A Core Competency is a superb proficiency within the organization which allows it to deliver a unique value to its customers. It stems from the organizations collective experience, creating a synergistic set of skills across multiple departments.
What defines a core competency? A core competency is defined as that which is difficult for competitors to replicate. When an organization has a core competency, it allows for investment in those strengths which differentiate them in order to define a strategy to set the organization apart from its competition.
- Identify the organization’s key abilities and work with them to have them be a strength of the whole organization.
- Benchmark the skill to other companies to ensure that the development of unique capabilities.
- Research and understand what are the capabilities to which its customers assign value. Once these capabilities have been identified, invest accordingly to develop and sustain the valued strengths.
- Create an organizational plan which sets goals for building these competences within the organization.
- Pursue business agreements and strategic acquisitions to further build the organization’s strengths in core areas.
- Promote involvement in core capability building across the organization.
- Preserve core strengths even as management changes and expands, even if the business is redefined.
- Outsource non-core capabilities to free up resources that can be used to deepen core capabilities. It is unwise to outsource core competency’s or anything which creates a unique competitive advantage.
What does the Core Competencies achieve?
- Creation of competitive strategies and positions which capitalize on organizational strengths.
- Align the organization across business and functional units to improve the transfer of knowledge and skills between them.
- Define management’s priorities to the organization.
- Identify where critical resources are best allocated for the organization.