Do you know what your organizational capabilities are?

In an insightful article in the Harvard Business Review, authors Dave Ulrich and Norm Smallwood create a blue print for organizations to audit their intangible assets. Although managers tend to pay more close attention to the aspects of their business that they can easily measure, often it is the more intangible assets that create real and sustainable competitive advantage. The authors list 11 intangible assets that well-managed companies tend to have. These companies typically excel in only three of these capabilities, while maintaining industry parity in the rest:

• Speed: making important changes rapidly.
• Shared mind-set and coherent brand identity: ensuring positive, consistent perceptions of the company among employees and customers.
• Accountability: demanding high performance from employees.
• Collaboration: working effectively across organizational boundaries.
• Learning: generating ideas with impact.
• Leadership: embedding leaders throughout the organization.
• Strategic unity: articulating and sharing a strategic viewpoint.
• Customer connectivity: building enduring relationships of trust with targeted customers.
• Innovation: developing breakthrough products and processes.
• Efficiency: managing costs.

Just because intangible assets are harder to measure, few would argue that they are not important to the success of an organization. A powerful strategy recognizes the value of these organizational capabilities and capitalizes on them to gain sustainable competitive advantage.

Randy Bancino

Managing Partner

Profitable Growth Partners, LLC.