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Core Competencies
Three-way test
Holistic Approach
1. What skills gives your company potential access to
wide variety of markets?
Meta-Competencies 2. Of those, what about it makes a significant
contribution to the customer value?
Readings: R3 & R4 3. Of those, which of them are difficult for
competitors to imitate?
(by Hamel and Prahlad)


Case study Approach managements . 6/23/2017 Meta Competencies . easier to make things understood to the top . competencies.Core & Constituent 2 .Observation • Facilitating adaptation.its Holistic perspective Discovering Meta competencies • Deals with over-arching input that facilitates Discovering Meta competencies acquisition of output competencies at the base (of tetrahedron) • Relevant to wide range of work Settings .Designing an inventory required to be organisation answered by executives • Also. flexibility on part of the .‘Own way’ for companies with critical • Meta Competencies facilitate other competence framework.

Identify capabilities occurring in most/all of the 7 S’s. Identify firms resources/ capabilities 2. Link each R/C to one of the 7 S’s Structure Systems 3.indicator of Meta-C Values Values Skills Skills Soft 3 . Write the R/C under the column that best describes the capability’s Systems Style competitive advantage to the firm (can occur more than once) Organizational Components 4. where 10 signifies complete Style Staff reflection of a particular ‘generic Competence’ in that ‘S’ of the Org’n Staff 5. Allocate points on a 0-10 scale on each of 7Ss. Weight Method (source) Shared Shared 6. 6/23/2017 Discovering Meta competencies Discovering Meta competencies Cost Reliable Innovation Close Agility Efficiency Systems External Relationship Hard Cost Reliable Innovatio Close Agility s Efficiency System n External s Relationships Strategy Strategy Structure 1.

A lot of strategy comes from the business environment. 6/23/2017 Discovering Meta competencies Cost Reliable Innovatio Close Agility McKinsey’s 7-s Framework Efficiency System n External s Relationships The first three "Hard" elements are easier to define or identify Strategy and management can directly influence them Structure • Strategy how the firm plans on reaching their goals. 4 . Values • Systems are the policies and procedures that track. in terms of Systems resource allocation. and regulation. implement. team. Some basic organization types are simple structure. Just like structure. matrix. and Skills report business activities. Shared bureaucracy. virtual. or boundary-less. stemming largely from the Staff strategy. Style • Structure is how the firm is organized. most of the systems are determined by technology and regulation. markets. namely technology.

• Staff: describes the quantity and positions of the company as well as the development and socialization process within the company. which top management communicates to the organization at •Abandon large. 5 . which can be more difficult to describe. 6/23/2017 Contd… The last 4 S’s are “Soft" elements. However. these soft elements are as important as the hard elements if the organization is going to be successful. and which the organization itself ultimately adopts as a cultural orientation”. •Deploy •Nurture • Style is basically describing the “patterns of action. symbolic and •Develop actual. • Skills: Actual/ Distinctive skills and competencies of individuals. • Shared values describes the basic values of the organization that motivates their business activities. and are less tangible and more influenced by Dynamics of Core Competencies culture.

develop. and deploy its hierarchy of competencies to attain sustainable competitive advantage. nurture. 6/23/2017 Critical Competence Framework Critical Competence • Critical Competence “Who will possess the Skill of managing the Skills? Skill to successfully identify. 6 . upgrade.

and Capabilities (many) 7 . 6/23/2017 Example.PACKAGE TRACKING – RAPID DELIVERY Core Competencies – Logistics .other resources Meta competencies (fewer) Core Competencies (few) Constituent: Skills. -Indian Railways FedEx Constituent Competencies – BARCODING .Information Infrastructure Meta -Reliability (Meta C being developed simultaneously -Innovation) Capabilities . Resources.

6/23/2017 Meta Competencies Cost Efficiency Reliable Innovation Close External Agility Systems Relationships . 8 . easier to make things understood to the top managements • Meta Competencies facilitate other competencies.its Holistic perspective Strategy • Deals with over-arching input that facilitates Structure acquisition of output competencies at the base (of Systems tetrahedron) Style • Relevant to wide range of work Settings Staff Shared • Facilitating adaptation. flexibility on part of the Values organisation Skills • Also.

? (reading R4) Existing New Market Competencies . Blanks Spaces what drives your agenda to Compete for the Future.. 6/23/2017 Establishing Core Competence Establishing Core Competence- Agenda to acquire & deploy competencies • 3 test Prahalad & Hamel New Core Mega • Identify the competencies/capabilities which Competencies Opportunities New lead to Core products/services Core Competence • Both Formal & Informal systems and Organizational Culture Fill in the White Existing • And… shifting strategic map of a company.Market Matrix 9 .

6/23/2017 What drives your agenda? 10 .

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