Sunday, May 29, 2022


 Either individually or collectively, at the organizational level, capability matters as it directly impacts performance of problem-solving with consistency.

In face of rapid change and fierce competitions, the dynamic digital organizations need to get away from change inertia, letting things fall apart; build a set of differentiated business capabilities with shortened delivery cycle. 

It is important to understand that digital business management is multifaceted and takes high-quality effort to identify capability gaps to achieve goals, enable organizations to thrive; start to learn how to connect the right dots, develop differentiated capabilities, improve organizational effectiveness and agility. 

Capability suitability: A strategically competent organization has a deliberately close alignment among the company’s strategic direction and most distinctive capabilities, to create synergies in strategy execution. Enterprise capability management consists of a portfolio of capabilities that are used in various combinations to implement the strategy and achieve business outcomes. To keep capability relevant and adequate, creating an organizational strategy-capability mapping helps to prioritize, set up goals for capability deployment and competence building, divest non-core capabilities, and free up resources that can be used to accelerate the development cycle of core competency.

To improve capability suitability, coherence, enable strategy management, and increase business competency, choose how to invest in the best of breed capability, improve the capability based on your enterprise strengths, and integrate them into differentiated competency; compare your set of capabilities with competitors' to ensure that it is developing differentiated capabilities to build long-term competency.

Capability uniqueness & integrity: All businesses have certain capabilities, what matters is digital capability’s uniqueness, sophistication (hard to copy, complexity, and maturity). Often, capability cannot be transferred because of the degree of organizational learning, culture ingredients or management expertise that the organization goes with. A business capability is unique and core because it offers a competitive advantage in delivering better products/services/processes to customers than competitors, and it supports the strategic direction of the organization.

Choose how to improve the capability based on your unique enterprise strengths, rooted in operational excellence which makes it difficult or even impossible for competitors to imitate. Digital capability is dynamic to adapt to the changing environment. If needed, repurpose, realign and configure well-designed components to build integral capabilities. To expedite capability development cycle, embed agility in processes, make iterative delivery and continuous improvement. Technically, integral capability is often nonlinear and synthetic in nature, combining the modular capabilities exposed in a platform to build unique and new capability, expand its impact.

Capability & governance:
Capability enables business strategy; governance improves business effectiveness and ensures the organization is run in the right direction. In many organizations that get stuck at the lower level of maturity, there are gaps existing in capability development because there are no governance processes to handle risks or uncertain situations, and there is no common set of rules to improve business effectiveness. From capability analysis to capability re-engineering to design a new capability, a strong governance discipline helps to set guiding principles, optimize business processes, develop the best practices, and improve capability manageability.

Corporate governance is most often viewed as both the structure and the relationships for enabling business capability development and performance assessment. There should be a governance mechanism embedded in crucial business processes, and governance practices to enforce accountability at every level of the organization to accelerate corporate capability development and optimization.

Either individually or collectively at the organizational level, capability matters as it directly impacts performance of problem-solving with consistency. From a management perspective, working with capabilities is that it keeps you from being dragged into all the detail of the processes that perhaps stop you from capturing the bigger pictures, ignoring the interconnectivity between different parts of the organization, allowing you to prioritize and focus on the coherence of critical success factors of the business such as leadership, people, process, technology, culture, resource enabled business abilities to realize business vision and improve organizational competency for the long run.


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