Organizational Capacity Defined

The first in a six part series about building capacity.

These days, businesses are often exhorted to build organizational capacity, but what does that really mean? There are many definitions of “capacity,” but in simple terms, an organization’s capacity is its potential to perform — its ability to successfully apply its talent and resources to accomplish stated goals and satisfy stakeholder expectations. Capacity is the engine that drives performance and makes it possible for an organization to meet its goals and achieve its overall mission. Simply put: Capacity = Ability to Perform.

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