Sunday, August 18, 2013

Core Rigidities

There is much talk in the business world of "Core Competencies" and "Core Rigidities".

Let me explain:

When a business does something well, it is a Core Competency. Wal-Mart is skilled at low prices, and has a great bakery.

When a business sticks to that thing and refuses to change with the times, it becomes a Core Rigidity. If Wal-Mart decided to never change their bakery because they liked them too much, it becomes a rigidity.

Whenever you consider "rigidity" and "competency" I think it best to give an illustration:

When the Japanese developed the Katana, a curved long sword with one edge, they solved a serious problem. If the steel used was to be sharp, it couldn't be soft; soft steel can't hold an edge. Likewise, steel that is too rigid (like that which can hold a sharp edge) breaks easily. So there seemed to be a catch-22: soft steel didn't break yet couldn't be sharpened, but hard steel held an edge and broke easy.

To solve this, they put a core inside the sword that was soft steel, and an exterior of hard steel, so they were able to sharpen the outside steel and made a sword that was both sharp and strong.

Businesses can learn a lot from this model: select what is rigid about your business. This is your edge. Then, select what is not, and these things can change with the times and address new markets, new strategies, and new challenges.

Make your business both sharp and strong.

Francis Trascritti

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