A capability-based view of investment brings several benefits for businesses in any sector. It helps them manage their cost in a more strategic way, by enabling them to cut costs and grow stronger at the same time, thereby enabling them to put their money where their strategy is, by establishing a direct link between where they target their investment and where they create value.
Today, creating this linkage is more vital than ever before, as businesses around the world face up to rapid and profound change, driven by political and economic uncertainty, rapid digitisation of products, services and experiences, seismic demographic shifts, and changing behaviours and social norms across society at home and work, to name only a few. These changes mean that the right strategy is also likely to evolve, as is the investment in the capabilities required to execute on it.
“A capability-based view of investment allows a business to manage cost in a strategic way - which means costs can be cut and growth can occur at the same time.”