- all organizations have capability - the way works are being doen: flexibly coping with ; knowledge of asset class; identifying and fixing problems iteratively; transactive memory, building trust - manufacturing, software development (automated testing, documentation, code review, cad), product development - target performance (high quality widgets you produce in a month) - multiple allocation due to different types of capability - prevent fire fighting and corner cutting - how performance(capability, effort) - two platforms, same organization, different results: bugs/customer/time -