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Capabilities, the fundamental building blocks of your organization

"Capabilities, what exactly are they?" It's a question we often get at the beginning of a collaboration. And, admittedly, giving a precise definition is quite challenging. Capabilities are indeed a complex and layered concept, touching the very core of an organization.

What are capabilities definitely about?

In essence, capabilities focus on WHAT an organization does, not on HOW it is done. They are the fundamental abilities that enable an organization to create value and achieve its strategic goals.

It encompasses the organization in its entirety: what

• competencies,
• processes,
• applications
• data

does your organization need to achieve those strategic goals?

But be careful: there is a danger of narrowing down capabilities to just the organizational chart. Capabilities transcend departments and functions, forming a cross-section of the organization.

Why is it so important to define your capabilities?

It opens the door to a wealth of benefits:

• Strategic clarity: you better understand what your organization is good at and what you can offer your customers.
• Internal alignment: it clarifies your employees' roles and responsibilities.
• Competitive advantage: by identifying and developing your unique capabilities, you can distinguish yourself from competitors.

Capabilities are stable over time and provide you with a foundation when changes are on the horizon for your organization. Think of them as the cornerstones of your organization.