"The high-mature organizational capability is the digital business differentiator, to keep the business unique, competitive, innovative, and improve the overall business maturity significantly."

Pearl Zhu


Every organization or business has these goals in common; scale performance, make sales, and exceed customers’ satisfaction. This, however, is not an easy process as it requires leading and managing effective teams that ensure the overall outstanding performance of an organization. The outbreak of Covid-19 and more unpredictable global trends will continue to reshape and introduce new trends to the workplace, especially in the business sector. It, however, becomes imperative for business leaders and key team members to build resilience and improve organizational capability.

Here are five essential steps business leaders can adopt to improve their organizational capability.

1: Invest in digital transformation

In order to stay competitive and relevant in the industry, organizations need to prioritize digital transformation, as the world will continue to evolve with new technological trends designed to transform businesses. Gaining insight into the emerging technology trends like Artificial intelligence, machine learning, cloud computing among several others will set the pace for transformation and help organizations derive lasting exponential growth. By investing in these technological trends, workplace productivity will be effortlessly achieved.

Findings from the 2020 Digital Transformation survey by Deloitte LLP revealed that organizations that invest in digital transformation were three times more likely to achieve revenue growth. This, however, is not surprising given the increase in artificial intelligence and other recent technology trends.

Therefore, investing in digital transformation should be one of every organization’s top priorities.

2: Robust Operations

In achieving improved organizational capability and productivity business owners and key team members need to put in place an effective and efficient operation process.

It is important to invest in having a strong business operational strategy to make organizations more adaptive. Organizations that invest in having strong business operations are more likely to make better use of automation technology to increase their efficiency and overall performance, which allows seamless and effortless delivery of products and services, as it makes organizations to prioritize customer service and satisfaction.

Also, a robust business operation enables organizations to sustain and compete in the ever-changing business climate. While having a robust business operation is important, effective communication plays an indispensable role in the overall performance of these business strategies. Dawn Brown, a Forbes Business Council Member, reinforced the importance of communication noting that, effectively communicating the vision and idea of new business operations and processes to the employees at all levels in the organization, goes a long in determining the attitude and inputs of employees in achieving the proposed business operations and processes.

3: Learning and Development

Training and developing the skills and competence of employees at all levels in an organization is another effective strategy to improve organizational capability and competence. While it is important to hire the best talents, it is also imperative to train employees in an organization.

To achieve organizational goals and objectives, employees must be trained and developed throughout their stay in the organization. For this to be achieved, business owners and top leaders need to prioritize learning and development as it an indispensable strategy in achieving organizational growth.

Findings from a survey by the go2HR society indicate that 40% of employees leave their jobs or position within the first year as a result of poor training opportunities. Prioritizing learning, training, and development is vital in achieving organizational growth and productivity as trained employees are more efficient.

 4: People management

In the past few months, leading and managing highly effective teams have been challenging, as the new trend of working remotely has placed a new burden on business leaders and human resource managers on both small scale and big scale businesses.

Ensuring effective people management is crucial in optimizing employee’s performance and productivity, as it involves creating a positive work environment and prioritizing the health, social, and mental wellness of employees in the workplace. This, however, goes a long way in improving organizational capability.

Peter Drucker, a profound thought leader in modern management, made it known that 60% of an organization’s issues stem from faulty communication or poor people management.  Prioritizing employees’ opinions ensures transparency and also gives the employees a sense of belonging in the organization as they will feel seen, heard, appreciated, and highly valued.

5: Prioritize Sound Decision-Making

Every organization’s success, performance, and growth thrive squarely on the daily decisions employees at all levels make, and what makes the difference is how sound and strategic those decisions are. Every organization should develop a sound decision-making ability in their employees because having good judgment and the skill to convert this into profound decision-making are imperative in achieving organizational growth. To improve organizational capability and productivity business leaders should ensure that sound decisions are made at all levels of the organization, especially among key team members.

According to a recent study by the Harvard Business Review, 87% of organizations affirmed that their companies will achieve more success if frontline workers are empowered to make quality on-the-spot decisions. Findings from this study further reinforce the importance of making sound decisions across all levels in an organization.

Final Thoughts:

It is essential for organizations to consistently focus to improve their capability. Doing so will immensely help to improve performance and build resilience in this ever-changing global market.   


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