Everything You Need to Know About Core Competencies of Business Organizations (But Haven't Asked)
(Excerpts from a consultant presentation to peers at Moravec and Associates.)
The most effective response to the complexity of corporations is simplicity.
- All high performance companies place simplicity at or near the top of their list of critical competencies
- And these same successful companies operate effectively in increasingly complex environments
Competitive advantage comes from the core competency root system
- The root system provides nourishment, sustenance, stability, growth….
Core competencies are the collective learning in the organization:
- Especially how to coordinate diverse production skills
- Integrate multiple streams of technology.
If core competence is about harmonizing streams of technology:
- It is also about the organization of processes and work and
- Delivery of value.
Core competence includes:
- Communication,
- Involvement and
- Zealot work across organizational boundaries.
Three tests identify a core competence:
- Provides potential access to a wide variety of markets.
- Makes a significant contribution to the perceived customer benefits of the end product.
- Difficult for competitors to imitate and
- Is even more difficult to imitate when it is a complex harmonization of individual technologies and production skills.
Core competencies are built through a process of continuous improvement, enhancement and 'innovations to solve problems'
- That may span a decade or longer
- Sometime to be harvested from the collective knowledge of a company
The tangible link between core competencies and end products are core products ? the physical embodiments of one or more competencies.
Core competencies are the wellspring of new business development.
- They constitute the focus for strategy at the corporate level.
Only when the company is conceived of as:
- Hierarchy of core competencies,
- Core products and/or services, and
- Market focused business units
- Is it fit to win.
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