Business · Uncategorized

Driving meaningful business results: Why investing in capabilities matter

McKinsey & Company, a worldwide management consulting firm, defines capability as “anything an organization does well that drives meaningful business results.” Among all management strategies, the development of capability has remained the most consistent approach towards sustained success.

The Value of Mature Capabilities
Image Source: CMMI Institute, “Building Capabilities to Win”

According to a global survey conducted by McKinsey Global Institute, 50 percent of executives consider “building capabilities” as a top priority of their companies. Through process improvement trainings and appraisal programs such as the Capability Maturity Model Integration (CMMI), many organizations enable the assessment of their capability levels to build their capability to further enhance their processes and people.


Case in point is Siemens, the world’s largest European engineering company, which was able to successfully transition its focus from being a hardware company into a mature software organization. With the help of the CMMI institute—a global process improvement company that utilizes the Capability Maturity Model Integration (CMMI)—the engineering firm was able to identify skill and process gaps in its organization. Using this information, Siemens created a training and development program, which up to this day, empowers and educates its team members.

Since then, the European firm has seen to improve its efficiency, speed and quality in software development projects and has increased its customer satisfaction index in an average of 42 percent in three technical areas.

Like Siemens, many firms divert their focus on maturing their capabilities for performance improvement. Not only does it mitigate risks and decrease cost, but it also allows organizations to have higher customer satisfaction and improved quality in the delivery of its products and services.

Source: CMMI Institute, “Build Capabilities to Win”

A thought leader in IT-BPO, BPSource, Inc. was created to cater to the outsourcing needs of its mother company, SQME Professionals, Inc., a software engineering and quality management company that focuses on providing business enhancement services that are guided by the principles and methodologies of CMMI, International Organization for Standardization (ISO), and Six Sigma. Learn more about the company’s history by visiting this page.

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