Today's Two Minute Tuesday deals with the idea of Core Competencies versus Strategic Partnerships. In its early stages, a business usually has limited resources and many tasks it needs to do. At some point, the business needs to decide what the core capabilities of the business will be, what the staff will focus on and where it will learn its lessons.
For example, at Teck Global, David explains that they now have a large team of electrical engineers who specialise in medium voltage power systems. But another part of every kiosk substation construction, for example, that needs to occur is the result of structural engineering. Whilst each kiosk needs to be structurally certified, Teck has not yet employed a structural engineer because this is not one of their core competencies. As a result, Teck has found a strategic partner who is experienced in structural engineering, and thus far Teck is quite happy with the results.
A similar situation exists for Teck's electrical switchrooms. Teck's current workshop is not large enough to build switchrooms, so Teck has found a competent strategic partner to handle this for them. Teck is then using its core competencies in doing the fit-out and verification, using its knowledge to ensure the switchroom will be meet or exceed site standards.
David says that this is what gives Teck Global an advantage - the company brings its experience to construction and commissioning, resulting in a superior product without having to do all tasks in-house.
At Teck Global, we review our core competencies at the start of each financial year. We look at what we want to focus on so that we can tell our clients what Teck Global's capabilities are.