Enterprise capabilities are typically expressed in generally high-level terms and require a combination of people, processes, and technology to achieve.
Capability analysis: business capabilities are different from the mere sum of individual abilities and skills of its members. It’s composed of people, process, and technology to produce certain business outcomes. To develop a set of unique business capabilities, you would have an external and an internal analysis of capability effectiveness. Processes underpin capabilities; you should have an in-depth understanding of what capabilities are critical to build the long-term competency for the business; identify capability 'patterns' of the enterprise to make holistic investment decisions.
Conduct a fit/gap analysis of business requirements vs. capability, identify areas in a capability portfolio that can be optimized. Also do cost-benefit analysis of business capability development by comparing investment cost to its anticipated financial benefit. Other criteria may include the importance of each capability to the enterprise; different weighting may be applied to the capabilities. The maturity of a business capability would be based on the ability to deliver on customer needs or to achieve the desired capability outcome.
Capability agility: There are competitions, conflicts, and controversies all over the place in today’s complex marketing environment. Business agility is the reciprocal of the lag time between recognizing an emerging business opportunity and being able to act on that opportunity. Dynamic capability improves business agility and effectiveness. Dynamic capabilities are the organizational and strategic routines by which firms achieve new resource configurations as markets emerge, collide, split, evolve, etc.
Capability agility improves business agility. Dynamic capability is a firm-specific resource/asset that is difficult if not impossible to imitate, enabling companies to drive change or solve problems timely. To accelerate the business capability development cycle for improving capability agility, companies can disentangle dynamic capabilities in clusters of processes and managerial orchestration, continue deploying their business assets and resources, designing and configuring or reconfiguring a set of differentiated business capabilities to shape differentiated business competency.
Governance isn’t just about putting restrictions on what you can do, it is about monitoring and knowing when things are not going to plan, you can predict and prevent, fix issues cost effectively. Besides principles, processes, practice, and mechanisms, enhancement, innovation, engagement, motivation, etc, are all crucial soft success factors of strong capability governance. That “engaging, motivating, innovating” are cultural issues, which need to be embedded in the policies, processes, procedures, and practices of the organization. It’s important to understand the human element, and harden the soft factors for enforcing GRC maturity. Strong governance enhances a culture of high performance and improves capability maturity.
Business capabilities are fundamental pillars to achieve the corporate strategy. Enterprise capabilities are typically expressed in generally high-level terms and require a combination of people, processes, and technology to achieve. Sophisticated capability is an acquired and organized "ability" within a company and takes hard work to put in place, it can therefore not be transferred because of the degree of organizational learning and organization that goes with it. Organizations need to continue doing capability analysis, improving capability agility and enhancing capability governance discipline and practices.
0 comments:
Post a Comment