How can we plan to grow our organization if we do not have the capabilities to achieve our objectives?

Good strategic planning is not done in a vacuum. It is an outcome of an organization that knows its strengths and weaknesses, an organization that is knowledgeable about its opportunities in the marketplace and threats to attaining its goals.

The Capability Snapshot provides management with critical information to help it plan its strategy and identify opportunities and threats.

From the Strategic Challenges Module, the organization understands how it is perceived strategically by those key stakeholder groups that know it best. If the customers perceive the organization as not focused outwardly, then the organizations growth strategy is not succeeding. If the company invested heavily in new technology to improve its operations, the outcome should be reflected by its customers. The Strategic Challenges Module reflects the realized strategic alignment of the organization, not its intended strategy.

The Essential Capabilities Module identifies the organization’s strengths and weaknesses. If a new strategy is being considered, the organization must take into account its capabilities to succeed with the implementation of the strategy.

Dissatisfied customers can threaten the future sales and growth of a business. The Capability Snapshot ranks all the customers on their rating of the company, allowing the company to consider initiatives to rebuild relationships.

The Competitor Comparisons Module powerfully demonstrates how the organization rates against each of its competitors by capability. Wherever the competition rates higher than the company, it poses a threat. Wherever the company rates higher than its competitors, it poses an opportunity. Knowing its competitive position is invaluable for setting strategic goals to gain competitive advantage.

Read the ‘Ideas for Leaders’ article: Identifying Strategic Opportunities.