Building Organisational Capability

We have seen previously that there are 3 levels of organisational capability.

Following our post, we have had some requests asking what companies in general (and HR departments in particular) can do to build organisational capability. What specific steps do they need to take?

So we thought we would cover that in today’s post…

The 5 key steps of organisational capability

There are 5 key steps of organisational capability that we have identified – the steps that need to be taken in order to build a healthy and vibrant workforce. Have a look at the graphic below…

These steps start off from what is legally expected of HR (a must-to-have) which is compliance in the red step, and, sitting behind that, a Performance Management System which enables compliance and takes the company (hopefully!) onto the first yellow step.

Broadly speaking this equates to the ‘Contribution’ level in our previous post. These two steps ensure a company looks after its ‘todays’ and (because performance management is essentially backward-looking in nature) its ‘yesterdays’. These two steps represent ‘stick and carrot’ or transactional management.

It may be sad for us to say it, but very few companies are able to move beyond this level.

The next step is when the company helps employees to be engaged. We have seen the key factors of employee engagement before here. Employee engagement is essentially when collaboration, strategy and motivation are experienced company-wide. Here, the company moves from a state of transactional, reactive fire-fighting to one where employees Say, Stay and Strive. Employee engagement is the key ingredient for organisational capability as it is here (please see the white line in the graphic) where staff turnover drops and capabilities can be build without the risk of employees leaving once that has happened.

Capabilities for the future

The last two steps are the most strategic. By that we mean that they help the company ‘create its tomorrows’.

On top of technical training in the Employee Engagement step, the company now needs to offer leadership training and development linked to its future strategy. What capabilities do its leaders need to be prepared for tomorrow’s challenges?

Finally, the fifth step of organisational capability is when the link is made between organisational capability on the one hand, and customer engagement on the other.

As we arrive at this level, staff turnover should drop and may even be too low, in which case the company may need to encourage some of its employees to move on where possible.

And the trick to achieving organisational capability is…

While building organisational capability is not solely an HR responsibility, the vision for it must surely come from HR and our experience is that few HR practitioners can see their organisation in the way we have described it here.

The trick to achieving organisational capability rests with HR championing this vision and, secondly, by working backward from customer engagement and implementing all the steps together.

Many HR departments fail to achieve this because they all too often get holed up in steps one and two and then implement piecemeal without a connected, overarching strategy that delivers on this vision.

Want to build capabilities in your company?

If you would like to build capabilities in your company, and like the approach we have described above, please contact us via our online form here, or by following the link below.

We will make sure the capability-building programme fits your needs and is simple, specific and strategic ensuring high ROI.