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Cases and Scenarios

Starting

Cases and Scenarios

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Beyond steam, electricity, transistors to ...
The not-for-profit organisation
The miner - Facilities management
The civil engineer - Performance and safety
Succeeding proactively with capability
Engagement model

Click on titles for more info ...

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Capability

The missing ingredient in strategy, projects, performance, change, innovation and agility

Capability is the enabler of strategy and its execution. It describes the quality of the work environment, including structure, infrastructure, processes and resources, and the skills and attitudes of people and teams.

Managing capability leads to a better work environment, the right resources supported by the right culture. It enables people to perform at their best. Capability promotes, supports and enables high performance, change, innovation and agility.

Blueprint for Success

Inspired by the way organisations succeed in competitive markets

The model integrates the different dimensions embodied in successful competitive markets with a view to achieving, inside organisations, enhanced flexibility, dynamism, innovation and performance. The model:

  • Embodies the best or contemporary management practice
  • Helps organisations succeed in competitive environments
  • Has been successfully tested over three years in an Australian mining company and with other organisations

Fitness for Purpose

What is capability

Capability

Measureable - Manageable - Practical - Effective

Six key dimensions

  • We measure and manage capability in each of the areas shown in the picture.
  • We analyse upwards of 36 parameters to get a fine-grained understanding of the situation on the ground.
  • We enable management to engage effectively with staff about strategy, objectives, challenges and change.

Generic

The model’s origin and design ensure that it applies to all industries (finance, mining, insurance, banking, not for profit, education, engineering, etc.) and to all important activities such as performance, risk management, agility, change, projects and innovation.

Versatile

The model can be used in 3 complementary modes:

  1. Objective or KPI Capability Health Check,
  2. For creating an Objective or KPI Execution Blueprint, and
  3. For determining and improving Capability at the Frontline.

A Predictor of Performance

Corporate objectives are normally embodied in a Balanced Scorecard backed up with a set of corporate KPIs. Experience shows (see below) that capability has a direct and measurable impact on performance.

Case Study

The capability of several teams of a business group in a large mining company was measured quarterly over three years and correlated with KPIs (see image). The group also defined initiatives aimed at increasing capability where needed and at leveraging the new capability towards improving performance.

The data set shows that performance strongly correlates with capability. This resulted in a significant increase in profit and a high return on investment.

  • Increasing capability correlates with increased performance
  • Low capability correlates with low performance
  • Capability can be used as a predictor of performance success
  • Effective performance management implies managing capability
  • Managing performance without managing capability is sub-optimal

Take Away

Capability needs to be managed pro-actively.
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Capability-centred Management in Practice

Flexible Implementation

The Feedforward-proactive Mode

This is the preferred management mode. It enables managers to define, implement and control a set of actions towards a specified objective, under the guidance of the capability-centred model.

It also enables employees to manage their own objectives and work with their managers to improve the quality of the environment so as to make them more effective.

The Feedback-reactive Mode

In this mode corrective, action is based on feedback from the frontline (typically with a survey). While the reactive mode is often not the preferred management mode, getting the view from the frontline at regular intervals is good practice. That is, provided that that feedback be followed in a timely fashion with initiatives aimed at correcting the gaps or shortcomings reported. Feedforward is the mode to use to do that.