Develop and Sustain a Competitive Advantage with Competency Management

A Core Competency is a deep proficiency that enables a company to deliver unique value to customers. It embodies an organization’s collective learning, particularly of how to coordinate diverse production skills and integrate multiple technologies. Such a Core Competency creates sustainable competitive advantage for a company and helps it branch into a wide variety of related markets. Core Competencies also contribute substantially to the benefits a company’s products offer customers.

Understanding Core Competencies allows companies to invest in the strengths that differentiate them and set strategies that unify their entire organization.

How Core Competencies work:
To develop Core Competencies a company must take these actions:

• Isolate its key abilities and hone them into organization wide strengths
• Compare itself with other companies with the same skills to ensure that it is developing unique capabilities
• Develop an understanding of what capabilities its customers truly value, and invest accordingly to develop and sustain valued strengths
• Create an organizational road map that sets goals for competence building
• Pursue alliances, acquisitions and licensing arrangements that will further build the organization’s strengths in core areas
• Encourage communication and involvement in core capability development across the organization
• Preserve core strengths even as management expands and redefines the business
• Outsource or divest non-core capabilities to free up resources that can be used to deepen core capabilities

Companies use Core Competencies to:

• Design competitive positions and strategies that capitalize on corporate strengths
• Unify the company across business units and functional units, and improve the transfer of knowledge and skills among them
• Help employees understand management's priorities
• Integrate the use of technology in carrying out business processes
• Decide where to allocate resources
• Make outsourcing, divestment and partnering decisions
• Widen the domain in which the company innovates, and spawn new products and services
• Invent new markets and quickly enter emerging markets
• Enhance image and build customer loyalty

 71% of organizations lack the resources. Take a look and know-how to create role-based development in alignment with position-critical competencies.  http://goo.gl/8PWL4E