{"id":1359,"date":"2024-02-08T17:02:41","date_gmt":"2024-02-08T17:02:41","guid":{"rendered":"https:\/\/aidanmccullen.com\/?p=1359"},"modified":"2024-02-08T17:02:41","modified_gmt":"2024-02-08T17:02:41","slug":"the-capability-cap-is-your-strategy-writing-cheques-your-corporate-body-cant-cash","status":"publish","type":"post","link":"https:\/\/aidanmccullen.com\/?p=1359","title":{"rendered":"The Capability Cap: Is Your Strategy Writing Cheques, Your (Corporate) Body Can\u2019t Cash?"},"content":{"rendered":"
\nDALL E\n

\u201cThe alignment, or congruence, between strategy and four organisational building blocks: critical tasks and workflows, formal organisational arrangements, people, and culture drive today\u2019s success. Incongruence, a lack of alignment, or inconsistencies among these elements is almost always at the root of today\u2019s performance gaps.\u201d\u200a\u2014\u200aMichael Tushman and Charles\u00a0O\u2019Reilly<\/em><\/p>\n

Several years post-retirement from rugby, I encountered former Ireland Rugby coach Eddie O\u2019Sullivan. I sought his involvement in some leadership development workshops I was designing and to address a lingering question regarding my rugby career. Eddie had chosen me for my sole international appearance for Ireland (known as a cap). My only cap is something I initially felt embarrassed about. However, two perspectives changed my\u00a0view.<\/p>\n

First, a friend reminded me of the rarity of achieving an Ireland cap, noting I was the 978th cap in a list that, as of February 7, 2024, totals 1,156\u00a0players.<\/p>\n

The second is what Eddie said to me over breakfast that\u00a0day\u2026<\/p>\n

Me: \u201cEddie, this has been bugging me for a long time and I need to ask you a question.<\/p>\n

Eddie (somewhat intrigued): Go\u00a0on.<\/p>\n

Me: Is there anything else I could have done to get more caps? Equally, was there anything I shouldn\u2019t have done (referring to me leaving Ireland on two occasions to play for Dax and later for Toulouse. National coaches maintain a policy of not selecting players who don\u2019t play in their native country.)?<\/p>\n

Eddie (clearing his throat): Aidan, there are 3 kinds of players. There is a disciplined player. Then, there is a talented player. Finally, there is a third type of player, this is the goal of the coach, to make the talented player disciplined.\u201d<\/p>\n

(Looking at me with a wry smile) You, my friend, were amazingly disciplined.<\/p>\n

We both paused a moment and then erupted with laughter.<\/p>\n

It was exactly what I needed to hear. Eddie commended my discipline, providing reassurance that despite my efforts, external factors like injuries and timing often dictate career outcomes. I felt comforted in the fact that I had controlled every input possible, but even then you can\u2019t control the output. But knowing you gave it everything means you can walk away without regrets. This \u201ccapability cap\u201d was the last piece of the\u00a0puzzle.<\/p>\n

It was always my suspicion. You see, I was a very average athlete, I was often last picked, if at all in the playground and it wasn\u2019t until I was in my late teens that I started to surpass players who were hitherto much better than me. I had a formula. Hard work, diet, sleep, sacrifice and belief pay off. I was 17 and 5 years later was playing for Leinster and Ireland a year\u00a0after.<\/p>\n

You often see this phenomenon play out when you enter a professional environment like when I joined Leinster. So many schoolboy heroes (which I never was) crumpled when they became professionals. The problem? They had never developed discipline and had always relied on pure talent. Now that they were surrounded by a majority of disciplined and talented players and (ahem) some \u201camazingly disciplined\u201d ones, they struggled. Their failure was often my\u00a0gain.<\/p>\n

However, this \u201camazing discipline\u201d or \u201ctalent gap\u201d means that as the team or sport progresses, a \u201ccapability cap\u201d will eventually become apparent. This is not unique to sport. A critical aspect of organisational success is the alignment between strategic ambition and operational capability. This concept emphasises the need for companies to not only set ambitious goals but also to possess or develop the necessary capabilities, resources, and culture to execute these goals. Before we explore let me share another sporting experience.<\/p>\n

I am grateful to have played for the top 2 clubs in Europe, Leinster and Toulouse. When I began in Leinster, the coach had a certain game plan in mind. This was his strategic ambition. For the team to be able to achieve that ambition, we had to build adequate skills: passing the ball in contact, adequate power to break tackles and speed, agility and quickness to evade defenders (to name just a few). Indeed, we soon understood the correlation between these skills in training and the payoff on the\u00a0pitch.<\/p>\n

Later, when I played for Toulouse, our off-field training was very different from the training we did at Leinster. We did a lot of Judo, evasion skills and long-distance running. The Toulouse style of play was very different from Leinster\u2019s, it required the players to be extremely aerobically fit to achieve the style of play (strategic ambition) set by the club\u2019s leadership.<\/p>\n

