Defining core competences
Having identified the distinctive and hygiene factors that make up your competitive
advantage, you should now determine what core competences give rise to them. A
core competence is the combination of skills, knowledge and technologies that you
employ in your business that ultimately gives you a competitive edge. The example
in Box 2.10 illustrates the difference between distinctive and core competences.
It should be straightforward to devise a strategic business development plan
around these critical issues. The main focus of development activity formanagement
should revolve around the distinctive competences in manufacturing (e.g. flexible
technology, short runs, efficient workflow, skilled machine operatives), design (e.g.
people’s creative skills, interpreting customer needs, market awareness), resourcing
(e.g. capacity, scheduling, training, interpersonal skills) and company values (e.g.
recruitment policies, teamworking, skills and knowledge).
In this model (Figure 2.1), distinctiveness is supported by the three main
core competences, which are key departmental functions in this tile-manufacturing
business. By identifying the distinctive and core competences, the task of developing the most important parts of the business has a clear logic to it and limited resources
can be focused on those factors that will bring the greatest return.
The core competence model can be used effectively to plan ahead.2 To identify
the options for taking your business into new areas of opportunity, you should
be asking the question: Where else can our distinctive and core competences be
deployed? This is illustrated in Figure 2.2. An explanation of this model follows.
Having identified the distinctive and hygiene factors that make up your competitive
advantage, you should now determine what core competences give rise to them. A
core competence is the combination of skills, knowledge and technologies that you
employ in your business that ultimately gives you a competitive edge. The example
in Box 2.10 illustrates the difference between distinctive and core competences.
It should be straightforward to devise a strategic business development plan
around these critical issues. The main focus of development activity formanagement
should revolve around the distinctive competences in manufacturing (e.g. flexible
technology, short runs, efficient workflow, skilled machine operatives), design (e.g.
people’s creative skills, interpreting customer needs, market awareness), resourcing
(e.g. capacity, scheduling, training, interpersonal skills) and company values (e.g.
recruitment policies, teamworking, skills and knowledge).
In this model (Figure 2.1), distinctiveness is supported by the three main
core competences, which are key departmental functions in this tile-manufacturing
business. By identifying the distinctive and core competences, the task of developing the most important parts of the business has a clear logic to it and limited resources
can be focused on those factors that will bring the greatest return.
The core competence model can be used effectively to plan ahead.2 To identify
the options for taking your business into new areas of opportunity, you should
be asking the question: Where else can our distinctive and core competences be
deployed? This is illustrated in Figure 2.2. An explanation of this model follows.
