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THE WHY OF WORK
intangible assets that investors pay attention to, the firm
brand to which customers can relate, and the culture that
shapes employee behavior. These capabilities also become
the identity of the firm, the deliverables of HR practices, and
the keys to implementing business strategy. An organization’s
capabilities are rooted in its values and reflect its reputation
or brand.
We have generated a list of capabilities an organization
might have and examples of companies that demonstrate
them, shown in Table 3.1. It is not hard to see that the indi-
vidual strengths listed in Figures 3.2 and 3.3 can also show
up in corporate identities. Within an organization, pockets
of functional expertise may need different strengths. Your
leadership challenge is to align capabilities with strategies,
evolve capabilities, and make sure management actions rein-
force key capabilities.
Abundant organizations not only help individuals deploy
and use their personal identity—they shape organizations
with a clear identity. When those who work in the orga-
nization bring their different skills to bear on a common
problem, there is diversity with unity. These organizations
avoid groupthink by valuing different perspectives and
strengths, but also they coalesce individual interests into
shared organizational goals.
As a leader, you can commission capability audits to
determine which of the capabilities are most critical to your
organization’s reaching its goals. For example, consumer
product firms thrive on product innovation. These firms
need to replace old products with new and improved ones in
a timely way. Firms in more cost-competitive industries like
retail need to build their efficiency capabilities. Walmart’s
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