What it means

In the broadest of terms, a capability is the ability to do something. How you interpret that would largely depend on the context. For example:

• Businesses might refer to the combination of the people, processes and technology that the organisation needs to perform a task or function. They often use words such as “objectives”, “outcomes” and “outputs”.
• If you’re in Human Resources, capability might refer to the ability of a person to perform their duties to expected standards. They often use words such as “skills”, “ability”, “knowledge” and “experience”.
• If you’re in defence, your military capability is your ability to fight in a war. Organisations in the defence sector often use words such as “strengths”, “priorities” and “inter-operability”.

As an organisation develops its capabilities, it can demonstrate maturity by integrating capabilities – for example how a risk management capability integrates with the ability to manage finances.

It’s worth noting, however, that the terms “capability” and “maturity” are often used interchangeably. If that works for an organisation and helps them improve, then that’s absolutely fine.

 

What about portfolio, programme and project management (P3M)?

Capability in a P3M environment is multi-faceted:

• Firstly, you’re going to need the right people with the right knowledge and experience in the right roles at the right time; this is all about competency i.e. knowledge and experience applying that knowledge. Individuals are going to need to understand P3M disciplines such as risk management, exhibit behaviours such as leadership, and understand the context in which the organisation operates.
• These individuals need to be able to work in teams to deliver outputs and outcomes and to realise benefits. You’re going to need a method, development lifecycles and teamwork-related behaviours.
• The organisation needs to be able to support individuals and teams with delivering portfolios, programmes and projects. It’s going to need a supportive culture, process ownership, policies and procedures and an approach to continual improvement.

 

What does that mean in practice?

Below are examples of what a capability assessor might expect to see in a P3M environment. The list is high-level and by no means exhaustive.

Suitably qualified and experienced people

• A P3M competence framework describing what an individual needs to perform in a P3M role at a given level, with respect to knowledge and its application.
• P3M role families, backed by competence profiles to describe the desires knowledge and experience at all levels.
• P3M career pathways to help individuals prepare to progress to the next step on their journey, to help identify how they might progress, and how they can do so.
• A P3M learning library describing different approaches available to individuals in a P3M role, ensuring consistency and value for money for the organisation and considering an individual’s learning styles.

Teams that can work together

• Competencies that include teamwork, leadership, collaboration, negotiation and others that help underpin the team environment.
• A common approach to P3M at an organisation level which can be tailored to a specific need as necessary. This is likely to include governance and assurance arrangements, a method, guidance, tools and templates. It is common for an organisation to draw upon multiple sources when defining a method that works for them. For example, an external regulator may impose certain governance and assurance arrangements on the organisation, or specific legislation may be in place.
• Multiple and diverse work streams such as construction and information management which potentially means multiple technical approaches which need to integrate with the P3M approach.

An environment that enables good portfolio, programme and project management

• A culture which enables, actively supports and encourages good P3M practice. This is a perhaps the most difficult thing to achieve. It is worth noting that external factors such as science, political ideology and environmental factors might have a direct effect on how the organisation defines and supports P3M practice.
• An understanding of available technical approaches, selecting the most appropriate lifecycles for the organisation, and integrating them with the P3M approach.
• Organisational structures that support and underpin the organisation’s P3M approach. A good starting point might be to identify all of the organisation’s change initiatives and to establish a suitable structure of portfolios.
• Portfolio, programme or project offices (P3O) – but only as and when they are needed.
• Organisational policies, standards and practices that enable and support the organisation’s P3M approach. An example here might relate to the risk management discipline where thresholds, categories, escalation routes, etc. would need to take into account P3M and operational management.
• The support of senior leaders, who should also be held to account for their actions.

 

An analogy

I find analogies a useful tool to help better understand a concept by painting pictures and allowing you to learn by applying the concept in environments that may be familiar.   
Consider, therefore, a piece of military equipment such as a helicopter. The capability is not the helicopter itself but is a helicopter with a trained crew that can address specifically identified threats, exploit opportunities, communicate with and work with other people and equipment on a battlefield, and which can be maintained and repaired both on and off the battlefield during its lifetime.
Now consider if you are part of a project-led organisation and let’s compare its capability with that of the defence organisation’s helicopter capability.

Area	Defence	Portfolios, programmes and projects
Individuals	Understanding the principles of flying a helicopter. Understanding how to fly the type of helicopter. Understanding battle tactics.	Understanding what portfolios, programmes and projects are. Understanding P3M disciplines. Understanding how to manage a portfolio, programme or project in the organisation’s context.
Teams	Understanding how to work with other people and equipment in a battlefield environment including forces from other nations, operational and technical personnel. Following a battle plan and adapting as necessary as the situation changes. Selecting the most appropriate approaches to meet the battle plan.	Understanding how to work with other members of a P3M team including executives, those receiving outputs, those delivering outcomes and realising benefits, and other technical roles. Applying a P3M method, tailoring the approach to the specific context. Selecting and applying appropriate lifecycle models.
Organisation	Enabling and creating an environment in which the helicopter can be developed, operated and maintained, Defining, operating and maintaining the helicopter throughout its lifecycle. Defining, owning and maintaining requirements for systems and weaponry, and developing technical documentation.	Enabling and creating an environment in which portfolios, programmes and projects can succeed. Defining, owning and maintaining P3M methods, tools and guidance. Defining, owning and maintaining policies, standards and procedures for P3M.

 

Take-aways

In 2012, PricewaterhouseCoopers (PwC) reported in their global survey on the current state of project management that “Higher maturity yields higher performance” and “Organisation maturity is directly correlated with organisational success”.
Capability improvement is a journey - organisations should not expect changes to come overnight. In fact, the organisation’s culture is a significant factor in what speed of change is possible.

An organisation in unlikely to be able to raise capability in all areas at once. Using a maturity model to baseline and benchmark capability will help identify what is important to focus on and enable realistic improvement targets and plans to be set.

The greater the capability, the higher the likely cost of maintaining that capability.

Some organisations “hit a brick wall” in their journey and others start to go backwards (perhaps after an organisational change or external factors) at some point.