Ask yourself this question – what is the core competence of my business and how will it impact the selling of my company?
Let’s first define what a core competence actually is – it is a capability your company possesses that:
- Supports the Mission, Vision & Values of your company
- Customers are willing to pay a premium for
- Competitors cannot easily replicate
- Is scalable with the growth of your business
- Is sustainable over a long period of time
Very often business executives think a core competence is something their company is good at. Now this may be the case but most often, it is not. When you truly think about all the aspects of what your company does and how you do it and you compare this to the 5 criteria listed above, this is when executives start to realize they are lacking clarity of truly understanding their company core competence.
A quick example is the best way to describe a core competence. Think about Honda and all they do from cars to lawn mowers. Years ago, Honda executives wanted to understand what their company core competence was so they could protect and build upon it. What they discovered was that the motor is their core competence because it met the 5 criteria. It wasn’t the wheels or the frame on the lawn mower or the seats or chassis of the car and it wasn’t their customer experience, it was purely the motor. Determining this then allowed them to know where to focus investments so as to sustain and build upon this competence.
Now give thought to your company. Is your competence in how you design your products or services or perhaps it’s the particular product or service itself or even just a sub-component thereof? Perhaps it’s your subject matter expertise selling capability or it’s something within your customer experience. Knowing what it is can be powerful for protecting and building not just the revenue and profit of your business but the overarching company value, or worth as we call it. Meet with your team and have a strategic discussion around what your company core competence is. It can be an enlightening strategic discussion and it could put you on an accelerated path to building the worth of your business. Contact us and we can send you a template to get you started.
