The Role of Core Competencies in the Corporation

OVERVIEW:The scorecard of Western firms—be it performance along dimensions such as quality, cycle time and cost, or growth and new business creation—has been less than satisfactory. We need a new approach to evaluating the value added by senior management. One such approach is outlined. It is argued that strategy must be seen as “stretch” and the critical role of senior management as creating the capacity to “leverage corporate resources.” A set of concepts that enable managers to do this is outlined. Finally, the agenda for managers during this decade is seen as profitable growth—not just restructuring.