OA Chronicles: Core Competencies

What makes an organization competitive derives from its core competencies. As described, core competence is the collective learning in the organization, especially the capacity to coordinate diverse production skills and integrate streams of technologies. It is sometimes made clear that core competencies are the source of competitive advantage and enable the organization to introduce a new line of products and services.

First, companies must identify core competencies. According to C.K. Prahalad and Gary Hamel, there are at least three tests that can be applied to identify the core competencies of an organization. First, a core competence provides potential access to a wide variety of markets. It somehow makes an organization versatile to any competition. In my organization, one of our core competencies are the talents and abilities of our students and highly educated instructors. We are not only known for our educational standards but as well as the talents we show in  competitions. In any field of competition, UM excels high and it helps us become globally competitive. Also, our students are not only competing against local competition, they also show their skills and talents abroad. This way, potential students will have to choose their desired courses in our institution easier as this competitions and skills may also market the different programs.

Core competencies should also make a significant contribution to the perceived customer benefits of the end product. For most academe, skill and services are the common core products. I think for any academe, every time we market our school, it is best to inform and let our potential students know what they can benefit if they enroll in our school. Every year, faculty members are assigned to travel and give career guidance to high school students. Part of such is to introduce what they can get if they enroll in UM. Since our school aims to give education for all, we usually introduce the scholarships that students may get and the facilities and services offered by the school. 

Finally, core competence should be difficult for competitors to imitate. A rival might acquire some of the technologies that comprise the core competence, but it will find it more difficult to duplicate the more or less comprehensive pattern of internal coordination and learning. UM is the only school in Mindanao, I believe, that offer the Term system instead of Semester system. And I believe this becomes a core competency against other schools. This Term system has been long established since UM started and I think other schools may have difficulty copying or imitating this system. The main reason why UM implements this system is for us to cater working students. Classes are classified to morning, afternoon, and evening sessions so students can choose their own schedules.

Core competencies really help build and establish an organization's integrity. Nevertheless, there is also a possibility of a loss of core competencies, specially when it is not recognized. Core competencies are the wellspring of new business development. They should constitute the focus for strategy at the corporate level.