During a conversation with a client, regarding the reallocation of resources of his business and outsourcing, he asked me to give him working definitions of ‘core competency’ and ‘non-core competency.’  Here are the definitions I provided him:

Core - an area of proficiency in which you have a competitive edge in the market place and a profit driver in your business.

Non-core - those non-critical or administrative areas of your business in which you are not proficient and drain your valuable capital and human resources.

Is your business clicking on all cylinders and eliminating all potential costs savings?  Can you clearly define your core competencies and re-focus your resources on those areas of your business?   In addition, have you outsourced all of the non-critical areas of your business where you can realize cost savings and then reallocate your human/capital resources?