Organization capability building is not an isolated business activity, but a cross-disciplinary management effort.
Business capabilities become more dynamic and interdisciplinary to adapt to the fast pace business environment. Thus, organizational leaders and professionals should spend reasonable time on making an objective assessment, fine tuning organizational capability and increasing capability coherence.
Components in capability development: There are different views and multiple perspectives to understand a capability. Processes underpin capabilities, and capabilities are processes viewed strategically. Capabilities are also resources required for business purposes and goals. Once you know your customers' needs and the gaps you need to bridge, you should then be able to define capabilities which are needed to meet the needs of customers. Organizational capabilities can contain many services, processes, and functionalities to perform a set of activities for achieving successful outcomes, whether financial or brand.
There are many crucial components in capability development, such as people with the appropriate skills, knowledge, experience, attitudes and behaviors, process with associated activity/decision descriptions, input/output descriptions, technologies such as information systems, or other tools, resources, etc. Corporate governance can be viewed as both the structure and the relationships for enabling business capability building or determining performance.
Capability integration, agility, coherence: Organizational capabilities underpin corporate strategy management. The capability based strategy has a significant high success rate. High performing businesses depend on their differentiated sets of business capabilities to produce better than expected business outcomes consistently. In order to adapt to the over-complex and ever-evolving business ecosystem, it is important to put simplification and integration ahead of dynamic capability design and development. Business capability is synthetic in nature, setting simplexity as a principle, embedding agility in processes and focusing on building long-term organizational competency.
The business capability development moves from static to dynamic, transactional to transformational, linear to nonlinear to solve more complex problems effectively on-time. Capability coherence is a decisive factor for strategy management. To achieve capability coherence, choose how to improve the capability based on business strengths for investing in the best of breed capabilities. The management also needs to pay continuous attention to technical excellence and good design for enhancing capability agility. Some relevant capabilities can be integrated into unique business competencies to solve more complex problems.
Capability assessment & optimization: Organizational capability development is an ongoing continuum. The management needs to make an objective assessment periodically. What capabilities (abilities, competencies) do we have/need, what are the capability gaps that need to be bridged to unlock business performance. The capability assessment can be accomplished by evaluating the process impact on capability; the technology impacts on process efficiency, the people's impact on capability effectiveness; the degree of value creation, and the overall capability portfolio effectiveness and maturity.
In today’s business dynamic, business leaders today need to identify the capability gaps for strategy management; have an in-depth understanding of what capabilities are critical to building the differentiated competency, look ahead and be proactively looking for opportunities to improve. The organizational capability checkpoint is a generic progress checking that inspect different layers of capability granularity, to make sure different capabilities could be combined in different fashions to yield multiple competencies based on multilayered and integral business capabilities for accelerating business performance.
Every business is different, and they are at the different stages of business maturity. Organization capability building is not an isolated business activity, but a cross-disciplinary management effort. High-innovative organizations won’t imitate, but build their set of dynamic capabilities and differentiated competency, continue to upgrade organizational capabilities with repurpose, realignment, and reconfiguration for reaching the next level of business growth, innovation, agility and maturity.
Components in capability development: There are different views and multiple perspectives to understand a capability. Processes underpin capabilities, and capabilities are processes viewed strategically. Capabilities are also resources required for business purposes and goals. Once you know your customers' needs and the gaps you need to bridge, you should then be able to define capabilities which are needed to meet the needs of customers. Organizational capabilities can contain many services, processes, and functionalities to perform a set of activities for achieving successful outcomes, whether financial or brand.
There are many crucial components in capability development, such as people with the appropriate skills, knowledge, experience, attitudes and behaviors, process with associated activity/decision descriptions, input/output descriptions, technologies such as information systems, or other tools, resources, etc. Corporate governance can be viewed as both the structure and the relationships for enabling business capability building or determining performance.
Capability integration, agility, coherence: Organizational capabilities underpin corporate strategy management. The capability based strategy has a significant high success rate. High performing businesses depend on their differentiated sets of business capabilities to produce better than expected business outcomes consistently. In order to adapt to the over-complex and ever-evolving business ecosystem, it is important to put simplification and integration ahead of dynamic capability design and development. Business capability is synthetic in nature, setting simplexity as a principle, embedding agility in processes and focusing on building long-term organizational competency.
The business capability development moves from static to dynamic, transactional to transformational, linear to nonlinear to solve more complex problems effectively on-time. Capability coherence is a decisive factor for strategy management. To achieve capability coherence, choose how to improve the capability based on business strengths for investing in the best of breed capabilities. The management also needs to pay continuous attention to technical excellence and good design for enhancing capability agility. Some relevant capabilities can be integrated into unique business competencies to solve more complex problems.
In today’s business dynamic, business leaders today need to identify the capability gaps for strategy management; have an in-depth understanding of what capabilities are critical to building the differentiated competency, look ahead and be proactively looking for opportunities to improve. The organizational capability checkpoint is a generic progress checking that inspect different layers of capability granularity, to make sure different capabilities could be combined in different fashions to yield multiple competencies based on multilayered and integral business capabilities for accelerating business performance.
Every business is different, and they are at the different stages of business maturity. Organization capability building is not an isolated business activity, but a cross-disciplinary management effort. High-innovative organizations won’t imitate, but build their set of dynamic capabilities and differentiated competency, continue to upgrade organizational capabilities with repurpose, realignment, and reconfiguration for reaching the next level of business growth, innovation, agility and maturity.
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