Consider your company’s struggles with achieving sustained next level growth. How many times have you developed a new strategic plan or direction, pursued new a growth opportunity with a substantial investment of time, resources and money, but without creating any real value? How many initiatives have you started that were not completed and didn’t fit with anything else in your company, and didn’t achieve the expected outcome?
Companies should ask themselves: do they have a clear strategic direction? Do they have a distinctive capabilities system that supports the strategy? And do they have an effective operating model for deploying those strengths to good effect for customers? Those ticking all three boxes stand a high chance of achieving sustainable next-level growth.
To identify and take advantage of opportunities for next-level growth, businesses don’t necessarily need to transform or reinvent themselves they need to be agile and be able to PIVOT. For the business to be able to PIVOT and take advantage of the new growth opportunities, they need to be aligned and agile. Three conditions for pivots to be a viable option:
1. Align the company with one or more of the long-term trends created or intensified by the challenge, market or economic disruption example: remote work, shorter supply chains, social distancing, and enhanced use of technology;
2. Be a lateral extension of the company’s existing distinctive capabilities, cementing — not undermining — it’s strategic intent.
3. Offer a sustainable path to profitability, one that preserves and enhances brand value in the minds of consumers.
A capabilities-driven approach to strategy allows companies to become aligned. This will enable companies to be agile and achieve scale by applying their distinctive capabilities throughout the entire company. Reste your approach to business growth strategy.
A Capabilities Driven Strategy is outward-looking. It starts and ends with customers, involves building up a portfolio of ideas, skills, and competencies that are put together. Combined, they create and strong and defining differentiating value proposition, that can enable a company to attract its target customers consistently.
Three core components drive a Capabilities Driven Strategy:
| Value Creation – how we choose to face the market and create value for customers in this market. Product and Service Fit – based on our chosen value creation and our capabilities system, which elements stay and will grow your business and which should go. Capabilities System – the engine of Value Creation is the system of 3-6 distinctive capabilities that allow companies to deliver their Value Proposition Winning Advantage – the ability to compete in a particular market or sector with the confidence to be successful and create value long term. focus on what they do best in making every decision and they align their value creation with their capabilities system and their product and services. |
Distinctive capabilities are effective tools that companies can use to connect where they aim to go and what they can accomplish. The journey can be a challenge for every company. They need to have a good grasp of what they have, what makes them different and what they are capable of doing. This can make a big difference from achieving their goal of, next-level growth, and being stuck amid uncertainty.
Benefits of a Capabilities Driven Strategy
A capabilities-driven approach to strategy allows companies to become coherent, which leads to:
Effectiveness. Companies become better at the things that truly matter for the business by focusing on what is most important day in and day out;
Efficiency. Companies achieve scale by applying their distinctive capabilities throughout the entire company;
Focused investment. Companies spend on the areas that matter to their business, concentrating on what drives advantage;
Aligned organisation. People throughout the organisation have a powerful decision framework, which creates alignment;
Better talent. Companies can find, motivate, and retain the best talent in the areas they and their people care about most.
To achieve company goals in today’s business environment, what matters is how well you are equipped for it.
CDS approach considers how capabilities, systems and process fit into the broader picture and the long-term value that can be derived. Reset your approach to business growth strategy.
Contact us to find out how we can help you get there – faster!
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