Capability and organizational health v1 pdf

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Information about Capability and organizational health v1 pdf
Business & Mgmt

Published on December 21, 2013

Author: davidalman



Capability is increasingly important to organizations, relevant to how employees’ carry out their roles; to improving productivity; and to organisations achieving sought after goals.

Capability refers to the ability to act quickly, effectively, and innovatively to a changing environment and customer needs. Without the application of capability, employees demonstrate limited performance, processes are inefficient, and organizations do not deliver what they should or could.

Capability is central to Organizational Health to improve organizational performance, and satisfy employee and customer needs

Capability and Organizational Health How capability improves productivity and satisfaction Abstract Capability is increasingly important to organizations, relevant to how employees’ carry out their roles; to improving productivity; and to organisations achieving sought after goals. Capability refers to the ability to act quickly, effectively, and innovatively to a changing environment and customer needs. Without the application of capability, employees demonstrate limited performance, processes are inefficient, and organizations do not deliver what they should or could. Capability is central to Organizational Health to improve organizational performance, and satisfy employee and customer needs. Contents 1. So what is Capability? 2. The Impact of Capability on Organizational Health 3. Employee and Team Development 4. Role Capability: The Difference between Competency and Capability. 5. Process Capability 6. Organizational Capability Conclusion Notes References 1. So what is Capability? 1.1 Capability Described The application of capability to organizations is central to their efforts to address complex, uncertain, and turbulent environments [1]. Capability is described as: The ability to act quickly, effectively, and innovatively to a changing environment and to customer needs [2]. The concept has broad application, whether organizations operate in the public or private sector, applicable to role, process, and organisation levels. The concept of capability covers three ideas: Copyright David Alman 2010 Page 1

1. Capability is the ability to learn experientially, as an “expert learner”, in a self determined way [3]. 2. Capability is the ability to apply experiential learning to “act quickly, effectively, and innovatively to a changing environment and to customer needs”. 3. Capability is applicable to familiar problems and contexts (Capability Y) and unfamiliar problems and contexts (Capability Z) by “imagining the future and bringing it about” [4]. In this respect Figure 1 provides a simple illustration of capability as an experientially continuous learning and improving cycle [5]. 2. The Impact of Capability on Organizational Health Organizational Health refers to an organization’s ability to achieve its goals based on an environment that seeks to improve organizational performance and support employee well-being. Capability is important to an organization's health as the concept can be applied to improve both organizational performance and develop employee well-being. The following sections explain what capability is and its application to elements of the Organizational Health model shown in Figure 2 [6]. That is:  In Organizational Performance to: o o Process capability, and o  Role capability Organizational Capability. In Employee Well-being to: o Personal and Team Development. Copyright David Alman 2010 Page 2

In so doing reference is also made to both employee satisfaction and customer satisfaction. 3. Employee and Team Development The way employee and team capability is developed impacts on employee and team satisfaction, talent management, and organizational performance. The development of capability is connected to the idea of an “expert” or “capable” learner which empowers an employee, or team, to learn and adapt to changing work demands [7]. In developing employee and team capability, confidence is a key factor: Confidence in one’s ability to perform arising from successful experiences of being responsible for one’s own actions. Developing confidence in one’s own ability involves progressing through a series of learning frameworks which moves employees and teams from extrinsic tutor/supervisor led and knowledge based learning frameworks towards self managed and self sustaining experiential learning. This is exampled in Table 1 Learning Models & Frameworks. Copyright David Alman 2010 Page 3

In Table 1 a distinction is made in the ability level of employees and teams: Between extrinsically led and structured learning that can result in a performance level described in terms of competence, and development that is intrinsic to an employee and team that can be described as capable. In Table 1 Leader Style is introduced to highlight that the development of employees and teams is not just carried out in an educational or training environment, but day to day in workplaces. That leader styles can block or encourage employee and team development. A leader style, to be effective, suggests the need for flexibility to acknowledge the level of learning of employees and teams are at, as well as what is needed to meet the demands of the work to be carried out. 4. Role Capability: The Difference between Competency and Capability. Before exploring what the term Role Capability entails, it is beneficial to compare the term Capability with that of Competency. Partly to ensure the terms are not confused and misapplied, and partly because an emphasis upon one or the other impacts on the way an organization is managed and performs, and on the way that a range of supporting Human Resource Management (HRM) practices are applied, such as selection and promotion, performance assessment; training, organisational development, succession/ replacement planning, and workforce planning. 4.1. Functional Competency (also referred to as Competence) A functional competency is "something a job holder is able to do and describes an action, behaviour, or outcome which a person should be able to demonstrate". There can be different approaches to identifying functional competency [8]: Copyright David Alman 2010 Page 4

