• Look at your customers and clients.

Does your business cater to a specific group of customers or types of business within your industry? For example, some people with IT degrees go on to work with students with special needs whose electronic educational materials must be modified to lessen the learning challenges they may face. A core competency of a company with a strong reputation for providing these services might be a special focus on working with clients with disabilities.

 

• Turn to your company's mission statement.

Did you launch your company to address a gap that none of your competitors have filled? Look at your mission statement to remember why and for whom you launched your business – one of your core competencies is providing that product or service to that client base.

 

• Discuss your core competencies with your team.

Ask your employees what they think your company does especially well, both compared with its competitors and in general. Then, take their answers and compare them with yours. The overlap can point you to your core competencies. For example, if you run a restaurant and want to figure out how to survive as the industry struggles, meet with your team to identify your most sought-after meals and cuisines, and then jot those down as your potential core competencies.

 

• Make sure your core competencies actually are core competencies.

Here's an important point to keep in mind: Just because you identify something your company does especially well doesn't necessarily make it a core competency. Let's use the restaurant example again: What if other restaurants in your area are also beloved for serving the same meals as your most popular items? In that case, you might not be able to qualify these meals as core competencies because, clearly, your competitors can replicate and offer them.

The problem with labeling something that's ultimately not a core competency as one is that you might shift your business strategy toward focusing on a less profitable product or service.

 

• Outsource as needed.

No company can fulfill all of its necessary tasks in-house. If you find yourself struggling to prioritize the products and services that best distinguish your company, consider outsourcing other business needs so that you can focus on making your core competencies the best they can be. For example, if your business's core competency is selling the highest-quality handcrafted furniture in your area, outsourcing your marketing efforts can give you the time you need to properly design and make the furniture.

 

• Put your core competencies to the test.

Once you've determined your core competencies, shift your business strategy to focus on them. If you notice more customers coming to your business – especially if they've left your competitors and turned to you – then chances are, you've likely identified your core competencies. If not, it's back to the drawing board, and taking the time to figure out what distinguishes your business from others is never a bad thing.

Key takeaway: To identify your business core competencies, look at your customer base and mission statement, consult with your team, and then shift your business strategy to focus on your core competencies.

 

Source: businessnewsdaily