A Life-Changing Event That Redefined My View of Leadership
Several years ago, an unexpected tragedy reshaped the way I think about organizational preparedness. A close colleague of mine, Daniel Ruiz, travelled to northern Argentina to hike the Cerro Negro trail with a small group. Daniel was an experienced climber, cautious and well-prepared. Early one morning, he reached a ridge overlooking the valley—a moment his hiking partners described as one of the most breathtaking views they had ever witnessed.
On the descent, a rockslide occurred. Daniel was struck and left unable to move. His group called for help immediately, but the nearest trained rescue team was several hours away. Local volunteers did their best, but the terrain, lack of equipment and slow coordination meant that help simply could not arrive in time. Daniel passed away before rescue personnel reached him.
It wasn’t a lack of compassion or willingness that led to the tragic outcome. It was the absence of capacity—coordinated systems, trained teams and rapid-response structures prepared to handle rare but high-stakes situations.
That incident changed the way I guide leaders. Whether in business, public services or high-risk industries, excellence is not achieved merely through hard work or good intentions. It is achieved when leaders deliberately build the capabilities, structures and cultural foundations that allow people to perform consistently and respond effectively when the unexpected happens.
The Six Capacities That Drive Organizational Excellence
Across industries—including manufacturing, healthcare, construction, technology and energy—I’ve observed six essential capacities that predict whether organizations thrive or struggle. These capacities work as an interconnected system. When one is missing, the entire structure becomes vulnerable.
Prevention Capacity
Prevention capacity is the organization’s ability to reduce the likelihood of harmful events. This includes quality processes, hazard controls, system design and disciplined execution. Leaders often use proven frameworks—such as risk matrices or layered controls—to strengthen prevention.
But no framework eliminates human error entirely. Which brings us to the next critical capacity.
Recovery Capacity
Recovery capacity describes how effectively an organization can respond once something has gone wrong. It includes communication pathways, escalation procedures, access to resources, training and coordination. High-performing organizations rehearse recovery scenarios the same way elite aviation and medical teams rehearse crisis simulations.
Moments of failure, surprise or disruption are where organizations with weak recovery systems suffer the most.
Leadership Capacity
Leadership capacity is not about charisma or authority. It is about clarity. People must understand:
• What results matter most
• How to achieve those results safely and consistently
• What behaviors drive success
Leaders set direction not only by describing the destination, but by helping people understand the safest and most effective way to get there.
Cultural Capacity
Cultural capacity reflects the beliefs and norms that shape daily behavior—especially when no leader is watching. Healthy culture requires alignment across teams, departments and locations. When subcultures drift apart—each with different tolerances for risk, shortcuts or communication—the entire organization becomes inconsistent.
Engagement Capacity
Engagement capacity concerns how effectively leaders inspire employees to give more than the minimum. Disengagement is one of the most expensive and underestimated organizational risks. People disengage when they feel ignored, unsupported or disconnected from purpose.
Building engagement capacity means removing the barriers that drain motivation and expanding the factors that strengthen commitment.
Strategic Capacity
Strategic capacity ensures long-term direction, resource alignment and clarity of priorities. Organizations with weak strategic capacity often move reactively—chasing problems, switching priorities and exhausting their teams.
When strong, strategy becomes a thread that ties every team and initiative together.
When these six capacities operate as a unified system, organizations build what I call a capacity for excellence—the ability to perform well consistently, adapt quickly and avoid catastrophic missteps.
What Happens When Organizations Lack Capacity
History holds countless examples of failures rooted not in a lack of effort, but in a lack of readiness. Consider manufacturing plants that have suffered chemical leaks, financial institutions toppled by internal control failures or major logistics companies that collapsed under supply chain disruptions. While industries differ, patterns repeat:
• Weak communication channels
• Failure to act on early warning signs
• Disconnected subcultures
• Training that never translates into behaviors
• Leaders who operate reactively instead of strategically
The consequences range from safety incidents to operational shutdowns, lawsuits, regulatory crackdowns, reputational damage and financial collapse. These outcomes are rarely caused by a single individual. They are systemic failures that arise from missing capacity.
Practical Steps Leaders Can Take to Build Capacity for Excellence
Capacity-building is not a one-time initiative. It is a discipline. Across industries, I’ve seen several actions consistently elevate organizational strength.
Translate Excellence Into Behaviors
If excellence is abstract, employees cannot replicate it. Leaders should define clear, specific behaviors that drive desired outcomes. These behaviors should be simple to teach and easy to evaluate. Teams become more consistent when they know precisely what excellence looks like in practice.
Reinforce Positive Behaviors
Recognition is a powerful reinforcement tool when used purposefully. Weekly acknowledgment of individuals or teams who demonstrate target behaviors helps the organization internalize these actions. People repeat what leaders visibly value.
Engage Employees Through Learning Conversations
One of the simplest yet most transformative leadership habits is conducting weekly learning conversations—short, structured dialogues with employees where leaders ask:
• What worked well this week?
• What almost created a problem?
• What small improvement would make your job easier or safer?
The key is follow-through. When employees see leaders act on their feedback within a reasonable timeframe, trust deepens and engagement rises.
Hold Learning-Focused Debriefs
After major milestones, setbacks or close calls, teams should hold debriefs focused on learning, not blame. This approach replaces punitive responses with systemic examination: What conditions contributed? What signals were missed? What can be strengthened?
Debriefs that look forward, not backward, build resilience.
Invest in Development at Every Level
Capacity grows when people grow. Leadership development, skill training, coaching and structured one-on-ones strengthen capabilities across the organization. When people understand that leaders care about their long-term progress, engagement capacity expands rapidly.
Track and Reinforce Capacity-Building Activities
Metrics shape behavior. Leaders should track key actions that strengthen capacity—such as the number of learning conversations held, improvements implemented, or cross-team collaborations initiated. Measuring the process—not just the outcomes—ensures capacity-building becomes a sustained habit.
Excellence Emerges From Curious, Prepared and Intentional Leadership
Capacity is not built during emergencies. It is built in small, everyday decisions—how leaders design processes, how they listen, how they coach and how they respond to early signs of strain.
Every leader has a choice: operate with certainty or operate with curiosity. Certainty says, “Everything is fine.” Curiosity asks, “How can this be better?”
My colleague Daniel didn’t lose his life because of carelessness. He lost it because the system around him lacked the capacity to respond when it mattered most. The same holds true for organizations around the world. Caring is essential, but it is not enough. Hope is not a strategy. Good intentions do not create readiness.
Leaders either build capacity deliberately or leave it to chance. And when the next unexpected test arrives—whether operational, cultural or strategic—the organization’s fate will reflect the groundwork laid long before the moment of crisis.
Will your organization be prepared? Or will you discover gaps only when it is too late to close them?