Framework for Dynamic Capability Development
The dynamic capacity and capabilities approach (DCA) is based on a logical framework of development supported by a set of fundamental assumptions related to the proactive management of performance. It is also based on a series of management and organisational concepts that provide a more refined understanding of the agendas surrounding capacity and capabilities development than merely improving transformational efficiency (inputs to outputs) or increasing the number of outputs.
Capabilities refer to the embodied abilities of socio-technical system(s) or organisation(s) to generate results and impacts in relation to their mandate, their client(s)-systems, their strategies and routines. When looking into the future, capabilities constitute the needed (desired) set of embedded functional performances (potential or performed, from processes and outputs, of outcomes and impacts) that need to be generated. These are generated from an optimal arrangement of assets, consumable resources and mandates given for specified effects/outcomes and impacts. These performances are achieved within the environment of the given socio-technical system(s) that are contained within a business ecosystem. If an analyst takes a snapshot of existing capabilities, he/she will see that they generate the effects and impacts of the outputs.
Capabilities are thus generated through the optimal arrangement and deployment of:
- effective organisational, managerial, strategic and individual abilities
- assets and consumable resources
- empowerment, formally assigned through mandates, delegation of power and authority to act, that epitomize the strategic engagement of owners and stakeholders.
Capabilities are configurations of the organisational abilities, assets, consumable resources and effective mandates that give to an organisation and/or institution the effective power to deliver enduring outcomes in relation to its mission. The capabilities must be the focus of capacity development efforts and these must be tightly linked to clearly identified development outcomes (and impacts). The quality of the identification and specification of these capabilities is determinant for the effectiveness of development co-operation.
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