In Module Seven, consider the following statement: "The best-performing companies worry less about performance and more about their organizational capabilities" (Bititci, 2015). Then, review the interview notes memos for Company A and Company B. Then think about organizational performance in relation to organizational capabilities and address the following in your initial post:
Do you agree with the statement above? Why or why not?
How does organizational culture affect capability and performance? For example, an active, participative culture is essential for encouraging organizational learning.
What do you think about the organizational culture and capabilities of Companies A and B and their role in the two companies' performances?
Sample Answer
Organizational Capabilities, Culture, and Performance
I strongly agree with the statement, "The best-performing companies worry less about performance and more about their organizational capabilities." This statement highlights a crucial shift from a reactive, outcome-focused mindset to a proactive, foundational approach to business success. Performance is an outcome, a lagging indicator, whereas organizational capabilities are the drivers, the leading indicators that enable sustained superior performance.
Why I Agree with the Statement
Focusing solely on performance metrics can lead to short-term thinking, cutting corners, and manipulating numbers without addressing the underlying ability of the organization to generate those results consistently. It's like a sports team focusing only on the scoreboard rather than on the players' skills, teamwork, and coaching strategies. A team with superior capabilities (e.g., strong individual talent, effective playbooks, excellent coaching, cohesive teamwork) will, over time, consistently outperform a team that only fixes its gaze on winning the current game without investing in its fundamental strengths.