4.1.1 The Job or Technical Approach This usually refers to what is required to carry out a role, and is useful in identifying training needs. It has origins in national training schemes as applied, for example, in the United Kingdom and Australia [9]. A Functional Analysis is used to develop the units and elements of task based competence and covers three areas:  What does the job holder have to do to perform effectively?  What does the job holder require in terms of knowledge and skills (including social skills behaviour) to perform effectively?  How do we know the role is satisfactorily carried out ? [10] 4.1.2 The Role Approach The Role Approach identifies and addresses those issues that affect the "fit" between a person and a role, and is useful in assessing selection and performance assessment. Fit is identified in terms of, for example, personal style, role, and organizational culture. 4.1.3 The Personal Approach The Personal Approach is useful when applied to life transitions, such as a promotion, in terms of recognising what new ways of understanding and behaving are required in the new role, and those from the old role that should be left behind. 4.2 Competency as a Description of a Personal Attribute 4.2.1 Competency as an Underlying Characteristic A competency can be described as “an underlying characteristic of a person in that it may be a motive, a trait, a skill, an aspect of one’s self-image or social role, or a body of knowledge which he or she uses” [11]. In this respect a competency could be regarded as incorporating the five elements represented in the acronym “PEAKS”: That is, Personal characteristics such as natural preferences and traits; Experience such as acquired knowledge; Attitudes such as chosen responses; Knowledge as learned theoretically or on job; and Skills as learned experientially [12]. 4.2.2 Behavioural Competency Competency can be described as “a behaviour that an individual demonstrates when undertaking jobrelevant tasks effectively within a given organisational context “[13]. In this respect a behavioural competency combines and uses knowledge, abilities, motives etc when a person carries out their job. Examples of competencies are “problem solving”, “teamwork”, “leadership”, and can include organizational value based behaviours such as “Respect for others”. These can also include “metacompetencies” used to assess people for long-term development into senior roles, such as “seeks Copyright David Alman 2010 Page 5

opportunities to learn”, “brings out the best in others”. Behavioural competencies can also be linked and grouped to form Competency Frameworks relevant to more than one role and grade level [14]. Behavioural Competencies can be identified through a Behavioural Analysis (via methodologies such as Expert Opinion, Structured Interview, Workshops, Critical-incident technique) seeking answers to questions such as:  What behaviours does the organization value?  What “core” behaviours are required to perform effectively in the role?  What behaviours example ineffective performance in the role? [15] 4.3 Role Capability Role capability incorporates two concepts of competency; functional competencies (refer to Section 4.1) and competencies as underlying personal characteristics (refer to Section 4.2.1). This combination does not include, or equate to, Behavioural Competencies (referred to in Section 4.2.2) since the latter represents (prescribed) extrinsic (observable) behaviour. Capability “is the ability to do coupled with an inference of being able to become more able. It is not restricted by key competencies, but implies a capacity to develop additional competence and to move beyond competence to being able to work effectively in unpredictable and changing contexts” [16]. A defining characteristic of Capability is “the capacity for autonomous learning and development within the context of change” [17]. While Functional Competency is “about fitness for current purposes and performing effectively in the here and now”, capability, while embracing this, is also forward – looking and concerned with the realisation of potential and with “managing the future and contributing to making it happen”: A still further distinction can be made that has implications on the application of capability not just to role level, but also at process, and organizational levels, that is “If competence is concerned with fitness for purpose (adequate for working within a system), capability needs to be concerned also with fitness of purpose (adequate for working on the system)”. [18]. 4.3.1 Developing Role Capability though Training and Development In training and development terms while Functional Competency can be based on both a:  Problem solving approach which applies a linear exploration by subject that is tutor led and knowledge based; and  Problem based approach which applies problem scenarios in a way that encourages students to engage with and manage their own learning [19]. Role capability can only be developed through a Problem Based Approach because it is integrated, experiential, and relational. Copyright David Alman 2010 Page 6

