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ASSESSING COMPETENCIES
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Must understand industry first.
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What customers/consumers want
Nature of competition
Laws, regulations……
Must know key success factors
WHY COMPETENCIES?
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Why
Why
Why
Why
not
not
not
not
focus
focus
focus
focus
on
on
on
on
assets?
resources?
skills?
strengths/weaknesses?
WHY COMPETENCIES?
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Outback Steakhouse Example:
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Strength: Good beef, good suppliers
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Strengths in other countries/markets?
Competency: Find very good suppliers,
build strong relationships.
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Strength in other countries/markets?
ASSESSING COMPETENCIES
Strengths, Weaknesses, Competencies, Strategies
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Strategy/Planning
Marketing
Finance
Manufacturing
Human Resources
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Organization Design
Information
Control
Culture
Other?
STRATEGY/PLANNING
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Evidence of?
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Nature of? (Use budget as plan?)
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Who is doing it?
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Strategic Thinking!
MARKETING SYSTEM
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Meeting Wants/Needs
Products/Services/Mix
Customers’ Perceptions
Promotion
Distribution (Fit? Control?)
Pricing
Competitive Position
FINANCE SYSTEM
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For Specific Product, Business Unit
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Margins
Cost Structure
Activity-based Accounting?
Overall
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ROA, ROI
ROS, ROE
Cash Flow
Credit Potential
PRODUCTION SYSTEM
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Processes Appropriate
Supplies, Materials
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Equipment, Facilities
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Alliances With Suppliers
Quality, Cost
Technology
Condition
Safety Concerns
Ecological Concerns
HUMAN RESOURCES
SYSTEM
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Management Team
Competencies, Skills
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Educate
Train
Develop (Build Competencies)
Rewards Tied To Goals
Employee-Mgmt. Relations
ORGANIZATION DESIGN
AS RELATED TO
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Technology, Processes
Information, Communication
Authority Flow
Responsibility, Control
Coordination
Position of Product, Unit
INFORMATION SYSTEM
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Gather Proper Data
Tools
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Forms……..
Computer, Software
Real Messages (Perceptions)
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Rewards – What, Who, Why?
Symbols, Culture
Action of Managers
CONTROL
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What is Measured
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Real
Perceived
What is Rewarded
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Real
Perceived
CULTURE
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Dominant Values, Beliefs
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Norms
Symbols
Action of Managers
Related to Strategy, Goals?
ASSESSING COMPETENCIES
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Compare Competencies to “Situation”
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Compare Competencies to Competitors
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Competitive Position
Benchmark
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To “Best in Class”
To Competitors
ASSESSING COMPETENCIES
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Competency/Strength is Valuable Only If:
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Valuable to customer/consumer
Relatively Rare
Costly to Imitate
Nonsubstitutable
ASSESSING COMPETENCIES
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How to Do It?
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Yourself
Group(s) Inside Company
Outside Assistance
Ask Customers (Customer Perceptions)
Ask Suppliers
Ask Others?????