If a firm is making profits from core competences, the question is, why can’t other firms imitate it and build similar competences. This takes us to one property of competences: imitability—the extent to which a competence can be duplicated by competitors.  A firm would rather have competences that are difficult to duplicate or substitute. The question is, how? If the knowledge that underpins the competences is tacit in that it is not coded but rather embedded in organizational routines and cumulatively learned over time, potential imitators have three problems. In the first place, it is difficult to know just what it is that one wants to imitate in the second place, even if a firm knew exactly what it is that it wants to imitate, the firm may not know how to go about it since competence is learned cumulatively over the years and embedded in individuals or routine of firms. In the third place, since competences take time to build, imitators may find them themselves always lagging as they spend time imitating while the original owners of the competences move on to higher levels of the competences to newer ones.

If a competitor cannot build competences, the next question is, why not buy them? One answer is that competences may not be tradable or easily moved from one firm to another. Two reasons have been advanced for why. First, because of the tacit nature of the underlying knowledge, it may be difficult to tell just what it is that one wants to trade and who has the property rights for what parts of the underlying knowledge. What is it that we will buy from Honda that allows us to build zippy engines for cars, motorcycles, lawnmovers, and marine vehicles? Who has the rights for what part of the technological knowledge that underlies this competence? Second, the underlying knowledge may be sticky in that it is too costly to transfer. Because of the tacit nature of the data, one may need to observe the seller over long periods in order to learn. This may be too complex and expensive.




Just About Money










Influence is easy to obtain, because it is based on the example you set for others to see. People are influenced by those they admire or aspire to emulate. Literally, we listen to people whose success we want to duplicate. When you listen to a presentation by a leading distributor in your organization, even if you don’t know this person personally, you are influenced by the example they set. You listen to what they have to say and you apply it. Even though you have no relationship with this person, and they have no power over you, you willingly hear them out. That’s influence. Of course, you don’t have to do what they say, but the odds are you will consider it.


If you want to influence other people, begin by setting an example that others can aspire to and respect. That’s the first step. The second step is to communicate your message the right way.


Now, the best way to learn to communicate that message ia to read Dale Carnegie’s classic How To Win Friends And Influence People – perhaps the greatest book ever written on the subject. In a nutshell, you have to communicate ideas in a way that people can make them their own. You’ve seen people suggest an idea in such a way that the main man they’re talking to thinks it was his own idea. That’s an example of effective influence.



Antiquated Strategic Planning










