Core Competency Presentation-Strategic Management

CORE COMPETENCY
Overview
What are core competencies and why are
they important
Identifying your core competencies
Developing core competencies
Why are core competencies

important?
They are the skill sets your organization
possesses that set it apart from its peers.

They are what make your organization
unique.
They are sources of competitive advantage.
They are the building blocks to future
opportunities and earned income ventures.
Organizational
competencies
Functional capabilities and experience a firm
possesses by virtue of the way it integrates and
blends the individual skills of its personnel to
achieve a benefit. Examples :
Workers with knowledge and experience in receiving
and distributing donated goods.

Workers with knowledge and experience in
supervising and maintaining overnight shelters.
Workers with knowledge and experience in controlling
costs.
Workers with knowledge and experience in fund
raising.
Table stakes.
Certain competencies are required by all
organizations in order to operate effectively
and carry out their mission.
These fundamental competencies are called
table stakes.
They define the standard level of competency
needed to sustain operations
Fundamental
Marketing-provides the customers and clients
competencies
Operations/ production- provides the products
and/or services
Human resources- provides the personnel
Fund raising- provides supplementary income
Administrative- provides essential support
Accounting/ book keeping- provides financial
control
Payroll- Provides paychecks
Marketing skills
Personnel with knowledge and experience in:

The activities needed to identify the client problems
and the product characteristics and service attributes

that can help solve these problems and how to
package these into the product or service offering.
Determining the price for the products and services
offered including discounts, sliding scale fees, etc. and
how payment will be accepted.
Determining how and where the products and
services will be offered and by whom.
Promoting the products and services, communicating
with the prospective clients, and selling.
Production/ operations
skills
The production of the product or the
delivery of service to the client.

For organizations that produce or sell a
product this may include purchasing and
inventory management activities.
For distribution, retail, and food service
type organizations this may include
procurement and inventory management.
Human
resource
skills
Interviewing prospective employees and managers.
Hiring and indoctrinating employees and managers.
Determining the compensation for employees and
managers and establishing the process to pay

employees and managers.
Determining the employee and manager training
requirements needed to perform their jobs and
providing or making arrangements to provide this
training.
Reviewing employee and manager performance
and discharging ineffective personnel.
Administrative skills
Invoicing and bill paying.
Facility maintenance and repair
Customer service and phone answering
Defining a core
competency
A bundle of skills that enables an organization to
provide a particular benefit to customers.

It is not product or service specific. It contributes
to the development of a range of products and
services. Examples:
Sony- customer benefit is pocket ability and core
competence is miniaturization.
Federal Express- benefit is on time parcel delivery and
core competence is logistics management.
Rosecrans- benefit is freedom from addictive behavior
and core competence is adult and adolescent education.
Carpenters Place- benefit is a changed lifestyle and the
core competency is customized client case management.
Tests for core

Organizational competencies must pass
competency
three tests to be considered core

competencies.
It must make a significant contribution to
customer perceived value or to the

financial health of the organization.
It must be unique or performed in a way
that is substantially superior to its peers.
It must be capable of being applied to new
products and services.
Identifying your
organizations core
Not all organizations possess core
competencies
competencies.
Very small organizations and organizations that
provide standard services that are in high

demand will usually not possess or need core
competencies.
Table stakes are more than adequate for their success.
The clients using these organizations value
adequacy not uniqueness. Examples are food

pantries, homeless shelters, and soup kitchens.
Apple doesn't just want you to think differently about their products. It
wants you to redefine the buying experience.
Visit an Apple store, and you'd almost think that it was designed more
to create a clubhouse for Apple enthusiasts than to actually sell the
company's products. Consumers enter a store, check out Apple's new
products, attend a workshop, and sit in on a presentation or in-store
concert. Get immersed in the Apple culture, and when you're ready,
Apple will sell you a piece of the experience to take with you. Microsoft
(Nasdaq: MSFT) wants to create a similar experience with its own
chain of stores. Good luck with that, Mr. Softy.
What is the core competency of WALMART
1) Low cost operations and hence low prices 2) Better use of JIT
and other
technologies 3) Streamlined systems and technologies to maintain
communication ...
What IS THE CORE COMPERENCY OF V-Gurad?
Identifying your
organizations core
competencies
Develop an inventory of your organizational
competencies
Use the core competency tests to determine
the competencies that are core.
Develop an inventory of your

organizational
competencies
List your organizations competencies.
Examples:
Workers with knowledge and experience
in providing youth recreational programs.

in supervising and maintaining overnight
shelters.
in controlling costs.
in fund raising.
Develop an inventory of
Identify organizational
the benefit from each competency
your
Examples:
competencies
The customer benefit from experience in
providing youth recreational programs is
constructive youth development.
The benefit from knowledge and experience
in controlling costs is a reduction in
operating expenses.
Develop an inventory of
Separate
the competency from the product
your
organizational
or service. Examples:
competencies
The competency associated with providing youth
recreational programs is youth education. The
purpose of education is to change behavior and
that is what the recreational programs want to
achieve.
The competency associated with experience in
controlling costs is financial management. The

purpose of financial management is to control the
financial health of the organization.
Inventory of
Competencies
Competency: Workers with knowledge and
experience in providing youth recreational
programs.
Benefit: constructive youth development.
Competency: youth education.
Competency: Workers with knowledge and
experience in
controlling costs.
Benefit: reduction in operating expenses.
Competency: financial management.
Determine the competencies

that
are
core.
Indentify
those
competencies that meet all of
the following criteria:
They make a significant contribution to customer
perceived value or to the financial health of the

organization.
They are unique or performed in a way that is
substantially superior to your peers.
They are capable of being applied to new products
and services.
These are your organizations core

competencies.
Developing Core
Management commitment- developing
Competencies
core competencies takes time
Focus- define the competencies needed
People with appropriate skills
Train current personnel
Recruit personnel with needed skills
Integration of these skills

Usually a function of management
Institutionalize the activity through
processes and procedures

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CORE COMPETENCY

Why are core competencies

They are the skill sets your organization

possesses that set it apart from its peers.

and distributing donated goods.

Personnel with knowledge and experience in:

and the product characteristics and service attributes

delivery of service to the client.

managers and establishing the process to pay

provide a particular benefit to customers.

Tests for core

three tests to be considered core

customer perceived value or to the

Very small organizations and organizations that

provide standard services that are in high

Table stakes are more than adequate for their success.

The clients using these organizations value

adequacy not uniqueness. Examples are food

the competencies that are core.

Develop an inventory of your

Workers with knowledge and experience

in providing youth recreational programs.

The competency associated with experience in

controlling costs is financial management. The

Determine the competencies

perceived value or to the financial health of the

These are your organizations core

Integration of these skills

Institutionalize the activity through

processes and procedures

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