Organizational Capability

1
Organizational Capability

• Is one of four major sources of competitive
  advantage.
• Dependent on the extent to which managers/leaders
  understand and apply effective people development
  principles and processes.
• Seeks strategic unity for both employees and
  customers.

2
Competitive Advantage Model-Dave Ulrich and Dale
Lake
Logic for Competitive Advantage
Critical Questions

• Change
• Economic
  Vicious
• Circle
• Competition
• Competitive Advantage
• Perceived Customer Value
• Uniqueness
• Sources of Uniqueness
• Organizational Capability
• Shared Mindset
• Management Practices

1.To what extent do we understand economic and
social conditions affecting our business?
2.To what extent do we understand and meet
customer needs?
3.To what extent does my business demonstrate
world-class performance in each source of
uniqueness as well as the ability to integrate
the four sources?
Technological Capability
Financial Capability
Strategic Capability
4.To what extent do we have a shared mindset
inside and outside the organization?
5.To what extent do we use all management
practices to build a shared mindset?
6.To what extent do we have the capacity for
change?
7.To what extent do we have leadership throughout
the organization?
3
Questions and Principles for Organizational
Capability

• To what extent do we have leadership throughout
  the organization?
• External leadership-the ability to translate
  external needs to internal vision
• Internal leadership-the ability to translate
  vision to employee action
• To what extent do we have the capacity for
  change?
• Symbiosis-the ability to remove boundaries
  between external threat and internal action
• Reflexiveness-the ability to learn from previous
  actions
• Alignment-the ability to integrate tasks,
  structures, processes, ands systems at the
  technical, political, and cultural levels
• Self-renewal-the ability to change over time
• To what extent do we use all management practices
  to build shared mindset?
• Integration-the ability to integrate all the
  management practices
• Unity-the ability of management practices to
  build internal and external unity

4
Questions and Principles for Organizational
Capability Continued

• To what extent do we have a shared mindset inside
  and outside the organization?
• Internalize customer values-the ability to make
  customer values employee values
• Mindset dispersion-the ability to build a shared
  mindset inside and outside the organization
• To what extent does my business demonstrate
  world-class performance in each source of
  uniqueness as well as the ability to integrate
  the four sources of uniqueness?
• Paradox-the ability to deal with competing
  demands
• To what extent do we understand and meet customer
  needs?
• Customer intelligence-the ability to scan
  continuously and learn from customers
• Competitor intelligence-the ability to examine
  continuously and learn from competitors
• To what extent do we understand economic and
  social conditions affecting our business?
• Continuous learning-the ability to learn
  continuously about business conditions that
  affect the firm