An organisation competing on organisational capabilities is going to be focusing on the learning & growth perspective of the business strategy map. It’s going to be performing some activities in order to create outcomes which in this case are organisational capabilities.
These steps are shown in the organisation value chain which describes how a business generates value by creating and developing capabilities as outcomes that help it organise how work is done.
The full value chain is shown here and consists of:
- Inputs - the existing workforce (project staff, capabilities, behaviours), the HR function (its capability, use of technology etc), management time, business sponsorship, budgets etc
- Activities - all of the processes undertaken by HR and line managers together with other actions and interventions
- Outcomes - human, social and organisation capital, or the value of the organisation’s people and culture.
I sometimes call this chain the Human Capital Management, or HCM, value chain simply because human capital is the most common element of organisational capability which businesses tend to focus on.
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