Core Competence? LO5236

Ray, James (AMS!SOLUTIONS3!jamesr@attsolhq.attmail.com)
Mon, 29 Jan 1996 21:17:00 +0000

Replying to LO4079 --

Pasu et al,
>I would appreciate hearing from someone with experience in core
>competencies or how to involve learning mechanism into the competencies
>development process.

(I am *very* far behind in Learn-Org - my apologies for the delayed
response.)

As an organization development consultant, I have studied and applied the
concept of Core Competence (Hamel & Prahalad) and the related concept of
Core Capabilities (Stalk, Evans et al) for several years. IMHO, one of
the most concise articles on the topic is "Using Core Capabilities to
Create Competitive Advantage", which first appeared in the Summer 1995
issue of Organizational Dynamics.

The following passage is particularly relevant:

"Capability-based organizations...understand the underlying skills and
know-how that give the firm the ability to perform certain activities
better than others...In the highest level of innovation, a company can
search out the most promising new market segments and try to develop new
core capabilities to participate there."

This passage reflects a need to view the organization much differently
than in the "traditional" view. Questions such as the following must be
answered for the organization if it is to achieve it's strategic intent:

1. What are the skills and know-how that will provide a competitive
advantage for our organization, today and in the future?
2. What structures and/or processes will ensure we are able to fully
exploit these competitive advantages?

Similar questions are posed by Hamel and Prahalad in their recent book,
_Competing for the Future_, and in their earlier research published in the
Harvard Business Review. Henry Mintzberg has also recently challenged
"conventional" approaches to strategic analysis and planning in _The Rise
and Fall of Strategic Planning_. Finally, Robert Tomasko presented a
compelling approach to organizational design supporting these views in his
1993 book, _Rethinking the Corporation: The Architecture of Change_.

While I would highly recommend these and the other selected resources
cited for this article, Carl Long and Mary Vickers-Koch have done an
exceptional job of integrating this research in a concise and well-written
manner. This article effectively represents a comprehensive blending of
extensive research in strategic analysis & planning, organizational
dynamics and organization design.

The most recent reference I would offer on this topic is the recent book
by Nonaka and Takeuchi, _The Knowledge Creating Company_ which provides an
excellent model (Chapter 3) for the "knowledge conversion process" which
leads to the development of an organization's core competence.

Hope these references are still useful, and relevant to your needs.

--
All the best,
James Ray
 ---------------------------------------------
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"Change is certain. Progress is not." -- E.H. Carr