Capability Management

Capability management is a high-level integrative management function, with particular application in the context of defence.

Capability management aims to balance economy in meeting current operational requirements, with the sustainable use of current capabilities, and the development of future capabilities, to meet the sometimes competing strategic and current operational objectives of an enterprise. Accordingly, effective capability management:

In military contexts, capabilities may also be analysed in terms of Force Structure and the Preparedness of elements or groupings within that Force Structure. Preparedness in turn may be analysed in terms of Readiness and Sustainability.

In both the military and commercial contexts, net-centric operations and related concepts are playing an increasingly important role in leading and driving business transformation, and contemporary capability management needs to have close regard of those factors. The level of interoperability, both technical and organisational/social, is a critical determinant of the net-centric capability that is able to be realised and employed.

Enterprises consist of a portfolio or matrix of capabilities that are used in various combinations to achieve outcomes. Within that portfolio, a capability will be transient unless managed and maintained over time. Therefore, a typical capability lifecycle spans needs, requirements, acquisition, in-service and obsolescence/disposal phases.

While a highly developed management discipline within several national military organisations, the concepts, principles and practices of capability management are readily adaptable and effective for wide-ranging application in the strategy and operations of many other enterprises.

The JCIDS Manual, CJCSM 3170.01, states that definitions of identified capabilities must satisfy two rules:

Capabilities are organized around concepts of operations (CONOPS), because the CONOPS describe how a specified course of action is to be executed. The ability to execute the specified course of action depends on many factors and the relationship between those factors. Capabilities can be described as one or more sequences of activities, referred to as operational threads. The threads are composed of a set of activities that can be grouped to form the basis for a mission area architecture. The architecture then provides the structure for defining and understanding the many factors that impact the capability. The figure illustrates this sequence of relationships.

The Navy has also endorsed using architectures to understand and analyze capabilities and their associated requirements. The Navy performs this architecture analysis based on the concept of MCPs. The intent is to consider all of the factors that contribute to the desired mission capability as an integrated system. An MCP is defined as “a task-oriented bundle of CONOPS, processes, and organization structures supported by networks, sensors, weapons, and systems, as well as personnel training and support services to sustain a core naval capability.” The MCP and associated analysis then provide the basis for acquisition decisions.

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