Recently while reading, I came across a term - the Yang Triangle. Staying true to my principle of never letting things go unexplored, I decided to elaborate on it.

The company we work for is an organization, and the strength of its organizational capability may depend on factors like processes, human resources, and efficiency.

Organizational capability represents the collective combat effectiveness a team can demonstrate - it's the key force that enables a team to significantly outperform competitors and create essential value for customers.

Organizational capability has the following characteristics:

Uniqueness: It's deeply embedded within the organization and doesn't rely on individuals;

Sustainability: It can continuously influence enterprise development;

Relevance: There's an inseparable relationship between organizational capability and corporate achievements.

Contemporary renowned Chinese management expert Yang Guo'an believes that cultivating organizational capability requires outward-in thinking, and must be aligned with strategy. This led him to propose the "Yang Triangle."

Specifically, the "Yang Triangle" consists of three components: employee competence, employee mindset, and employee governance.

(1) Employee Competence (Can they do it?)

This means all employees must possess the knowledge, skills, and qualities needed to implement corporate strategy and build required organizational capabilities. In other words, whether employees can make decisions and take actions aligned with organizational capabilities (like innovation, cost leadership, service, etc.). I summarize this as recruitment, talent pool, training, and job matching.

(2) Employee Mindset (Are they willing?)

Being able to do something doesn't mean being willing to do it. Therefore, the second pillar of organizational capability is employee mindset - ensuring what employees care about, pursue, and value daily aligns with the company's required organizational capabilities.

I summarize this as employee values, motivation, and cultural guidance.

(3) Employee Governance (Are they allowed?)

After employees possess the required competence and mindset, the company must provide effective management resources and institutional support to allow these talents to fully utilize their strengths and execute corporate strategy.

I summarize this as processes, information flow mechanisms, organizational structure, and authority-responsibility relationships.

In today's unpredictable market environment, how can enterprises achieve sustainable development? Yang Guo'an, Philips Chair Professor of Human Resource Management at CEIBS and President of the Organizational Capability Learning Alliance, provides the answer: "Build team combat effectiveness that can quickly adapt to external environmental changes."

Meanwhile, appropriate organizational capability is one of two key factors ensuring sustained corporate success, with the other being correct strategy.

"Sustained success = Strategy × Organizational Capability. Only when both factors are maximized simultaneously can corporate success be achieved."

So what's the relationship between organizational capability and strategy? How is organizational capability determined and systematically built? Yang Guo'an's years of dedicated research culminated in his unique Yang Triangle organizational capability building theory and framework, which systematically addresses these questions.