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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.
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”.
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.
A successful company's operations are based on a strategy capable of renewal and defined strategic goals that help the organisation cope with its competition and changing business environment. Goals provide direction to the organisation, assist in allocating resources and guiding decision-making and operations. Achieving your strategic goals requires continuous work and re-evaluation.
When working on a strategy, the key is considering the future abilities and know-how required to achieve the goals. It can also be good to look at the past factors that have produced success and the organisation's special knowledge, skills and competencies that have created added value. People management plays a vital role in developing and nurturing abilities and skills.
Strategic management of competencies is also needed to best use the competencies required for the goals. The strategic management of competencies is planned and intentionally managed to enable the acquisition, utilisation and renewal of competencies in line with the business strategy. Strategic competence management ensures competitiveness in the future.
A human resources strategy supports the development of competence
Strategic capabilities are the organisation's unique strengths and capabilities that help it stand out from competitors. The HR strategy must support and strengthen these strategic capabilities; actions and practices relating to personnel should contribute to achieving strategic goals.
The success of an organisation depends on the people who work together to achieve the goals. Therefore, ensuring the organisation has a personnel and talent profile supporting the needed capabilities is essential. Personnel must have the skills, competencies and characteristics relevant to the operation.
To strengthen and foster the strategic capabilities, it is vital to identify the kind of expertise needed in the organisation. What type of training and development programmes are needed? Is there a need for technical training, development of management skills or adoption of innovations? How do we attract employees who match the organisation's strategic capabilities and goals?
With the help of an HR strategy, the organisation can build management practices and a workplace environment that promotes employee engagement and motivation. Satisfied and motivated employees are more likely to be committed to developing and maintaining strategic capabilities. Competence management plays an important role; you can read more about it here.
Eliminate uncertainty with strategic foresight
To maintain competitiveness, it is crucial to anticipate the future and identify, analyse and understand future opportunities, risks, challenges and trends. Strategic foresight helps the organisation develop flexibility and adaptability in a changing environment. Foresight must also be considered in the HR strategy and everyday personnel work. It reduces the feeling of uncertainty experienced by employees and helps prepare for various future opportunities and changes.
Strategy work, strategic renewal and strengthening of capabilities require humane and people-oriented leadership. It always involves ways in which people act, feel and feel needed. When the workplace culture is based on dialogue and the ability to listen, it is possible to achieve a state in which everyone believes in the goals and works towards reaching them.
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.
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 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.
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.
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.
At the starting point, we wanted to make sure that we had the right skills now. The capability model created with Hanken & SSE has helped identify how we will stand out and succeed in the fierce competition in the future.
Together with Hanken & SSE, 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.
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