Three Main Characteristics
They should make a disproportional
contribution to stakeholder value
They should open doors to other
They should represent such a unique blend of
tacit and explicit knowledge that it cannot be copied by
Individual Competencies vs. Core Competencies
alone and are generally considered in isolation.
Core competencies are
harmonized, intentional constructions. They are more than the traits
of individuals. Capabilities are considered core if they
company strategically. Core competencies are aggregates of
is created that has
sustainable value and broad applicability. That
synergy needs to be sustained in the face of potential competition
and must not be specific to one product or market.
Eight Attributes of
Peters and Waterman
7 Dimensions of
What: is Core Competency?
Core competencies are the most significant
value creating skills
within your corporation
and key areas of expertise which are
distinctive to your company and critical to the company's long term
Your company's core
competencies are the things that you can do better than your competitors in
the critical, central areas of your company where the most
is added to your products. These areas of expertise may be in any area from
product development to employee dedication.
A competence which is central to your
business's operations but which is not exceptional in some way should not be
considered as a core competence, as it will not generate a
advantage over rival businesses. It follows from the concept of Core
Competencies that resources that are standardized or easily available will
not enable a business to achieve a
Core Competence vs. Sustainable
If a core competence yields a long term
advantage to the company, it is said to be a
sustainable competitive advantage.
A corporation that builds on core competencies
utilizes skills that combine to strengthen
value chains and build greater competitive advantages. This leads to
whereby they become more productive together than independently.
Core Competence as a Team Sport
A core competence is a combination of
complementary skills and knowledge bases embedded in a group
or team that taken together makes it possible to provide a
10 Commandments of Innovation
Have a Dream.
Focus on your core competences and
Black and Decker
Black and Decker's core
technological competency is in 200 to 600 W electric motors.
All of their products are modifications of this basic
technology (with the exception of their work benches, flash
lights, battery charging systems, toaster ovens, and coffee
They produce products for three
the home workshop
– in the home workshop market, small electric motors are
used to produce drills, circular saws, sanders, routers,
rotary tools, polishers, and drivers.
the home cleaning and
maintenance market – in the home cleaning and
maintenance market, small electric motors are used to
produce dust busters, etc.
– in the kitchen appliance market, small electric motors
are used to produce can openers, food processors,
blenders, bread makers, and fans.
Saga managed to establish
strong leadership in supplying financial services (e.g.
insurance) and holidays to the older generation. The
following core competencies enabled Saga to enter apparently