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FOUNDATIONS OF RESOURCES AND CAPABILITIES ILLUSTRATION 4.1 Resources and capabilities Executives emphasise the importance of resources and capabilities in different organisations. The Australian Red Cross Infosys The Indian company Infosys is a global leader in information technology, outsourcing, system integra- tion services and IT consulting. It is listed as one of the world's most reputable companies with close to 150,000 employees worldwide. The company's 'Infosys 3.0 strategy' is taking a further step to provide more advanced IT products and services, which requires investments in new resources and capabilities. Infosys CEO S.D. Shibulal: 'We continue to make focused investments in our organisational capabilities." To achieve the vision of improving the lives of vul- nerable people, the Australian Red Cross emphasises the crucial role of capabilities in its strategic plan 'Strategy 2015'. 'Capabilities are integral to our over- riding strategy to create one Red Cross,' writes CEO Robert Tickner. The Australian Red Cross distinguish between technical competency and behavioural capa- bility. The former refers to specialist skills and may include such competencies as project management, financial management, community development, social work, administrative or information technology skills. Capabilities at the Red Cross refer to the behav- iours they expect its people to demonstrate in order to be successful in achieving the objectives. The organ- isation aims to increasingly invest in the capabilities and skills of Red Cross people and supporters includ- ing members, branches and units, volunteers, aid workers, staff and donors. For example, this involves investing in a diverse workforce and supporter base, with strong engagement of 'young people, Aboriginal and Torres Strait Islander people, and other cultur- ally and linguistically diverse people'. The emphasis is on people who are engaged, dynamic, innovative, entrepreneurial and motivated to realise the vision. and goals. The strategy emphasises innovation and focuses on higher-value software. Innovation abilities are central for this, as stated on the website: 'The foundation of our innovation capability is our core lab network - Infosys Labs and the new thinking that our team of over 600 researchers brings to the table.'5 The strategy thus requires human resource and training capabilities including the ability to attract, employ, educate and retain new high-quality engineers. As Srikantan Moorthy, Senior Vice President and Group Head, explains: 'We are currently hiring and developing talent in the areas of cloud, mobility, sustainability, and product develop- ment. In addition, a key focus is also consultative skills. All of these are in line with our Infosys 3.0 strategy. We place significant value on continuous learning and knowledge sharing."6 Royal Opera House, London Sources: (1) Australian Red Cross Capability Framework, 2015; (2) Royal Opera House Annual Review 2005-6; (3) Financial Times, 12 August 2012; (4) Infosys Annual Report 2011-12; (5) http://www. infosys.com; (6) SkillingIndia, 26 September 2012. Tony Hall, Chief Executive of the Royal Opera House: Questions 1 Categorise the range of resources and capabilities highlighted by the executives above in terms of Section 4.2 and Table 4.1. "World-class" is neither an idle nor boastful claim. In the context of the Royal Opera House the term refers to the quality of our people, the standards of our productions and the diversity of our work and initiatives. Unique? Unashamedly so. We shy away from labels such as "elite", because of the obvious negative connotations of exclusiveness. But I want people to take away from here the fact that we are elite in the sense that we have the best singers, dancers, directors, designers, orchestra, chorus, backstage crew and administrative staff. We are also among the best in our ability to reach out to as wide and diverse a community as possible.'2 2 To what extent and why might these resources and capabilities be the basis of sustained competitive advantage? 3 Imagine you are the general manager of an organisation of your choice and undertake the same exercise as in Questions 1 and 2 above. 99