How quick can your organization respond to its constituents needs. How effective can it adapt to changing dynamics in the environment surrounding it? How efficient can it deliver its mission? The answer to these questions depends on what we call organizational capabilities.
Similar to an individual's ability, organizations have abilities to do certain things, these abilities combined with resources, assets, processes and skills form an organizational capability. A few examples of strategic capabilities are (1) The ability to innovate and be creative, (2) the ability to develop and deploy products in a compressed cycle, and (3) the ability to educate and train young people.
Are your capabilities well defined? Do you know how to improve them, and how to measure where these capabilities are enabling your stakeholders to realize the value proposition you are offering?
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