What is the best way to identify and leverage core competencies for a strategic plan?

1 Define your core competencies

The first step is to define what your core competencies are, based on three criteria: relevance, differentiation, and sustainability. Relevance means that your core competencies address the needs and preferences of your target market, and that they are aligned with your value proposition. Differentiation means that your core competencies distinguish you from your competitors, and that they are hard to replicate or match. Sustainability means that your core competencies can be maintained and improved over time, and that they are not easily eroded by changes in the environment or technology.

2 Evaluate your core competencies

The next step is to evaluate how well your core competencies perform in terms of delivering value to your customers and stakeholders. You can use a simple matrix to plot your core competencies along two dimensions: value creation and value capture. Value creation measures how much value your core competencies generate for your customers, in terms of benefits, satisfaction, and loyalty. Value capture measures how much value your core competencies retain for your organization, in terms of profitability, market share, and growth.

4 Communicate your core competencies

The fourth step is to communicate your core competencies to your internal and external stakeholders, and to embed them in your organizational culture and processes. You can use a simple statement to summarize your core competencies and how they support your vision, mission, and goals. You can also use a simple diagram to illustrate how your core competencies interact and complement each other, and how they contribute to your value proposition and competitive advantage. You should also ensure that your core competencies are reflected in your policies, practices, and incentives, and that you monitor and reward their performance and improvement.

5 Innovate with your core competencies

The fifth step is to innovate with your core competencies, and to explore new ways of creating and capturing value for your customers and stakeholders. You can use a simple brainstorming technique to generate ideas for enhancing, extending, or combining your core competencies, and to test their feasibility and desirability. You can also use a simple experimentation method to validate and refine your ideas, and to measure their impact and results. You should also seek feedback and input from your customers and stakeholders, and learn from your successes and failures.

6 Align your core competencies

The final step is to align your core competencies with your strategic plan, and to ensure that they support your vision, mission, and goals. You can use a simple alignment tool to check how well your core competencies fit with your strategic objectives, and to identify any gaps or conflicts. You can also use a simple action plan to outline the steps and milestones for implementing and executing your core competencies, and to assign roles and responsibilities. You should also use a simple evaluation system to monitor and measure your core competencies' performance and progress, and to make adjustments and improvements as needed.