Late Dr CK Prahalad and Gary Hamel developed the Core Competence Model, where in they said that organization’s must delve into their strengths and leverage it to fight competition and even stay ahead of competition.
Prof John De Figiuredo (MIT) described Competency ass “DOING WHAT YOU ARE BLOODY GOOD AT”
While many were advocating organization’s to adopt an ‘Outside In’ approach, Prahalad and Hamel were suggesting an ‘Inside In approach’. By focusing on what a Company does best, it helps them to look at new opportunities, new markets and grow their business.
In order to achieve sustainable competitive advantage in the market, organizations must focus on their core-competencies and play to their areas of strength. For too long organizations were distracted by looking outside the organization, looking at market and competition. They were for most times on a ‘catch-up’ mode, trying to catch-up with competitors. But that’s when Prahalad and Hamel, suggested to look inwards and play to their strengths. Why not lead competition rather than being led by competition?
We have many examples of organization’s who have stuck to their core-competence and leveraged it to their competitive advantage.
However, this does not mean that organizations must become rigid and not willing to change.
While it is important to focus on core-competence and leverage it to its advantage to create a sustainable competitive advantage, organizations must also be able to be nimble and be adaptable to change. If organizations become too rigid and fail to see the change ahead of time, it will be consigned to dust.
The Ambani’s were known to proudly say that ‘Oil is wealth” but today Mukesh Ambani the Chairman of Reliance Industries has openly said that ‘Data is the new Oil’. Hence Reliance is investing heavily in Reliance Jio and leveraging Data for future growth of its business.
By over relying on their core-competence organizations may fall into a trap of complacency. With change being the only thing constant, organizations must be adaptable to change.
Charles Darwin has said ‘It is not the strongest of the species that survives, not the most intelligent that survives. It is the one that is most adaptable to change”
Organizations must be open minded, keep their radars and antennae’s open and foresee the tipping point, where they find that their past competence may notbe in sync with the future competence. Organizations must be fleetfooted and be able to change their core-competence fast and work towards reaching the pole position in the highly competitive market and in a new avatar.
About Author:
Mr. Ramesh Ranjan, Advisor – Farsight Technologies | Founder & Editor – Human Engineers
Mr. Ramesh has served the H.R. and Businesses for 35 Years. He is a former V.P. of H.R. in Schneider electric and worked in Indian & Multi-National Companies in various capacities, including leadership role for the last 20 years.
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