Strategic competence development and monitoring in a multi-disciplinary research institute

Recent strategy literature has approached corporate strategy and individual-based competencies as separate but linked issues. In the present innovation era, when competitive advantage is based on knowledge and dynamic capabilities, the individual capabilities of a knowledge worker needs to be integrated more tightly to the corporate strategy process. The measurement and monitoring of the organization-wide competencies derived from individual capabilities need to be done continuously and in relation to the dynamic environment. In this paper, we propose an analytic framework consolidating personal skills, capabilities and competencies, and the monitoring and measurement of their development with strategic performance management in a dynamic environment. Our empirical example is a research institute operating in the rapidly changing ICT (information and communications technology) sector. The paper contributes to the present literature and managerial practice by providing the missing link between performance measurement at strategic and individual levels, and by delineating the critical measurement issues in a rapidly changing environment needing multi-disciplinary capabilities with continuous monitoring.