Wednesday, June 8, 2011

Capability Audit

For companies, “hardware” like technology applied, the production line, the available resources are the foundation for the operation. However, with the increasing intense of the competition, the “software” on intangible assets is playing more critical roles to distinguish among competitors and to mark the company a “successful” label. This week, I would like to introduce and compare a capability audit template that is similar to the one used in the reading “Capitalizing on Capabilities”.

From the reading, capabilities on both social and technical for individual and organizational should be discussed. From the example of IHG’s Capabilities Audit Result, my feeling is this audit focused on the social part, and the capabilities are assessed cross functional departments. This will give the company an insight on what would be the most important competencies to work on in the future.

In the Capability Audit template of SGS group, the audit is conducted through functional departments like management, sales, quality and supplier control, customer care. In this way, it will be easier for the company to define and focus on the departments that need to be improved in the future. Based on my Mom’s experience (She was the HR and now the VP of a Chinese company), departments and departments are different. Some departments are very efficient, profitable, and growth rapidly. Some are not. The reasons for the differentiation varied. Once, she changed the department leader, and the profit increased 40% in the following year. Therefore it will benefit the company to look at not only the general capabilities cross functional departments, but also how each departments doing.

Another audit criteria include in the SGS template is the Social Responsibility Compliance, including health, labor safety, discrimination, working hours, etc. I think this highlight is reasonable as this affect the company’s social imagine, and will directly impact the branch value. Company should be aware of the importance on social responsibility compliance, because no one wants to be “BP of the next year”.

Reference:

group, S. (n.d.). Capability Audit. Retrieved June 7, 2011, from IN TAIWAN: http://twap.sgs.com/cts_ecp/cerview.asp?com_id=82&code=5D1801BC82

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