Peter Drucker asked the following critical questions in his book, “Management Challenges for the 21st Century.”
How does one identify both the core competencies one has already and those the business needs to take and maintain a leadership position?
How does one find out whether one’s core competence is improving or weakening?
Is it still the right core capability and what changes it might need?
In Drucker’s words, core competencies are those that meld market or customer value with some critical ability of the producer or supplier.
Also, leadership in particular core competency rests on being able to do something others cannot do at all or find difficult to do even poorly.
Drucker recommended that the first step be a careful monitoring of one’s own and one’s competitors’ performance.
A key indicator is looking for unexpected successes and poor performance in areas where one should have done well.
The successes demonstrate what the customer values and will pay for.
The organization should view the non-successes as the first indication that the market is changing or that the company’s competencies are weakening for some reasons.