Core competencies, Salvador Trinxet
Book name: Key management models
The idea behind the ‘core competencies’ of an organization is to encourage managers to think inside-out as well as outside-in, the traditional approach to corporate strategic thinking. Where the outside-in approach to strategic management places the customer and the competition at the centre, core competencies refer to a combination of specific, inherent, integrated and applied knowledge, skills and attitudes of an organization that should be used as the basis for strategic intent.
In short, relatively exclusive organizational qualifications can make the difference and these should be identified and/or developed in order to create long-lasting competitive advantage.
In 1990, Hamel and Prahalad wrote an award-winning HBR article on the core competence of the corporation, later published a book (1994) on how to compete for the future based on the concept of the core competence. They encourage managers to ask themselves such fundamental questions as:
■ What value will we deliver to our customers in, say, 10 years from now?
■ What new ‘competencies’ (a combination of skills and technologies) will we need to develop or obtain to offer that value?
■ What are the implications with regard to how we interact with our customers?
When to use it
Thinking about and trying to define core competencies for the organization stimulates management to rethink and – hopefully – mobilize the intrinsic strengths of the organization.
The future will undoubtedly bring unimaginable products, services that are simply not yet feasible and industries that don’t exist today. Not only do you have to realize this, you actually need to know more or less what the future will look like. This is what Hamel and Prahalad call ‘foresight’. With this foresight, the process of thinking about core competencies should help management to identify the extent to which they have or lack the chance to seize a part of that unknown future.
Author: Steven ten Have Wouter ten Have, frans Stevens and Marcel van der Elst with Fiona Pol- Coyne
Isbn:-10: 0-273-66201-5
Isbn-13: 978-0-273-66201-3
Editorial: Prentive Hall , Financial Times
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