“The best-performing companies worry less about performance and more about their organizational capabilities”
Consider the following statement: “The best-performing companies worry less about performance and more about their organizational capabilities” (Bititci, 2015). Then, review the interview notes memos for Company A and Company B. Then think about organizational performance in relation to organizational capabilities and address the following in your initial post:
Do you agree with the statement above? Why or why not?
How does organizational culture affect capability and performance? For example, an active, participative culture is essential for encouraging organizational learning.
What do you think about the organizational culture and capabilities of Companies A and B and their role in the two companies’ performances?
Sample Answer
1. Do you agree with the statement: “The best-performing companies worry less about performance and more about their organizational capabilities” (Bititci, 2015)? Why or why not?
Yes, I agree with the statement. While it may seem counterintuitive, focusing solely on performance metrics can be short-sighted. Here’s why:
- Capabilities drive sustainable performance: Organizational capabilities are the underlying skills, processes, and resources that enable a company to consistently deliver value and achieve its objectives. Strong capabilities lead to better execution, adaptation, and innovation, which ultimately drive long-term performance.
- Performance is a lagging indicator: Performance metrics reflect past results, not necessarily future potential. Focusing on capabilities allows companies to proactively build a foundation for future success.
- Capabilities create competitive advantage: Unique capabilities are difficult to imitate and can provide a sustainable competitive advantage.
2. How does organizational culture affect capability and performance?
Organizational culture significantly influences both capability and performance:
- Learning and Innovation: A culture that encourages experimentation, knowledge sharing, and continuous improvement fosters the development of new capabilities and drives innovation.