Core competencies

Core competencies are the resources and capabilities that comprise the strategic advantages of a business. Modern management theory argues that businesses must define, cultivate, and exploit core competencies to succeed. As introduced in the article ‘The Core Competence of the Corporation’ by C.K. Prahalad and Gary Hamel, for competency to be a core competency, it must fulfill the below criteria.

• Offer the possibility of entry to many different markets.
• Should significantly contribute to the benefits of the final product that customers perceive.
• Rivals or competitors should not be able to copy or imitate.

These core competencies must be developed for businesses to succeed against the competition and achieve long-term success. Creating a strong team of individuals with the appropriate personal core competencies is one important strategy to achieving this.

Types of Core Competencies

1. Organizational - These are the core competencies that differentiate a business from its rivals and vary by industry.
   
2. Personal - These are a grouping of observable and quantifiable knowledge, skills, personal qualities, and aptitudes that improve employee performance and eventually lead to corporate success.

Organizations increasingly use training management software, also known as LMS, to conduct programs that will help to promote and develop core competencies at organizational and personal levels. Some HR software comes with LMS tools so that all HR operations of the organization can be handled in one centralized software as well.