Linking Strategy and Capability: Getting to the Heart of Performance
- TCA
- Sep 26
- 2 min read
Most executive teams are familiar with the process of designing a new strategic plan. It begins shaping a vision for the future, clarifying priorities and setting goals. Too often, though, a freshly minted strategy can end up as a glossy document on the shelf instead of a practical roadmap for performance.
The missing link is capability.
Why capability belongs at the heart of strategy
Your strategy tells you what you want to achieve. Capability ensures you have the people, skills, systems and processes to make it happen. Without building the right capability, even the clearest plans risk stalling.
For example, an organisation may set out to design a new strategy focused on growth and innovation. To succeed, it requires capabilities such as strategic leadership, financial acumen, data-driven decision making and the ability to foster collaboration across teams. The key question is whether this organisation has identified these capabilities, audited current strengths and gaps, and put in place a development plan to turn its strategic goals into real performance.
The strategic planning process with capability in mind
To bring a strategy to life, it helps to embed capability into every stage of the planning process. When building a new strategy, it helps to think beyond the priorities on the page and consider how they will be achieved in practice.
Embedding capability into the design process keeps the plan grounded in reality and increases the chances of success:
Shape: Define the priorities and outcomes that matter most. Map the capabilities needed to achieve each one.
Co-design: Engage leaders and teams in the design process. Build ownership by linking actions to roles and responsibilities.
Activate: Plan how learning, development and systems will support capability. This ensures your people have the tools to act.
Review: Agree on how progress will be measured. Track not only the outcomes but also the growth in organisational capability.
What’s in it for your organisation?
When capability is integrated from the start:
Teams understand how to deliver, not just what to deliver.
Leaders can track both performance metrics and capability growth.
Organisations build resilience, because capability investments last beyond a single plan.
Bringing it all together
Strategic planning is not only about setting direction. It is about making sure your people can walk the path. By connecting strategy with capability, you give your organisation the best chance of delivering meaningful and measurable outcomes.
At The Capability Alliance, we specialise in helping organisations link their strategy to performance through capability frameworks, learning systems and managed services.
