Why I believe the Chief Capability Officer will become one of the most important roles of the AI era
By Deana Nannskog
Most organisations still operate with fragmented ownership of capability. HR owns skills. IT owns systems. Strategy owns direction. Nobody owns the full system. In the AI era, that gap has become a liability.
Most organisations are still structured for a world where change happened periodically.
- A strategy was created.
- A transformation programme was launched.
- People were trained.
- Systems were implemented.
- The organisation adjusted.
- Then things stabilised for a while.
That world is disappearing.
In the AI era, organisations are entering a state of continuous adaptation. Markets shift faster. Technology evolves faster. Knowledge expires faster. Entire workflows can change in months rather than years.
And yet many organisations still operate with fragmented ownership. HR owns skills. IT owns systems. Strategy owns direction. Operations own execution. Innovation owns the future. Finance owns investment logic.
Each function may be doing important work. But the organisation often lacks one shared view of what it must actually become able to do.
The historical roots of fragmentation
This fragmentation has deep historical roots. Much of modern organisational design still reflects principles from the industrial era and the division of labour models associated with thinkers such as Adam Smith and later Frederick Taylor. Breaking work into specialised functions dramatically improved efficiency and scalability during industrialisation. But it also created organisational silos optimised for stability, predictability and repeatability.
That model worked well in environments where change was slower and work could be standardised.
The AI era changes the equation. Today, organisations must coordinate across constantly shifting systems where technology, customer behaviour, regulation, workforce dynamics and business models evolve simultaneously. Work is becoming less about isolated task execution and more about dynamic coordination, judgement and adaptation across functions.
The challenge is no longer only labour division. It is capability integration.
That is why I believe a new role will emerge over the coming decade.
The Chief Capability Officer
- Not as a rebranded HR role.
- Not as another transformation office.
- Not as a generic future-of-work function.
But as a central leadership role responsible for understanding, designing and orchestrating capability across the enterprise.
"In the AI era, capability becomes infrastructure."
What a corporate organisation must be able to do now
Modern organisations need more than isolated initiatives. They need repeatable capability in the activities that determine whether strategy becomes value.
They must be able to:
- Translate strategy into the capabilities required to deliver it.
- Understand which work creates value and which work creates noise.
- Redesign work before automating it.
- Identify where AI can improve, augment or replace parts of workflows.
- Build skills where they matter most, not everywhere at once.
- Connect skills, roles, jobs, processes, data and systems.
- Make better decisions under uncertainty.
- Move knowledge across functions before it becomes trapped in silos.
- Create conditions where people can use judgement, not only follow process.
- Measure whether capability is growing, not only whether activity is happening.
These are not side activities. They are now core organisational activities. And yet in many companies, nobody owns the full system.
From fragmented initiatives to enterprise capability
A corporate organisation can have a skills strategy, an AI roadmap, a transformation portfolio, a learning academy, a digital workplace programme, an innovation agenda, and a leadership model. All of them can be well designed in isolation.
But if they are not connected, they do not compound. The organisation becomes busy, but not necessarily more capable.
Research from McKinsey, Deloitte and the World Economic Forum increasingly points toward the same conclusion: organisations struggle not because they lack initiatives, but because they struggle to align people, systems, workflows and leadership around shared capability development.
McKinsey has repeatedly highlighted that transformation success depends on organisations building capabilities that persist beyond individual programmes or change efforts. The World Economic Forum's Future of Jobs research similarly shows that employers increasingly prioritise adaptability, systems thinking, collaboration and resilience alongside technical skills.
This is the gap the Chief Capability Officer would close.
The role would ask:
- What must this organisation become able to do?
- Where does that capability need to live?
- What human skills, technological systems, operating conditions and leadership behaviours are required?
- Which initiatives are building the same capability, and which are pulling in different directions?
- Where are we investing heavily without seeing capability accumulate?
- Where are we measuring activity instead of value?
Capability is not only a people question
This is why the role cannot sit comfortably inside one traditional function. Capability is not only HR. It is not only technology. It is not only strategy. It is not only operations. Capability lives in the connection between them.
It is created when people, systems, structures, data, incentives, learning and leadership all support the same ability to perform.
A Chief Capability Officer would therefore need portfolio understanding. Not project portfolio management in the narrow sense. Portfolio understanding as the ability to see how strategic capabilities connect across the organisation, where synergies exist, where duplication drains energy, and where critical gaps threaten execution.
The new capability agenda
In practice, this role would help an organisation build capability in areas such as:
- AI-enabled work redesign
- Skills intelligence and workforce planning
- Decision-making under uncertainty
- Innovation capability
- Leadership adaptability
- Cross-functional collaboration
- Learning embedded in work
- Data and technology adoption
- Change readiness
- Human-centred automation
- Value realisation
The point is not to own all these domains. The point is to connect them. Because the future organisation cannot afford separate strategies for people, technology, transformation and value. It needs one capability system.
Why this role matters now
Artificial intelligence is changing the economics of knowledge work. As intelligence becomes more abundant and embedded into systems, the differentiator is no longer only access to information or expertise. The differentiator becomes the organisation's ability to use intelligence well.
That means better judgement, stronger coordination, clearer priorities, faster learning, more responsible automation, and a deeper understanding of where human value still matters most.
The industrial era optimised labour division. The AI era will increasingly reward capability integration.
This is why I believe the Chief Capability Officer may become one of the defining leadership roles of the next decade. Not because organisations need another executive title.
Somebody must help the organisation continuously answer the most important capability question: What must we become able to do now, and how do we build that ability together?
Related reading
- What is Capability Architecture? The discipline connecting strategy to repeatable value
- Capability Architecture in practice: shared language, capability map, conditions and feedback
- From intent to value: why most capability investments miss the point
- Book Deana Nannskog as a keynote speaker on Capability Architecture and AI transformation
References
- Deloitte. (2024). 2024 global human capital trends: Thriving beyond boundaries. Deloitte Insights.
- McKinsey & Company. (2023). The state of organizations 2023. McKinsey & Company.
- Smith, A. (1776). An inquiry into the nature and causes of the wealth of nations. W. Strahan & T. Cadell.
- Taylor, F. W. (1911). The principles of scientific management. Harper & Brothers.
- Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640
- World Economic Forum. (2025). The future of jobs report 2025. World Economic Forum.