4 ms·
"Core competencies" is a widely misunderstood term. Lots of people equate it to "business model", as in "we sell widgets so therefore selling widgets is our cor
by PaulAJ 7y ago
"Core competencies" is a widely misunderstood term. Lots of people equate it to "business model", as in "we sell widgets so therefore selling widgets is our core competence".
A thing is a core competence if, and only if:
* It makes a difference to your customers.
* It is difficult for your competitors to replicate.
* It provides access to a wide range of markets.
Janitorial services, as the OP says, do not tick any of these boxes (unless you are a restaurant or something, in which case it ticks the first). Black and Decker's core competence is not selling cheap hand tools, it is making small electric motors. Think about it. https://en.wikipedia.org/wiki/Core_competency https://en.wikipedia.org/wiki/Core_competency
IT frequently ticks all three: if your IT goes down your customers may know about it before you do. Your IT is going to be difficult for competitors to replicate (as long as you haven't outsourced the whole thing), and you can use that IT in lots of different markets.
However there are too many senior managers who have heard the words "core competence", not read the article, and assumed that since they are not running an IT company it follows that IT is not a core competence.
- jarofgreen 7y agoCheck out Wardley mapping - interesting technique to get teams discussing what is a commodity part of their business and what is something custom that really benefits them to do in-house. I agree people often judge this wrong, and it's an important point to raise.