This has advantages in reducing training time and costs, for instance, restricting tutor led training to “core” competency requirements, then allowing trainees to develop capability through self managed learning. It can also, if learning is encouraged and not restricted to job standards and targets, produce exemplary performance. Refer to Figure 3. The application and assessment of role capability is relevant, for example, where there is a “gap” between formal tertiary education and practicing knowledge required in a role, such as in the:  Development of graduate intakes  Development of new professionals (e.g. nurses) In terms of developing senior management, capability becomes relevant in terms of developing “Model B” Professionals. This form of capability involves working flexibly in different contexts, moving beyond expertise based professionalism into a more expansive expertise which transcends discipline based perspectives and includes the ability to gain insights and work effectively where there is no prior expertise. This reflects a further difference between competency and capability, where people can achieve equally capable results in comparable situations using different backgrounds and skills and abilities, drawing on strengths and working around limitations to achieve goals [20]. 4.3.2 Using Role Capability to achieve Excellence. Role capabilities can be described as either “Y” or “Z”. Y Capability refers to where successful experience arises from working with familiar problems in familiar contexts. This can include improving existing relationships and work practices if supported by the organisation (e.g. improving work Copyright David Alman 2010 Page 7

standards and targets). Role Capability can also develop and be assessed on Z capabilities which relates to managing unfamiliar contexts and problems [21]. Refer to Figure 4. Z capability involves moving beyond addressing the familiar such as prescribed work standards and targets, to addressing the unfamiliar. Organizations do seek such independent role capability outcomes in areas such as:  Design teams  Senior Executives The development and application of Z role capability across broader sectors of an organization is anticipated to become more pressing with greater increases in complexity, uncertainty, and ambiguity facing organizations. Responding by developing role capability to manage complexity, uncertainty, and ambiguity has seen changes in the training and expectations in the way roles are carried out in areas such as:  Police performance  Hospital patient delivery  Combat capability of military personnel  Customer service  Addressing major change For example in improving customer service the productivity of processes can increase through delegated decisions to employees directly dealing with customer service or product outcomes. This links increased organizational performance to employee participation. In this regard there has been found to be a clear correlation between employee participation and productivity, with gains in self managed work environments resulting in adaptability and productivity in the order of a minimum of 35% higher than traditionally managed organizations [22]. Copyright David Alman 2010 Page 8

5. Process Capability 5.1 Capability as Lean Thinking In managing and improving process capability a considerable body of work has built up around the subject of Quality Management. The purpose of Quality Management is to sustain long term success of an organization through customer satisfaction. This involves all employees in improving processes, products, services and the culture in which they work [23]. A key concept in Quality Management is Lean Thinking. Lean Thinking is a way of “seeing” the organization as a system, from the “outside - in”: From the customers’ perspective so process systems respond optimally to customer demand [24]. In Lean thinking there is attention on identifying value, or the lack of it, for the customer. More specifically attending to:  Value adding activities (within a process flow/value stream) in meeting customer expectations; and  Waste in terms of: o Non Value adding activities that do not add value, such as unnecessary decisions or actions or deferments; o Lost Value (technically referred to as Failure Demand) where something is not done or is not done right. Failure to not do something, or not do something right, for the customer runs at 20% to 45% in Financial Services, and can be as high as 50% to 80% in Telecommunications and Public Services (Federal, State, and Local Government) [25]. Nurturing capability in employees and processes supports the application of (Lean) Systems Thinking at the process level. For encouraging capability equates to applying the inherent experiential learning (for instance “learning how to see”) that is applicable in both Y and Z Capability at process level. While both Y and Z Capability effectively and innovatively can be applied to address customer needs, the distinction between the two at process level is that of focus. In Figure 5 Capability Y focuses on improvements to current processes to satisfy customer needs; what is termed the “break-fix” approach to Value Adding and Non Value activities [26], while Capability Z focuses on satisfying present and future customer needs through “Breakthrough” improvements [27]. In this respect both Capability Y and Capability Z are involved in improving processes as part of a “complex” system. That is “a system of interacting relationships involving things, ideas, and people that is constantly changing or re-adapting itself to internal as well as external forces” [28]. Copyright David Alman 2010 Page 9

