Competence Management as a Dynamic Capability: A Strategic Enterprise System for a Knowledge-Intensive Project Organization

The concept of dynamic capabilities in strategy literature assumes that organizations need to adapt to radical perpetual change in order to ensure survival. In this research we aimed to increase the understanding of competence management as a strategic dynamic capability. This longitudinal interpretive case study was conducted from 2013 to 2015 in a publicly traded professional services company operating in the technology consulting field. The data was gathered during a real-life organizational development initiative and interpreted by an involved researcher and an outside researcher. During the research period, the company implemented organizational changes and developed a new enterprise system to transform its job-based human resource management into skill-based competence management. According to our experience, competence typology and Level 5 Leadership concepts fit well in guiding competence management in dynamic service economy markets. However, our experiences also suggest that competence management should aim towards customer demand and employee interests rather than only focusing on current strengths.