Managing and improving organizational capabilities is a significant and complex issue for many companies. To support management and enable improvement, performance assessments are commonly used. Over the last decades many methods and tools have been developed to manage and assess organizational capabilities. Among these methods exist following on the top:
- CMMI (SEI, 2010)
- ISO (ISO, 2010)
- ITIL (ITIL, 2010)
The above listed methods belong to two different categories:
Maturity-based methods (CMMI): Maturity based methods decompose organizational capabilities development according to different progressive steps. For example, CMMI decomposes to 5 or 6 Maturity levels and organization tries to achieve the levels starting from 1 and then number goes higher.
Coverage-based methods (ISO & ITIL): These methods focus on the acquisition of best practices, without defining an order or a progressive path to develop organizational capabilities.
These methods introduce changes in performance management. In the coverage and maturity-based models, the same principle is used to assess organizational capabilities. The needs of an organization are decomposed into operational requirements, and then the models explain how these requirements can be fulfilled by acquiring a set of good practices which respective models define in detail. The assessment is done by measuring the acquirement of these good practices from the responsible organizational entities .
In my next blog, I will write about the strength of capitalizing on organizational Capabilities. So, keep following!