The goal of organizational capability management is to ensure that strategic goals can be accomplished consistently and reach the next level of business maturity.
Either individually or at the organizational level, capability is the ability to achieve the desired effect under specified performance, standards, and conditions through combinations of ways and means to perform a set of activities. It’s important to gain an in-depth understanding of what capabilities bring core professional advantage and invest accordingly in developing and sustaining valued differentiated business competency.
Vision and capability: Vision is required at any given stage of a professional growth stage and organization’s life span. Vision comes from intuition, experience and looks at reality with future perception. In a dynamic business environment, a vision statement describes a journey rather than a destination for keeping the team on the same page. Given that a change vision includes a coherent statement of what the desired future state can be and focuses on common goals, everyone must have the same definition of the future and make it relevant to all levels of the organization.
You have a vision of what you are to become. A vision should be attainable subject to current times and its ability to adapt to changing times. If you set a vision that is completely unrealistic, it becomes a negative motivator. , Business capabilities should make vision reachable and “make strategy happen. Technically, you need business capabilities to enable business strategy management, help organizations reach clearly-defined visions and lead business forward in a structural way.
Strategy and capability: You need to have a strategy for making the vision happening. Vision statement is very difficult to establish if the company doesn’t have a strategic analysis. The business capability is the decisive factor for the success of strategy implementation. A cohesive set of business capabilities builds into the organizational competency. If you need to modify one of those capabilities, or develop new products/services/ solutions to delight customers. The capability enabled strategy has a high success rate to reach the well-defined vision.
It is advisable for any organization to adapt step by step to manage strategy and build internal capability with it. It’s also important to create the mapping between capability and strategy. Organizations should do the best they can with existing products/services/ customers and spend a lot of time on future products/customer exploration. Dynamic capability accelerates business speed, builds the organization’s strengths in core areas. It takes time and effort to build high mature capabilities and core competencies. Loose coupling makes it possible to change the components of a capability and keep improving organizational core competency.
Performance & capability: Organizational capability matters as it directly impacts performance of problem-solving with consistency. Organizations arise when the scale of the interrelations, interactions amplifies the collective capability to achieve more values for the organization. Most organizations fail to manage performance effectively because they focus on improving the processes or implementations of performance management or evaluation. They fail to assess and improve organizational capability coherence.
It’s important to define the right performance measurements and KPIs, track them down, and know what to do with them, and make an objective assessment of performance improvement. In order to adapt to the dynamic changing environment, organizations should consolidate, modernize, integrate, innovate, and optimize business processes, products, services into dynamic business capabilities all the time, make proper adjustment to the changing environment, and unlock business performance consistently.
There are different levels of capabilities. Business capabilities move from base or competitive level to differentiated level. Individually, discover the strength that can be transformed into a core capability if it aligns with the professional goals. In the business, organizational leaders and professionals should spend reasonable time on making an objective assessment, fine tuning organizational capability and increasing capability coherence. The goal of organizational capability management is to ensure that strategic goals can be accomplished consistently and reach the next level of business maturity.