Capability management

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

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:

• Assists organizations to better understand, and effectively integrate the total enterprise ability or capacity to achieve strategic and current operational objectives; and
• Develops and provides solutions that focus on the management of the interlinking functions and activities in the enterprise's strategic and current operational contexts.

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.