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Competency

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A distinctive competency is a competency unique to a business organization, a competency superior in some aspect than the competencies of other organizations, which enables the production of a unique value proposition in the function of the business. A distinctive competency is the basis for the development of an unassailable competitive advantage. The uniqueness differentiates this competency from all others, whether a core competency or simply a competency.

Leader's responsibility regarding competency --
""...the task of building special values and a distinctive competence into the organization is a prime function of leadership."" Source: Selznick, 1957, pp 27.

Sources of distinctive competency --
Distinctive competencies, the basis for competitive advantage, can come from technology, industry position, market relations, cost, business processes, manufacturing processes, people, customer satisfaction, or just being first.

The insightful integration of complementary elements of the business model is the strongest form of competitive advantage known. This is because it is so difficult for competitors to understand and even more difficult to replicate, especially when the business model elements of value, purpose, vision, culture, and identity are intertwined in a powerful business solution.

Examples of distinctive competency --
Toyota has a distinctive competency in lean manufacturing. GE has a distinctive competency in management development. These companies also have core competencies, core to their particular lines of business. They also have competencies necessary to operate their business but of not of strategic significance, such as payroll, the processes used to pay their employees. On the other hand, a company like ADP, which provides payroll and benefits services, certainly has payroll processing as a core competency, if not a distinctive

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