Reliability Centered Maintenance (RCM), Is a must organizational process to ensure that assets continue to do what there users require in the present operating context. The culture of capabilities management in an organization is a continuous assessment and alignment of the core capabilities to meet existing and future demands of the customers, markets, economic drifts, government directions e.t.c. Without doing this organization’s fail to stay on course and in some cases loose total focus of where they intend to reach.The necessity for a firm to manage its own capabilities to achieve success is largely based on RCM execution. Capability management contributes to a better design and implementation of strategy and facilitates the understanding of the industry and the generation of strategic options.
A keystone step is the foundation of organization’s capability management. In this step, business imperatives must be clearly defined in terms of how organization see capability management a facilitating important elements in strategic decision making. The focus should be on critical capabilities which must be repeatable, sustainable and enhance able. What an organization must ask them selves is a set of important questions such as following:
- How do critical capabilities contribute to the firm’s competitiveness?
- How does the organization identify its future capability needs?
- How does the organization identify its current critical capabilities in practice?
- How does the organization’ strategy integrate these critical capabilities?
- What are the strongest beliefs in the organization in regard to topics such as the way it must serve its customers, the best path to success, the complexity and predictability of its environment, and the most difficult strategic task to achieve?
- Are these beliefs evaluated in regard to their fit with organization’s strategy?
- Which methods and organizational processes are used answer all these question in practice?
With in the light of RCM, the effectiveness of business capabilities management revolves around six important elements of the whole ecosystem under which an entity is conceptualized, materialized and sustained. For an organization’s future imperatives, the management agenda should be clearly defined as of what takeaway they desire to have through capabilities management. The six elements applied are as follows:
Protection: This step aims at protecting current capabilities against their natural erosion, against external events, or potential rival’s actions that could destroy or reduce there value. (Sanchez and Heene, 2004) suggest three means; maintaining casual ambiguity to keep it from imitation, permanently investing in capabilities to fight there natural erosion; and dissuading rivals from acting against the firm and its capabilities.
Development and evolution: Capabilities must be maintained, upgraded and transformed to be able to fit the evolution of the environment, especially with the requirements of Customers and competition, and to be better serve existing businesses. With in a constant perimeter, in terms of businesses, capabilities are fined tuned and improved to increase performance and efficiency, through an increase in capabilities number and quality and through there transformation into more advanced competencies to make them available and ready when needed, on an on going basis.
Leveraging: Leveraging means, moving to structurally more attractive markets and opportunities, in a continuous reassessment of the firm’s scope, to adapt to new strategies by developing new products, new services, by forming alliances or through innovation. Leveraging implies a change of use of existing capabilities
Asset integration and orchestration: Bundling or integration a firm’s resources to construct or alter capabilities. Asset integration can be divided in sub-phases: making minor incremental improvements to capabilities, extending current capabilities beyond keeping them up-to-date; and creating new capabilities that address the firm’s competitive context. Existing capabilities must be integrated, merged into more complex capability and deployed.
Managing a “Strategice Architecture”: A strategic architecture allows for the identification, the creation and exploitation of a firm’s capabilities. Helfat and Sirmon (2007) develop respectively the notions of “asset orchestration” and “Resources management”, which both aim at integrating the two classic RCM activities; asset investment and asset deployment. Such constructs offer limited description and do not explicitly focus on the mental aspects of the phenomenon. However, an obvious convergence exists between this integration and the keystone step construct “Strategic Architecture”.
Shedding and Divesting: If resources or capabilities appear to no longer be contributing to the activities of the firm and its competitive advantage, they can be divested through layoffs, divestiture of entire businesses, sell-offs of specific assets, spin-offs of business, or outsourcing of functions.
Basing these six elements will build the building blocks for a sound and effective capability management framework. It removes the silo thinking processes of the organization and integrates ideas into a robust mechanism of effective delivery ability to the organizations operations and a clear view of decision making.