Managing core competencies: the impact of knowledge management on human resources practices in leading‐edge organizations

• Published date: 01 April 2000
• DOI: http://doi.org/10.1002/1099-1441(200004/06)7:2<76::AID-KPM70>3.0.CO;2-B
• Date: 01 April 2000
• Author: Alain J. Godbout

Knowledge and Process Management Volume 7 Number 2 pp 76–86 (2000)

"Case Study

Managing Core Competencies: The Impact of

Knowledge Management on Human Resources

Practices in Leading-edge Organizations

Alain J. Godbout*

Godbout Martin Godbout & Associates, Quebec, Canada

Dramatic changes in organizations are occurring. A large proportion of these changes place an emphasis on the

development and use of intellectual assets and the development of core competencies. The author proposes

that core competencies are the result of a deliberate management strategy. In order to be supportive to this

business strategy the practice of human resources management will have to undergo significant transformation.

The key to this transformation consists in redefining the key concept of the job into a set of individual

competencies and organizational units into core competencies architectures. Such practices have already been

implemented in various sectors, and examples of the management consulting industry are used to illustrate the

transformation. Copyright 2000 John Wiley & Sons, Ltd.

INTRODUCTION

Various developments both within organizations and their

environment increasingly lead to managers being faced with

a plethora of process and organizational changes. Changes

are presented as almost fool-proof methods for improving

performance, increasing competitiveness and right-sizing

the organization. Results may be significant in some

organizations. Those who succeed are presented as success

stories for having achieved results with change processes

such as:

Innovative use of information technology

Successful introduction of total quality management,

Broad-reaching business process redesign,

Flattening of the organizational structure, or

Radical changes to the entire organization through

business re-engineering.

Managers mainly under the spell of influential consultants

and management gurus have resorted extensively to copy

so-called ‘success stories’ and ‘best practices’ of similar

organizations. Many have come to realize at very high costs

that these kinds of organizational change processes requires

something more. Most practitioners will confirm that suc-

cess in change management appears to be closely linked to

the degree of attention paid to transforming the culture and

values. Organizational changes which are successful are

based not on fads and copycat management practices but on

investing in the enhancement of the ‘core competencies’ of

organizations. These core competencies cannot seldom be

bought or even acquired through mergers, they must be

developed over time.

The emerging discipline of knowledge management con-

tends that core competencies are specific to each organiz-

ation. Used effectively, know-how is the primary source of

competitive advantage over competing organizations. The

most successful changes and turnarounds in the Western

industrial world are cases where organizations have concen-

trated on the core competencies from both the standpoint of

the organization and the actual quality of competencies of

their employees.

This article will seek to review the concept of core

competencies of an organization and relate it to the

competencies of individual employees. It will identify some

of the sound management implications of directing

competence-based organizations and how the human

resource management practices should be adapted to

support the organization’s objectives effectively.

*Correspondence to: Alain J. Godbout, Godbout Martin Godbout &

Associates, 133 Rue Wellington, Hull, Quebec J8X 2JI, Canada.

E-mail: alain@godbout.com

Copyright 2000 John Wiley & Sons, Ltd.