The first two steps in formulating a competence-based strategy, identification and analysis, are treated together in this chapter for two reasons. First, it is my experience that the decision-making process of these two steps is different, more intuitive and less tangible, than the decision-making process in the last step of competence development. Second, there is a tendency (which I find less than encouraging) that the third step is a matter for the human resource management (HRM) function of the firm alone, whereas the other two steps usually are the matter of top management. Even though I believe that this tendency should be broken, I also find that the HRM function certainly should be involved in the issues related to competence development as well as the other two issues. Nonetheless, I will treat the issues in two chapters. The third reason is that we need to develop a lot more knowledge about how to apply theories and models related to, especially, organizational learning to competence development than what goes for the identification and analysis of competencies.
This section deals with the issues that need to be resolved to arrive at, for example, five core competencies and five focus competencies for the firm, which is the objective for the first two steps of the process of formulating a competence-based strategy, and discusses how managers should go about arriving there. The latter corresponds to a decision-