A representation of what a company is able to do, irrespective of how it is done, is crucial for strategic alignment. This representation describes the organization’s capacity to execute specific functions. For example, a financial institution may possess the ability to manage customer accounts. This ability exists regardless of the specific technology, personnel, or processes employed to achieve it.
Understanding these organizational abilities offers numerous advantages. It facilitates strategic planning by providing a clear inventory of existing strengths. It supports investment decisions by identifying areas where abilities need enhancement or development. Historically, these representations have become essential for enterprise architecture, business process management, and organizational change initiatives. They provide a common language and framework for understanding the organization’s potential and limitations.
