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Inside the Strategy Room

221. Building a superpower: How to turn a capability into a competitive advantage

Oct 11, 2024
Brad Mendelson, a senior partner at McKinsey in Cleveland, and Tova Katzir, a partner in New York, delve into the concept of corporate superpowers. They argue that organizations should focus on developing distinctive capabilities like customer centricity as strategic assets. The discussion touches on transforming static capabilities into dynamic strengths. They also highlight the role of generative AI as a potential competitive advantage, stressing the importance of aligning it with strategic goals for long-term success.
21:42

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Quick takeaways

  • Focusing on building institutional capabilities as foundational to strategy allows companies to effectively differentiate themselves from competitors.
  • The Vector Framework provides a structured approach for developing superpowers, emphasizing vision, talent alignment, culture, and ongoing leadership commitment.

Deep dives

The Importance of Capabilities in Strategy

Developing organizational capabilities, or 'superpowers', should be integral to the strategy planning process. Traditionally, companies have focused on defining their market approach before identifying the capabilities needed for execution, but this order is shifting. Emphasizing capabilities as foundational allows organizations to create strategic distance from competitors and excel in their chosen market. By integrating the identification of superpowers with strategic goals, companies can better ensure they are well-equipped to achieve their aspirations.

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