Capabilities and the X factor

The demand for highly skilled and competent professionals is high.

But what do we want them to be good at?

It is increasingly evident that skills and competencies alone are not enough to drive long-term success. Rather, it is the possession of capabilities that sets executives and key professionals apart. Capabilities encompass a combination of skills, knowledge, experience, adaptability, and leadership qualities that enable individuals to excel in their roles. Capabilities are what we want to focus on.

The Limitations of Skills and Competencies

Skills and competencies are undoubtedly important and form the foundation of any professional's expertise. However, they often fall short in a dynamic business environment where the challenges and requirements constantly evolve. Skills can become outdated, and competencies may be specific to certain tasks or industries, limiting their transferability. This can hinder professionals when they face unfamiliar situations or need to adapt to new roles.

The Power of Capabilities

Capabilities, on the other hand, are not confined to a specific skill set or competency. They encompass a broader range of attributes that enable professionals to navigate complex challenges and seize opportunities effectively. For senior executives, capabilities such as strategic thinking, adaptability, emotional intelligence, and the ability to foster collaboration are critical in driving organizational growth. These qualities allow them to lead with vision, make informed decisions, and inspire teams.

Let's imagine a transparent future!

Imagine a world in which, instead of assigning workers to projects based on reporting lines or jobs, they are matched to projects based on their interests and skills. A world in which people no longer rely on job postings or word of mouth to find their next opportunity, but instead are served up customized opportunities based on their unique portfolio of skills.?A world where, in the flow of business, leaders have real-time insight into how their current workforce’s capabilities enable both work processes and business outcomes. In this new world of work, workers are valued and rewarded for their skills and how they apply them to create organizational value rather than for their title, level, or educational degree.

Capabilities and the X-Factor

A central capability is what our recent research calls the X-shape. In short, there are three competence and capability levels to consider: Level one: I-shape. These professionals are people with strong vertical (deep) knowledge: a solid accountant, a good electrician etc. Level two: T-shape. These professionals are knowledgeable in other areas than their own, can collaborate on projects and make pertinent (more broad) interventions outside of their core role. Level three is the X-shape. These professionals possess the capability of adapting to highly diverse professional challenges and roles, through accelerated learning and integration of new tools, systems and processes.

Indeed, the X-shape (which fittingly indicates 4 directions at once, which means the ability to move in any direction) is not a skill or a competence only, it’s a capability, and it’s worth gold. Having staff which can easily perform in many areas is of very high value, and companies are looking desperately for such talent, because work is becoming increasingly multitasked, varied and innovative.

Our recommendation

Companies should prioritize assessing and developing capabilities when hiring and grooming senior executives and key professionals. While skills and competencies are important, a comprehensive evaluation of an individual's capabilities provides a more useful understanding of their potential to thrive in dynamic business environments. Investing in professional development programs that focus on building capabilities such as emotional intelligence assessments and development, leadership training, cross-functional exposure, and mentorship, can empower executives and professionals to adapt to change.

The ability to adapt, think strategically, inspire teams, and navigate complex challenges is invaluable in today's rapidly evolving business landscape. Companies that prioritize capabilities alongside skills and competencies will have a distinct advantage in cultivating effective leaders and fostering innovation. By recognizing the power of capabilities, organizations can unlock the full potential of their senior executives and key professionals, driving long-term success.

#Talent #Assessment #Capabilities #Adaptive #Leadership #AreYouReady ?

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Frode Hvaring is a Talent, Culture and Organisational Strategy builder. Before co-founding Newind, he held global roles as COO and CHRO, in various fields.

Frode is visiting professor in Global Leadership and HR at?EHL and HEG, and often intervenes in "glocal" companies to optimise their Human Capital solutions, Governance, Processes and Strategy-Culture fit.