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.

13.0Develop and Manage Business Capabilities 
13.1 Manage business processes  
13.1.1  Establish and maintain process management governance   Define and manage governance approach   Establish and maintain process tools and templates   Assign and support process ownership   Perform process governance activities
13.1.2  Define and manage process frameworks   Establish and maintain process framework   Identify cross-functional processes
13.1.3  Define processes   Scope processes   Analyze processes    Identify published best practices   Model and document processes   Publish processes 
13.1.4  Manage process performance   Provide process training   Support process execution   Measure and report process performance    Identify additional metrics as required
13.1.5  Improve processes   Identify and select improvement opportunities   Manage improvement projects   Perform continuous improvement activities
13.2 Manage portfolio, program, and project 
13.2.1  Manage portfolio   Establish portfolio strategy   Define portfolio governance   Monitor and control portfolio
13.2.2  Manage programs   Establish program structure and approach   Manage program stakeholders and partners   Manage program execution   Review and report program performance
13.2.3  Manage projects   Establish project scope    Identify project requirements and objectives    Identify project resource requirements    Assess culture and readiness for project management approach    Create business case and obtain funding    Develop project measures and indicators   Identify appropriate project management methodologies   Develop project plans    Define roles and resources    Acquire/secure project resources    Identify specific IT requirements    Create training and communication plans    Design recognition and reward approaches    Design and plan launch of project    Deploy the project   Execute projects    Evaluate impact of project management (strategy and projects) on measures and outcomes    Report the status of project    Manage project scope    Promote and sustain activity and involvement    Realign and refresh project management strategy and approaches   Review and report project performance   Close projects 
13.3 Manage enterprise quality  
13.3.1  Establish quality requirements   Define critical-to-quality characteristics   Define preventive quality activities   Develop quality controls    Define process steps for controls (or integration points)    Define sampling plan    Identify measurement methods    Define required competencies   Prove capability to assess compliance with requirements   Finalize quality plan 
13.3.2  Evaluate performance to requirements   Test against quality plan    Conduct test and collect data    Record result(s)    Determine disposition of result(s)   Assess results of tests    Assess sample significance    Summarize result(s)    Recommend actions    Decide next steps
13.3.3  Manage non-conformance   Assess potential impact   Determine immediate action(s)   Identify root cause(s)   Take corrective or preventative action   Close non-conformance
13.3.4  Implement and maintain the enterprise quality management system (EQMS)   Define the quality strategy   Plan and deploy the EQMS scope, targets, and goals   Identify core EQMS processes, controls, and metrics   Develop and document EQMS policies, procedures, standards, and measures   Assess the EQMS performance   Create environment and capability for EQMS improvement(s)    Reward quality excellence    Create and maintain quality partnerships    Maintain talent capabilities and competencies    Incorporate EQMS messaging into communication channels    Assure independent EQMS management access to appropriate authority in the organization    Transfer proven EQMS methods
13.4 Manage change   
13.4.1  Plan for change   Select process improvement methodology   Determine stakeholders   Assess readiness for change   Identify change champion(s)   Form design team   Define scope   Understand current state   Define future state   Conduct organizational risk analysis   Assess cultural issues   Identify impacted groups   Determine degree/extent of impact   Establish accountability for change management   Identify barriers to change   Determine change enablers   Identify resources and develop measures
13.4.2  Design the change   Assess connection to other initiatives   Develop change management plans   Develop training plan   Develop communication plan   Assign change champion(s)   Develop rewards/incentives plan   Establish change adoption metrics   Establish/Clarify new roles   Identify budget/roles 
13.4.3  Implement change   Create commitment for improvement/change   Reengineer business processes and systems   Support transition to new roles or exit strategies for incumbents   Monitor change   Report on change 
13.4.4  Sustain improvement   Monitor improved process performance   Capture and reuse lessons learned from change process   Take corrective action as necessary
13.5 Develop and manage enterprise-wide knowledge management (KM) capability
13.5.1  Develop KM strategy   Develop governance model with roles and accountability   Define roles and accountability of core group versus operating units   Develop funding models   Identify links to key initiatives   Develop core KM methodologies   Assess IT needs and engage IT function   Develop training and communication plans   Develop change management approaches   Develop strategic measures and indicators
13.5.2  Assess KM capabilities   Assess maturity of existing KM initiatives   Evaluate existing KM approaches   Identify gaps and needs
13.5.3  Design and implement KM capabilities   Develop new KM approaches   Design resource model for KM approaches   Implement new KM approaches   Leverage and enhance IT for KM approaches   Develop measures 
13.5.4  Evolve and sustain KM capabilities   Enhance/Modify existing KM approaches    Sustain awareness and engagement   Expand KM infrastructure to meet demand
13.6 Measure and benchmark  
13.6.1  Create and manage organizational performance strategy   Create enterprise measurement systems model   Measure process efficiency   Measure cost effectiveness   Measure staff productivity   Measure cycle time 
13.6.2  Benchmark performance   Conduct performance assessments   Develop benchmarking capabilities   Conduct internal process and external competitive benchmarking   Conduct gap analysis   Establish need for change
13.6.3  Evaluate process performance   Establish appropriate performance indicators (metrics)   Establish monitoring frequency   Collect data   Calculate performance measures   Identify performance trends   Analyze performance against benchmark data   Prepare reports   Develop performance improvement plan
13.7 Manage environmental health and safety (EHS)
13.7.1  Determine environmental health and safety impacts   Evaluate environmental impact of products, services, and operations   Conduct health and safety and environmental audits
13.7.2  Develop and execute functional EHS program   Identify regulatory and stakeholder requirements   Assess future risks and opportunities   Create EHS policy   Record and manage EHS events
13.7.3  Train and educate functional employees   Communicate EHS issues to stakeholders and provide support
13.7.4  Monitor and manage functional EHS management program   Manage EHS costs and benefits   Measure and report EHS performance   Implement emergency response program   Implement pollution prevention program   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.

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