Organization means CapabilitiesThe typical definition we hear for an organization is, a group of people working towards a common goal. But for a business analyst, this definition is not enough, we need to expand it further. Organization is a confluence of capabilities from people, processes and systems. What is capability? It is an ability to do something.
Let us take an example of a small automobile workshop AutoDocCar owners visit AutoDoc to fix their car’s major and minor problems. AutoDoc is very popular in its locality for providing a great service to its customers and it enjoys good referral business.
How they are able to achieve this? AutoDoc has a great understanding of the capabilities of people, processes and systems. They hire only Certified Mechanics of the respective car brands through a rigorous theoretical and practical tests. They ensure that whoever they recruit have the necessary capabilities to do the job. Second, they have state-of-the-art equipment in an excellent condition to perform a repair very effectively. Third, they follow a well-crafted Standard Operating Procedure (SOP) for all their activities, meaning they follow the process meticulously. When an organization works in this manner, there is no wonder they are successful!
Now let us redefine what is an organization?Organization is the confluence of capabilities from people, processes and systems that are aligned with the goal of the organization to deliver goods or services to their customers. Here the People Capabilities refers to the knowhow and skill of the individuals System Capabilities refers to the software, equipment, machineries, infrastructure etc. Process Capabilities refers to the best way or method of doing a value-added work
What is the output of an organization?That is also capabilities. For example, AutoDoc delivers the capability of making the cars functional or fixing the cars. In other words, organizations create an assembly of capabilities to deliver capabilities.
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