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Core IN-Competencies

Core IN-Competencies . Riley Nay Marriott School of Management Brigham Young University April 2010. Agenda. Core Competencies Test for Competency Core products (activity) Core IN-Competencies Developing Core Competencies. What is a Core Competency?.

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Core IN-Competencies

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  1. Core IN-Competencies Riley Nay Marriott School of Management Brigham Young University April 2010

  2. Agenda • Core Competencies • Test for Competency • Core products (activity) • Core IN-Competencies • Developing Core Competencies

  3. What is a Core Competency? • A unique bundle of skills and technologies that enables a firm to provide particular benefits to customers. • Core Competencies give firms competitive advantage.

  4. Importance of Core Competencies • Think of a business as a tree… • Leaves-end products • Branches-smaller business units • Trunk-core products • Roots-core competencies Source: Prahalad & Hamel

  5. Core Products Source: Prahalad & Hamel

  6. Test for Competencies • There are three questions a company will ask themselves when determining if an activity is a core competency • Provide access to a wide variety of markets • Contribute significantly to the end-product benefits • Is difficult for competitors to imitate Source: Prahalad & Hamel

  7. Activity

  8. What is a Core IN-Competency? • An incapability in a business that inhibits competition. • Negative Inertia

  9. Core IN-Competencies • Examples of core IN-competencies • Change resistance • Cultural or operational inhibiters • Focus shifts • Forgoing Opportunities

  10. Change Resistance • Resistance seeks to challenge, disrupt, or invert prevailing assumptions discourses, and power relationships. Source: Fiedler

  11. Exercise • In your groups, come up with a timeline of your business and document the significant changes your business has been through. • After developing the timeline, discuss how employees handled the changes.

  12. Cultural Inhibiters • GM • They have been known to have “adversarial” relationships with their suppliers. • A GM executive: • “We don’t know what a supplier relationship gets you. It just locks you in. We don’t even like using the word partner.” Source: Enright

  13. Focus Shifts • Toyota • Once known for its quality standards, Toyota has shifted its focus. Quality Cost

  14. Forgoing Opportunities • Companies like GE, Thorn, Motorola, and GEC left the color TV business in the 1970’s and 1980’s. • They regarded the industry as “mature.” Source: Prahalad & Hamel

  15. Developing Core Competencies • Refined definition-Core competencies are the collective learning in the organization. • Companies need to harmonize streams of technology. • Marketing, Engineering, R & D, etc. Source: Prahalad & Hamel

  16. Strategic Architecture • Executives in companies need to construct their corporate culture around competence building. • Executives need to eliminate or manage properly their core IN-competencies Source: Prahalad & Hamel

  17. Exercise

  18. Summary • Understand what core competencies are and their importance in organizations. • Understand what core IN-competencies are and how to identify them within your own company. • Develop your core competencies through collective learning. • Build your corporate strategic architecture around your core competencies.

  19. Readings • Gary Hamel and C. K. Prahalad, (1990) "The Core Competence of the Corporation", Harvard Business Review, vol. 68, no. 3, May-June 1990, pp 79-93. • Michael Enright, (2003) “Buyer-Supplier Relationships”, The Centre for Asian Business Cases, The University of Hong Kong • Stefan Fiedler, (2010) “Managing Resistance in an Organizational transformation: A case study from a mobile operator company”, International Journal of Project Management, vol. 28, iss. 4, May 2010, pp 370-383 • http://www.businessdictionary.com/definition/core-competencies.html • http://ivythesis.typepad.com/term_paper_topics/2009/12/core-competency.html • http://www.quickmba.com/strategy/core-competencies/

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