13 - Develop and Manage Business Capabilities

Performing activities by an organization that are fundamental to the successful operation of the organization, even across functions in a business. Capabilities defined in the PCF include business process management; portfolio, program, and project management; quality management; change management; benchmarking; environmental health and safety management; and knowledge management.

13.0	Develop and Manage Business Capabilities
13.1		Manage business processes
13.1.1			Establish and maintain process management governance
13.1.1.1				Define and manage governance approach
13.1.1.2				Establish and maintain process tools and templates
13.1.1.3				Assign and support process ownership
13.1.1.4				Perform process governance activities
13.1.2			Define and manage process frameworks
13.1.2.1				Establish and maintain process framework
13.1.2.2				Identify cross-functional processes
13.1.3			Define processes
13.1.3.1				Scope processes
13.1.3.2				Analyze processes
13.1.3.2.1					Identify published best practices
13.1.3.3				Model and document processes
13.1.3.4				Publish processes
13.1.4			Manage process performance
13.1.4.1				Provide process training
13.1.4.2				Support process execution
13.1.4.3				Measure and report process performance
13.1.4.3.1					Identify additional metrics as required
13.1.5			Improve processes
13.1.5.1				Identify and select improvement opportunities
13.1.5.2				Manage improvement projects
13.1.5.3				Perform continuous improvement activities

13.2		Manage portfolio, program, and project
13.2.1			Manage portfolio
13.2.1.1				Establish portfolio strategy
13.2.1.2				Define portfolio governance
13.2.1.3				Monitor and control portfolio
13.2.2			Manage programs
13.2.2.1				Establish program structure and approach
13.2.2.2				Manage program stakeholders and partners
13.2.2.3				Manage program execution
13.2.2.4				Review and report program performance
13.2.3			Manage projects
13.2.3.1				Establish project scope
13.2.3.1.1					Identify project requirements and objectives
13.2.3.1.2					Identify project resource requirements
13.2.3.1.3					Assess culture and readiness for project management approach
13.2.3.1.4					Create business case and obtain funding
13.2.3.1.5					Develop project measures and indicators
13.2.3.2				Identify appropriate project management methodologies
13.2.3.3				Develop project plans
13.2.3.3.1					Define roles and resources
13.2.3.3.2					Acquire/secure project resources
13.2.3.3.3					Identify specific IT requirements
13.2.3.3.4					Create training and communication plans
13.2.3.3.5					Design recognition and reward approaches
13.2.3.3.6					Design and plan launch of project
13.2.3.3.7					Deploy the project
13.2.3.4				Execute projects
13.2.3.4.1					Evaluate impact of project management (strategy and projects) on measures and outcomes
13.2.3.4.2					Report the status of project
13.2.3.4.3					Manage project scope
13.2.3.4.4					Promote and sustain activity and involvement
13.2.3.4.5					Realign and refresh project management strategy and approaches
13.2.3.5				Review and report project performance
13.2.3.6				Close projects

13.3		Manage enterprise quality
13.3.1			Establish quality requirements
13.3.1.1				Define critical-to-quality characteristics
13.3.1.2				Define preventive quality activities
13.3.1.3				Develop quality controls
13.3.1.3.1					Define process steps for controls (or integration points)
13.3.1.3.2					Define sampling plan
13.3.1.3.3					Identify measurement methods
13.3.1.3.4					Define required competencies
13.3.1.4				Prove capability to assess compliance with requirements
13.3.1.5				Finalize quality plan
13.3.2			Evaluate performance to requirements
13.3.2.1				Test against quality plan
13.3.2.1.1					Conduct test and collect data
13.3.2.1.2					Record result(s)
13.3.2.1.3					Determine disposition of result(s)
13.3.2.2				Assess results of tests
13.3.2.2.1					Assess sample significance
13.3.2.2.2					Summarize result(s)
13.3.2.2.3					Recommend actions
13.3.2.2.4					Decide next steps
13.3.3			Manage non-conformance
13.3.3.1				Assess potential impact
13.3.3.2				Determine immediate action(s)
13.3.3.3				Identify root cause(s)
13.3.3.4				Take corrective or preventative action
13.3.3.5				Close non-conformance
13.3.4			Implement and maintain the enterprise quality management system (EQMS)
13.3.4.1				Define the quality strategy
13.3.4.2				Plan and deploy the EQMS scope, targets, and goals
13.3.4.3				Identify core EQMS processes, controls, and metrics
13.3.4.4				Develop and document EQMS policies, procedures, standards, and measures
13.3.4.5				Assess the EQMS performance
13.3.4.6				Create environment and capability for EQMS improvement(s)
13.3.4.6.1					Reward quality excellence
13.3.4.6.2					Create and maintain quality partnerships
13.3.4.6.3					Maintain talent capabilities and competencies
13.3.4.6.4					Incorporate EQMS messaging into communication channels
13.3.4.6.5					Assure independent EQMS management access to appropriate authority in the organization
13.3.4.6.6					Transfer proven EQMS methods

