By: Andrew Spanyi


  Corporate Capabilities



Two Fundamental Beliefs

An organizational capability approach requires that leaders subscribe to two fundamental beliefs:

  1. Organizations should be designed, led, and managed so that it is easy for customers to do business with the company and create and environment that helps employees to serve customers.

  2. Organizations are complex business systems in which a change in any one component is likely to have an impact on other components. An understanding of critical relationships is essential.


The Tree of Business Success Download PowerPoint presentation, pdf e-book

Sustainable Competitive Advantage Download PowerPoint presentation, pdf e-book

In the capability model, senior managers are predominantly concerned with issues about the quality of products and services provided to customers (external and internal), the flow of value-added work, and roles and responsibilities. The dominant view on performance measurement shifts from the traditional focus of actual-vs.-budget to a more balanced model that includes the timeliness, quality, and cost of providing products and services to customers. Allocation and budgeting of resources moves from the traditional practice of individual units vying for resources based on their own needs toward cross-group teams that jointly assess resource needs based on the flow of work needed to create value for customers.



Problem solving Download PowerPoint presentation, pdf e-book would seldom involve situations in which unit managers had to compete with each another; instead, organizations would adapt to departmental interdependence, recognizing that issues are best addressed through cross-group problem-solving sessions focused on providing services to customers and the required flow of work.

Core Competencies