Corporate capability represents the identity of your firm as perceives by both your employees and customers.

Resources and Capabilities

Capability is a capacity for a set of resources to perform a stretch task integratively or, better yet, synergistically. It is your ability to perform better than competitors using a distinctive and difficult to replicate set of business attributes.

Corporate Capabilities Sustainable Competitive Advantage Business Processes Business Enablers Leaders Team Building and Teamwork Employee Empowerment Knowledge Management People Power Value Chain Management Sustainable Value Creation Corporate Vision, Mission, Goals Shared Values Winning Organization Innovation System Distinctive Capabilities Master of Business Synergies (MBS) Corporate Capabilities: Definition and Characteristics

 
World's #1 Innompic Games

Coaching by Example: Distinctive capabilities helped me to launch a civilizational breakthrough and to build Innompic Games as a relentless trend setter and the World's #1 in many areas.

  

 

 
 

Capabilities are the Basis of Your Competitive Advantage

Corporate capabilities are basic building blocks of your firm and the basis of your competitive advantage and the resource-based model of strategic management. According to the resource-based view of the company, sustainable competitive advantage is achieved by continuously developing existing and creating new resources and capabilities in response to rapidly changing market conditions. Among these resources and capabilities, in the new economy, knowledge and creativity represent the most important value-creating assets.

Through continued use, capabilities become stronger and more difficult for competitors to understand and imitate. As a source of competitive advantage, a capability should be sophisticated enough to be difficult to imitate by competitors, and simple enough not to dominate corporate management. Capabilities grow through use, and how fast they grow is critical to your business success.
 

Capability Approach to Strategic Management  →  Strategy Implementation

  

 

 

 

Strategic Simulation Games

Strategic simulation games, like INNOBALL, can help enhance corporate capabilities dramatically – fast! Within few hours, a strategic simulation game can boost innopreneurial skills of employees and their intellectual teamwork and to strengthen the company’s strategic business design significantly.

   INNOBAL strategic entrepreneurial simulation game virtuous spiral of growth

 

 

 

  

 

  

 

 

 

 

 

 

Characteristics of a Capability2

  • Is built around a tight business focus closely linked to the company's mission and → values

  • Is based on → value proposition which can be measured in terms of time, value, or cost

  • Is a corporate property, and therefore it is a corporate responsibility to ensure its development and deployment

  • Is broadly based across the → value chain

  • Consists of an integrated set of enablers across business functions:

    • Organization's knowledge and skills

    • Business processes and organizational structure

    • Supporting systems and technology

    • Positional assets and/or resources

     

    → 6Ws of Corporate Growth

Building Capability through → Leadership Attributes

→ Leaders are responsible for building organizational capability. You need the ability to translate organizational direction into roadmaps, → vision into → action, and purpose into process. To do so, you must demonstrate at least five abilities7:

→ How To Overcome Resistance to Change: Kore 10 Tips

 

 

→ Balanced Organization

5 Basic Elements

Corporate Capabilities (Wood):

→ 9 Signs of a Losing Organization

 

 

Distinctive and Reproducible Capabilities

The opportunity for your company to sustain your competitive advantage is determined by your capabilities of two kinds – distinctive capabilities and reproducible capabilities – and their unique combination you create to achieve synergy.

Your distinctive capabilities – the characteristics of your company which cannot be replicated by competitors, or can only be replicated with great difficulty – are the basis of your sustainable competitive advantage. Distinctive capabilities can be of many kinds: patents, exclusive licenses, strong brands, effective leadership, inspired and empowered people, synergistic teamwork, tacit knowledge, or trust-based working relationships.

Reproducible capabilities are those that can be bought or created by your competitors and thus by themselves cannot be a source of competitive advantage. Many technical, financial and marketing capabilities are of this kind. Your distinctive capabilities need to be supported by an appropriate set of complementary reproducible capabilities to enable your company to sell its distinctive capabilities in the market it operates.

Master of Business Synergies (MBS)

A corporation that builds on → core competencies utilizes skills that combine to strengthen → value chains and build greater competitive advantages. This leads to synergies among business units, whereby they become more productive together than independently.  >>>

Coherence

Coherence is the glue that binds various pieces of your firm together, enabling the to act as one. Anyone who wants to → achieve solutions to the → problems of tomorrow must acquire this vital trait – coherence. You cannot realize the benefits of the new → business model without this glue that holds together its elements. Coherence is what makes a corporation greater than the sum of it parts... More

7 Dimensions of Strategic Innovation

→ Systemic Innovation: 7 Areas

The Strategic Innovation framework weaves together seven dimensions to produce a range of outcomes that drive growth.

Core Technologies and Competencies is the set of internal capabilities, organizational competencies and assets that could potentially be leveraged to deliver value to customers, including technologies, intellectual property, brand equity and strategic relationships... More

Creating Competitive Disruption

→ Blue Ocean vs. Red Ocean Strategy

The principles of competitive disruption can help you create temporary advantage by combining a vision of disruption with the capabilities necessary for disruption, and by obtaining advantage through tactics. The two fundamental capabilities necessary to create disruption are speed and → surprise.  >>>

→ 3Ss of Winning in Business

→ Creating Sustainable Profits: 9 Questions To Answer

Organizational Capability Approach vs. Traditional Functional Paradigm

In the capability model, → senior managers are predominantly concerned with issues about the quality of products and services provided to customers (external and internal), the flow of value-added work, and roles and responsibilities... More

MegaChange – a New Approach to Organizational Transformation

MegaChange3 is a total systemwide → cultural transformation of your organization. It means designing and transforming organizations based on assumptions of human capability rather than limitations... More

→ Why Change Fails: 8 Common Errors

Case Studies British Petroleum (BP)

To enhance organizational capability, BP reduced or removed central functions, and business units were empowered to chose their own routes to implement changes. A flat organization was established. The number of management levels was reduced from 13 to 5... More

 

 

    

 

 

Strategic Achievement: Organizational Capability Approach

Organizations that excel at strategy execution and strategic achievement know how to create sustainable value for customers and shareholders through defining key organizational capabilities and applying a balanced approach to business systems... More

 

References:

  1. "Strategic Management - Competitiveness and Globalization", M.A. Hint, R.D. Ireland, and R.E. Hoskisson

  2. "The Centerless Corporation", Bruce A.Pasternack and Albert. J. Viscio

  3. "Strategy and the Delusion of Grand Designs", John Kay

  4. "Investment in Strategic Assets: Industry and Firm-Level Perspectives", P.J.H.Schoemaker and R. Amit

  5. "MegaChange", William E. Joyce

  6. "Results-Based Leadership", Dave Ulrich, Jack Zenger, and Norm Smallwood

  7. "Strategic Management: Competitiveness and Globalization", Edition 4, Thomson Learning

  8. "Strategic Achievement", Andrew Spanyi