For some organizations this presents a significant challenge, particularly those who have in the past relied upon emphasising order and control, sometimes referred to as “Command and Control” only to recognise the paradox that simply increasing control results not in improved performance, but the opposite; to atrophy and failure [29]. For while standardised processes may meet familiar customer needs, prescribed practices may be insufficient, where:  Familiar solutions to familiar customer needs require quick, effective, and innovative responses to changing circumstances such as the use of discretionary responses to meet emergent customer needs in hospitality, health, and telecommunication services (Capability Y). Or,  Unfamiliar customer needs requiring new and unfamiliar solutions (Capability Z). 5.2 Capability as a Journey in Maturity Process capability can also be expressed in progressive steps: In process maturity terms. That is to say that how processes operate in organizations can be viewed in terms of their effectiveness and flexibility, with effective performance identified on a scale progressing from incompetent through to competent and onto to capable. This progression is reminiscent of the learning curve role capability undertakes, as shown in Figure 3. In the Process Capability Model the maturity of processes is shown in Figure 6, and is exampled in Table 2 Organizational Characteristics of Process Capability [30]. In Figure 6 and Table 2 a distinction in Process Capability is made between “horizontal” processes that focus on present services and products to customers, and “vertical” processes which incorporate processes that support a strategic focus and direction into the future. Copyright David Alman 2010 Page 10

6. Organizational Capability 6.1 Organizational Capability Described Organizational Capability could be described as an organization’s ability to organise resources and deliver outcomes to the satisfaction of customers [31]. Copyright David Alman 2010 Page 11

In Figure 7 organizational capability is represented with two forms of capability being explored with the idea of “learning how to learn” remaining central to both. In Figure 7 a distinction is made between organizations who focus on the present (Y Capable Organization) and those that focus on the present and future (Z Capable Organization). A capable organization can be described entirely within position Y where learning and improvement occurs from and about current circumstances. A capable organization can also be described within a Z position where an organization learns to create and implement ways of doing things faced with the uncertainty and unfamiliarity of its present and future circumstances [32]. 6.2 Organizational Capability as Customer Centric Organizations Because of the need to act quickly and innovatively to changing technologies and customer needs and values there has been some attention placed on shaping organizations as “Customer Centric Organization” where the focus is on the alignment between customer needs and organizational capabilities. Designing Customer Centric Organizations is relevant to both the private and public sectors [33]. At an organizational level, for the private sector, the search is to increase customer loyalty (e.g. percentage of customers that intend to repurchase or willing to endorse the organization’s product or service to others). As establishing long term relationships with customers can be up to three to five times more profitable than short term relationships. Copyright David Alman 2010 Page 12

Key factors identified in achieving superior value for customers are employees who are empowered and a culture that supports a customer centric approach. This is reflected in a range of articles variously referring to terms such as “Customer Value Management” [34]; “Customer Centric Organizations” [35], and “Customer driven design and development” [36]. Such articles highlight the importance of aligning customer needs to organizational capabilities (at all levels) as a means of improving products and services, profitability, customer loyalty, productivity, and employee engagement. Conclusion Capability is key concept in improving Organizational Health both in terms of Organizational Performance and Employee Wellbeing, for the application of capability is central to:  Improving the productivity of an organization’s performance and customer satisfaction; and  The development of employees and teams, and employee satisfaction – to employee wellbeing. The concept of capability has increasing importance because, through what capability entails, organizations can better manage environments that are increasingly more complex, uncertain, and turbulent. Central to the idea of Capability is the development of the “expert learner” who can “learn to see and do”. As a learning process capability can also be reflected as a maturing process at role, process, and organizational level from incompetence, competence to becoming capable. Capability is also described in two forms: Capability Y which is managing the present and the familiar, and Capability Z which is managing for the present and future, and the unfamiliar. Capability is demonstrated through responding positively to change; creating and implementing new ideas and new ways of doing things; and the ability to adapt flexibly to changing environments and customer needs. It is an ability needed in roles, processes, and organizations in the face of ever increasing uncertainty, ambiguity, and complexity. Notes [1] Hase in Heutagogy and developing capable people and capable workplaces: Strategies for dealing with complexity recognises the need for capable people, who are likely to be more effective in dealing with an increasing turbulent and complex environment by possessing “an ‘all round’ capacity centred on the characteristics of: high self-efficacy, knowing how to learn, creativity, the ability to use Copyright David Alman 2010 Page 13

