Capability strategy

Reasons for strategic competency development
Our consultants work with strategic capability development because we believe that today, capability development is a propelling factor for the overall business strategy to be successful. McKinsey’s survey on reasons as to ”why strategy fails”, which has become legendary over time, shows that the majority (approximately 40%) of strategies fail because companies simply lack the required capabilities for implementation of the business strategy.

What are the problems connected to strategic development today?
Strategic capability development often doesn’t get the attention it deserves in order to support the organisation’s overall business strategy and the implementation thereof. It is thus challenging to align the capability development with the business strategy.

The problem with strategic capability development in today’s job market is often that people neglect to consider development and alignment of capabilities. There is a perspective that emphasises the operational level of the business. In other words, it is not a strategic exercise that is carried out, but rather an exercise that focuses on solving the daily operation and far too rarely on objectives and challenges of tomorrow.

The proper strategic capability development
The proper and most effective capability development for the organisation happens by defining the capability demands that the business strategy really calls for. These capability demands, or strategic core competencies, are thus an expression of what the company deems necessary to be competitive in the market.

The gap between the capability requirements and the real capabilities must be uncovered to assess which specific capability development should take place at the various organisational levels and business lines in the company.

The objective of strategic capability development
The objective of working with the proper strategic capability development is to ensure an improved:

• Connection between the business strategy and the capabilities that the company wishes to develop
• Focus on obtaining specific effect on overall business strategies and goals
• Management and visibility of costs and benefits associated with the initiated capability activities
• Long-term and goal-oriented capability development within the organisation

To help ensure a stronger and faster implementation of the strategy.

Contact Mannaz
If you would like a dialogue regarding capability strategy, please contact Executive Vice President, Søren Bolvig, tel. +45 4517 6188.