Are Competencies and Corporate Strategy Aligned? An Exploratory Study in Brazilian Steel Mills

Abstract

In this qualitative and exploratory study, a measurement of alignment of competencies with corporate strategy was carried out in nine steel mills, using a methodology developed specifically for this purpose. Four companies (“big and aligned”), accounting for 86% of the steel produced in the country, indicate full alignment of competencies with their strategies. Two companies (“small and partially aligned”), represent 4% of the market and try to reconcile the corporate strategy of technological orientation with short-term operational performance imposed on them by the business environment. In contrast to the latter, three companies (“small and not aligned”), having 10% of the combined market share, primarily concern themselves with performance in terms of productivity, without having synergy with the corporate strategy. The major contribution of this work is the development of a specific methodology to operationalize the mapping of core competencies, in order to facilitate the mobilization of resources to support business strategies.