HR's global impact: building strategic differentiating capabilities

Abstract

PurposeThe aim of this paper is to demonstrate how the HR function can make a significant contribution to the achievement of global strategy and sustainable competitive advantage through identifying, building and deploying differentiating strategic capabilities (DiSCs). The DiSC model has been developed by William Scott‐Jackson over the past 15 years as a practical and strategically valuable development of the “resource‐based view of the firm”.Design/methodology/approachThe paper first considers the strategic implications of global trading and then describes the strategic importance of DiSCs and their criteria – particularly in sales. This is based on applied research and strategic HR consultancy with over 30 global organizations over the past 15 years. Using a case study of a global outsourcing company, it describes the process by which DiSCs can be developed and deployed by the HR function to achieve sustainable competitive advantage in global trading.FindingsThe link between global strategic intent and the role of HR is clearly defined using the DiSC model and the examples given show the strategic value that can be achieved using the model to enable global trading.Originality/valueThe DiSC model can be deployed in any organization (profit or non‐profit) by HR to ensure that its global strategic intent can be achieved and to help ensure sustainable competitive advantage. In addition to the well‐understood HR competencies and processes which need to be deployed for global success, this model further allows the HR function to impact strategy development and implementation. This paper shows how DiSCs can be identified, built and deployed.