What do you need to get to the top to reach your goals? A great bike, super fitness, a very good sense of balance, courage, a sense of adventure, an appetite for risk and a good deal of skill... Welcome to the world of capabilities!
This is an example of our unique ability to map the capabilities (which we will identify together) showing what is required to reach your goals and to fulfil your strategy.
In the case above (for capital intensive goods industries) increasing levels of complexity of the offer in the form of added customer benefits create more value. The more, which can be bundled, packaged and offered to reach a level, where the customer buys piece of mind rather than a product or set of features, the more value can be extracted. More value equates to increased revenues and potentially improved margins.
Higher up the in value chain enables more brand differentiation and provides the possibility to create a competitive advantage.
Drawing this model, related to your strategy, enables you to identify the holes in your firm capabilities - these need to be "plugged". Capabilities are either acquired (e.g. buying a firm who possesses them or hiring in new competencies) or by developing them yourself.
A capability can be tangible (in the case above you need a really good bike) or intangible (risk appetite, fitness, strength and a good sense of balance etc). As you can see the cyclist above needs a combination of all of the elements to reach the top.
This model also helps firm identify if a competence shift in its workforce is required or if a change of culture is required.
Dear reader you may notice that this model is in the form of a hierarchy or staircase - you can't reach the top in one step as each level builds a basis for the next one... trying to jump levels will lead to frustration and disappointment as the pre-requisites won't be in place...
SMQC can help you build these models for your organisation, the above is just an example:)