HR role in building the business capabilities

The question of HR transformation role in building the business capabilities is going to be achieved through building the HR competency model. The HR role in building the business capabilities are addressed by to Dave Ulrich et al (2009:49) "In focusing on capabilities as outcomes, the HR transformation team should do a capability audit where they identify which capabilities are most critical to their organization’s future success given business conditions and business strategy". The same concept of capabilities underpinning and development is also supported by Garry Johnson et al (2005:116) . The authors argue that when conducting business strategy, strategy team should analyze and investigate all the business internal capabilities and match them with the external environment in order to reach the strategy fit. Moreover, we conclude that when the business needs to develop new HR strategy or conduct HR transformation one of the prime outcomes to this change is to reinvent and rebuild its strategic capabilities to match with external environment. HR transformation specialists have to breakdown each targeted capability to its supporting competences as business capabilities stem from the business and employees competencies when combined together to give the business its distinguished targeted capabilities. Accordingly, the role of HR transformation in building the business capabilities will concentrate on how the competency is created and developed in the business. The strategic role of HR is how to build the employee and the business competences by developing and building the Core Competency Pool 'CCP'. The CCP is reservoir which combines all the competencies that are required in building the business present and future strategic capability. From within the core competency pool HR and business leaders has to select, develop and nurture distinctive competencies that enable the business develop and build its distinctive capabilities that underpin the competitive advantage due to its unique characteristics which are not exposed to other competitors and which at the end sustain differentiation in the market place.