In practice , how can an organization define its core competences?

A core competency is defined as something unique that an organization has, or as something unique it can do.  A company that develops a unique core competency can create long lasting competitive advantage.

A core competency will typically meet at least the below rules:

§  it provides benefit to the customer

§  it is difficult to imitate

§  it can be leveraged widely to create many products (or operate in many markets)

§  it will uniquely identify the organization

§  it will be difficult to pin down, because it seems to be a combination of things such as technology, process, and know-how.

You must look at your company through an “outsiders”, analyst eye.  Is this an easy task?  If it was anyone could do it, but it is not.  It takes hard word and commitment from all.  Companies must always be changing themselves and empowering its employees to “think out outside the proverbial box”.  What separates your organization from the rest of the pack?  Hundreds of companies manufacture and sells computers, what makes your computer distinct, better, readily identifiable, can they be easily intimated, do you demonstrate creative flexibility?  Yet what computer better yet cell phone is the most recognizable in the market packet?  I would say it’s the iPhone/Apple.

They sell more than anyone else does, no one has come up with a more intuitive learning curve on their product, and it’s sparked numerous spin-offs, iPads, iPods and more.  Others are following not leading.  Does this define your company?  That’s what I’d be looking at if I was in the driver’s seat at your company.  When your company defines competencies, will they add value to its bottom line and become an integrated part of company culture?  The answer lies in how these competencies are developed, applied and monitored.  See above example, Apple!