competencies in novel as well as familiar situations, possessing appropriate values and working well with others”. He also highlights the need to develop work environments to enable “capable people to express their capability”. [2] Staron & Weatherley in Capability development – a model for supporting workforce change and innovation discuss a model for capability development where the phrase “capability development supports a workforce to respond quickly, effectively and innovatively to a constantly changing environment and to customer needs”, is used. This has been adjusted and applied as the core description in this article to describe what capability means. [3] Phelps in Capability versus competency in information technology education draws a connection between the notion of ‘capability’ and that of the ‘expert learner’, where expert learners “use the knowledge they have gained of themselves as learners, of task deliberately select, control and monitor strategies needed to achieve desired....goals”. [4] Stephenson in Corporate capability: Implications for the style and direction of work-based learning describes the concept of capability as “an all round human quality, an integration of knowledge, skills, personal qualities and understanding used appropriately and effectively - not just in familiar and highly focused specialist contexts but in response to new and changing circumstances". He distinguishes between competence as “about delivering the present based on past performance” and capability as “about imagining the future and bringing it about”. In this Paper, Professor Stephenson outlines his model describing it as “Positions Y and Z in the world of Actions”, where it appears that Y position might also reflect competency. However, in Capabilities, constructivism and portfolios: working towards a fresh approach to curriculum design in management education Cochrane, Mahony, Bone & Johnson clearly reflect both the Y and Z positions described by Stephenson as forms of Capability, thus supporting a Y Z Capability Model as applied in this article. The distinction, which makes Y also a capability, is experiential learning applied to both familiar and unfamiliar problems and contexts. In this paper a step further is taken with the Y Z Model as reflecting an “expert Learner” who is applying their level of experiential learning to “act quickly, effectively, and innovatively to a changing environment and to customer needs” whether that relates to (present) familiar problems and contexts “and imagining the future and bringing it about”, or unfamiliar problems and contexts and “imagining the future and bringing it about”. [5] Kolb in Organizational Psychology a book of readings describes an experiential learning model, which is simplified into the experiential learning cycle of the “expert learner’ in Figure 1.’ The term “imagining” described by Stephenson (see [4] above) relates to considering, evaluating, and selecting a solution (abstract conceptualisation) in Kolb. [6] Alman in Organizational Health provides an Organizational Health Model upon which the application of capability is illustrated. Organizational Health refers to “the extent an organization Copyright David Alman 2010 Page 14

achieves its goals based on an environment that seeks to improve Organizational Performance and support Employee Well-being". In this respect an environment that improves Organizational Performance and supports Employee Well-being through the development and application of capability. [7] Cochrane, Mahony, Bone & Johnson in Capabilities, constructivism and portfolios: Working towards a fresh approach to curriculum design in management education discuss three stages of learning as a strategy of progressing students into deeper learning frameworks, and the development of capability through experiential learning. Based on this discussion the Table 1 Learning Models and Frameworks Table was developed. [8] Holmes in Understanding professional competence: Beyond the limits of functional analysis provides a description of competence (i.e. Functional Competency). "A competence is a description of something which a person who works in a given occupational area should be able to do. It is a description of an action, behaviour or outcome which a person should be able to demonstrate." This description of a Functional Competency is used in this article. Further, the explanation of different approaches to Functional Competency (e.g. The Job or Technical Approach; Role Approach; and the Personal Approach) is also drawn from the same paper. [9] Whiddett & Hollyforde (2006 p5) briefly explain that there are two well-established interpretations on what a competency is. The first is based on work tasks, described in this article as Functional Competencies (i.e. descriptions of what a person has to do in a job) that are descriptions of work tasks and have their origins in (British) national training schemes. The second is based on descriptions of behaviour (i.e. how a person does their job), described in this article as Behavioural Competencies. [10] Armstrong (2001 pp41-44) explains that a (Functional) Competency applicable to the (British) national training schemes can be defined by means of a “functional analysis”, and explains what such an analysis covers. [11] Whiddett & Hollyforde (2006 p6) provide two similar definitions of what a competency is. The first by Kemp (1980) states “a job competency is ‘an underlying characteristic of a person which results in effective and/or superior performance in a job” and the more expanded, and much quoted, definition on what those characteristics may be by Boyatzis (1982) in “A job competency is an underlying characteristic of a person in that it may be a motive, a trait, a skill, an aspect of one’s self-image or social role, or a body of knowledge which he or she uses”. [12] Murray-Webster & Hillson use the acronym PEAKS to identify 5 component elements of a competency then describe each in a framework. These elements being Personal characteristics, Experience, Attitudes, Knowledge and Skill. Copyright David Alman 2010 Page 15

