Core Processes -- A Misnomer

as a business person today you live in a world of intense competition encased in a wrapper of many variables, all constantly moving and shifting. business is difficult today and the customer is more fickle than i have ever experienced in my recorded history. so how do we excel today?  how do we win in this competitive, ever-changing market space -- no matter which market space in which you chose to compete?

traditionally we fall back on the things we know, the things which are familiar to us and which have provided us some measure of success in the past; products, services, and processes.  all those are still necessary today, but when taken collectively they are insufficient.

today the leading edge companies compete upon core capabilities; collections of skills, knowledge, processes, and delivery channels knitted together to fulfill a critical client need.  core capabilities begin with and end with the customer or client.  the capability forms a closed loop, customer understanding, product/service need, through to delivery and integration into the customer's environment.

think of threading pearls on a string to make a necklace.  the clasp is the client.  the pearls (skills, knowledge, processes, and delivery channels) form a full circle that both begins and ends with the client.  processes are unique to you, your customers, and the way you and your company conducts business today.  core competencies are capabilities that are not by definition unique to the way your company does business or to any specific client. once created they can be used across customers/clients, market segments, and even industries. they allow you to rapidly respond to customer preference and market changes; they allow you to rapidly innovate and become an adaptive company.

the medical services providers are a great example of a market space where core capabilities are becoming critical to survival.  the industry is in turmoil;  many general hospitals are becoming financially and operationally inviable due to complexity and operating costs (20,000+ known diseases, 5 races of people, 2 sexes and 8 decades of life all with their own variables), general practitioners are running for cover into hospitals, specialists are leaving hospitals and setting up specialty clinics to achieve better revenue and a better life, and the new healthcare laws remain opaque.  the only security that a medical practitioner has is what is in her/his mind and the core competencies of their organization.

become an continuously adaptive company built around core capabilities and you will be a winner.