Capacity Building or Capability Building?
Kapil Kumar
Global Talent Acquisition ??| Startups ?? | SaaS ?| Technology ?? | Co-Founder at The ClearPath ??
Imagine that you are the founder of a startup which helps customers to decide specifications of the computer they are planning to purchase on the basis of usability. Let’s call this service “Best4you”. It’s been 2 years since your company came into existence and you're planning to expand by adding a new service to your portfolio. You’ve named the new service as “GetItNow” which offers customized computers as per Best4you recommendations.
Now to do this, you need to ensure that your company has mastered the “Best4you” service and has a thorough process in place to come up with the right specifications for the customers. You also need to ensure that you have enough manpower and resources to upgrade the system, facilitate transport, handle customer grievances, strategy formulation etc. While doing so, you’ll ask the question -
“Whether or not your company has the capacity to undergo this transformation?”
Capacity refers to an amount or volume - do we have enough, do we need more, how do we grow? Capacity building activities includes evaluating organizational resources and checking for organizational readiness for change.
In terms of capacity, the company might be ready for a new service line in its portfolio as it has the required money, resources, manpower and equipment. The other question which you need to ask is –
“Whether or not your company has the capability to pull off this transformation?”
Capability refers to the skills and knowledge required to do a particular task. Even if one has the required resources, he must have the capability to execute the task in an efficient way so as to meet the desirable outcome. Capability building in an organization defines working towards competencies of the employees and their leadership traits so as to embrace and execute the change/transformation.
The solution to gap in capacity is to find ways to attain resources, money, manpower etc. whereas the gap in capability can be addressed by training and coaching the employees from time to time. The concepts of capacity and capability are interrelated. The knowledge and skills acquired through capability building can actually increase organizational efficiency resulting in capacity building.
Would love to hear your opinion on the same.
HR Head at UPL ,"17 Years Of Shaping Workplaces Where Talent Flourishes & Businesses Prosper"
3 年Good 1
Delivering Professional Services @Fortinet | Ex-Cisco | BITS Pilani
7 年I believe Capability building depends to a greater extent on the vision, will power and risk taking ability of management. Assigning work on a project need basis rather than based on employees competencies increases the Capability Gap. It neither results in a quality work nor capability building and derails the capacity building too in the long run. From resource selection to resource allocation, the best fit concept of selection has to be uniform to build capability else it would make companies bleed more in coming years. Remember Maslow hierarchy..? If Orgs keep exploting the Maslow's layer of "safety " in the name of business need, capability building is bound to bleed profusely in next few years.
Head I Human Resources I Global HR Leader I Recruitment Strategist I Culture Evangelist I Inclusivity Torch Bearer I Ex. TCS I Ex. Newgen I
7 年Very well written Kapil Kumar. We have abundance of resources but building capability is what we lack. I think time has come when companies will have to take capability building through trainings more seriously to be future ready and remain above the cut.
Sr. Test Automation Engineer at Shory, UAE
7 年Very well put! I agree to the fact that they're interlinked. In fact you've mentioned just one way linking (unless I missed the other one in between), but I feel it's two way. If you have the right (type and amount) of resources (read: capacity), you'll be able to put in efforts to increase your capability.
AVP, Client Partner, CEO Growth Award Winner
7 年Both have to run hand in hand. Without Capacity, Capability can't be built and without Capability, Capacity of no use.