Part of the talent strategy cluster. This is educational, operational guidance that connects to the wider site — the employee lifecycle, employer operations, metrics and templates.
Adapt it to your strategy, capability needs and context.
Why it matters
At the executive level, the strategy for organisational capability decides whether the business has the people it needs to deliver. A clear strategy turns capability needs into priorities and programs, instead of reacting role-by-role.
Strategy connects capability to outcomes.
Key concepts
- The capabilities the strategy needs.
- Build, buy or borrow each.
- Where capability is concentrated.
- How capability is governed.
Operational framework
- Set the strategic objectives and target capabilities.
- Map current vs needed capability.
- Design the programs and priorities to close the gap.
- Connect to workforce planning and the lifecycle.
- Govern, measure and report on a cadence.
Workforce considerations
- Which capabilities are strategic.
- How to source each.
- How to reduce concentration.
- How capability is measured.
Common challenges
- Capability needs unclear.
- Over-reliance on hiring.
- Concentration risk.
- No governance.
Best practices
- Define strategic capabilities.
- Mix build/buy/borrow.
- Reduce concentration.
- Govern capability.
Common mistakes
- Vague capability needs.
- Hire-only approach.
- Ignoring concentration.
- No governance.
Measure this with the workforce planning metrics metric, put it into practice with the workforce planning template, and run it as a system via workforce planning for operations.
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