the outputs are the sequenced set of
programs and initiatives that an IT department will undertake in order to address
the prioritized capability gaps that support organizational goals. The benefits of
these initiatives can (and must) be measured in relation to the capabilities they
have impacted, and thus, become the inputs into the process of designing the
next process.

Figure above: Linear vs. Circular Processes

Step 4-C: Visual

ILLUSTRATIVE EXAMPLE: THE CIRCULAR STRATEGIC PLANNING PROCESS

Step 4-C: Instructions

ADOPT A CAPABILITY-BASED APPROACH TO STRATEGIC PLANNING

01 BUILD YOUR ORGANIZATION’S CAPABILITY MAP USING REFERENCE ARCHITECTURE

• How does your organization create and • Don’t do this alone. Continuously involve key
capture value? business stakeholders to validate the business
Continually refine your business capability maps • What new capabilities has the organization capability map.
to ensure they stay accurate. added since the last strategic planning period?

02 USE CAPABILITIES TO DEFINE YOUR ORGANIZATION’S STRATEGIC FOCUS

• How has the business strategy changed? • Don’t focus on unsupported key capabilities that will
• Which capabilities does the business want to require too much investment.
develop into cost or competitive advantage • Don’t have a short-term outlook. Developing key
Explore how the mandate has changed over creators? capabilities takes time and will require investments
into people, processes, and technology. Think
time.
about what key capabilities the business will need
to succeed in the long term.

03 DETERMINE YOUR PLANNING PRIORITIES BY ASSESSING YOUR KEY CAPABILITIES

• What are the future needs of the business? • Don’t forget that every organization is unique.
• Were the previous IT programs effective in Develop a strong understanding of what key
Update your assessments based on the impacts enhancing the organization’s key capabilities? capabilities need to be supported, who the
previous programs have had on key capabilities. Why or why not? users will be, and which processes and
technologies enable them.

04 ADOPT A CAPABILITY-BASED APPROACH TO STRATEGIC PLANNING

• The output of each strategy, the sequential IT • Don’t create too many views of your
programs, should serve as the input into the organization. Instead, focus on unifying the
next IT strategy design process. perspective in one business capability map.
Use business capabilities to orient strategic • Based on the demonstrably improved strategic
planning discussions and to inform IT investment. acumen this approach delivers, new
opportunities, such as digital strategy
leadership, will likely emerge.