[13] Whiddett & Hollyforde (2006 p7) define a competency based on behaviour observed in an organizational setting: “Competencies are behaviours....” [14] Whiddett & Hollyforde describe in their book what a (behavioural) competency is, how they can be developed into Competency Frameworks, and example their application to selection, performance review, training and development, and pay & grading. [15] Armstrong (2001 p44-51) describes a range of alternative behavioural analysis methodologies to identify (behavioural) competencies. [16] Doncaster & Lester explore the concept of capability in terms of what is involved in becoming and being capable, and this paragraph is selected as assisting in distinguishing differences between competency and capability. [17] Hanney quotes Professor Stephenson. [18] Doncaster & Lester referencing quotations from Professor Stephenson. [19] Hanney quoting Savin-Baden on Problem Based Learning (PBL). [20] Doncaster & Lester referring to a form of professionalism that transcends expertise-based professionalism referring to this as a kind of “extended” professionalism or 'Model B' professionalism. [21] Cochrane, Mahony, Bone & Johnson in Capabilities, constructivism and portfolios: Working towards a fresh approach to curriculum design in management education illustrate Stephenson’s “Y & Z approach to capability development” model upon which The Y & Z Role Capability Model is based. [22] Wheatley (2005, p65) references Weisbord & Janoff for the source of this productivity measure. [23] American Society for Quality (ASQ) provides this explanation of the term Quality Management. [24] Seddon (2003 p112) refers to “learning to see” which begins with a different perspective, and when thinking of the organization as a system, starting from the “outside-in”: The system in customer terms. [25] Seddon refers to the correct technical term of Failure Demand (which is referred to in this article as “Lost Value” for easier understanding in relation to other value terms used in Quality Management). He considers Failure Demand as representing a significant cost, and to wet one’s appetite over the significant possible productivity improvements that are available to the private and Copyright David Alman 2010 Page 16

public sectors quotes a series of statistics. In his book he refers to the term “local authorities” where in this article the term “Public Services” is used. The reason for this is that public sector service deliveries that fall within the ambit of British local authorities are structured differently in Australia. For example, Health can fall into local and state government areas of responsibility, and police into state and federal jurisdictions. [26] Bicheno (2008 p22) discusses failure demand is terms of “break-fix” and the improvement of an existing service (this could be referred to as Y Capability application). He also refers to preventable failure demand which relates identifying root causes of a problem through, for example, design and preventive practices that could eliminate the need (e.g. a repair service) for a service in the first place to improve customer satisfaction (this could be viewed as a Z Capability application as both the context and problem are shifted into the “unfamiliar”). [27] Juran defines a “breakthrough” as “change, a dynamic, decisive movement to new, higher levels of performance”. In the sense that a decisive shift to something new and improved is reflected in Juran’s writing, the word is used to represent Z Capability. [28] Savary & Crawford-Mason provide an excellent example of systems thinking applied to improving patient care in Hospitals. In their book they explain what a system is from a systems thinking approach, and explain a “complex system” as a system “that is constantly changing or readapting itself in response to internal as well as external forces”. The continuous improvement of such complex systems, as experiential learning systems, can be equated in this article to both Y and Z Capability. T he distinction being that the “changing” and “readaptating” responses can be refer to the “familiar” in Y Capability experiential learning, and the “unfamiliar” for Z Capability experiential learning. [29] Wheatley (2005 p38,39) explains the paradox of the adverse effects of over emphasising too much order rather than seeking a balance where, for example, seeking a clear and coherent identity at the core then allows for maximum autonomy where employees are freed to contribute in creative and diverse ways. [30] Curtis, Hefley, & Miller explain in their book the People Capability Maturity Model (PCMM). Their five level maturity model is adapted and uses four levels. [31] Harris explores the concept of Organizational Capability from academic and consultant literature and provides a broad perspective on the subject. The description used in this article is reflective of the categories considered by The Process Renewal Consulting Group referred to by Harris in his article. Copyright David Alman 2010 Page 17

