This three layered model of: (1) differentiating capabilities, (2) core competencies, and (3) job competencies, forms a key basis for linking organisational capabilities, competencies and job roles to the business strategy.

Differentiating capabilities are the source of competitive advantage for your organisation. It is the reason why customers purchase your services and products and it constitutes the DNA of your organisation. 

Core competencies describe the basic functions the organisation performs in order to deliver its products and services. It is therefore imperative to maintain and strengthen these differentiating capabilities and core competencies.

This model also incorporates reference to the 9 key skills value drivers underpinning these capabilities and competencies. Their relative importance will be dependent on the business strategy. Refer to the previous section on the SSQ and role analysis.