Capability building

Orchestrating own and external capabilities to nurture innovativeness becomes the company’s ultimate success factor.

Today’s constantly evolving and increasingly demanding business world calls for evolution and development through ability to build new capabilities. Through organizational capability building, the skills and competences of individuals are converted into properties which benefit the organization as a whole.

Organizational growth through the individual

Show more

Capability building is about converting individual skills and competences into organizational properties. Common to any capability building activity is that during the process individuals have to learn, and in order to learn they have to make decisions about how to do things differently from how they did them in the past. If decision making takes place in a highly competitive environment, then improving decision making speed is vital. Companies are increasingly facing situations where capability building must address the challenge of both making things totally differently as well as achieving this at an accelerated pace. In Nokia the new CEO referred to such a challenge as a “burning platform”.

Long-term solutions

Show more

When building capabilities some basic considerations must be taken into account. Capability building is a highly context specific exercise. In most cases it requires efforts from the top management of the firm in the form of change management, constellation alignment, and internal coordination.  To secure the appropriate engagement of the participants the capability-building efforts should be aligned with the offering design activities providing an external motivation for the participants. The preference should be to generate initial results in flexible organizational arrangements in order to avoid  the process becoming too political. At the same time it should be kept in mind that capability-building looks for a long-term impact. The systemic structure embedded in the critical firm capabilities is highly idiosyncratic, and therefore difficult for competitors to imitate. This often provides the opportunity to achieve a sustainable competitive advantage. 

Case studies