define

organisational capability

Having a very clear knowledge of what your organisation does well today and what it needs to do well in the future to achieve your strategic and tactical goals is a critical leadership responsibility. Only then can you deal with particular gaps that may be holding your business back.

Organisational capability is the sum of the systems and processes you have in place, the established cultural norms and the competence of your people. Add to that, relevant external factors in your marketplace, supply chain and regulatory environment. All together, they predict just how effective the execution of your strategy will be.

Organisational Capability

People need to understand and have a shared commitment to strategic goals. Policies and procedures must support them. In fact, everything the organisation does must align with and be guided by strategy.

A major challenge for leaders is how to drive strategic plans and goals whilst ensuring the organisation is fllexible and agile enought to adapt in a constantly changing business evironment.

Managing the complex interplay between all these elements is both an art and a science. LDN International has developed an efficient process to bring them together in a way that aligns and integrates your vision, mission and strategy with your business practices and your people.

Logically, this would occur early in your strategic planning cycle, but this may not always be possible. You may have a special need such as a rapid review of your operations in response to an external threat, a desire to shift organisational culture or to plan for a merger or acquisition.

Organisations, like people, have unique characteristics along with their own strengths and weaknesses. A tool we like for profiling an organisation is the Strategic Effectiveness Architect™, developed by Dr. Robert Eichinger, Dr. Kim Ruyle and Dr. Dave Ulrich. 

We have found that many senior leaders particularly enjoy the rich dialogue it enables, allowing them to define their business in a new way.

The Strategic Effectiveness Architect™ has a dual purpose, allowing you to identify and develop both organisational capabilities and the competencies of people. We like to differentiate between the two. Of course, both can be expressed in behavioural terms and are related to each other. There is also a causal effect.

As an example, a company that has extraordinarily good communication across divisional and geographic boundaries (organisational capability) is likely to have people who support each other and share information in a timely way (competencies of people). This could provide market agility that competitors bogged down by egos, turf protection and control, would find impossible to match.

Once you have profiled your organisation, you can start the process of strategic alignment, strengthen your organisational capability,and the competencies of your people in areas that matter most to enterprise success.

For more information on how to achieve organisational capability, please call us on +613 9667 9100 or email info@ldninternational.com