Organizational Capabilities are the intangible, strategic assets that an organization draws from to get work done, execute its business strategy, and satisfy its customers. They can include expertise, activities, information, knowledge, procedures, processes, skills, systems, technologies, or other unique adaptive features. The alignment and strength of such assets is what sets a company apart from their competitor. A company with strong organizational capabilities is able to gain success and stand out from the competition.
These organizational capabilities matter especially when implementing strategy, yet companies do not plan for them as meticulously as other physical and financial assets. One of the critical contributors to organizational capabilities is the leadership. It is crucial that purpose-driven leaders posses organizational capabilities and are able to perform in order to implement company strategies and drive business performance. It is very clear the impact that leadership has on the results an organization is able to attain.
So, what are the capabilities found in an effective organizational leader are:
- Problem-solving and decision making
- Communicating (especially listening) effectively
- Relationship- and team-building (including developing leadership potential in others)
- Identifying future innovations and opportunities
- Understanding the business environment and operations
- Using integrity and ethics to govern decisions
- Thinking strategically, system-wide, and holistically
- . Spreading the organization’s vision and inspiring others to share in that vision
A leader’s organizational capabilities have a profound impact on the business. They must align with company’s mission and vision to ensure its future success and ability to thrive in a rapidly changing environment. It is also the responsibility of the leader to develop and acquire talented team members who also embody the same capabilities. This will build a robust organizational culture equipped to carry the company into the future……growing and crushing all strategic goals…….ensuring it’s long-term success.
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