Why Do Companies Need a Capability Matrix? FREE Template

Why Do Companies Need a Capability Matrix? FREE Template

Business leaders face the challenge of growing their teams’ knowledge, skills, abilities, tools and processes, according to the capabilities required for business growth. A good capability matrix and capability assessment offer business leaders a framework to consider the capabilities of the entire team in relation to the bigger picture of client satisfaction and business longevity. 


  1. What is a Capability Matrix?
  2. Benefits of a Capability Matrix
  3. How is a Capability Matrix Used
  4. More than a Skill Matrix or Competency Matrix
  5. Capability Matrix Software
  6. Creating A Capability Matrix for Your Business
  7. Download a Free Capability Matrix Template

Download a Free Capability Matrix Template

Before we dive into learning more about capability matrices, it’s time to get one set up for your business. We’ve created the perfect free capability matrix template for you to download so that you don’t have to spend the time creating one yourself.

Download a free capability matrix template

What is a Capability Matrix?

A capability matrix is an important tool for business leaders to track employee skill sets, knowledge, expertise and behaviour in relation to business goals and strategy.

A capability matrix contains a broad range of performance expectations for job roles involved, allowing team leads to track skill gaps and behavioural indicators of their team members. An organisation makes use of its capability matrix to gain insights and data for long-term talent strategy and business growth. 

Note: Skill gaps are a lot more prevalent than we think. A recent study shows 43% of organisations are currently facing this threat. 

Benefits of a Capability Matrix

1) Manage talent pool

Tracking the capabilities of various teams across organisations enables managers to look into the bigger picture of talent management and employee training. A capability matrix can help business leaders put the right people into the right roles, encouraging the learning of new critical skills across different business areas.  

2) Boost business growth

Factors which contribute towards business growth, such as employees’ productivity and efficiency are accounted for in an organisation’s capability matrix, helping managers to access performance data insights in order to evaluate employees’ performance and strategies for overall business gain. When presented with details on employee performance, managers can then identify ways and methods to develop their teams’ potential to create focus and quality for business growth. 

Prioritising the development of staff competencies will result in the improvement of employee performance, making necessary adjustments to help team members attain their work goals. Improvements in productivity and profit margin can be tracked in a capability matrix which focuses on strengthening an organisation’s talents for the future. 

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3) Encourage internal mobility and succession

For employees, knowing where they stand on a capability matrix provides a stronger sense of alignment with their job roles and career growth possibilities. Conversations between managers and team members can take place, on individual growth in terms of how to deliver better in one’s job role, as well as relevant opportunities in different roles in the organisation where one can assume more responsibilities.

Using a capability matrix to support key staffing decisions ensures the growth of existing talent in the organisation based on their potential and aptitudes, proving to be more useful for long-term strategic talent management to support business goals. Resources spent on hiring and training new staff can then be allocated elsewhere. 

How is a Capability Matrix Used

The first step to designing your organisation’s capability matrix is to define long-term capability goals in line with the strategic vision of the company, in collaboration with the higher management. The long-term capability goals are then structured into specific capability matrices for individual departments and even employees.

It is the responsibility of department managers and their subordinates to track how their current capabilities stand in line, according to the goals set in the capability matrix for your organisation. Employees and managers should review their capability matrix routinely once or twice a year to keep the capabilities tracking up-to-date. The best way to handle this is through capability assessments.

The capability matrix allows management and staff to have a clear overview of existing and desired capabilities for the organisation. The gap between the existing capabilities and desired capabilities can then be identified and addressed. Managers and staff can then chart their learning goals and seek training in terms of new skills and competencies, as well as to strategise their daily job routines to be in line with the company’s overarching direction and vision.

It also allows managers to recognise what to look out for in potential new hires who can help the organisation to stay competitive in the market, other than to chart individual growth plans for existing employees, which can help to reduce turnover and retain talent.  

More than a Skill Matrix or Competency Matrix

Going beyond a skill matrix or competency matrix, a capability matrix maps visual data on an employee’s knowledge and abilities, proving to be more valuable for businesses when it comes to making strategic talent decisions and charting business growth. A capability matrix can have a skill matrix incorporated within, where employees update new skills and interests acquired.

A good capability matrix is a 360-degree mapping of skills and competencies, with updates and data input by both staff and management. Allowing employees to complete their skills and competencies tracking spurs them to grow according to the demands of their job roles and the organisation’s business needs.

Adopting a capability matrix is of utmost importance as tracking capabilities provides a sustainable framework for organisations, with a capability matrix indicating traits of behaviour and other measures of potential, forming a clear and powerful picture to identify progress, address gaps and chart business outcomes.

Note: There are other matrices that can benefit your business, like a risk assessment matrix. Download our free template to start identifying threats to your business.

Capability Matrix Software

A good capability matrix software ought to be easy to roll out and maintain so that you can successfully implement it to provide easy access to both management and staff to track capabilities. A capability matrix that is easy to update and manage will help teams take charge of their pursuit of knowledge and learning, boosting employees’ motivation to acquire new abilities to excel in their job roles and functions. 

Not only should the software provide a matrix of your company’s capabilities, but it should also have built-in assessments to gauge current levels. This will allow management and staff to gain insight into how each team member can grow along with the business in future. 

And to complete the puzzle, software like Cloud Assess offers training to help upskill your employees. From assessment to training, good employee training software should provide it all. 

Creating A Capability Matrix for Your Business

A good capability matrix can help your organisation to reach new heights and sustainable growth. Capture your team’s current capabilities, chart desired capabilities for long-term business goals, based on industry trends and business needs, so that you can capitalise on potential opportunities. A good capability matrix software is essential for learning and development goals for your organisation. Cloud Assess offers a free trial for you to build your organisation’s capability matrix today.

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