The Three-Stage Process of Developing and Strengthening Competences and Capa­bilities


1.   Building core competences and competitive capabilities is a time consuming, managerially challenging exercise.

2.   The capability building process has three stages:

a.   Stage 1: First, the organization must develop the ability to do something, however imperfectly or inefficiently

b.   Stage 2: As experience grows and company personnel learn how to perform the activity consistently well and at an acceptable cost, the ability evolves into a tried and true competence or capability

c.   Stage 3: Should the organization continue to polish and refine its know-how and otherwise sharpen its performance such that it becomes better than rivals at performing the activity, the core competence rises to the rank of a distinctive competence, thus providing a path to competitive advantage

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