How to Assess Capabilities Before Investing in Training

By Steven Haines

Assess capabilities before selecting training by defining what people need to do, gathering evidence of their current knowledge and application, and identifying the gaps that matter most to the business. Use the findings to choose development priorities, not simply to produce scores.

A request for training is a starting point. It is not yet a diagnosis.

An executive might ask for business acumen development because recommendations lack financial reasoning. Another might request strategic thinking training because managers focus on immediate demands.

Those concerns deserve attention. Before choosing a program, clarify the work behind them.

Start with the business requirement

Ask the sponsor to describe the decisions or responsibilities that need improvement.

For example:

• Managers need to explain how their functions contribute to business results.
• Investment proposals need clearer assumptions and alternatives.
• Teams need to evaluate customer and competitive information.
• Leaders need to consider consequences beyond the current quarter.
• Cross-functional recommendations need a stronger connection to strategy.

These statements create a more useful assessment starting point than a general ambition to develop “better leaders.”

Next, define who is being assessed and why. The needs of newly appointed managers may differ from those of experienced functional leaders or a cross-functional leadership team.

The assessment should reflect the intended audience and purpose.

Distinguish knowledge from application

Knowing a concept and applying it are different questions.

A manager might understand the definition of margin but struggle to explain how a proposed discount affects the business. Someone might describe strategic thinking accurately but recommend action without examining alternatives or future consequences.

In The Business Acumen Handbook, I ask readers to consider whether they use a skill in a limited, intermittent, frequent, or consistent way. I also ask them to examine evidence and consider others’ perspectives.

That approach highlights an important distinction: a person’s development need may involve learning something new, applying existing knowledge, or using a capability more consistently.

Do not expect one type of evidence to answer every question.

Match the evidence to the question

Different assessment methods can serve different purposes.

A knowledge exercise can examine understanding of a concept. A case discussion can provide an opportunity to examine reasoning. A work sample can show how someone approached a real assignment. Feedback from colleagues can add perspectives on observed behavior.

These are possible methods, not interchangeable measures.

Before choosing an assessment, ask:

• What does this method examine?
• What conclusions can it reasonably support?
• What does it leave unanswered?
• How are results interpreted?
• What evidence supports the intended use?

If an assessment claims to provide comparisons or benchmarks, ask how those were developed and whether they are relevant to your population.

A useful report should make its limits clear.

Gather evidence without creating an unnecessary burden

An assessment does not have to become an elaborate project to be useful.

For an initial development discussion, consider a manageable combination of inputs:

• A sponsor conversation about business expectations.
• Participant reflection on relevant capabilities.
• A short exercise or selected work sample.
• A structured discussion of the findings.

For example, managers could submit a recent recommendation and explain the problem, evidence, alternatives, business implications, and expected result.

A reviewer can then examine the work against agreed criteria.

This is a proposed diagnostic approach. It should not be presented as a validated test or used to make claims that the evidence cannot support.

Check the conditions surrounding performance

An apparent capability gap may be influenced by the work environment.

A manager may understand how to evaluate an investment but lack access to cost information. A team may recognize a cross-functional problem but lack authority to resolve it. People may understand the strategy differently because the organization has not explained it consistently.

Ask what prevented effective application.

The findings may point toward training, clearer expectations, better information, coaching, or changes in how decisions are made.

That distinction helps avoid assigning a course to a problem that requires a different response.

Interpret patterns, not just averages

A group average can conceal meaningful differences.

Imagine an illustrative management group in which some participants have limited financial understanding, others understand financial concepts but struggle with customer analysis, and another group needs practice comparing strategic alternatives.

A single broad program may still provide a useful common foundation. However, the findings suggest that parts of the development should differ.

Look for shared needs and important variations. Do not assume everyone requires the same starting point, depth, or practice.

Also avoid treating a low score as a complete explanation of someone’s capability. Interpretation should consider the method, evidence, role, and opportunity to apply the skill.

Explain how the findings will be used

Before collecting information, tell participants the purpose of the assessment, who will see the findings, and how the results will inform decisions.

Be clear about whether the exercise is intended for individual development, group planning, or another purpose.

If the aim is development, the output should help people understand what to work on and how to begin.

A list of weaknesses without context or action is not a development plan.

Turn findings into a focused plan

For each priority, identify:

• The capability to strengthen.
• The evidence behind the priority.
• The appropriate learning or support.
• A work assignment in which to apply it.
• The person responsible for feedback.
• The evidence to review afterward.

If knowledge is the gap, provide instruction. If application is the gap, include practice and feedback. If the obstacle is organizational, assign responsibility for addressing it.

For 2027 development planning, an assessment should help answer a practical investment question: where will focused development be most relevant to the work people need to do?

Discuss your assessment needs

The Business Acumen Institute provides capability assessments, business acumen training, and strategic thinking training. Contact us to discuss what you need to understand about your team and how assessment findings could inform development priorities.

Adapted from assessment and development concepts in The Business Acumen Handbook by Steven Haines.