Core Competencies

3,920 views

Published on

Core Competencies

Published in: Education, Business, Technology
0 Comments
5 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
3,920
On SlideShare
0
From Embeds
0
Number of Embeds
16
Actions
Shares
0
Downloads
0
Comments
0
Likes
5
Embeds 0
No embeds

No notes for slide
  • Brian Baldus is a business management student (entrepreneurship focus) at Brigham Young University’s Marriott School of Management. His interests include entrepreneurship, project management, and process improvement. With questions or comments, contact bbaldus@sonic.net
  • Core Competencies

    1. 1. Identifying and Developing Core Competencies in Small Businesses Brian Baldus Marriott School of Management Brigham Young University
    2. 2. Agenda <ul><li>Introduction </li></ul><ul><ul><li>Trends you know </li></ul></ul><ul><ul><li>What you’ve learned </li></ul></ul><ul><li>Competition </li></ul><ul><li>Core Competencies </li></ul><ul><li>Meta competencies </li></ul><ul><li>Sustained Competitive Advantage </li></ul>
    3. 3. Business Trends You Know <ul><li>1980’s Restructuring </li></ul><ul><li>1990’s Cultivation of culture </li></ul><ul><li>2000 and beyond </li></ul><ul><ul><li>Increased Turnover </li></ul></ul><ul><ul><li>Decreasing Product Lifecycle </li></ul></ul><ul><ul><li>Expansion of Globalization </li></ul></ul>
    4. 4. What You’ve Learned <ul><li>Past performance does not guarantee future performance </li></ul><ul><li>Many small businesses fail to compete effectively </li></ul>
    5. 5. Competition <ul><li>Competition is </li></ul><ul><ul><li>Market Share </li></ul></ul><ul><ul><li>R&D Budget </li></ul></ul><ul><ul><li>Product Price/performance </li></ul></ul><ul><li>Three planes </li></ul><ul><ul><li>Core Competencies </li></ul></ul><ul><ul><li> Core Products </li></ul></ul><ul><ul><li>End Products </li></ul></ul>Source: Prahalad and Hamel
    6. 6. Core Competencies <ul><li>Three-way test </li></ul><ul><li>Potential access to wide variety of markets </li></ul><ul><li>Make a significant contribution to the perceived customer benefits to consumer </li></ul><ul><li>Difficult for competitors to imitate </li></ul>Source: Prahalad and Hamel
    7. 7. Meta competencies <ul><li>Name for a grouping of core competencies </li></ul>Source: Shirish Srivastava
    8. 8. An Example <ul><li>Constituent skills – BARCODING </li></ul><ul><ul><li>– Packaging items </li></ul></ul><ul><li>Core Competencies – PACKAGE TRACKING </li></ul><ul><ul><li>– Rapid delivery </li></ul></ul><ul><ul><li>– People </li></ul></ul><ul><li>Meta competency – Logistics </li></ul>Adapted from Shirish Srivastava
    9. 9. Brainstorming <ul><li>What skills gives your company potential access to wide variety of markets? </li></ul><ul><li>Of those, what about it makes a significant contribution to the customer value? </li></ul><ul><li>Of those, which of them are difficult for competitors to imitate? </li></ul>
    10. 10. What Makes a core competency? Routine Skills, Resources, and Capabilities (many) Meta competencies (one to two) Core Competencies (dozen or less) Adapted from Shirish Srivastava
    11. 11. Discovering Meta competencies Source: Shirish Srivastava (used with permission) Shared Values Systems Staff Style Close External Relationships Skills Structure Strategy Agility Innovation Reliable Systems Cost Efficiency
    12. 12. Discovering Meta competencies Organizational Components Source: Shirish Srivastava Hard Soft Shared Values Systems Staff Style Close External Relationships Skills Structure Strategy Agility Innovation Reliable Systems Cost Efficiency
    13. 13. Discovering Meta competencies Competitive Aspects Source: Shirish Srivastava Shared Values Systems Staff Style Close External Relationships Skills Structure Strategy Agility Innovation Reliable Systems Cost Efficiency
    14. 14. Example – Ideal Hardware Customer service is key Conflict: low wages Shared Values Communication system Reliable computer and communication system Systems Handymen Handymen Handymen Handymen Handymen, Conflict: low wages Staff Traditional feel, fun displays Style Close Ext. Relationships Handymen Handymen Skills Several key knowledgeable employees Flat organizational structure Structure Handymen salespeople Purchasing (buy bulk/discount), sell at higher price Strategy Agility Innovation Reliable Systems Cost Efficiency
    15. 15. Discovering Meta competencies <ul><li>Identify firms capabilities </li></ul><ul><li>Link each capability to one of the 7 S’s </li></ul><ul><li>Write the capability under the column that best describes the capability’s competitive advantage to the firm (can occur more than once) </li></ul><ul><li>Identify capabilities occurring in most/all of the 7 S’s </li></ul>Adapted from Shirish Srivastava Shared Values Systems Staff Style Close External Relationships Skills Structure Strategy Agility Innovation Reliable Systems Cost Efficiency
    16. 16. New Focus <ul><li>Look internally </li></ul><ul><li>Success depends on continually reevaluating </li></ul>
    17. 17. Develop Abandon Existing Sustained Competitive Advantage Adapted from Shirish Srivastava Skills, Resources, and Competencies Pool Narrow the pool Competency Evaluation Nurture New Outdated Company and Market Fit Implement
    18. 18. Implementing <ul><li>Define Meta Competency </li></ul><ul><li>Level 5 Leadership Style </li></ul><ul><li>Assemble the team </li></ul><ul><li>Attract and Retain Resources </li></ul><ul><li>Turning the Flywheel </li></ul>Adapted from Jim Collins, Good to Great Monograph
    19. 19. Summary <ul><li>Core competencies are a better measure of long-run competitive advantage </li></ul><ul><li>Core competencies can be grouped into larger groupings or meta competencies </li></ul><ul><li>Sustained competitive advantage comes seeing core competencies as a cycle </li></ul>
    20. 20. Reading List <ul><li>Craig M. Watson. Leadership, Management and the Seven Keys, The McKinsey Quarterly, Autumn 1983 , pp. 44-52. </li></ul><ul><li>Stephen R. Covey. The 7 Habits of Highly Effective People , 1989. </li></ul><ul><li>C.K. Prahalad & Gary Hamel . The Core Competence of the Corporation. HBR, May-June 1990 , pp. 79-91. </li></ul><ul><li>Jim Collins . Good to Great , 2001 . </li></ul><ul><li>Jim Collins. Good to Great and the Social Sectors: A Monograph to Accompany Good to Great, 2005 . </li></ul><ul><li>Shirish Srivastava. Managing Core Competence of the Organization. Vikalpa: The Journal for Decision Makers, 2005, Oct.-Dec. 2005 , pp. 49-63. </li></ul>

    ×