Seven sorts of knowledge constitute the foundation of organisational capabilities. Such capabilities usually do not come naturally. This post explains how to determine objectives for developing organisational capabilities.
Steps to determine objectives
Suppose that you want to develop a certain organizational capability. How can you determine an objective for this? You can do this in three steps.
Advantage
Define which advantage the capability brings.
Direction
Define a course of action for developing the capability.
Priority
Define the importance and urgency of developing the capability.
Advantage
You can perform a VRIO analysis to identify the advantage an organizational ability brings. This allows you to find out four relevant properties. These properties are:
Valuable
Able to exploit opportunities and defend against threats.
Rare
Scarce and difficult to acquire.
Inimitable
Hard to copy or substitute.
Organized
Set up to capitalize on resources.
Direction
Determine a course of action for developing an organizational capability as follows:
Produce
If it is valuable but non-existent (in your organization).
Refine
If it is existent and valuable, but not rare.
Integrate
If it is existent, valuable, and rare, but not inimitable.
Support
If it is existent, valuable, rare, and inimitable, but not organized.
Maintain
If it is existent, valuable, rare, inimitable, and organized.
Priority
Determine a priority for developing a given ability as follows:
Do
If its development is urgent and requires your personal attention.
Plan
If its development is less urgent but requires your personal attention.
Delegate
If its development is urgent but does not require your personal attention.
Eliminate
If its development is less urgent and does not require your personal attention.