Organizational capabilitity leveraging your intangible strengths _ncla paticipants

Organizational

Capability

Dr. Eric M. Gladney – Presenter

Prepared For:

NCLA Leadership Institute

Leveraging Your Intangible Strengths…

What Are We Trying To Do…..

We are focusing on organizational capabilities and

how leaders can evaluate and build the ones they

need to create intangible value.

Provide the framework for a capabilities

assessment profile that identifies distinctive

capabilities and aids in developing & leveraging

these distinctive capabilities.

Building A Sustaining Fire…

“For a piece of wood to catch fire, it must

first be heated to a temperature at which it

ignites; then it burns by itself. The initial

heating requires energy from outside, but

once the wood is ignited, the flame sustains

itself and gives off light and heat.”

Dave Ulrich - 1990

Organizational Capabilities

Definition: The various routines and

processes that transform those inputs

(resources) into outputs (physical goods and

services).

These organizational routines and processes

are the regular and predictable work

activities done by organizational members.

– Delta Air Lines vs. Southwest Airlines


The collective skills, abilities, and expertise

of an organization, (these capabilities) are

the outcome of investments in human

resources….

– 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.

Organizational Capabilities: The

Key Intangible Asset

Sales Profits Assets Mkt Value

$13 B $593 M $43.2 B $9.4B

$12 B $459 M $15 B $10 B


Organizational capability focuses on

achieving goals through employee

commitment and competence.

– Remember … Two criteria for competitive

advantage are:

• Adding perceived value to the customer

• Offering uniqueness that cannot be easily imitated

by a competitor.

Organizational capability enhances perceived

customer value thru responsiveness,

relationship, & service quality.

Competence –vs- Capability

Individuals have competencies focused in

certain areas but organizations have

capabilities.

Individual Organizational

Technical 1

An individual’s

functional

Competence

3

An organization’s

core

competencies

Social 2

An individual’s

leadership

ability

4

An organization's

capabilities


Organizational capabilities emerge when the

organization combines (and delivers on)

individuals’ competencies and abilities.

– An employee or volunteer may be technically

sharp or demonstrate leadership skill, but the

institution as a whole may or may not embody

the same strengths:

• If it does, team members who excel in these areas

will likely be engaged; if not, they may be

frustrated.

– Additionally, an institution’s organizational

capabilities enable it to turn its technical know-

how into results.

A Few Key Capabilities….

Developed From The Inside Out

Talent: We are good at attracting,

motivating, and retaining competent and

committed people.

– Competent employees & volunteers have the

skills for today’s and tomorrow’s business

requirements; committed members of your

organization deploy those skills regularly and

predictably.



Speed: We are good at making important

changes happen fast.

– Speed means that the organization can

recognize opportunities and act quickly when it

comes to new market shifts (e.g. digital media),

new systems, new employee & volunteer

policies, and new business processes.



Shared mindset /brand identity: We are

good at ensuring that patrons and

employees have positive and consistent

images of and experiences with our

organization.

– Answering the following question will help

your team build its shared mindset … “What

are the top three things we want to be known

for in the future by the people who use our

services?”

Shared Mindset:

Group Exercise

“What are the top three things we want to be

known for in the future by the people who use our

services?”



Accountability: We are good at obtaining

high performance from employees.

– Performance accountability becomes an

organization capability when members of the

organization realize that it’s unacceptable not to

meet their goals.

Collaboration: We are good at working

across boundaries within the institution to

ensure both efficiency and leverage.



Learning: We are good at generating and

generalizing ideas with impact.

Leadership: We are good at embedding

leaders throughout the organization.

Customer connectivity: We are good at

building enduring relationships of trust with

individuals who use our services.



Strategic unity: We are good at articulating

and sharing a strategic point of view.

Innovation: We are good at doing

something new in both content and process.

Efficiency: We are good at managing costs.

30 MINUET BREAK

What is Your Organization’s Organizational

Capability?

In small groups, use the space on the back side of

your handout to design a few specific details

for at least 3 of the 11 elements that leads to

organizational capability for your particular

organization. (I.E. What does a capable

organization specifically look like relative to

these 11 capabilities?)

19

If We Had Better Organizational Capabilities….

