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Strategic renewal and capabilities

Strategic renewal and capabilities

The continuous change in the operating environment requires strategic agility and renewal from organisations. The changing ways of working and evolving leadership require new capabilities.

What does your company do better than everyone else?

This question sums up the essence of a company's strategic capabilities. Strategic capabilities are those organisational capabilities that define the company's competitive advantage and the enablers of implementing the strategy. In turn, the organisation's and individuals' ability to change ensures the ability to adapt and influence continuous change.

The purpose of the company answers the question “Why”, while the strategic capabilities answer the question “How”.

A responsible company makes future capability needs visible

Strategic capabilities also serve as an excellent starting point for the development of personnel, whether it is developing leadership, competence, talent management or career lifecycles. Personnel strategies based on capabilities bring the company's strategy alive and enable each employee to connect to the company strategy through their expertise and work.

A responsible company makes the future capability needs visible and enables its employees to develop their own skills towards them. This in turn strengthens the link between the purpose of the company and the importance experienced by the individual.

Renew your organisation's strategy

A company's strategy is a plan for acquiring or creating its position in the market. It specifies the elements on which the company's competitiveness and success are based. Because operating environments change and develop quickly, strategic planning requires anticipating the future and understanding the need for change. The traditional two-phase model of strategic management should be replaced with continuous strategising.

Successful renewal strategy

Success with a renewal strategy

Strategic planning requires continuous efforts over a long period. It also involves strategic renewal, which means constantly responding to changing conditions and ensuring competitiveness. This, in turn, requires knowing what capabilities and resources are necessary for the company to succeed.

A successful strategy requires knowing your company's core competence

A company's most important asset is the people with the skills and ability necessary to work towards the company's goals amid changes. You must be able to identify these skills and abilities and develop them in the right direction. It is essential that employees are willing to use their skills and develop them for the benefit of the company.

One way to identify the skills and competencies needed is through strategic capabilities. First, identify the strategic capabilities that give the company its competitive advantage and distinguish it from other players in the industry. After that, you should determine what know-how is required to achieve and maintain these capabilities.

For example, a company's strategic capabilities may include internationality. This requires language skills, cross-cultural understanding and willingness to work in a global environment. After identifying the capabilities, it is easier to map out who already has the necessary skills and who can develop them. If necessary, the organisation can recruit a new employee based on having the ability to strengthen this capability.

A successful company combines strategic capabilities with individual skills

When a company's strategy is developed and strategic capabilities are being identified, the people must not be forgotten. In addition to the needs of the company, individuals' needs and career aspirations must be considered. The formulation of a strategy starts by combining the needs of the company and the individuals because the best result is achieved by satisfying both interests.

The company's management is responsible for implementing the strategy and identifying and developing capabilities. It is management's responsibility to ensure that the company's strategic goals are realised in such a way that every employee feels essential at work and wants to develop their skills. Only long-term cooperation between people and teams ultimately enables success in a constantly changing environment.

Companies need competence management to ensure competitiveness and fulfil their promises to customers. Competence management should be based on strategic capabilities and competencies. It is also an essential part of strategic talent and competence development. Learn more about competence management.

Companies and individuals must be able to adapt to and influence continuous change. This starting point must be considered in a company's strategic planning in its strategic renewal. Strategic renewal is a fresh approach to strategy. Read more about strategic renewal.

Choose a partner who can achieve strategic renewal

Even the best strategy only works when it is built on properly selected and well-managed strengths.

Strategic renewal is continuous growth and development and therefore requires visionary leadership. You don't have to be left alone. Together with you, we ensure the long-term and agile development of your company's strategic capabilities.

We hosted two events in spring 2022 to discuss the topic, watch event recordings below. 

Strategic Renewal event

Expand Renewal event

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What the customers are saying

At the starting point, we wanted to make sure that we had the right skills now. The capability model created with Hanken & SSE (HRM Partners) has helped identify how we will stand out and succeed in the fierce competition in the future.

Marko Rissanen
HR Director

Together with Hanken & SSE (HRM Partners), we set out to shape our management concept in a new direction to support our business strategy. It also involves the personnels more active role in implementing the strategy and developing expertise and operating methods to respond more effectively to future challenges.

Tatu Hauhio