The development of new products, processes, and services is vital for any growing business. Companies must continuously reinvent themselves with new offerings to survive and prosper long-term. Effective project organization and management should thus be a top priority. Development projects allow companies to progress while also enabling individual staff to advance their careers. In short, innovation fuels growth; it requires organized effort and benefits both company and employee. As such, business leaders must make project initiation and oversight core competencies. Fresh thinking leads to new opportunities. Progress depends on internal coordination around common goals. Success comes from aligning individual growth with collective gain through sustained innovation.
The essence of a company's competitive edge and sustained success lies in its core capabilities. These are crucial for accurately assessing when a company decides to develop a new product or service. Such projects should not only utilize but also enhance the company's existing core strengths, fostering corporate learning and growth. However, there's a risk that these core capabilities could evolve into core rigidities, hindering the company's ability to venture into new territories beyond its established expertise. At their core, these capabilities represent the unique strengths and competencies that enable a company to surpass its competitors. With each new development that leverages these strengths, they become even more formidable. Eventually, core capabilities define the company's unique identity. Yet, there's a downside; when these capabilities become overly ingrained, they can stifle innovation, turning a once-valuable asset into an obstacle. Core capabilities cover various interconnected aspects within an organization, such as the knowledge, skills, and experience of its employees; managerial systems, processes, and training programs; physical assets including information systems, cutting-edge technology, and production equipment; and the corporate culture, which encompasses attitudes towards risk-taking and innovation. Typically, one of these aspects predominates, drawing the most resources and shaping organizational norms, especially as managers often rise from ranks within this dominant area. This further solidifies the capability throughout the company with each successful project that utilizes it. Among these dimensions, physical assets like technology are the simplest to modify, while changing managerial systems and processes is more complex. Altering employee skill sets and knowledge is even more difficult, but the toughest challenge is transforming the underlying corporate culture and beliefs. As suggested by William Hanson of Digital Equipment Corp, companies need to continually evaluate their core capabilities, be vigilant against them becoming rigid, and stay open to developing new strengths. This balanced approach acknowledges that while core capabilities are the bedrock of innovation, they also need to be managed carefully to prevent them from becoming barriers. Every new initiative should build on existing strengths while pushing the company's boundaries further.
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