"The best-performing companies worry less about performance and more about their organizational capabilities" (Bititci, 2015). Then, review the interview notes memos for Company A and Company B. Then think about organizational performance in relation to organizational capabilities and address the following in your initial post:
Do you agree with the statement above? Why or why not?
How does organizational culture affect capability and performance? For example, an active, participative culture is essential for encouraging organizational learning.
What do you think about the organizational culture and capabilities of Companies A and B and their role in the two companies' performances?
Sample Answer
As the Division Controller for TransGlobal Airlines, tasked with assessing potential acquisitions, I've deeply considered the dynamics of organizational performance and capabilities, particularly in light of Bititci's (2015) statement.
Do you agree with the statement above? Why or why not?
I strongly agree with Bititci's (2015) statement: "The best-performing companies worry less about performance and more about their organizational capabilities."
My agreement stems from a long-term strategic perspective, honed both as a pilot, where the capabilities of the aircraft and crew determine mission success, and now in a controller role, where the underlying health of an organization dictates its sustained performance.
Here's why:
Capabilities are the Foundation, Performance is the Outcome: Performance is a lagging indicator. It tells you what has happened. Organizational capabilities, however, are the enablers of future performance. They are the underlying skills, processes, systems, and culture that allow an organization to consistently execute its strategy, adapt to change, innovate, and deliver value. If you focus solely on current performance metrics without understanding or nurturing the capabilities that produce them, you're essentially looking in the rearview mirror without ensuring you have fuel and a well-maintained engine for the road ahead.