Sample Copy. Not for Distribution. - Book Publisher in India - … · · 2017-06-24In today‘s VUCA (volatile, uncertainty, complexity, and ambiguity) business landscape, ... speed,

Sample Copy. Not for Distribution.

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Building

Organizational Capabilities


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Publishing-in-support-of,

EDUCREATION PUBLISHING

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© Copyright, Authors

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ISBN: 978-1-61813-872-9

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Printed in India


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(An Insightful Examination of the Principles and

Practices of Making Great Organization)

EDUCREATION PUBLISHING (Since 2011)

www.educreation.in


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Acknowledgement

First and foremost, thanks to God for giving me wisdom that was

necessary to write this book. I would like to express my gratitude

to people who saw me through this book that includes my wife, the

real source of inspiration to start and complete this book and who

provided all kind of moral supports throughout the journey of this

book.

After fulfilling all personal and professional commitment writing

this book was real challenge because it‘s a solitary task of

searching, selecting, gathering thoughts and embedding numerous

bytes of learning, information to generate the content of the book

and to make it so contemporal for readers.

I would like to thank the entire crew of Educreation Publication

House for their unconditional supports.

Dr. Amit Das


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Contents

Introduction 1-12

1. Building Capability Through Learning &

Knowledge Management 13-48

2. Building Capability Through Diversity &

Inclusion & Equality 49-83

3. Building Capability Through Talent Management 85-111

4. Building Capability Through Employee

Engagement & Motivation 113-144

5. Building Capability Through Performance

Management System 145-176

6. Building Capability Through Organizational

Change Management 177-205

7. Building Capability Through Strategic

Thinking & Innovation Management 207-222

8. Building Capability Through Succession

Planning & Leadership Development 223-241

About The Author 243

Reference Reading 245


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Building Organizational Capabilities

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Introduction

“Building organizational capability most inevitable part is

organizational culture building means a cohesion of values,

myths, and symbols that has come to mean a great deal to the

people who work there.” Deal & Kennedy

In order to remain competitive and strive in the ever-changing

marketplace, you need to build distinctive learning & knowledge

development plan in a structured way and measure the progress by

setting deadline. In today‘s VUCA (volatile, uncertainty,

complexity, and ambiguity) business landscape, the ability to be

agile and responsive to change is more important than ever before.

As per the need in the change of 21st century learning and

development will be going to play an important role in retaining

right talent pool and highly flexible strategies which will be more

customized to reach to every employees. Nearly 60 percent of

respondents to a recent McKinsey survey say that building

organizational capabilities such as lean practices or leadership

development or talent management is top priority for their

companies. Organization will be successful if their L&D strategy

helps in retaining the right talent pool, enhancing core

competencies and expertise that gives the organization an edge

over competitors. HR‘s role in this process is critical because HR


Dr. Amit Das

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is central to facilitating the process of attracting, recruiting–

selecting, onboarding, developing, engaging, appraising, rewarding

and retaining best people in organization. It is difficult to imagine

that any organization could pursue organizational capability

without having a strong HR function, given HR's pivotal role in

establishing and maintaining the internal processes necessary for

that capability. This book contains both theoretical and practical

insights, providing a balanced perspective of what it takes for an

organization to build its capability in all aspects. Considering the

recent changes in global economics, technologies, and socio-

political environments affecting today‘s workplace, building

organizational capability is gaining importance from corporate

leaders and policy makers of an organization. The demands placed

on organizations that learning need to be delivered with greater

speed, at less cost, and more effectively to work places and mobile

workforces that are affected more dramatically than ever by daily

changes in the marketplace. What about capabilities that are truly

distributed across the entire organization not often missing from

capability models we see. Most critical essential capabilities every

organization should have like leadership, which is the capability to

inspire and motivate people to fulfill a mission, directing &

influencing others at lower levels to accomplish their goals.

Collective leadership capacity is a source for creating high energy

and accelerating progress on both performance and capabilities.

Capable leadership is undoubtedly one of the most important

factors in creating and maintaining an organization that achieves



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outstanding and sustainable results. Collaboration that provides the

ability to effectively breaks down complex tasks and distributes the

parts across a group of people or organizations. Collective

organizational capabilities means to have honest conversations and

align the organization across functions/business, in service of the

whole will reduce friction in the organization, and unleash existing

capabilities. Utilizing the dynamic capabilities perspective

antecedents of collaborative capabilities can be found at the

organizational and individual level. At higher levels of

performance collaboration creates organizational synergy,

producing a performance boost where the whole is greater than the

sum of its parts. William Egbe, President, the South African Coca-

Cola Business unit said, “ As your dreams grow, you realize that

you need more capabilities in terms of human capital.” To build

capabilities adaptability that makes organization agile to changes

and stay updated with situation. Jim Collins in his good to great

book said about one common competency of all successful

organization is adaptability. Why are some organizations able to

innovate again and again while others hardly innovate at all?

