This paper defines key terms for the Improving the Effectiveness of EU Capabilities in Conflict Intervention (IECEU) project. The terms of focal interest are resources, capabilities, competences, together with effectiveness, efficiency, and success. Together they describe the projects interest in improving the capacity of EU missions and operations (capabilities) to achieve goals (effectiveness) through appropriate use of resources (efficiency) to deliver on EU objectives (success). The paper draws on strategic management literature to provide the theoretical basis and conceptual framework. Having described the interplay of resources, competences, capabilities, and objectives, the paper defines multi-level static, dynamic, and creative capabilities. It then goes on to consider the implications for CSDP and sets established headline civilian and military goals in the framework. There is a brief discussion on the need for comprehensive capabilities to deliver a comprehensive approach. Appendices are provided to indicate possible routes for empirical field work enquiries.