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Core Competency
Human Resources » Performance Management

Chrm Message From: johnn Total Posts: 28 Join Date: 16/09/2006
Rank: Executive Post Date: 24/07/2007 23:18:04 Points: 140 Location: United States

Dear Friends,

I would want to share with you some information on Core Competency for the members of this portal who always wanted to know about the same..

"Core Competency" was added to management literature by Mr.C.K.Prahalad & Mr.Gary Hamel both Harvard Professors. They said that every organization has got a core competence up on which its products and services are built. They introduced what is called as a "VGD Test" to identify whether a given competency is a C2.

V - Does this competency Produce Significant value to customers?
G - Does this competency act as a Gateway for survival and future of the organization?
D - Does this competency differentiate the organization from its competitors?

A competency must satisfy all the 3 conditions, to be designated as C2.

For example, Let us Take Microsoft, its core competency is "innovation", you can apply VGD conditions and see it will satisfy all the three. Innovation is critical to Microsoft, Mr.Bill Gates once remarked "Microsoft is always 18 months away from going out of business", that is the speed they need to innovate.

The next example that comes to my mind is FedEx, their core competency is "Delivery". FedEx is long known for its outstanding delivery and goods tracking mechanisms. FedEx delivery agents carry palmtops to update goods delivery status back to their main frames
from the field. It enables FedEx customers to track their good from source to destination and on time delivery.


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