[32] Stephenson describes what a Capable Organization is. This is adapted in this article to reemphasise the present and “familiar”, and present and future and “unfamiliar”, experiential learning that is occurring rather than whether an organization is focused on internal systems or external trends. [33] McDonald explores the concept and benefit (or not) of treating citizens as customers in terms of the role required of the public sector. This reference may be of interest to readers who wish to explore this aspect further. [34] Customer Value Management (CVM) is an approach consistent with Organizational Capability described in this paper. [35] Kawalski provides some perspectives on what the term customer-centric organization involves. [36] Commander provides a report on Customer Driven Design and Development. References Alman, D. Organizational Health. Retrieved 28 April 2010, from American Society for Quality. Retrieved 29 April 2010, from Armstrong, M. (2001). Performance management: Key strategies and practical guidelines. (2nd ed). London: Kogan Page. Bicheno, J. (2008). The lean toolbox for service systems. Buckingham, England: Production and Inventory Control, Systems and Industrial Engineering Books (PICSIE Books). Cochrane, K. Mahony, M. Bone, Z. & Johnson, S. Capabilities, constructivism and portfolios: Working towards a fresh approach to curriculum design in management education. HERDSA Annual International Conference, Melbourne, 12-15 July 1999. Retrieved 28 April 2010, from Commander, C (2006). Report brief: Customer-driven design and development. Retrieved 30 April 2010, from Curtis, B. Hefley, W.E. & Miller, S.A. (2002). The People Capability Maturity Model: Guidelines for improving the workforce. Boston, MA: Addison-Wesley. Customer Value Management: Building business organisation and capability to deliver what the customer wants. Retrieved 30 April 2010, from file:///E:/Capability/Customer%20Value%20Management.htm Doncaster, K. & Lester, S. (2000). Capability and its development: Experiences from a work-based doctorate. Retrieved 28 April 2010, from Copyright David Alman 2010 Page 18

Hanney, R. Competence or Capability: Work-based Learning & Problem based Learning. Retrieved 29 April 2010, from Harris, R. Unravelling the notion of organisational capability: What do writers say it is and VET providers think it is? Retrieved 30 April 2010, from Hase, S. Heutagogy and developing capable people and capable workplaces: Strategies for dealing with complexity. Retrieved 28 April 2010 from Holmes. L. Understanding professional competence: Beyond the limits of functional analysis prepared for Course Tutors' Conference, Institute of Personnel Management, 6-8 July 1992. Retrieved 28 April 2010, from Juran, J.M. (1995). Managerial breakthrough. Philadelphia, PA: McGraw-Hill. Kolb, D.A. (1974). Learning and problem solving: On management and the learning process. In Organizational Psychology a book of readings. (2nd ed) Englewood Cliffs, New Jersey: Prentice-Hall. Kowalski, B. Creating a customer- centric organization in the 21st century. Retrieved 30 April 2010, from McDonald, N. Think Paper 5: Is citizen-centric the same as customer-centric? Retrieved 30 April 2010, from Murray-Webster, R., & Hillson, D. Scaling the PEAKS of project management competency. PMI Europe, The Project Management Festival, 19-29 June 2002, Hosted by PMI France-Sud. Retrieved 29 April 2010, from Phelps, R (2001). Capability versus competency in information technology education: Challenging the learning context for lifelong technological literacy. Proceedings of the Learning Conference 2001, Paper presented at The Eighth International Literacy & Education Research Network Conference on Learning, Spetses, Greece, 4-8 July 2001. Retrieved 28 April 2010, from Savary, L.M. & Crawford-Mason, C. (2006). The nun and the bureaucrat. Washington, DC: CC-M Productions. Seddon, J. (2003). Freedom from command & control: A better way to make the work work. Buckingham, England: Vanguard Education. Staron, M., & Weatherley R. Capability development – a model for supporting workforce change and innovation. TAFE NSW Workforce Development Unit February 2009 Newsletter Retrieved 28 April 2010, from Stephenson, J. (1999). Corporate capability: Implications for the style and direction of work-based learning. Public lecture delivered at University of Technology, Sydney. Retrieved 28 April 2010, from Wheatley, M.J. (2005). Finding our way: Leadership for an uncertain time. San Francisco, California: Berrett-Koehler. Whiddett, S., & Hollyforde, S. (2006). A Practical guide to competencies: How to enhance individual and organisational performance. London: Chartered Institute of Personnel and Development. Copyright David Alman 2010 Page 19

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