Win with Advanced Business Analytics: Creating Business Value from Your Data

COMPETENCY VERSUS CAPABILITY

The definition of competency is the possession of the skills, knowledge, and capacity to fulfill current needs. The definition of capability is the qualities, abilities, capacity, and potential to be developed. Note the word potential. While competence deals with the current state, capability focuses on the ability to develop and flex to meet future needs. In the market of the twenty-first century, the potential for growth is an absolute necessity.

When we think about the future and the changes that it will bring, we need to ask ourselves, What types of changes are likely to occur and from whence will they emanate? Exhibit 11.2 shows a list of common skills, abilities, knowledge, motivation, commitment, engagement, creativity, and so on. Those traits exist currently and will exist in the future. The point is, how will they differ in the emerging market? Certainly, skills and knowledge will be somewhat different, but what about motivation or engagement? Most likely, they will change as well. What will drive that change? Will it be from within the person? Will it be induced by new technology or regulations? It is up to the planner to consider this dynamic. Look at Exhibit 11.2 again. What do you think will happen in your situation?

Exhibit 11.2 Current Competencies to Future Capabilities