5 steps to identify your organization’s core competencies

Although every organization has its own strategy, you can follow a process to identify core competencies. These five steps may help you clarify your vision and refine your talent management practices.

1. Review your business strategy

Core competencies generally align with your strategy, or the actions you plan to take to reach your business goals. A business strategy typically has these components:

• Vision: A vision statement describes your company’s goals. It also explains how your company is different from other businesses in your industry.
• Mission statement: Your mission statement briefly describes your company’s purpose. For example, Nike’s mission is to “bring inspiration and innovation to every athlete in the world.”
• Core values: Core principles are the values that guide company decisions. For example, you might have core values of acting with integrity and using only the highest-quality materials in your manufacturing process.
• Tactics: Tactics are the short-term methods you use to reach your company’s goals. If you have a goal of increasing the number of followers on social media, you might use the tactic of running a contest or publishing more content than usual.
• Key performance indicators (KPIs): KPIs are metrics that show if your company is on track to meet its goals. For example, you might want to track defect rates or customer satisfaction scores.

Reviewing your business strategy early in the process can help you stay focused. Instead of making a list of skills, you can choose core competencies that align with your goals.

2. Gather input from team members

Core competencies include resources, skills and capabilities, so it’s helpful to ask team members for their input. Asking for feedback can help you understand how your team defines excellence. For example, a department head might view innovation as a core competency, while a Project Manager may value collaboration and time-management skills.

If you decide to gather input from your team, ask each person to provide specific examples of positive employee behavior. This can help you improve accuracy and show team members that you value their opinions.

3. Meet with top performers

Top performers consistently exceed your expectations. If you want employees to have average customer satisfaction scores of 4.5 out of five, for example, a top performer might have a 4.9. Meeting with top performers can help you determine what makes them so successful. For example, one of your team members might use a specific software package to increase accuracy.

Consider asking these questions when you meet with a top performer:

• What technical skills do you rely on to maintain a high level of performance?
• How do you interact with colleagues?
• What do you do when you encounter a problem that prevents you from completing a task?
• What process do you follow when planning a project or preparing for a task?
• How do you ensure you’re always developing your skills and abilities?

If several employees mention the same skills and capabilities, you might want to add them to your list of core competencies.

4. Review your company’s job descriptions

Your company’s job descriptions contain helpful information about skills and capabilities. They also include essential duties and responsibilities, making it easier to connect competencies with specific job functions. Reviewing job descriptions has the following advantages:

• Reveals patterns across multiple job categories: When you compare job descriptions from multiple departments, you might identify some recurring skills, abilities and personality traits. This can help you determine what your company truly values.
• Uncovers gaps in your organization: If you review job descriptions after speaking with high performers, you might notice competency gaps. For example, if multiple team members mentioned the same skill, but you’re not finding that skill listed in your job descriptions, you may need to update your hiring strategy.
• Highlights important outcomes: Examining your job descriptions can also help you determine which competencies are the most important for creating business value. For instance, a company like Apple might value innovation more than other competencies, as consumers rely on Apple to upgrade its products regularly.

5. Collect external data

You may also want to consider collecting data from customers, vendors and community partners. Asking outsiders for information can help you choose core competencies that add value and set your business apart from its competitors.