How to determine objectives for capability development: 3 easy steps

This post explains how to determine objectives for capability development.

An organization deploys capabilities to execute its activities. Some of these capabilities are critical to survive and thrive. You can determine objectives in three easy steps to steer the development of critical capabilities in your organization.

How to determine objectives for capability development.

Steps to determine objectives

Advantage

Define which advantage the capability will bring to your organization.

Direction

Define a course of action for developing the capability in your organization.

Priority

Define the importance and urgency of developing the capability.

Advantage

To identify the advantage that a capability brings to your organization, you can perform a VRIO analysis. 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 a certain capability as follows:

Produce

If it is valuable but not present in your organization.

Specialize

If it is valuable and present but not rare in the market.

Integrate

If it is valuable, present, and rare but imitable for competitors.

Multiply

If it is valuable, present, rare, and inimitable but vulnerable in your organization.

Maintain

If it is valuable, present, rare, inimitable, and organized.

Stop

If it is present but no longer valuable to your organization.

Priority

There are several ways to prioritize. There is no best way, as it all depends on the context. When pursuing an Agile way of working, determine a priority for developing a certain capability as follows:

Now

To be developed first.

Next

To be developed next.

Later

To be developed later.