1, the definition of the core competencies of the enterprise should be unified.
Managers can't actively "manage" their core competencies if they don't have a **** understanding of what constitutes them. Importantly, for core competencies to be nurtured and widely ****enjoyed across the organization, top management must agree on the core competencies, determine what they really are, and strategize based on that choice. Based on empirical research, Amai Hind, and William Abrams suggest that three methods be utilized to achieve general agreement on core competencies: activity-based benchmarking; employee and asset allocation; and "What if ......?" of creative stimulation. Benchmarking by activities actually identifies some of the areas in which a company should build competitive advantage. It is also possible to analyze the main tasks performed by people within the organization, as well as the distribution of the firm's assets, from which the sources of the firm's existing competitive advantage can be identified and the appropriate strategy defined. "What if ......?" 's creative stimulation method can also be used in the selection of core competencies.
2. The definition of the core competence of the enterprise should be accurate.
Some enterprises in the development process, the enterprise assets and infrastructure are treated as core competitiveness, or can not get rid of the traditional vision, always from the product perspective of the enterprise's core competitiveness. As a result of seeking opportunities only from the assets, equipment, products or markets, the result of the lack of core competencies and end in failure. For example, the United States telecommunication equipment enterprises into real estate and coal mining and other fields, and ultimately lead to failure, is a case in point. In fact, true core competencies are value-adding activities that are unique or can be performed more efficiently than competitors. It is these unique ongoing activities that constitute the true core competencies of a company. The key to identifying core competencies is to identify the true high value-added activities from which opportunities for growth can be found.
3. The number of core competencies should not be too many.
Core competitiveness is not only qualitatively prescriptive, but also quantitatively prescriptive. Too much core expertise will disperse the limited management resources of the enterprise, but also difficult to manage; a single core expertise is also very dangerous, especially when competitors to develop a number of core competencies is more so, market competition often need to integrate a number of core competencies. According to Prahalad and Hammer, the most appropriate number of core specialties is about 5 to 15. Enterprises should discover their true core competencies through extensive and detailed research and market practice. In the late 1970s, General Electric Company Limited (GE for short) was in a passive position in cultivating its core competence because it was not able to identify its core competence. At that time, the value-added part of the household appliance industry, or the aspect that generates competitiveness, mainly consisted of assembling, assembling, branding, and retailing. Although GE focused mainly on building brands and establishing a good product image, and achieved some results, it was still not enough. Competitors like Panasonic and Radio Equipment Corporation hit GE hard because they cultivated activities that represented more value-added - Panasonic in spare parts and Radio Equipment Corporation in retailing.
4. Senior managers are involved throughout the process of identifying core competencies.
It is dangerous to leave this task entirely in the hands of the technical department. Core competitiveness is the soul of an enterprise, and as such, it should be an integral part of the entire management process. Once the core competence is monopolized by the technology department, its role in creating new business will be greatly reduced. Technical departments often use it to gain status and resources for themselves. Similar problems can be encountered with other departments, so senior managers should be involved in the process. Clarify the core competitiveness can not be rushed, jump to conclusions, can not expect to hold two or three days of special meetings can be accomplished, the key is to make the majority of employees fully understand the core resources and capabilities of the current success of the enterprise, to explore the enterprise's "*** with the wealth", to find the direction of enterprise innovation.
5, the establishment of core competitiveness information base.
Prahalad and Hammer suggest that the core expertise information base should be established according to the chain of "core expertise - professional skills - professionals". For example, expertise in color, inks, dyes, photographic films, coatings, paper handling, and many similar areas together form Eastman-Kodak's core competency in chemical imaging. It is important for companies to analyze these individual skills and build a pool of people who possess them. Once an enterprise has successfully established a core competence information system, stored in a computerized database in the order of the enterprise's core competence - the constituent elements of the core competence - the owners of the competence, if the enterprise needs a specific resource and competence, the If an enterprise needs a specific resource and ability, it can immediately find a suitable candidate through computer search, which provides the basis for the management of core competitiveness.