Creativity and innovation describes organization‘s ability to think

differently and allow lateral thinking to influence day-to-day

strategic decisions. It goes beyond just thinking ability to translate

a good concept into a compelling value proposition for its

stakeholders. If you ask anyone which companies they admire,

they quickly rattle out few names like GE, Starbucks, Microsoft,

Google, Amazon. What people respect about those companies is


Dr. Amit Das

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not how they are structured or their specific approaches to

management, but their capabilities to innovate in respond to

changing customer needs. Thomas Edison, perhaps the greatest

inventor of all time in history invented and patented more than

1000 in his name but it was not one single invention, it was with

team-based approach. Edition‘s example illustrates the

collaborative nature and nurture of innovative minds. As Ed

Catmull, Pixar‘s cofounder and president noted: “We’re not just

making up how to do CG movies; we’re making up how to run a

company of diverse people who can make something together that

no one could make alone.”

QSV (quality with speed and value) that refers to the

organization‘s ability to recognize opportunities to act and exploit

quickly and flawlessly. Leaders should consider creating a return

on investing time and energy (RITE) index, so they can monitor

time investment against expected outcome and its value creation.

Capability also build through impeccable customer connectivity

that may come from dedicated account teams, databases that track

preferences, or the involvement of customers in the HR practices

such as staffing, training, and compensation. Organizational

capabilities must be unique to the organization to prevent

replication by competitors. When an organization continues to

create new capabilities and develops existing ones, it will maintain

the advantage over its competitors. To maintain the capability,

companies should ensure the workforce has the resources available

to improve continuously. For an example building professional



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capabilities means the way profession will change. Organizational

capabilities enable the organization to turn its technical know-how

into the results. The organization confronts many challenges while

developing new capabilities for addressing the demands and

opportunities of the present day ever-changing environment.

Knowledge and skilled employees build organizational capabilities

that provide the organization with the ability to respond to the

changes in the environment while remaining flexible to these

changes. McKinsey research, among 1069 companies, reveals that

where training is reported to be least effective, top managers tend

to invest most in training for the leadership team and least on the

employees—despite this group‘s more immediate impact on

operations. In contrast, companies with effective training programs

invest the most in training the employees. Organizational

capabilities entail extensive learning process dispersed across

complex activity fields that even extend beyond the activities of

the organization. Organizations generate new ideas through

benchmarking that is, by looking at what other companies are

doing, experimentation, competence acquisition means hiring or

developing people with new skills and ideas), and continuous

improvement. It is better for the organization to excel at a few

targeted capabilities than to diffuse leadership energy over many.

For an example Apple delivers value to the customer by providing

great products that people love and often feel they cannot live

without. Apple‘s organizational capability of innovation enables

them to do this better than competitors. Organizational capabilities


Dr. Amit Das

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emerge when it delivers on the combined competencies and

abilities of its people. An organizational capability emerges from a

group of activities, not from any single pursuit. For example

leadership training is to be understood in terms of the capability to

which it contributes, not just the activity that has taken place.

Similarly, performance accountability becomes an organizational

capability when employees realize that failure to meet their goals is

not acceptable to the organization. Capability building happens

through collaboration occurs when the organization as a whole

gains efficiencies of operation through the pooling of services or

technologies, or through the sharing of ideas and talent across

organizational boundaries. Working with high operational

efficiencies enhances the organizational capabilities.

Organizational capability building happens through innovation is

doing something new in both content and process. It excites

employees, delights customers, and builds confidence among

stakeholders. While asking CEO how many people work in his

company, ‗About half of them,‘ he responded. It sounds cracking a

joke, indeed, but it has a deep undertone. Organization struggle

with creating an engaging work environment and motivation all

three generations of employees, millennial to be very specific to

mention. The most recent Gallup Survey results indicate that more

than 70% employees are disengaged. To put it blatantly, you

cannot afford for your employees to not to be profoundly

connected with your company. When it comes to engaging your

team, your core values are the first place you should start. As Roy



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Disney once said, “It’s not hard to make decisions when you know

what your values are.” Values are pillars of your company;

