ASSESSING COMPETENCIES  Must understand industry first.  What customers/consumers want  Nature of competition  Laws, regulations……  Must know key success factors

WHY COMPETENCIES? Why not focus on assets? Why not focus on resources? Why not focus on skills? Why not focus on strengths/weaknesses?

WHY COMPETENCIES? Outback Steakhouse Example: Strength: Good beef, good suppliers Strengths in other countries/markets? Competency: Find very good suppliers, build strong relationships. Strength in other countries/markets?

ASSESSING COMPETENCIES Strengths, Weaknesses, Competencies, Strategies  Strategy/Planning  Marketing  Finance  Manufacturing  Human Resources  Organization Design  Information  Control  Culture  Other?

STRATEGY/PLANNING  Evidence of?  Nature of? (Use budget as plan?)  Who is doing it?  Strategic Thinking!

MARKETING SYSTEM  Meeting Wants/Needs  Products/Services/Mix  Customers’ Perceptions  Promotion  Distribution (Fit? Control?)  Pricing  Competitive Position

FINANCE SYSTEM  For Specific Product, Business Unit  Margins  Cost Structure  Activity-based Accounting?  Overall  ROA, ROI  ROS, ROE  Cash Flow  Credit Potential

PRODUCTION SYSTEM  Processes Appropriate  Supplies, Materials  Alliances With Suppliers  Quality, Cost  Equipment, Facilities  Technology  Condition  Safety Concerns  Ecological Concerns

HUMAN RESOURCES SYSTEM  Management Team  Competencies, Skills  Educate  Train  Develop (Build Competencies)  Rewards Tied To Goals  Employee-Mgmt. Relations

ORGANIZATION DESIGN AS RELATED TO  Technology, Processes  Information, Communication  Authority Flow  Responsibility, Control  Coordination  Position of Product, Unit

INFORMATION SYSTEM  Gather Proper Data  Tools  Forms……..  Computer, Software  Real Messages (Perceptions)  Rewards – What, Who, Why?  Symbols, Culture  Action of Managers

CONTROL  What is Measured  Real  Perceived  What is Rewarded  Real  Perceived

CULTURE  Dominant Values, Beliefs  Norms  Symbols  Action of Managers  Related to Strategy, Goals?

ASSESSING COMPETENCIES  Compare Competencies to “Situation”  Compare Competencies to Competitors  Competitive Position  Benchmark  To “Best in Class”  To Competitors

ASSESSING COMPETENCIES  Competency/Strength is Valuable Only If:  Valuable to customer/consumer  Relatively Rare  Costly to Imitate  Nonsubstitutable

ASSESSING COMPETENCIES  How to Do It?  Yourself  Group(s) Inside Company  Outside Assistance  Ask Customers (Customer Perceptions)  Ask Suppliers  Ask Others?????