The value of organisational capabilities and the use of the word as a corporate jargon really rose to prominence as a result of the strategic management researchers and popularised by strategy consultants.
McKinsey defines organisational capabilities rather broadly as “anything an organization does well that drives meaningful business results”
Within the Resource Based View of the firm, Barney (1991) and Wernefelt (1984) recognised that organisational capabilities are a major source for the generation and development of sustainable competitive advantage.
It’s not that far of a stretch to see why change management as an organisational capability has risen in popularity. A company that is adept at managing change remains agile and can continuously generate sustainable competitive advantage.
The term capability is often used interchangeably with competence, but I tend to think in context of change it is broader than simply skills sets.
For me it comes down to answering a simple series of questions:
- What does it take for the organisation to be highly capable of change?
- What does it take for our managers to be highly capable of change?
- What does it take for our people to be highly capable of change?
Change capability then looks something like the following
- An organising structure for change management – this might be a governance model, a centre of excellence, or a centralised portfolio or internal consultancy
- Change management as a central construct in the learning and development systems (induction, internal courses, mentoring)
- Change management as a central construct in the human resources systems (recruiting, performance management, and recognition)
- Change as a cultural imprint within the leadership – lived values of innovation, agility, and of course, people
- Common supporting toolkits, frameworks, processes and templates that enable people to carry out successful change
- A multi level framework that distinguishes between levels of capability (first order skills, second order and so forth, think Quinn’s master and novice distinction)
How does that fit with you? Does your organisation define the term differently? Something similar — or an alternative perspective?
If you are looking for more resources on the topic, try the following:
- Dean Anderson and Linda Acker Anderson’s excellent chapter on the topic from Beyond Change Management hosted on the Change Leaders Network (2010)
- Two vendor perspectives – ChangeFirst (PCI model) Whitepaper on Building Sustainable Change Capability and Accenture’s Creating Internal Change Capability
- A previous post from a Melbourne Change Management Professionals meetup on the topic “Building change capability: a change management professionals conversation
- A post “Building organisational change capability” from Jude Burger (Dancing on Hot Coals) on the collected wisdom of a Canberra change management community
- A post and resources from Gail Severini on the tension between using internals and externals in building change capability (from the 2013 ACMP conference) – Optimizing internal and external change management presentation and tip sheet
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