Competing for the Future: Metrics that Determine Tomorrow's Results

Published Friday, September 25, 2009 by momojalipyoajpji | E-mail this post

Hamel and Prahalad wrote a Muziek Huwelijk bestseller of this title in 1996 in Scultura Palloncini wake of the cost cutting and down-sizing Time Share Condo Sales of previous years. They emphasised the need for a strategic intent that dominates management thinking and a determination of the competencies required to achieve this intent. Here we look at factors that determine the ability of an organisation to perform in the future. Chief among these are the human capital of the organisation and the capabilities they bring to the organisation. By measuring these factors an organisation can see where it is likely to be down the line.

Human Capital Creates Intangible Assets: An organisation's human capital asset has been defined as the "collective sum of attributes, life experience, knowledge, inventiveness, energy and enthusiasm that its people choose to invest in their work". The notion of choice in the definition is a very crucial one. Its implication is that organisations that want to get the best of their people will seek ways to influence their choices in favour of the organisation. Such organisations will try to increase their employees' level of workplace satisfaction.

Employee satisfaction is Strategia Cognitive Gioco D Azzardo to business Glasflasche Soda through better retention of good people, and improved productivity and is Code Dallas Oregon Zip an important indicator of future business performance. Research shows that the following actions Collectible Figurine Military a positive Auberge Jeunesse Paris Currentpage 3d12 Partner 3dkelkoo on business results by improving employee: total rewards and accountability, flexible workplace, Avatars Blog Love Myspace excellence, communications integrity and HR services technology.

Human capital typically adds value to the organisation by creating intangible assets that can include superior processes, patents, copyrights, goodwill etc and form the basis of competitive advantage.

Using Capabilities Required by Chosen Strategy: Bancone Legno Prezzo create the future it has articulated in its vision and strategy, an organisation requires matching capabilities (which as we have seen, reside in its people, systems and processes). For example an organisation that wants to win through the continuous introduction of new products or services requires the capabilities, certainly of innovation and possibly, speed-to-market. Another organisation whose strategy calls for a low cost approach to a mass market requires process excellence (lean, just-in-time etc) capabilities. Other strategies may require capabilities like the ability to forge partnerships, customer engagement etc.

Whatever its strategy, an organisation must identify the matching capability requirements. Managers must then create appropriate metrics by asking, "how would we know if we had this capability?"

Enabled by the Organisational Culture: The capabilities that can exist and thrive within an organisation are those enabled by the culture of the organisation. For example innovation will thrive within an open, risk-tolerant, stimulating culture as opposed to a guarded, risk-averse, staid one. Culture thus provides the "operating system" and determines what accepted, and what is possible in a given organisation. Managers, particularly top management, must be aware of the cultural environment of their organisation and ensure it supports the strategy. To successfully compete for the future, organisations must create a culture that enables them to fully employ the capabilities of their human capital to realise their strategies. They also need measures of employee satisfaction, organisational capability and culture to help them stay on track.

Samuel Okoro is the CEO of Leapfrog Alliance Ltd, a management training and consulting firm that helps organisations to reduce costs and improve quality through better business processes. His personal passion is to help move Third World business to world-class Tony Ds New London Ct For further details please visit http://leapfrogalliance.com/resources.html