7.2
Francesca Toolkit
Circular Capabilities Framework
The Circular Capabilities Framework is a structured diagnostic tool designed to help organisations identify, assess, and prioritise the organisational capabilities required to design, implement, and scale circular business models. By mapping readiness across nine capability dimensions, the tool produces a capability profile that reveals where an organisation has established solid foundations and where significant gaps remain. The tool is grounded in the dynamic capabilities perspective (Teece, 2007; Eisenhardt & Martin, 2000), which holds that sustained competitive advantage in circular transitions depends not only on resources but on the higher-order capabilities to sense opportunities, seize them through adapted business models, and reconfigure internal processes and assets accordingly. Applied to circular economy contexts, these capabilities span strategic leadership, design thinking, operational execution, supply chain collaboration, digital infrastructure, customer engagement, financial analysis, and cultural change management.
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Phase
Format
Expertise
Objective
The Circular Capabilities Framework is a structured diagnostic tool designed to help organisations identify, assess, and prioritise the organisational capabilities required to design, implement, and scale circular business models. By mapping readiness across nine capability dimensions, the tool produces a capability profile that reveals where an organisation has established solid foundations and where significant gaps remain.
The tool is grounded in the dynamic capabilities perspective (Teece, 2007; Eisenhardt & Martin, 2000), which holds that sustained competitive advantage in circular transitions depends not only on resources but on the higher-order capabilities to sense opportunities, seize them through adapted business models, and reconfigure internal processes and assets accordingly. Applied to circular economy contexts, these capabilities span strategic leadership, design thinking, operational execution, supply chain collaboration, digital infrastructure, customer engagement, financial analysis, and cultural change management.
What the Tool Is
The framework assesses capability readiness through 45 diagnostic questions across nine dimensions, using a 0–3 maturity scale. Results are automatically aggregated and visualised as a radar chart, offering a clear snapshot of the organisation’s circular capability profile and supporting targeted action planning.
When to Use the Tool
The Circular Capabilities Framework is particularly useful when organisations are:
- Preparing for or launching a circular business model transformation and needing to understand where capability gaps may slow implementation.
- Following up on a circular vision or strategy exercise and wishing to identify the enabling capabilities required to execute it.
- Conducting an internal baseline assessment before entering a circular innovation pilot or partnership programme.
- Preparing a capability development plan to present to leadership, boards, or investors as part of a circular transformation programme.
- Comparing capability readiness across business units, subsidiaries, or partner organisations within a shared ecosystem.
- Identifying priority areas for training, recruitment, process improvement, or technology investment in support of circular goals.
- Monitoring the development of circular capabilities over time by re-applying the tool at defined intervals (e.g. annually or following major organisational changes).
Expected Output
Completing the tool produces:
- A scored capability profile covering 45 diagnostic questions across nine circular capability dimensions, providing a granular map of organisational readiness.
- Dimension-level average scores (0–3) with maturity level labels (Not in place / Emerging / Partially implemented / Fully implemented) and short interpretive guidance for each dimension.
- An overall circular capability score summarising the organisation’s aggregate maturity level across all nine dimensions.
- A radar chart visualisation of the capability profile, suitable for inclusion in management presentations, strategy documents, or external reporting.
- A prioritised list of capability gaps and development areas derived from the dimension-level results and interpretations.
- A live diagnostic instrument that can be re-applied at future intervals to track capability development progress over time.
Read the Introduction sheet
Open the Introduction sheet first. It explains the tool’s objective, the nine capability dimensions, the four-point maturity scale, and the workflow connecting all sheets. Familiarise yourself with the terminology before entering any scores.
Complete the Questionnaire sheet
For each of the 45 diagnostic questions, enter a score between 0 and 3 in the Score column. Use the maturity scale as your reference. Scores should reflect the current state of the organisation, not its aspirations or plans. Where uncertainty exists, use team discussion to reach a consensus score rather than selecting a default.
Review the Results sheet
Scores automatically aggregate into average scores per capability dimension. The Results sheet displays the average score (0–3), the corresponding maturity level label, a visual bar representation, and a short interpretation for each dimension. Review these results as a team to validate whether the aggregated scores reflect collective experience.
Examine the Chart sheet
The Chart sheet generates a radar diagram visualising the organisation’s capability profile across all nine dimensions. A larger shaded area indicates stronger overall capability readiness. Concentrated gaps in the radar highlight the dimensions most in need of development attention.
Consult the References sheet
The References sheet lists the academic sources underpinning the framework. Consult it to deepen understanding of specific dimensions or to support internal or external reporting with bibliographic references.
Translate findings into action
Use the capability profile and dimension-level interpretations to identify priority development areas. Dimensions scoring below 1.5 (Emerging or Not in place) typically require foundational capability-building actions. Link identified gaps to the FRANCESCA Circular Transition Roadmap (Tool 9.1) to translate assessment findings into structured objectives, owner-assigned actions, and time-bound implementation plans.
The framework covers nine capability dimensions. Each dimension contains five diagnostic questions probing distinct capability areas within that domain.
Office furniture remanufacturer: An office furniture remanufacturer establishes a take-back logistics system and refurbishment facility to recover used workstations from corporate fit-outs and return them to the market — an operating model comparable to Rype Office.
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