Organizational Capability
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Organizational Capability

Arthur Yeung

3.3848 learners

For global business leaders navigating China’s dynamic market or seeking to build enduring competitive advantage, *Organizational Capability* by Arthur Yeung delivers actionable insights rooted in China’s 40+ years of corporate growth. The book frames sustainable success as the product of clear strategy and robust organizational capabilities—arguing that while strategy can be copied, capabilities built through people, culture, and systems are nearly impossible to replicate. Drawing on real-world cases from Huawei, Gree, Lenovo, and global giants like GE and IBM, Yeung breaks down organizational capability into three interdependent pillars: employee skills (recruiting, developing, and retaining top talent), mindset alignment (shaping shared values to drive action), and governance systems (designing structures and processes to enable collaboration). He also addresses the unique challenges Chinese firms face as they transition from low-cost manufacturing to global leadership, outlining four critical strategic shifts and practical steps to build global management capabilities. Whether you’re leading a startup or a multinational, this book provides a playbook to turn strategic goals into tangible results.

Talent RetentionOrganizational CapabilityThree Pillar ModelEmployee CapabilityMindset Alignment
Concept

Market-Based Pay Concept

Netflix pays top market rates for creative roles. They might use 3 average salaries to hire one elite performer, as they create 10x more value.

CompensationTalent AcquisitionNetflix Strategy
Scenario

Mike Hastings Salary Case

Mike expected double his salary when joining Netflix. They gave him double plus 30%—top market rate—to keep him from leaving.

CompensationTalent AcquisitionNetflix Strategy
Method

4S Hiring Framework

Hire with 4S: 1) Standard (define skills/values), 2) Search (proactive sourcing), 3) Select (use behavioral interviews), 4) Secure (retain via rewards/recognition).

HiringTalent Acquisition4S Framework
Method

Pay Top Market Salary

1. Focus high salary budget on 20% core positions that drive 80% of results 2. Don’t set rigid pay bands to block high pay for top talents 3. Don’t care if new hires earn more than existing staff.

CompensationTalent AcquisitionPay Strategy
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