Capability
Q: What Do These Three Things Have in Common?
- A world-class team with no budget,
- A process that works, but no one uses,
- A passionate commitment with no plan.
A: They are all symptoms of a capability gap, and they all lead to failure. Capability gaps are a common cause of implementation failure.
“Capability” is a recipe for success. So why do so many projects fail due to a lack of capability? Is the recipe secret? It’s not, but it has an ingredient that is so often overlooked that it might as well be a secret.
Getting the right things right
There are several models for capability, but for ERP implementations, Clayton Christensen’s RPV model is the best one. He defined capability as a combination of resources, processes, and values. You need all three. Resources are obvious, processes are often misunderstood, and values are almost always overlooked.
Processes – the surprise here is that the methodology you use on the project is a container (a necessary container), for the work you need to do, supported by over a hundred different processes that need to be applied.
Values – This is not about ethics or company values. This is about what is most important to people. If you had to choose between someone who had the resources and know-how to do something, but didn’t want to do it, and a person who really wanted to do something but didn’t have the resources or processes to do it, who would you choose? Me too.
Navigating Capability
The Three Cords of Capability
The Resources, Processes, Values (RPV) Model
An organization’s ability to execute is a combination of the resources it has, the processes it uses, and the values that guide its decisions. Here is a “New Year’s Resolution” example:
I want to get in shape, but ...
- there’s no gym I can go to (resources)
- nothing I try works (processes)
- I have to finish this Netflix series first (values)
Why the RPV Capability Model is Essential in ERP Implementations
ERP implementations impose a unique and new set of demands on an organization. The RPV model provides a framework for tackling these demands in a mindful way.
Holistic
In the “New Year’s” example above, which element is both critical and elusive? That’s also true of ERP implementations.
Predictive and Diagnostic
ERP implementations make ‘out of the ordinary’ demands on organizations. Using the RPV model is a framework to know if you are set up for success before you begin. Whether it’s an activity within the project or the project itself.
Common Language
Things will go wrong. When they do, the RPV model provides a common language to understand the problem.
Actionable
The RPV model does not provide solutions to problems, but it will put you in the right ballpark to pursue solutions.
Cord 1 – Resources: Your People, Tech,, Budget, and Schedule
The most visible cord of capability is your Resources, the tangible building blocks of any project: the people on your team, the partners you hire, the technology and tools you deploy.
People
The “A-Team” must be assigned to the project, and the “A-Team” is not just a list of names. It is a complete human capital ecosystem, carefully designed and funded. This system has three distinct, interdependent parts:
- The Dedicated Internal Team: Full-time project managers, solution architects, and business process owners who provide continuity and connect technology to business value.
- The Supporting Team: Part-time specialists—database administrators, security engineers, departmental super-users—who provide critical expertise at key moments.
- External Expertise: The implementation partner who brings methodology and the software vendor who provides deep product knowledge.
Other Resources
-
Tools & Technology Project management, process modeling, data migration, and automated testing software are not luxuries. They are force multipliers for your team’s efficiency.
-
Capital A realistic budget covers all costs—software, services, infrastructure, training—and a contingency.
-
Time A realistic timeline, with buffers for delays. A culture that values quality over speed must adjust deadlines when critical issues surface.
People and the Cost of Focus
The most overlooked ERP cost is the cost of focus. It’s the cost of replacing your “A-Team” while they are focused on the project.
Assigning people to an ERP project without backfilling their roles creates an unwinnable conflict between today’s urgent and tomorrow’s important. This problem cannot be solved by asking people to work harder; it requires a budget line item.
Significant capital must fund interim support, contractors, or temporary promotions to free your best people for the transformation.
| Key Role | Annual Salary | Allocation to Project | Annualized Backfill Cost |
|---|---|---|---|
| Director - Supply Chain | $220,000 | 50% | $110,000 |
| Senior Financial Analyst | $130,000 | 75% | $97,500 |
| IT Security Manager | $165,000 | 25% | $41,250 |
| Total Annual Cost of Focus | $248,750 |
Cord 2 – Processes: How Work Gets Done
The second cord of capability is Processes, the formal and informal ways your people work together to transform resources into completed work.
Insight #1 - Business Process Maturity Matters
The Capability Maturity Mode (CMM) is a continuum that describes how an organization’s processes evolve through five defined levels of maturity. Not every process will be at the same level of maturity.
ERP implementations force organizations to at least level 3. If you’re not there, getting there represents a specific set of implementation challenges. If you are at level 3 or above, the challenges of ERP implementations will be different.