guiding star upon which business strategy, mission, goals, and

direction rest. So, writing powerful values is essential to creating

employee engagement. According to the Human Capital League,

only 42% of employees know their organization‘s vision, mission

and values. Employee engagement crucial for staff retention,

productivity and individual performance, but it has real impact on

your bottom line as well. A vision statement is intended to inspire

and motivate the company's workforce by providing a picture of

where the organization is heading. When the Walt Disney Co. was

created in 1923, it had a simple vision. The company wanted to be

the “world’s leading producer & provider of entertainment and

information, develop the most creative, innovative and profitable

entertainment experiences and related products in the world.” The

better employees understand and align with the vision statement,

the higher the chances of their staying and being happier to

contribute. A clear vision statement helps companies run more

efficiently because it keeps everyone on the same ship. Well-

written vision and mission statements ensure that each element of

the strategic management process is aligned to the company's long-

term goals. Organizational capabilities are greatly enhanced when

the leadership qualities of its employees get improved. The

organizational capability can be achieved through training,

education and knowledge management. Speed is needed in the

organization for taking decisions and then implementation of these


Dr. Amit Das

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decisions to demonstrate that the organization is having this

capability. Amazon delivers customer value by getting products to

customers with speed, sometimes overnight or even the same day.

Amazon‘s organizational capability in logistics enables it to excel

in this area. Talent management is an important activity for the

organization to enhance capabilities. The management to have

talent in the organization is to motivate and retain competent and

committed people. ―Competence comes as leaders buy (acquire

new talent), build (develop existing talent), borrow (access thought

leaders through alliances or partnerships), bounce (remove poor

performers), and bind (keep the best talent).‖A top management

who supports a vision for the future and protects the champions for

the organizational change brought by the capability enhancement.

The success of numerous popular management books including

―Blue Ocean Strategy‖, ―Built to Last‖, ―The fifth Discipline‖ etc.

iterate ―organizations need managers with a very high leadership

potential for designing and transforming a business enterprise for

sustainable profitable growth. Few learning tips for building

organizational capabilities are when organization continuously

strives to learn, assimilate, and integrate new ideas and

information. Identifies new technical and/or business capabilities

needed to improve organizational performance and efficiency.”

Identifies skill areas to be developed and translates them into

measurable goals, for self and others. Coaches others by

identifying development opportunities to help them make the most

of their skills and potential. It ensures customer needs are met by



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leveraging organizational unique competencies. Keeps abreast of

current developments in field of expertise. Mentors others by

sharing expertise and experiences, and providing informal advice.

The most effective capability builders take more action to improve

their capabilities. They encourage employees to develop their skills

continuously, develop tools, methods, and standard procedures for

capability building, institutionalize learning and best-practice

sharing, integrated learning with HR processes, offer certification

programs, implement formal measures to ensure continuous

improvement. Organization capability building happens through

conscious culture building and when employee imbibes the same

religiously in its day-to-day operation or activities. Culture plays a

borderline-defining role and creates differentiation among

organization. Build a sense of identity among the members of the

organization and enables allegiance towards large organizational

goals rather than individual goals. Increases the steadiness of the

social system by acting as social adhesive holding the organization

together by providing yardsticks for employee behaviors. A shared

understanding of culture can keep the employees bonded together

and commitment towards a common goal. However, a team culture

tends people to show greater commitment towards their team and

its values rather than to the organization as a whole. Organizational

climate is defined as how members of an organization experience

the culture of an organization. The distinct culture of an

organization forms a unique atmosphere that is experienced by its

people. A positive overall organizational climate is linked to higher


Dr. Amit Das

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customer satisfaction and financial performance as well.

Organizational capability entails a blend of culture and leadership.

As HR leaders, we need to be attuned to what kind of culture we

need to drive performance, and what kind of leaders we need to

make it happen. “On the surface, the world’s best organizations

may look like many of their competitors: similar kind of products,

comparable business strategies, and related operating models. But

put them under the metaphorical microscope, and what you see are

distinct combinations of winning attributes.” BCG

As BCG crafted a framework of 20 capabilities that define

organization in very clear ways, making it more relevant to the

everyday experiences of management. Those 20 vital topics entail

organizational capability building are organizational structure that

describes reporting structure and profit and loss accountabilities,

role of the center means the involvement of leadership, layers and

span of control that tells no of reporting layers in the hierarchy,

organizational cost efficiency, shared services, offshoring,

outsourcing means cross country relations, subcontracting to other

companies, role clarity of an individual, cross functional

collaboration mechanism means lateral coordination effort between

functions or units, virtual networking those informal channels for

reinforcing culture and communicating key information, process

excellence, project management capabilities, business analytics

and information management, leadership performance, leadership

bench or pipelining, middle management effectiveness means how

you empower you middle level managers to carry out strategy in



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Sample Copy. Not for Distribution. - Book Publisher in India - … · · 2017-06-24In today‘s VUCA (volatile, uncertainty, complexity, and ambiguity) business landscape, ... speed,