Copyright © 2007 The RBL Group - All rights reserved

Stakeholder Measure

Employees 1. Greater Competence 2. More engagement/Commitment 3. More learning and growth 4. Increased career development

opportunities

5. Clarity of direction and priorities 6. Visible support for initiatives 7. Clear and frequent feedback 8. Care about me and my family

Managers/Supervisors/ 9. Connect employee actions to desired customer experiences

10.Build sustainable technical core competencies

11.Build sustainable organization (social) capabilities

12.Provide direction

13.Ensure strategy implementation

14.Clear expectations of leaders 15.Effective cross functional

collaboration

Senior Professionals 16.Greater alignment to critical issues 17.More consistency of action 18.More Collaboration 19.Whole organization is greater than sum

of individual parts

20.More intensity to critical issues and less on peripheral issues

21.Demonstrate support for investments

22.Embody the leadership brand principles

Students & Community (customers / constituents)

23.Higher share of investment (not just $$’s)

24.Greater loyalty 25.More willingness to partner/collaborate

26.Keeping promises and commitment

27.Openness and trust 28.Consistent delivery of the

desired value proposition

Regulators 29.Trust us to do what we say we will do 30.Perceive us as an institution with

integrity

31.Perceive us as able to abide by laws and regulations in an ethical manner

32.Effective risk management and emergency response

If We Had Better Organizational Capabilities….

Stakeholder Measure

Analysts 33.Confidence in future prosperity 34.Belief in growth strategy 35.Trust in Leaders at every level

36.Logical investments in core capabilities that matter

37.Positively differentiated from competitors in our industry

Investors (Alumni, Local /State Government, Philanthropy)

38.Higher investment 39.Greater confidence in our future 40.Increased cash reserves

41.Growth— 42.Efficient cost control

Media 43.More favorable comments about us

44.More acknowledgements of our success

45.Outside groups recognize our achievements

46.Access – open communication

Community at large 47.Employee of choice 48.Environmentally responsible 49.Socially responsible

50.Economic reinvestment in the community

51.Philanthropy 52.Safe

1. Services OC

2. Institution OC

3. Leadership OC

Org. Capability (OC): Trends in and

Levels ….

Make Real to Stakeholders

Make Real to Employees

Org. Capability How org. wants to be known by patrons

Aligned Actions with Desired Experience

OC: Actions Speak Louder Than

Slogans

Strategic clarity about Organizational

Capability

Org. OC: sets a simple, clear point of view about the future

© 2007 The RBL Group. All Rights Reserved Leadership Brand 24

TIME HORIZON

UNIT OF

ANALYSIS

PERSONAL

PROFICIENCY

Long

Term /

Strategic

Short Term /

Operational


HUMAN

CAPITAL

DEVELOPER

TALENT

MANAGER

STRATEGIST

EXECUTOR

Capability Code: The DNA of Effective Organizations

© 2007 The RBL Group. All Rights Reserved Leadership Brand 25

Long Term /

Strategic


Capability Code: Specific Competencies

Capabilities Assessment Profile

CAP is an in-depth evaluation of an organization’s capabilities.

Assessing capabilities can be complex since they arise from the ways that resources are combined in the organization’s basic work processes and routines.

Capabilities assessment consists of two phases:

– Identify distinctive capabilities

– Developing and leveraging these distinctive capabilities


The first step in assessing organizational

capabilities is preparing a current product-

market profile.

– Emphasizes organization-patron interactions.

– Identifies what we’re offering, who we’re

offering to, and whether we’re providing

superior customer / community value and

offering the customer desirable benefits.


In order to prepare a current servive-market profile we need: – Information about specific technology /

services and markets

– Principal competitors in each of these product / service-market segments

– Performance measures for each product / service-market segment.

• Market growth rate…. Is the city/community growing?

• Market impact …. What things are creating change?

• Competitive position … Your position

• Contribution to achievement …. Your service offering


The next step is identifying sources of competitive advantage and disadvantage in the main service-market segments.

– We need to know why people choose our services instead of our competitors.

– Identify specific costs, service and technology attributes.

– When someone uses your service they are receiving a bundle of attributes that they believe will satisfy their needs.

– We need to know what these attributes are!!!


The third step involves describing

organizational capabilities and

competencies.

– Examine the resources, skills, and abilities of

your organizations different parts / divisions.

– Uncover what resources and capabilities lead to

your competitive advantage.

– Determine how to cross-functionally leverage

these capabilities by developing

partnerships…especially for public branches.


The next step involves sorting these capabilities and competencies according to their strategic importance.

– Which capabilities are most important for building the organization’s future.

– We should evaluate each category according to three criteria:

• Does the capability provide tangible customer benefits?

• Is the capability difficult for competitors to imitate?

• Can the capability provide wide access to a number of different markets (school systems, churches, small biz, etc)?

By sorting organizational capabilities according to level of strategic importance, strategic decision makers gain an understanding of their organization’s critical strengths and weaknesses.


This final step involves not only identifying

but also AGREEING on the key

competencies and capabilities.

– By ranking key competencies and capabilities,

decision makers can easily identify the key

ones.

– The hard part is agreeing which competencies

and areas of the institution deserve future

resource allocation.

Final Thoughts…

“Organizations do not think, make

decisions, or allocate resources; People

do.”

Dave Ulrich - 1990

QUESTIONS / COMMENTS

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Organizational capabilitity leveraging your intangible strengths _ncla paticipants