Assessment of the Organization's Capabilities to Implement the Business Strategy

Diagnostic 4: To what degree do we have the required organizational capabilities to effectively implement our business or functional strategy?

The Organizational Capability Assessment and Shaping processes were created in the early 1990s to help executive teams translate a strategic plan into an effective action plan to implement the strategy. There seemed to be a gap between completing the strategic planning process and actually implementing the strategy in an effective and timely way. The organizational capability assessment provides a structured, facilitated process for translating the elements of the strategy into the organizational capabilities necessary to implement and perform in the intended ways. Organizational capabilities are usually identified as large processes, supported by an organizational structure and accountabilities, enabled by the top performing incumbents in key roles, guided by the right metrics and incentives.

Conducting an organizational capability assessment serves several purposes. First, it provides the executive team with an opportunity to build a shared mental model of the strengths and weaknesses of the business (or function). Second, it allows the new executive to assess the accuracy with which each executive evaluates the competitiveness of his or her function (requiring an external focus) and how aggressive each is in pursuing performance improvements from his or her respective areas.  Third, it provides another opportunity for the new executive to shape and convey his or her expectations to the team.

Links to A Sample of Diagnostic Tools

4. Assessment of the Organization's Capabilities to Implement the Business Strategy


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