Organizational Capability Profile

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An Organizational Capability Profile describes the skills, knowledge and resources that enable your company to provide quality products or services to customers. The profile provides useful background information for your marketing and corporate communications.

Organization Capabilities (OC) are the intangible, strategic assets that an organization draws from to get work done, execute its business strategy, and satisfy its customers. These capabilities originate from expertise, activities, information, knowledge, procedures, processes, skills, systems, technologies, or unique adaptive features. The strength and alignment of such assets define a company’s identity and differentiate it from competitors. Each organization develops and integrates these attributes into its culture over time, so they are challenging for others to pinpoint and replicate.

These capabilities—the collective skills, abilities, andexpertise of an organization—are the outcome of investments in staffing, training, compensation, communication, and other human resources areas. They represent the ways that people and resources are brought together to accomplish work. They form the identity and personality of the organization by defining what it is good at doing and, in the end, what it is. They are stable over time and more difficult for competitors to copy than capital market access, product strategy, or technology. They aren’t easy to measure, so managers often pay far less attention to them than to tangible investments like plants and equipment, but these capabilities give investors confidence in future earnings.

For instance, Coca-Cola could sell its soft drink formula to another company, but that company would not be able to emulate the same emotional connection customers have with Coke.

To draft the profile, first identifythe capabilities that are important to your customers and that differentiateyou from competitors and then incorporate them in a presentation or document.

Organizational capability profiling is to understand the internal environment – the Capacity & ability to use unique competencies to excel in a particular field. It endeavors to  use its ‘S’& ‘W’ to exploit ‘O’& face ‘T’in its external environment.

Organizational capacity is the inherent capacity or potential of an organization to use its strength and overcome its weakness in order to exploit opportunities and face threats its external environment. It is a potential or capacity to perform better without capabilities resources are of no value. Organizational capacity factors are strategic strengths and weaknesses existing in different functional areas within an organization, which are of crucial importance to strategy formulation and implementation.

Organizational behavior helps in recognizing the patterns of human behavior and in turn throw light on how these patterns profoundly influence the performance of an organization.

Identity & character of an organization is reflected in its leadership, Mgt. Philosophy, values, culture, Quality of work environment, Organization climate, organization politics etc. which are dependent on the Resources (Tangible & Intangible) and the collective behavior of management & staff. This results in the Distinctive Competence of the organization - Any advantage a company has over its competitor ; it can do something which they cannot or can do better , may be an  opportunity for an organization to capitalize on low cost, Superior Quality, R&D skills etc.

The OCP describes the skills, knowledge & resources that enable your company to provide quality products or services to customers. The profile provides useful background information for your marketing & corporate communications you can also use it as part of a formal bid document to win customers.

Methods or Techniques used for such a profiling are Comprehensive and  have long term perspectives and some of them are:

 

1.      Financial Analysis - Ratio Analysis, EVA, ABC

2.      Key factor rating - Rating of different factors through different questions

3.      Value chain analysis

4.      VRIO framework

5.      BCG, GE Matrix , PIMS, McKinsey 7S

6.      Balanced Scorecard

7.      Strategic Advantage profile

8.      Internal Factor Analysis Summary

9.      Competitive Advantage Profile 

More on these tools are discussed in subsequent posts