If either club changed their strategic direction, it would also require updated capabilities to deliver those ambitions. As a highly disciplined player, as Eddie confirmed, I had a cap on how far I could go. My journey illustrated the shift from talent to the discipline necessary for elite success at the professional level. The concept of a \u201ccapability cap\u201d resonated with me, highlighting the limits of discipline without innate talent. For the best clubs to remain the best they need both talented and disciplined players. Yes, a player like me could fill in the gaps and maybe benefit from injuries or a coach who backed you, but would always remain somewhat\u00a0limited.<\/p>\n

Today, the rugby world has progressed so far, that these clubs have a conveyor belt of talent feeding a seamless supply of capability to deliver their ambitions.<\/p>\n

We see the same phenomena play out in the business\u00a0field.<\/p>\n

Is Your Strategy Writing Checks, Your Capability Can\u2019t\u00a0Cash?<\/h3>\n

https:\/\/medium.com\/media\/225b137aaf515e09d240be27699a922c\/href<\/a><\/p>\n

Son, your ego is writing checks (cheques) your body can\u2019t cash.\u201d\u200a\u2014\u200aCommander Tom \u201cStinger\u201d Jardian, from the movie Top\u00a0Gun<\/strong><\/p>\n

In the high-octane world of corporate strategy, ambition fuels progress. However, a lesson often overlooked, yet brilliantly encapsulated in the iconic movie \u201cTop Gun,\u201d is the peril of writing (strategic) cheques your (corporate) body can\u2019t cash. This cinematic wisdom serves as a powerful metaphor for the corporate realm, where the alignment\u200a\u2014\u200aor misalignment\u200a\u2014\u200abetween strategic ambitions and operational capabilities determines an organisation\u2019s trajectory towards success or failure. The disconnect between what a corporation aspires to achieve and what it can realistically execute is a treacherous pitfall. It\u2019s akin to a pilot attempting a manoeuvre beyond their skillset or aircraft\u2019s capabilities, risking catastrophic failure.<\/p>\n

Before embarking on a strategic (flight) path, any organisation must conduct a pre-flight check: an assessment of its operational \u201cfitness\u201d. We must conduct an honest appraisal of internal resources and capabilities as the foundation of strategic feasibility. (Ok enough with the Top Gun references).<\/p>\n

In our current series<\/a> on The Innovation Show with Mike Beer, we discuss his Strategic Fitness Process (SFP). The SFP is a framework for facilitating honest, open conversations within organisations for achieving strategic alignment and operational effectiveness (perhaps Eddie O\u2019Sullivan had read the\u00a0book).<\/p>\n

A critical role of this work is to identify shortfalls between ambition and capabilities. The ultimate goal is to align an organisation\u2019s structure, culture, management practices and capabilities with its strategic goals. This creates congruence or what Mike calls, \u201cStrategic Fitness\u201d. In this respect, fitness refers to both the presence of desired capabilities and fitness (like the fit of a glove) as the alignment of ambition and structure, skills and\u00a0culture.<\/p>\n

From Mike Beer\u2019s Fit to\u00a0Compete<\/p>\n

In a recent series<\/a> on The Innovation Show with Paul Nunes, former director of Research for Accenture, Paul exposes several factors leading to organisational decline. It is not just waning market relevance or decreasing distinctiveness, but a major factor is lagging talent development as companies learn to do more with less and competition forces the lowering of investments in training and development. Furthermore, companies neglect developing distinctive capabilities for the future, focusing instead on what appears to be driving higher performance today.<\/p>\n

The most important point is this: these hidden curves of a company\u2019s business mature and decline much faster than its financial performance and they often remain hidden until it is too\u00a0late.<\/p>\n

As we explored earlier with any strategic ambition, if the opportunities are beyond an organisation\u2019s capabilities, leaders will soon discover that they have bitten off more than they can chew. A strategic ambition must still be a stretch but still manageable, always considering the extent of an organisation\u2019s capabilities.<\/p>\n

Of all these hidden S-curves, the talent development curve is the toughest to detect. Consider why: Intuition suggests that talent growth in companies will grow roughly in proportion to revenue growth. What usually happens is very different. As businesses succeed, they require fewer expensive managers and experts per capita. A focus on continuous cost reductions means less focus on new capability development and more focus on capability optimisation.<\/p>\n

From \u201cJumping The S-Curve\u201d with Paul\u00a0Nunes<\/p>\n

Cultivating Capabilities for Strategic Ambitions<\/h4>\n

Cultivating Capabilities<\/p>\n

To bridge the gap between ambition and capability, organisations must invest in building and sustaining the requisite skills, technologies, and processes. This involves not only talent acquisition and development but also fostering a culture of innovation, adaptability, and continuous improvement. Leadership plays a pivotal role in this endeavour, steering the organisation towards an ambitious north star while ensuring it remains grounded in today\u2019s operational reality.<\/p>\n

