Organizations are spending top dollars each year to develop and adopt competency models. The end objective? Improve organization and individual performance or rather develop organizational capability to perform through the capability of individuals.
But that is the tricky part. Let me try through this example : What is Nike's Competency? Is it in manufacturing shoes ? Surely Not. Their competency is not in making of shoes per se rather it lies in effectively managing their supply chain, managing the outsourcing relationship with vendors who make the shoes, creating and managing the designs and so on that make it a successful company. Read what Nike has said on its site. There are over a million contract workers in the supply chain of Nike that are involved in the manufacture of shoes designed and made to specification.
It’s not just about getting better at what we do – addressing impacts throughout our supply chain – it’s about striving for the best, creating value for the business and innovating for a better world.
So for organizations like Nike it is all about their ability to manage all aspects of the supply chain, the branding and marketing. These bundles of capabilities which we Nike has in managing the supply chain is the core competency, the one factor that gives it a sustained competitive edge.... the ability to earn sustained returns both top line growth and bottom line performance.
The bundling of capabilities comes through building competencies in the people that deliver. The designers have the capabilities (now we say residing in the people) which are individual competencies. The marketing folks or product managers who manage the account and lines of products (running, sneakers, sports, running, football etc) have competencies in brand management, or portfolio management. These are all at the individual employee level but together these capabilities accrue to build and create the organizations core competencies.
This can be a simple way to understand. There are organizational competencies, there are individual competencies. One needs to understand both to build a winning formula. Just focusing on individual level can lead to myopia or de-focus on the organizational core competency. Am I right, core competency helps you bring focus? at the organizational level.
The next issue for us to understand is how do you measure competencies.
But that is the tricky part. Let me try through this example : What is Nike's Competency? Is it in manufacturing shoes ? Surely Not. Their competency is not in making of shoes per se rather it lies in effectively managing their supply chain, managing the outsourcing relationship with vendors who make the shoes, creating and managing the designs and so on that make it a successful company. Read what Nike has said on its site. There are over a million contract workers in the supply chain of Nike that are involved in the manufacture of shoes designed and made to specification.
It’s not just about getting better at what we do – addressing impacts throughout our supply chain – it’s about striving for the best, creating value for the business and innovating for a better world.
So for organizations like Nike it is all about their ability to manage all aspects of the supply chain, the branding and marketing. These bundles of capabilities which we Nike has in managing the supply chain is the core competency, the one factor that gives it a sustained competitive edge.... the ability to earn sustained returns both top line growth and bottom line performance.
The bundling of capabilities comes through building competencies in the people that deliver. The designers have the capabilities (now we say residing in the people) which are individual competencies. The marketing folks or product managers who manage the account and lines of products (running, sneakers, sports, running, football etc) have competencies in brand management, or portfolio management. These are all at the individual employee level but together these capabilities accrue to build and create the organizations core competencies.
This can be a simple way to understand. There are organizational competencies, there are individual competencies. One needs to understand both to build a winning formula. Just focusing on individual level can lead to myopia or de-focus on the organizational core competency. Am I right, core competency helps you bring focus? at the organizational level.
The next issue for us to understand is how do you measure competencies.
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