{"id":4670,"date":"2019-04-08T07:17:24","date_gmt":"2019-04-08T12:17:24","guid":{"rendered":"http:\/\/flevy.com\/blog\/?p=4670"},"modified":"2020-12-20T22:45:33","modified_gmt":"2020-12-21T03:45:33","slug":"capabilities-driven-strategy-the-key-to-getting-your-growth-strategy-right","status":"publish","type":"post","link":"https:\/\/flevy.com\/blog\/capabilities-driven-strategy-the-key-to-getting-your-growth-strategy-right\/","title":{"rendered":"Capabilities-Driven Strategy: The Key to Getting your Growth Strategy Right"},"content":{"rendered":"

Formulating a\u00a0Capabilities-Driven Strategy (CDR)<\/a> is easy, but the execution is difficult, especially in turbulent times. This is not the time to\"\" find a cave and hibernate until the economic storm passes. It is unlikely that the storm will pass anytime soon. Capabilities-Driven Strategy is the only way to remain equipped for perpetually stormy weather.<\/p>\n

Companies need to take care or build those capabilities that are genuinely needed and not those that do not serve our customers. Capabilities do not manifest themselves overnight. They take time to grow. But companies who have mastered the art of developing and implementing a Capabilities-Driven Strategy have grown to develop the world\u2019s leading brands. Distinctive capabilities–i.e. Core Competencies<\/a>–have been used to propel them to reach operational and business excellence.<\/p>\n

What is a Capabilities-Driven Strategy?<\/h2>\n

A capabilities-driven approach to strategy allows companies to become coherent. This leads companies to achieve scale by applying their distinctive capabilities throughout the entire company. Instituting a Capabilities-Driven Strategy requires articulation of capabilities that help companies succeed in the key market.
\nThe bulk of the company\u2019s support should then focus on these capabilities. This can be achieved by taking on a 3-phase Approach to Capabilities-Driven Strategy<\/a>.<\/p>\n

The 3-phase Approach to Capabilities-Driven Strategy<\/h2>\n

\"\"<\/a><\/p>\n

    \n
  1. Identify Capabilities<\/strong>
    \nPhase 1 starts by identifying the drivers of demand in your market.\u00a0 It is essential to identify capabilities that could meet expectations and satisfy our customers.<\/li>\n<\/ol>\n
      \n
    1. Build Capabilities<\/strong>
      \nBuilding capabilities are the next critical phase underlying the Capabilities-Driven Strategy. Phase 2 looks into the building up of complementary, reinforcing capabilities vital in our capacity to execute and deliver.<\/li>\n<\/ol>\n
        \n
      1. \u00a0Divest Business<\/strong>
        \nDivesting business is the 3rd phase of Capabilities-Driven Strategy that requires a thorough analysis of our capabilities and actions. We can either streamline or sell our businesses. What we have \u2013 our capabilities play a vital role in this decision that we have to make.<\/li>\n<\/ol>\n

        Whatever decision our company takes, what is essential is to have the foresight to anticipate future industry dynamics and customer needs.<\/p>\n

        What Makes Starbucks Stand Out<\/h2>\n

        Starbucks is the world\u2019s most iconic brand and known for ambiance in its retail stores. Strategically, Starbucks used its distinctive capabilities to be the purveyor of the \u201cthird place\u201d for conviviality. To achieve this means being the center for human activity after home and work.<\/p>\n

        Starbucks has to identify its distinctive capabilities before being able to use it strategically. Starbucks has stewardship over a globally available consumer experience. It can distinctively deliver its products and service, as well as design and develop a premium product line. Starbucks is known for recruiting and managing a cadre of dedicated employees.<\/p>\n

        Summing it all up allows Starbucks to develop the Capabilities-Driven Strategy that will establish itself as the purveyor of the \u201cthird place\u201d for conviviality.<\/p>\n

        Distinctive capabilities are effective tools that companies can use to connect where they aim to go and what they can accomplish. Starbucks was able to effectively use these tools to lead them to where they want to go and be. The journey can be a challenge for each and every company. We can all be like Starbucks. We just need to have a good grasp of what we have and what we are capable of doing.\u00a0 This can make a big difference between becoming what we aim for and just being content with where we are now in the midst of uncertainty.<\/p>\n

        Interested in gaining more understanding of Capabilities-Driven Strategy (CDR)<\/a>? You can learn more and download an editable PowerPoint about Capabilities-Driven Strategy (CDR)<\/strong>\u00a0here<\/a> on the Flevy documents marketplace<\/a>.<\/p>\n

        Do You Find Value in This Framework?<\/h2>\n

        You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library<\/a>. FlevyPro<\/a> is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:<\/p>\n

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        \u2013 Bill Branson, Founder at Strategic Business Architects<\/p>\n<\/blockquote>\n

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        “As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant’s toolbox.”<\/p>\n

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        “FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight \u2013 it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”<\/p>\n

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        “Several times a month, I browse FlevyPro for presentations relevant to the job challenge I have (I am a consultant). When the subject requires it, I explore further and buy from the Flevy Marketplace. On all occasions, I read them, analyze them. I take the most relevant and applicable ideas for my work; and, of course, all this translates to my and my clients’ benefits.”<\/p>\n

        \u2013 Omar Hern\u00e1n Montes Parra, CEO at Quantum SFE<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"

        Formulating a\u00a0Capabilities-Driven Strategy (CDR) is easy, but the execution is difficult, especially in turbulent times. This is not the time to find a cave and hibernate until the economic storm passes. It is unlikely that the storm will pass anytime soon. Capabilities-Driven Strategy is the only way to remain equipped for perpetually stormy weather. Companies… Capabilities-Driven Strategy: The Key to Getting your Growth Strategy Right<\/span><\/a><\/p>\n","protected":false},"author":111,"featured_media":4673,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[81],"tags":[1534,1533],"class_list":["post-4670","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategy","tag-3-phase-approach-to-capabilities-driven-strategy","tag-capabilities-driven-strategy-cdr"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/4670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/111"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=4670"}],"version-history":[{"count":9,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/4670\/revisions"}],"predecessor-version":[{"id":8169,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/4670\/revisions\/8169"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/4673"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=4670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=4670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=4670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}