Monday, April 4, 2011

Capitalizing on capabilities .......

In the Harvard Business Review from june 2004 I found the following article: 'Capitalizing on Capabilities' written by Dave Ulrich and Norm Smallwood.

I would like to share it because the content is strongly related to talent development.

'Capabilities - the collective skills, abilities, and expertise of an organization - are the outcome of investments in staffing, training, compensation, communication, and other human resources areas. They represent the ways that people and resources are brought together to accomplish work. They form the identity and personality of the organization by defining what it is good at doing and, in the end, what it is. They are stable over time and more difficult for competitors to copy than capital market access, product strategy, or technology.'

'Organizational Capabilities Explained while people often use the words "ability," "competence," and "capability" interchangeably, we make some distinctions. In technical areas, we refer to an individual's functional competence or to an organization's core competencies; on social issues, we refer to an individual's leadership ability or to an organization's capabilities.'

Capabilities Audit

'How to Perform a Capabilities Audit A capabilities audit will help you gauge-and ultimately boost-your organization's intangible value. First, select a business unit (plant, division, region, zone, industry).
Then, using the following questions as a guide-and keeping in mind your overall business strategy-assess the unit's performance in each organizational capability (0 = worst; lO = best), and rank the capabilities in terms of improvement needed (1=highest priority, 2 next highest, and so on).'

Talent: We are good at attracting, motivating, and retaining competent and committed people

Speed: We are good at making important changes rapidly

Shared Mind-Set and Coherent Brand idenity: We are good at ensuring that  employees and customers have positive and consistent images of and experiences with our organization

Accountability: We are good at obtaining high performance from employees.

Collaboration: We are good at working across boundaries to ensure both efficiency  and leverage.

Learning: We are good at generating and generalizing ideas with impact.

Leadership: We are good at embedding leaders throughout the organization.

Customer Connectivity: We are good at building enduring relationships of trust with targeted customers

Strategic Unity: We are good at articulating and sharing a strategic point of view.

Innovation: We are good at doing something new in both content and process.

Efficiency: We are good at managing costs.

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