Implementation Challeges at 1 and 2
- Ad hoc, inconsistent processes
- Siloed operations and conflicting priorities
- Weak governance and reactive decisions
- Poor data quality and ownership gaps
- Low process discipline, no baselines
- Cultural resistance to control
- Late or missing change management
Implementation Challeges at 3, 4 and 5
- Over-standardized and rigid processes
- Local vs. global optimization conflicts
- Decision gridlock from over-governance
- Integration complexity with mature systems
- Metric saturation and unclear ROI
- Expert resistance to ERP standards
- Continuous improvement fatigue
- Innovation slowed by control culture
Insight #2 - Methodologies Don't Work
Every implementation partner has a polished methodology—a map to success. The methodology is a necessary container for the work. But methodologies don’t do the work.
The work is done by the resources and processes that support the methodology ....
Value
- Strategic Vision & Business Goal Alignment
- Business Case Development & Approval
- Value Definition & Benefits Realization Planning
- Value Governance
- Baseline KPI/Metric Establishment & Analysis
- Post Go-Live Benefits Realization Tracking & Analysis
Leadership & Mgt
- ERP Software Evaluation and Selection
- Project Governance Framework Establishment
- Steering Committee Governance & Decision Making
- Executive Sponsorship Mobilization & Coaching
- Implementation Methodology Selection & Tailoring
- Strategic Implementation Roadmap Development (Phasing Strategy)
- Integrated Project Management (Scope, Schedule, Resources)
- Project Budgeting & Financial Management (Cost Tracking)
- Risk Identification & Mitigation Management
- Issue Management & Escalation Process
- Formal Decision Logging & Management
- Scope & Change Control Management (Project Level)
- Stakeholder & Executive Status Reporting
- Conflict Resolution & Consensus Building
- Quality Gates & Milestone (Stage Gate) Reviews
- Implementation Partner (SI) Selection & Contracting
- Implementation Partner (SI) Governance & Performance Management
- Vendor Contract Closure
- Cloud Subscription & License Management
- Vendor Release & Update Management
- Project Closure & Lessons Learned Documentation
- Continuous Improvement & Enhancement Management
Capability
- Organizational Readiness Assessment (Business & IT)
- Project Team Structure Design, Staffing & Mobilization
- Role Definition & RACI Development
- Internal Team Skills Gap Analysis & Upskilling
- Resource Allocation & Workload Management
- Backfill Planning & Execution
- Knowledge Transfer Planning & Execution (SI to Internal Team)
- Sustainment/Support Model Design & Implementation (e.g., CoE)
- Formal Transition to Operations (Project to Support)
- Business Process Ownership Governance
- Project Management Tool Selection & Provisioning
- Knowledge Management Repository Establishment
Functionality
- Business Process Analysis (As-Is State)
- Business Process Design & Re-engineering (To-Be State)
- Business Process Modeling and Documentation
- Requirements Elicitation & Management
- Fit-to-Standard Analysis & Workshops
- Fit-Gap Analysis and Resolution Strategy
- Solution Design Workshops & Detailed Design Documentation
- System Configuration & Build
- Customization Specification, Development & Control
Data
- Data Governance Strategy & Establishment
- Data Standards & Definitions Development
- Master Data Management (MDM) Strategy & Implementation
- Legacy Data Source Assessment & Profiling
- Data Quality Assessment & Cleansing Strategy
- Data Cleansing Execution & Monitoring
- Data Migration Strategy & Planning
- Data Mapping & Transformation Rule Definition
- Data Migration Execution (ETL Development)
- Data Security & Privacy Compliance Management
- Data Archiving & Retention Strategy
Tecchnology
- Technical Architecture & Solution Design
- Infrastructure Procurement/Provisioning (Cloud or On-Premise)
- System Environment & Landscape Management
- Environment Refresh & Maintenance Scheduling
- Integration Strategy, Design & Architecture
- Integration Development & Build
- Security Architecture & Access Control Management
- Security Role Design & Implementation (RBAC, SoD)
- System Performance Management & Tuning
- Disaster Recovery & Business Continuity Planning
- System Monitoring & Alerting Setup
- Patching & Upgrade Strategy Development
- Identity & Access Management (IAM) Strategy
- Final Production Data Migration & Validation
- Mobile Access & Device Management Strategy
Quality
- Quality Management & Assurance Planning
- Test Strategy & Detailed Test Planning
- Requirements Traceability Matrix (RTM) Management
- Test Scenario & Case Development
- Test Data Management & Preparation
- Test Cycle Entry/Exit Criteria Management
- Test Execution: Unit Testing
- Test Execution: System Integration Testing (SIT)
- Test Execution: User Acceptance Testing (UAT)