To avoid the problems a waning talent S-curve creates, consider research done by Paul Nunes and his team at Accenture (for the 2011 book, \u201cJumping the S-Curve). The findings reveal that companies need more than just a sufficient amount of talent; they need a surplus of talent (akin to an academy in a sports team, which both Toulouse and Leinster meticulously maintain). Many executives might view this statement with great scepticism. After all, isn\u2019t it difficult enough to find all the necessary talent\u200a\u2014\u200alet alone a surplus of it\u200a\u2014\u200ato keep a business running? However, At the time of Paul\u2019s research, Paul discovered that high performers like Procter & Gamble<\/a> consistently maintained deep benches of excess talent through both good times and\u00a0bad.<\/p>\n

A Deep\u00a0Bench<\/h4>\n

A Deep\u00a0Bench<\/p>\n

Through its formal program Build from Within, P&G<\/a> maintained three qualified candidates waiting in the wings for every one of its top fifty important positions. When A. G. Lafley was head of P&G, he once remarked, \u201cIf I get on a plane next week and it goes down, there will be somebody in this seat the next morning.\u201d And if Lafley had suffered such an unfortunate fate, the person replacing him would have been a fellow P&G\u00a0person.<\/p>\n

Thanks to the company\u2019s extensive and up-to-date database that tracks more than 100,000 employees, P&G could react quickly to any unexpected departure of talent. Moheet Nagrath<\/a>, (former) CHRO at P&G added, \u201cIf you train people to work in different countries and businesses, you develop a deep bench.\u201d And by \u201cdeep bench,\u201d P&G means several layers deep. As Nagrath said, \u201cI could show you the next generation of successors to current leaders, the generation after that, and the generation after\u00a0that.\u201d<\/p>\n

The journey from strategic ambition to achievement is fraught with challenges, yet it is the essence of corporate progress. The key to navigating this journey successfully lies in ensuring strategic congruence\u200a\u2014\u200aaligning ambitious goals with the robustness of organisational capabilities and personnel. To remain a \u201cTop Gun,\u201d companies must avoid the peril of writing strategic checks the corporate body can\u2019t\u00a0cash.<\/p>\n

THANKS FOR\u00a0READING<\/strong><\/p>\n

Don\u2019t forget we have a premium member event<\/a> on the 14th Feb at 11 am EST, 4 pm Ireland time with Paul\u00a0Nunes.<\/p>\n

Paul Nunes\u00a0Event<\/p>\n

For more on this concept of \u201cOrganisational Fitness\u201d, join the brilliant Mike Beer<\/a> for part 2 of \u201cFit to Compete\u201d and we have a copy of the book up for grabs. To be in with a chance of winning that book, sign up to our substack<\/a> and tell us you want to be in the hat to\u00a0win.<\/p>\n

https:\/\/medium.com\/media\/0268f1795650aab1cb5dfdb5e30de94d\/href<\/a><\/p>\n

The Capability Cap: Is Your Strategy Writing Cheques, Your (Corporate) Body Can\u2019t Cash?<\/a> was originally published in The Thursday Thought<\/a> on Medium, where people are continuing the conversation by highlighting and responding to this story.<\/p>\n<\/div>\n

The post The Capability Cap: Is Your Strategy Writing Cheques, Your (Corporate) Body Can\u2019t Cash?<\/a> appeared first on The Innovation Show<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

DALL E \u201cThe alignment, or congruence, between strategy and four organisational building blocks: critical tasks and workflows, formal organisational arrangements, people, and culture drive today\u2019s success. Incongruence, a lack of alignment, or inconsistencies among these elements is almost always at the root of today\u2019s performance gaps.\u201d\u200a\u2014\u200aMichael Tushman and Charles\u00a0O\u2019Reilly Several years post-retirement from rugby, I […]<\/p>\n","protected":false},"author":0,"featured_media":1360,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1359","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"\nThe Capability Cap: Is Your Strategy Writing Cheques, Your (Corporate) Body Can\u2019t Cash? - Aidan McCullen \u2013 Keynote Speaker Ireland | Innovation & Leadership Expert<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/aidanmccullen.com\/?p=1359\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Capability Cap: Is Your Strategy Writing Cheques, Your (Corporate) Body Can\u2019t Cash? - Aidan McCullen \u2013 Keynote Speaker Ireland | Innovation & Leadership Expert\" \/>\n<meta property=\"og:description\" content=\"DALL E \u201cThe alignment, or congruence, between strategy and four organisational building blocks: critical tasks and workflows, formal organisational arrangements, people, and culture drive today\u2019s success. 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