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My understanding was that you would need one for each ballast, and that it would have to be inline between the harness and each one.
The diagram below shows essentially the same thing in terms of placement. Since there will be a capacitor for each ballast, it will look the same as your interpretation, just with a red (+) and black (-) wire going to the correct end of the capacitor and then to the plug.
Maybe think of it as laying the capacitor on top of the existing lines rather than severing the harness.
You have the capacitor wired correctly, so its just a matter of putting it inline between
-----(+) -----\
[harness] [cap] ------[plug]--[ballast]
-----(-)------/
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