Competencies in Today's Hypercompetitive, Increasingly

¶ … Competencies In today's hypercompetitive, increasingly globalized world, organizations are continuously searching for ways to become more competitive in their industries. Only by taking advantage of opportunities presented them, can they hope to be successful in staying one step ahead of their competition. As such, many organizations focus on their core competencies as a means of earning a competitive advantage. This paper will discuss the definition of 'core competency' and provide examples from the experience of a medical ophthalmology practice.

Definition of Core Competency: Core competencies refer to the strategic capabilities of an organization that provides the company with some form of marketplace advantage (Vargas, 2004). Prahalad and Hamel (1990) further define the concept of core competencies, in their ground breaking article that first coined the term. They note that "core competence is the collective learning in the organization, especially the capacity to coordinate diverse production skills and integrate streams of technologies.

It is also a commitment to working across organizational boundaries." perfect example of working across organizational boundaries is given by Prahalad and Hanel (1990). They note that world-class research in a technology, such as lasers or ceramics, can take place within an organization, but if that research isn't utilized by other departments it does the organization little good. It is only through communication, involvement and a commitment to work across these boundaries, that core competencies are achieved.

Prahalad and Hamel (1990) use the metaphor of a growing tree to better understand how core competencies benefit an organization. "The corporation, like a tree, grows from its roots. Core products are nourished by competencies and engender business units, whose fruit are end products." Core competencies are the roots of the tree, feeding the trunk of core products, which branches out into business units, and fruit into end products.

If there's a disconnect between the roots and the rest of the tree, the tree will never bear fruit and will eventually die. For this reason, companies must organize around their core competencies to enhance competitiveness - to bear the most fruit. To do this, the organization must identify what their core competencies are, and ensure that they meet three basic requirements. They provide potential access to a variety of markets. They contribute to the.