Managing the Capability Building Process: Four traits concerning core competencies and competitive capabilities are important in successfully managing the organization-building process:


a.   Core competences and competitive capabilities are bundles of skills and know-how that most often grow out of the combined efforts of cross-functional work groups and departments performing complementary activities at different locations in the firm’s value chain

b.   Normally, a core competence or capability emerges incrementally out of company efforts either to bolster skills that contributed to earlier successes or to respond to customer problems, new technological and market opportunities, and the competitive maneuverings of rivals

c.   The key to leveraging a core competence into a distinctive competence or a capability into a competitively superior capability is concentrating more effort and more talent than rivals on deepening and strengthening the competence or capability so as to achieve the dominance needed for competitive advantage

d.   Evolving changes in customer’s needs and competitive conditions often require tweaking and adjusting a company’s portfolio of competences and intellectual capital to keep its capabilities fresh honed and on the cutting edge

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