Competence mode II results from a second form of cognitive flexibility of managers to conceive of alternative management processes for implementing strategic logics identified by competence mode I. The managerial abilities underlying competence mode II include the ability to identify the kinds of resources (assets, knowledge and capabilities) required to carry out a given strategic logic, to create effective organization designs (allocations of tasks, decision making and information flows) for the processes that will use the required resources and to define appropriate controls and incentives for monitoring and motivating the value-creating processes envisioned by a given strategic logic.