The Financial Value of Core Competence
CESAR ARECHIGA , Management Consultant, Mexico
I assume we are talking about business. Businesses are to be profitable. Profitability is always measured (see any P & L statement, which never shows innovation, superb service, unusual quality, leadership, special skills, of the personnel).
People are a "resource" to contribute to making the company profitable through their performance. Hence, measuring that performance is a must to value the Core Competence, on an individual basis of all hierarchical levels. There is a system (software) that eliminates the partial and subjective judgement when personnel is being evaluated. This software rates automatically the results of the individual performance, calculates an average rate for every employee (from modest to top positions). IT provides a total company average rate of performance for top management. In a scale from 1 to 10, a company with a 8.7 average rate of performance looks better than a competitor, in the same market, rated 7.2. In this way a Core Competence can be objectively measured.