13.4		Manage change
13.4.1			Plan for change
13.4.1.1				Select process improvement methodology
13.4.1.2				Determine stakeholders
13.4.1.3				Assess readiness for change
13.4.1.4				Identify change champion(s)
13.4.1.5				Form design team
13.4.1.6				Define scope
13.4.1.7				Understand current state
13.4.1.8				Define future state
13.4.1.9				Conduct organizational risk analysis
13.4.1.10				Assess cultural issues
13.4.1.11				Identify impacted groups
13.4.1.12				Determine degree/extent of impact
13.4.1.13				Establish accountability for change management
13.4.1.14				Identify barriers to change
13.4.1.15				Determine change enablers
13.4.1.16				Identify resources and develop measures
13.4.2			Design the change
13.4.2.1				Assess connection to other initiatives
13.4.2.2				Develop change management plans
13.4.2.3				Develop training plan
13.4.2.4				Develop communication plan
13.4.2.5				Assign change champion(s)
13.4.2.6				Develop rewards/incentives plan
13.4.2.7				Establish change adoption metrics
13.4.2.8				Establish/Clarify new roles
13.4.2.9				Identify budget/roles
13.4.3			Implement change
13.4.3.1				Create commitment for improvement/change
13.4.3.2				Reengineer business processes and systems
13.4.3.3				Support transition to new roles or exit strategies for incumbents
13.4.3.4				Monitor change
13.4.3.5				Report on change
13.4.4			Sustain improvement
13.4.4.1				Monitor improved process performance
13.4.4.2				Capture and reuse lessons learned from change process
13.4.4.3				Take corrective action as necessary

13.5		Develop and manage enterprise-wide knowledge management (KM) capability
13.5.1			Develop KM strategy
13.5.1.1				Develop governance model with roles and accountability
13.5.1.2				Define roles and accountability of core group versus operating units
13.5.1.3				Develop funding models
13.5.1.4				Identify links to key initiatives
13.5.1.5				Develop core KM methodologies
13.5.1.6				Assess IT needs and engage IT function
13.5.1.7				Develop training and communication plans
13.5.1.8				Develop change management approaches
13.5.1.9				Develop strategic measures and indicators
13.5.2			Assess KM capabilities
13.5.2.1				Assess maturity of existing KM initiatives
13.5.2.2				Evaluate existing KM approaches
13.5.2.3				Identify gaps and needs
13.5.3			Design and implement KM capabilities
13.5.3.1				Develop new KM approaches
13.5.3.2				Design resource model for KM approaches
13.5.3.3				Implement new KM approaches
13.5.3.4				Leverage and enhance IT for KM approaches
13.5.3.5				Develop measures
13.5.4			Evolve and sustain KM capabilities
13.5.4.1				Enhance/Modify existing KM approaches
13.5.4.2				Sustain awareness and engagement
13.5.4.3				Expand KM infrastructure to meet demand

13.6		Measure and benchmark
13.6.1			Create and manage organizational performance strategy
13.6.1.1				Create enterprise measurement systems model
13.6.1.2				Measure process efficiency
13.6.1.3				Measure cost effectiveness
13.6.1.4				Measure staff productivity
13.6.1.5				Measure cycle time
13.6.2			Benchmark performance
13.6.2.1				Conduct performance assessments
13.6.2.2				Develop benchmarking capabilities
13.6.2.3				Conduct internal process and external competitive benchmarking
13.6.2.4				Conduct gap analysis
13.6.2.5				Establish need for change
13.6.3			Evaluate process performance
13.6.3.1				Establish appropriate performance indicators (metrics)
13.6.3.2				Establish monitoring frequency
13.6.3.3				Collect data
13.6.3.4				Calculate performance measures
13.6.3.5				Identify performance trends
13.6.3.6				Analyze performance against benchmark data
13.6.3.7				Prepare reports
13.6.3.8				Develop performance improvement plan

13.7		Manage environmental health and safety (EHS)
13.7.1			Determine environmental health and safety impacts
13.7.1.1				Evaluate environmental impact of products, services, and operations
13.7.1.2				Conduct health and safety and environmental audits
13.7.2			Develop and execute functional EHS program
13.7.2.1				Identify regulatory and stakeholder requirements
13.7.2.2				Assess future risks and opportunities
13.7.2.3				Create EHS policy
13.7.2.4				Record and manage EHS events
13.7.3			Train and educate functional employees
13.7.3.1				Communicate EHS issues to stakeholders and provide support
13.7.4			Monitor and manage functional EHS management program
13.7.4.1				Manage EHS costs and benefits
13.7.4.2				Measure and report EHS performance
13.7.4.3				Implement emergency response program
13.7.4.4				Implement pollution prevention program
13.7.4.5				Provide employees with EHS support

13.8		Develop, Manage, and Deliver Analytics
13.8.1			Develop and manage hypotheses
13.8.2			Collect data
13.8.3			Analyze data
13.8.4			Report on data
13.8.5			Identify remedial actions

Process and performance improvement, helps organizations adapt to rapidly changing environments, build new and better ways to work, and succeed in a competitive marketplace. With a focus on productivity, knowledge management, benchmarking, and quality improvement initiatives, organisations such as the APQC works with its member organizations to identify best practices; discover effective methods of improvement; broadly disseminate findings; and connect individuals with one another and the knowledge, training, and tools they need to succeed.

This APQC Process Classification Framework® (“PCF”) is an open standard developed by APQC, a nonprofit that promotes benchmarking and best practices worldwide. The PCF is intended to facilitate organizational improvement through process management and benchmarking, regardless of industry, size, or geography. To download the full PCF or industry-specific versions of the PCF, as well as associated measures and benchmarking, please visit www.apqc.org/pcf.

13 - Develop and Manage Business Capabilities

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