- Test Execution: Performance & Load Testing
- Test Execution: Security Testing
- Defect Logging, Triage & Resolution Management
- Code Review & Technical Quality Assurance
- Functional Prototyping / Conference Room Pilots (CRPs)
- Design/Configuration Review, Sign-Off and Validation
- Mock Data Migration Cycles & Validation
- Go-Live Readiness Assessment & Go/No-Go Decision Making
- Cutover Rehearsal (Dress Rehearsal)
- Test Automation Strategy & Framework Development
- Usability Testing
Change Mgt
- Change Management Strategy Development
- Stakeholder Analysis & Engagement Planning
- Change Impact Analysis & Mitigation Planning
- Strategic Communication Planning & Execution
- Change Readiness Assessments (Pre- and Post-Go-Live)
- Organizational Design & Role Mapping
- Super User / Change Champion Program Management
- Resistance Management Planning & Execution
- Hypercare (Early Life Support) Planning & Management
- Post-Go-Live Adoption Monitoring & Reinforcement
- Detailed Business Cutover Planning & Execution
- Detailed Technical Cutover Planning & Execution
- System Blackout/Freeze Period Management
- Project Chartering & Scope Definition
- Incentive & Recognition Program Alignment
Cord 3 – Values: How Decisions Get Made
The most powerful, yet most overlooked cord, is Values. This isn’t about ethics, but about the ingrained criteria your organization uses to set priorities and make decisions.
The Mandate
Culture is not a soft topic – it is the organization’s true governance system. Be aware of your values and manage them with the same rigor as the project plan.
Cultural Sabotage
The biggest threat to your ERP project is not an angry saboteur. It is the muscle memory of your own success. The processes, habits, and loyalties that made your organization successful will instinctively resist the standardization an ERP demands. This “cultural sabotage” is rarely intentional, and it is almost always inevitable.
To manage culture, it has to be tangible. Culture is the collective set of shared values within an organization. These values reveal themselves in what gets prioritized when things get tough. A successful ERP transformation requires a conscious evolution of these values.
Shared Vision
Why the project is being done is understood by everyone, from the executive suite to the end-users.
Teamwork
Collaboration with a “one-team” mindset, from the executive suite to the end-users.
Psychological Safety
Team members feel free to express concerns without fear of blame.
Transparency
Open sharing of information, decisions, risks, and performance metrics.
Accountability
Everyone takes ownership for outcomes, not just tasks — across both business and IT.
Discipline
Commitment to follow agreed processes and governance — especially under pressure.
Adaptability
Willingness to evolve processes and roles to fit the ERP model
Commitment to Quality
Prioritizing quality that drives value.
Value Based Decision-Making
Using evidence to steer improvements.
Continuous Improvement
Viewing ERP not as a destination, but as the foundation for ongoing optimization.
Different Values for Different Activities
Beyond shared values, different areas of focus should possess different values.
Value
- Stewardship
- Impact
- Measurability
- Alignment
- Persistence
Leadership & Mgt
- Integrity
- Vision
- Courage
- Service
- Diplomacy
- Communication
- Transparency
Capability
- Mindfulness
- Holistic Thinking
- Skepticism
- Organizational Independence
Functionality
- Flexibility
- Relevance
- Usability
- End-to-End Thinking
Data
- Consistency
- Trust
- Governance
- Accessibility
Technology
- Scalability
- Reliability
- Security
Quality
- Excellence
- Thoroughness
- Consistency
- Skepticism
Change Management
- Empathy
- Participation
- Communication
- Growth
The Capability Success Taxonomy
Getting Capability right requires getting a hierarchy of things right. Explore the taxonomy of Capability critical success factors below. Click the grey + to reveal more detail.
Capability- Resources
- People
- Business Knowledge
- ERP Skills
- Leadership
- Financial
- Budget
- Contingency
- Technology
- Infrastructure
- Data Assets
- Tools & Platforms
- Partner & External Resources
- Vendor Expertise
- External Advisors
- Community
- Processes
- Governance
- Decision-Making
- Escalation & Resolution
- Risk Management
- Business
- Standardization
- Fit-to-Standard
- Continuous Improvement
- ERP Implementation Processes
- Processes to Support Each of the Eight Pillars
- Values
- Strategic Priorities
- Efficiency
- Growth
- Compliance
- Investment Appetite
- Cultural
- Risk Tolerance
- Innovation Mindset
- Collaboration Ethic
- Leadership
- Transformation
- Transparency
- Accountability
- Long-Term View
Capability in the Project Lifecycle
An overview of the activities for Capability success, by phase, from the beginning of the project. Click any of the phase buttons below for a summary.
