How can a capability be defined in a business context?

In a business context, a capability refers to an organization's ability to effectively and efficiently perform activities that deliver value to customers. This encompasses not just the resources or skills available, but also the overall competencies and expertise that allow the organization to execute its strategies and meet its goals.

Choosing the definition of a capability as "An organization’s ability to create customer value" captures the essence of what capabilities entail—they are not merely individual skills or tasks, but rather a holistic view of how an organization leverages its resources and processes to achieve outcomes that are beneficial to its customers. This value creation is central to business success, as organizations must align their capabilities with customer needs and market opportunities.

Other options touch on aspects that may contribute to a capability but do not define it in a broad business context. For instance, while a skill possessed by employees can enhance a capability, it is just one component of a larger system. A financial measurement of success is an outcome of capabilities rather than a definition of them, and a procedure followed to complete a task refers to specific methods rather than the comprehensive abilities of the organization as a whole. Thus, the focus on value creation in the correct answer emphasizes the strategic nature of capabilities in driving business performance.