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Measuring Strategic Capabilities "Organizational capabilities Ð for example the ability to innovate or respond to changing customer needs Ð are key intangible assets. You can't see or touch them, yet they can make all the difference in the world when it comes to market value." Dave Ulrich 1. Organizational capabilities, like the ability to innovate or respond to customers' needs, are underpinned by intangible assets like a shared knowledge base or collective bonds of performance. 2. A measurement instrument developed by HR strategy guru Dave Ulrich and results-based leadership consultant Norm Smallwood enables organizations to measure capabilities like talent, speed, shared mindset and customer connectivity across functions and against industry norms. 3. Alignment between the performance of key functions is a key part of the Ulrich/Smallwood model. Ulrich stresses the need for organizations to create a virtuous cycle of assessment and investment, so that performance across all the capabilities is even. 4. This requires effective use of performance management instruments, like the balanced scorecard, that are properly integrated into annual people/organization planning and review cycles. If you are a subscriber, click here to read the full briefing. Click here to find out how to subscribe. |
