Monday, August 28, 2017

Defining Your Strategic Direction Part 3

A final question in defining your strategic direction is: what are your core competencies? Following are the requirements for a competency to be considered core:
  • It must deliver significant value to the customer.
  • It must create differentiation from competitors.
  • It must form the basis for entry into new markets.
  • It is not easy for other organizations to replicate.
The requirements for competency to be considered core are stringent. Organizations must possess many skills, technologies, and capabilities in order to succeed, but that does not make them core. They have to meet the criteria mentioned above.

Core competencies are not specific products or services but rather a bundle of skills, technologies, and capabilities that result in a broad class of customer benefits. A well-developed core competency results in competitive leadership within an industry, but that takes time to develop.

Finally, you will need to jump to the future and consider a core competency that could give you strategic advantage 5 years in the future.

Until next time...

Sheryl Tuchman, SPHR, SHRM-SCP

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