Capability building is not just about training employees—it’s about transforming how work gets done. In a rapidly evolving corporate landscape, having a skilled, motivated workforce is critical to achieving and sustaining success. Here’s how a robust capability-building program can power transformation.
The Importance of Capability Building
Take the case of an international manufacturing company. After being spun off from its parent organization, its stock price dropped over 80% and employee morale hit rock bottom. But four years later, the company’s stock had risen sixfold, and organizational health soared. What changed? The company implemented a comprehensive transformation strategy, including a focus on building capabilities—both technical and behavioral skills—that revitalized its workforce and drove sustainable change.
Building Essential Skills and Behaviors
Capability building is about more than just training. It’s about embedding new habits and mindsets that drive productivity. This might involve practical skills like improving time management or technical know-how like supply chain optimization. However, the key to success lies in consistent application. Too often, companies assume that they are already doing enough, but they fail to implement these practices across the board.
Leadership’s Role in Transformation
Leadership is crucial in modeling the behaviors needed for transformation. When senior leaders participate in capability-building programs and demonstrate new ways of working, it builds trust among employees. This was essential in the manufacturing company’s turnaround—employees only engaged in the transformation once they saw leadership actively participating and supporting the changes.
Broad Engagement for Sustainable Change
For transformation to be effective, capability building must reach a critical mass. Research suggests engaging at least 25% of employees is necessary to foster widespread change. In the manufacturing company’s case, the capability-building program reached employees at all levels, empowering them to take ownership of the transformation.
Virtual Learning: A New Era
The pandemic accelerated the shift to virtual learning, which proved to be highly effective in delivering capability-building programs on a global scale. Virtual formats offer the flexibility to engage employees across geographies, ensuring that no one is left out of the transformation journey.
Conclusion: Capability Building as a Transformation Engine
Building capabilities is one of the most effective ways to drive long-term, sustainable change. It equips employees with the skills to not only adapt but thrive, ensuring that organizations remain agile and competitive. Companies that prioritize capability building are twice as likely to improve organizational health and achieve their transformation goals.
By investing in people through well-designed capability-building programs, businesses can unlock continuous improvement and long-term success. Click to learn more: https://www.mckinsey.com/capabilities/transformation/our-insights/how-capability-building-can-power-transformation#/
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