We define “capabilities” as the business-oriented competencies that group skills into meaningful terms that are well recognized as criteria for success in a job or role. A sales capability may be “lead generation,” which may require many granular skills (CRM systems, email composition, customer segmentation). Capabilities are bigger or more comprehensive than skills as they are developed through experience, real-world projects, and peer assessment. We advise companies to build their strategic capability models as an annual management process and assume that “skills” that contribute to these capabilities are always changing. The JBC Global Capability Project for HR is a good example of this process.
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