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7 Key Organizational Capabilities for strengthening Your Business Strategy

Many a times, organizations focus on too many things at the same time. This dilutes the focus and, in their attempt, to bring the best in every aspect of business, they fail at delivering the high-quality product at lowest cost. Is there a way to strategize the business processes in a way such that by focusing on certain key organizational capabilities towards having an advantage in business excellence?


What is Organizational Capability?

Organizational Capability can be defined as strategies and processes which will drive the business success to bring meaningful outcomes. This ensures that effective business strategy is around the key capabilities that will bring valuable returns of time, effort and resources that are being utilized.

These organizational capabilities allow organizations to be sensitive and future-ready for fulfilling customer needs. These capabilities are a bundle of skills, abilities, processes and expertise of an organization. It involves investment in staffing, training, communication, compensation and many more human resources aspects. These components are aligned to accomplish work targets.


Key Organizational Capabilities to Choose from

It may not be possible to have a comprehensive list of organizational capabilities since every organization comes with its exclusive requirements. Yet this concise list of 7 organizational capabilities may help you in creating your roadmap towards strategic advantage and business excellence.



Resources are one of the foremost requisites of capability building for an organization. Timely investment in quality resources allows you to build teams which are self-motivated, driven with commitment and drive leadership at different levels within an organization. Attracting competent people, keeping them motivated and retaining committed ones paves the success pathway of any organization. Also assigning sufficient resources to the task or modifying expectations ensures that the resources are neither exploited nor exhausted.


Shared Targets

 Capability building revolves around competence, resources, cross-functionality, capacity, strategy and more. Their interconnected nature demands immense clarity about the laid objectives and outcomes. Hence, it is critical to share targets with the entire team which sets the pace and ensures momentum in the right direction. It also requires reviewing the set target and realigning to keep them realistic and achievable.


Strategy Alignment

 Have you defined your business / organizational strategy? What is your key focus to engage your customers? Are you focusing on best product quality or you are targeting a low budget segment? Defining your business strategy early helps you build a framework around it. This also helps in defining organizational culture and aligning resources with the vision and mission of the organization.


Brand Identity

 Building brand identity and sustaining it ensures that both the key entities involved, the customers and the employees, are associated with a positive brand image and cherishing experiences of the organization. Ask this question to create a strong brand identity, “What are the key points / features which our customers admire? Also ensure the drift happening in the environment and industry proactively to live up to customers expectations without losing their confidence.


Performance Accountability

An organization’s capability is built around its employees. Performance accountability ensures that employees take individual responsibility for achieving targets and goals and do not leave any scope for failure in fulfilling the goals. This requires a balance of tools utilized in measuring and managing performance; and compensation and benefits for acknowledging their efforts and contribution towards organizational success.

Continuous Learning. No matter how good your start was, the expectations need to be met consistently and ongoingly. If new ideas are not pumped into an organization, it loses its charm and engagement with time. Hence an organization needs to engage itself into research and development, market research of competitors, experimentation, talent acquisition and continuous improvement. This also involves training and development of existing resources and willingness to adopt new improved business practices.



Leaders are not just the people at the top. These are visionaries aligned with the organization’s vision and embedded with the organization’s core purpose of existence. They establish a clear leadership brand through their exclusive approach in implementing the organizational strategies. They are unstoppable in their approach and bounce back from failures taking their team along with them. This also demands a backup resource pool for your key talent resources.

By assessing the driving forces ahead of time, it is possible to successfully adapt organizational models and strategies which will sharpen organizational capabilities and fulfil expectations of the management, employees and consumers.

Organizations which foster innovation and growth are able to attract talent and retain them with much more ease. Employees tend to be more engaged and committed to their work when they perceive opportunities for learning and development and succession within the organization. These innovative and growth-oriented organizations are better equipped to adapt to changing market conditions, technological advancements, and other external factors. This makes them more resilient and adaptable to withstand tough times of crisis.


Time of Crisis and Turbulence

Crisis situations can be a challenging time for businesses, where uncertainty and turbulence is visible. But the time of crisis and turbulence in an organization can also be a defining moment for its future. These testing times present the organization with opportunities for innovation and growth. It can either bring the organization together and make it stronger or tear it apart into a bleeding business towards its end.


Challenges Faced During Crisis

Uncertainty. During a time of crisis, the organization is often faced with extreme levels of uncertainty about the future. This can lead to anxiety, fear and stress among the employees. The best thing to do for an organization in such times is to keep the channel of communication open and share the fears and challenges with one and all employees.



