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Special Columns
Arindam Chaudhuri, Editor-in-Chief, 4Ps B&M Chief Consulting Editor's Desk
Rajita Chaudhuri
A.Sandeep Editor's Desk
A.Sandeep
From The Editorial-in-Chief's Desk

A.Sandeep
Editor, 4Ps B&M
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Capability & Competence Advancement Agenda' (C2A2)
Yes, the Structural Capabilities Architecture gives a great method to slot your capabilities; but at the same time, capabilities are useless if not managed well. And For that, I present the Consequent Capabilities Architecture. Thereís a statutory warning though: this stuff is not for kids!
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IN MY PREVIOUS EDITORIAL, I HAD commented on how modern day multinational and transnational corporations should have a structured capability & competence development process in place to achieve long-term success! I also went ahead to present the C2A2 theory (Capability and Competence Advancement Agenda) Ė a benchmark model that transnational organisations could and should implement off-the-rack for developing capabilities and competencies. In that very Editorial, I had mentioned details on how the capabilities and competencies of any corporation were of various kinds, but broadly could be divided into a few types of Structural Capabilities (see pictorial representation on the right side); namely, Doorway Capabilities, Elemental Capabilities, Enrichment Capabilities, Power Leadership Capabilities (For a better understanding, refer to my strategy book, CULT, which Iíve coauthored with Arindam Chaudhuri; a faster way would be to go to a--sandeep.blogspot.com and search for the term ďC2A2Ē; yes, the term sounds so hackneyed, but you canít miss it I guess).

Yes, the Structural Capabilities Architecture gives a great method to slot your capabilities and competencies; but at the same time, capabilities are useless if not managed well. But then, you canít just stand up in a board meeting and scream at your Presidents to, uh, manage the competencies better; and not at all so in transnational organisations employing thousands. Then what structure exactly should one follow to organise the people to manage structural capabilities of any organisation? For that, I present the Consequent Capabilities Architecture. Thereís a statutory warning though: this stuff is not for kids, and not the least for glam-struck management students Ė itís meant purely for CEOs, and that too of very large organisations.

CONSEQUENT CAPABILITIES ARCHITECTURE

Consequent Capabilities are named such because the nature of their existence is consequent to the nature of the main structural capabilities. But the most important aspect of them all, as has been mentioned above, is the fact that Structural Capabilities exist and improve or get discraded only because of Consequent Capabilities. Structural Capabilities are the display & end result of the power and efforts of Consequent Capabilities. Different types of Consequent Capabilities identify the need for Structural Capabilities, refine their efficiencies and effectiveness, remodel their alignments with overall corporate structures and processes, and finally ensure that the organization becomes the most intelligent corporate animal that responds demandingly & profitably to all that the environment has to offer.

The existence of Consequent Capabilities runs parallel to the main operational line of structural capabilities. That is, while the continuum from Doorway capabilities to Power Leadership Capabilities focuses on competitive requirements (developing, improving, sustaining, or discarding competitive leadership), Consequent Capabilities focus on development perspectives (developing, improving, sustaining or discarding Structural Capabilities leadership). Consequent Capability Units (comprising of respective managers and team members) are of four types:

 
LEARNING CAPABILITY UNITS (LC UNITS)

These Units are made up of teams that are associated with all the Consequent Capability Units (Transformation, Fortification and Exnovation) at all levels and have two prime responsibilities:
1. Documenting processes, structures, organizational initiatives, goals, objectives at various discernible levels of the transnational organisation.
2. Developing a sharing network that enables all levels in the organization to learn best practices, structures and initiatives of various Capability Units by initiating Consequent Capability Architecture intervention programmes aimed at educating, teaching, disseminating knowledge, information and data throughout the organisation.

LC Units play the role of historians and professors. The LC Units are repositories of information. LC Units involve themselves in organizational intervention exercises (including, but not restricted to training & development workshops, conferences, seminars, sales sessions etc) at every level to make sure that Units all across the organization share in the learning experiences from across the organization.

EXNOVATION CAPABILITY UNITS (EC UNITS)

Exnovation is literally defined as the opposite of Innovation (I wrote about Exnovation in one of my previous editorials; itís also there in the book that I mentioned a few paragraphs above, CULT: The ultimate CEO guide to calling the shots without getting shot). Exnovation Capability Units are meant to monitor anomalies in organizational functioning and rectify them. EC Units are dedicated capability units that ensure Exnovation of aberrations to the strategic architecture and initiatives being undertaken by the organization. The primary responsibility of EC Units is to ensure that best practices and benchmarked processes are followed throughout the organisation to the tee; and those employees/structures not adhering to the predecided processes, be either reassigned/retrained or even retrenched in case retraining does not give progress.

Recent lessons in Corporate Non-Governance (Reliant, Dynergy, Enron, Andersen, Tyco...) have ensured the rising importance of EC Units in the corporate governance functions of organizations. Internal audit teams, for example, are EC Units attempting to ensure that standard financial processes (for example, SEC guidelines, Sarbanes Oxley Act etc) are not tampered with. Presence of Exnovation Capability Units is akin to presence of anti-bodies in human bodies in more ways than one. EC Units are dynamic in nature, both in size and their project requirements.
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