Core Competencies Training for Supervisors Reviewed April 2013

Introduction Core competencies are the capabilities that are essential to a business achieving competitive advantage. They are the skill set and experience of the business activity, rather than physical or financial assets. It is essential for all management employees to be able to identify, develop and implement their company’s core competencies to sustain their company’s long-term competitive advantage. This sample presentation is intended for presentation to supervisors and other management staff. It is designed to be presented by an individual who is knowledgeable in core competencies, organizational development, and the company’s strategic plan. This is a sample presentation that must be customized to include the company’s policies, culture and strategic plan.

Objectives Objectives At the end of this presentation, you will be able to: State what core competencies are Cite the reasons for establishing core competencies Describe how to identify core competencies List the six stages of core competency implementation

What are Core Competencies? Core competencies are: The underlying skills, abilities, knowledge, experience, technologies or processes that allow a company to provide its unique set of products or services. Example 1: For a software company, the key skill may be the quality of its code. Example 2: For an electronic equipment manufacturer, the key area of expertise could be the design of the components and circuits that comprise the particular product. Core competencies are not fixed – they can and should change in response to changes in the business environment.

How to Identify Core Competencies To identify core competencies, ask the following: Do they provide potential access to a wide variety of markets and do they facilitate the development of new products and services? Do they make a significant contribution to the perceived benefits of the end product? Are they difficult for competitors to imitate?

Reasons for Establishing Core Competencies Allows the business to focus on what it does well Reduces the number of operations which must be controlled, monitored and measured Eliminates distractions Promotes cohesive corporate culture and fully aligned management and staff

Questions ? Comments ?

Six Stages for Implementing Core Competencies There are Six Stages of Core Competency Implementation: Stage One: Analyze Company Competency Needs Articulate company needs, translate needs into requirements Define what the ideal organization looks like Can be accomplished through alignment exercise involving executives and business area managers

Six Stages for Implementing Core Competencies (cont’d) Stage Two: Identify Core Competencies Capture current competencies to establish baseline from which organization must start to achieve desired final state. During this stage, assess quality, uniqueness, and value of competencies.

Six Stages for Implementing Core Competencies (cont’d) Stage Three: Perform Situation Analysis Compare and contrast capabilities from company needs assessment (stage one) and those capabilities that are currently in place (stage two). Stage three creates overall competence profile of organization, classifies issues and opportunities into categories to be addressed through a variety of strategy options.

Six Stages for Implementing Core Competencies (cont’d) Stage Four: Devise Competency Strategy and Plan Using results from the situation analysis (stage three), this stage devises a strategy for developing and focusing on the core competencies that the company needs for pursuing identified opportunities and for correcting excess, deficient or obsolete capabilities. Document strategies in a plan to map competencies to specific delivery mechanisms.

Six Stages for Implementing Core Competencies (cont’d) Stage Five: Implement Competency Strategy Perform steps necessary to begin deploying competence strategy. Same issues, problems and requirements as any other implementation. Take long range view towards shifting competencies. Spread implementation effort over two or more years to reduce disruptive effect of many simultaneous changes.

Six Stages for Implementing Core Competencies (cont’d) Stage Six: Evaluate Results Manage the competency plan evaluation as an ongoing process. Use techniques such as benchmarking, service level agreements and customer satisfaction surveys to help manage and measure plan’s progress.

Questions ? Comments ?

Group Exercise What are the core competencies of this company? What are the core competencies of your department or division? Are department/division and company competencies in alignment? If not, what steps can be taken to ensure alignment?

Summary Core Competencies are the underlying skills, abilities, knowledge, experience, technologies or processes that allow a company to provide its unique set of products or services. Establishing core competencies allows the business to focus on what it does well, reduces the number of operations which must be controlled, monitored and measured, eliminates distractions, and promotes cohesive corporate culture and fully aligned management and staff.

Summary (cont’d) To identify core competencies ask if they provide potential access to a wide variety of markets and do they facilitate the development of new products and services, do they make a significant contribution to the perceived benefits of the end product, and are they difficult for competitors to imitate? Six Stages of Core Competency Implementation Analyze company competency needs Identify core competencies Perform situation analysis Devise competency strategy and plan Implement competency strategy Evaluate results

Evaluation Please be sure to complete and leave the evaluation sheet you received with your handouts. Thank you for your attention and interest!