Every organization passes through multiple S-curves in its lifecycle. And in the time of upheaval, it is important to focus on the change and accept it fully. It is this ability to adapt and change in testing times of crisis that the organization paves its way towards survival. It may be a difficult and painful process, which may require appraisals on hold, layoffs, pay cuts, longer working hours and so on. Yet the resilient efforts are highly probable to reap fruits once the crisis is resolved.


Open Communication

 Communication is critical during a time of crisis. It is the responsibility of the management to ensure that they declare the crisis and share relevant information with the employees as they are not only the stakeholders but the key performers who can shift the direction of the crisis towards organization’s growth. Effective crisis leadership will ensure that all employees are kept informed and updated which instils trust in them.


Employee Morale

 A time of crisis can take a toll on employee morale, leading to a decrease in productivity, motivation, and commitment. However, if the organization demonstrates their commitment towards the organization’s vision and mission and exhibits empathy and compassion towards their employees, the employees are highly liable to reciprocate that same trust and keep themselves motivated and be committed and loyal towards the organization in the time of crisis.


Addressing the Challenges Amidst Crisis

In these unprecedented times, it is normal for organizations to face challenges and crises. It is for the leader to address these challenges and steer the organization towards a successful outcome. It is imperative to delve deeper and understand the challenges and listen to your team as well customers with an open mind and empathetic approach. Communication is the key, and one needs to be flexible and adaptable in their approach.

The strategy for fostering innovation and growth during a crisis may include: being open to new ideas, experimenting with different solutions and empowering your employees to take risks and think outside the box. A culture of innovation can be particularly helpful in this regard, as it encourages creativity and collaboration.


Encouraging Teams

Crisis can be best dealt with by encouraging team members to share their ideas and insights freely and together bring some unique perspectives and solutions to the table. By empowering teams, leaders can foster a sense of ownership and responsibility, encouraging team members to take ownership of their work and be more accountable. These solutions may not help in generating innovative solutions to problems but also new business products and services towards the expansion and exponential growth of the organization. As a leader, you can always encourage your team to embrace experimentation and learn from failures as well as successes.


Culture of Innovation

 A culture of innovation encourages the entire team in addressing the challenges during an organizational crisis. By encouraging innovation and experimentation, and promising rewards once the crisis is successfully resolved, it is liable to create a more dynamic and resilient organization that becomes better equipped to deal with crisis situations. Such a culture encourages creativity, risk-taking, innovation and experimentation, which in turn can lead to breakthroughs that help the organization navigate the crisis successfully.


Customer Need Analysis

 During a crisis, it’s important to analyse and understand what our customers are saying about our product and services. Their genuine feedback is the key to sense the changing market conditions and customer needs. Once we know what is changing and review the customer needs, it is feasible for an organization to come up with effective solutions in response to the changing needs of their customers. By focusing on their needs and developing innovative solutions to meet them, you can create new opportunities for exponential growth of the organization.


Technological Upgradation

Investing in technology can help to streamline processes, improve efficiency, and open up new opportunities for growth. Look for new and innovative ways to use technology to better serve your customers and improve your business operations.


Build Partnerships

Sometimes, a crisis is related to our limited offerings where the customer goes to our competitor who has the full range. In such a scenario, rather than doing everything on our own which requires time, effort and heavy investment, building partnerships with other businesses and organizations can be a great initiative to expand your horizons with new opportunities for growth and innovation. When you are listening to your customers and the market chatter, you are able to sense the shifting scenario ahead of time. Then you can search for partners who can provide complementary products or services, or who have expertise in areas that can benefit your organization.


Communication and Support 

Effective, clear, frequent and transparent communication helps to establish trust and confidence among employees, stakeholders and customers. Regular updates and feedback sessions can help employees feel informed and enhance their involvement in the process. Another important factor to instil trust is through emotional, financial, and practical support to employees. It is the responsibility of a leader to demonstrate empathy, understanding and compassion towards their employees, acknowledging the stress and anxiety that they may be experiencing. By prioritizing communication and support, organizations can be agile in emerging from the crisis with a stronger sense of teamwork, collaboration and shared purpose.

Uncertainty during the crisis gets on everyone’s nerves and tests your patience and values. By demonstrating empathy and compassion, you can help to boost morale and maintain employee loyalty and trust. Exhibiting your crisis leadership at its best can unveil an opportunity to demonstrate resilience, teamwork and effective leadership. Under the able leadership and empowered employee support, it is practically feasible to address the challenges and learn the hard lessons with ease. And the outcome would be the emergence of an organization which is stronger and more prepared for future growth.

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