Thriving in the post‐crisis economy: managing a nexus of capabilities

The aim of this viewpoint is to highlight new management thinking for achieving growth in a difficult economic environment.

The recent financial crisis has presented challenges for organizations to achieve growth while remaining sensitive to the needs of multiple stakeholders. These challenges were discussed in depth by senior executives attending a recent management conference. This summary is provided by a professor whose teaching and research focus on strategy and innovation, and distills the findings of the conference down to a guideline for strategic action.

Executives discuss the need for more integrative thinking and coordinated practice, creating more meaning within their organizations, connecting more substantively with external constituencies, and moving beyond mostly short term performance measures. Managing the company as a “nexus of capabilities” provides important competitive benefits while meeting these needs.

Strategic action steps for managing the business as a “nexus of capabilities” are provided in a concise outline format.

Ideas about how management can address the combination of growth and social concerns about business usually stays at a general level. This paper provides an actionable guideline derived from the experiences of companies that have already gone down this path. The paper presents the nature of the challenges and the summary of best practices discussed by strategy executives into a condensed and easy‐to‐digest format.