Excerpt:  Know Your Capabilities, chapter 3 cont.

The Common Errors in Knowing Capabilities

But, as we mentioned at the start of this chapter, just because a firm knows its capabilities at some point in time, that doesn’t mean it always will.  In a way, “the price of success is eternal vigilance.”

The price of success is eternal vigilance.

In fact, in the examples we’ve just described, in each case the company exhibited an understanding of one or two capabilities, not necessarily the full complement.

In our experience, there are four common errors that companies make in the interplay between capabilities and strategy.

Let’s address each in turn, with examples...