From Management by Objectives to Management by Competencies
Competencies Are the Future

Over the last 25 years, many companies have started to recognize that people are the real competitive advantage within the firm. In the field of talent development, there is no doubt that the revolution that has had the greatest impact over the last 100 issues of the IESE Alumni Magazine is management by competencies. This tool, however, has not managed to fit well with management by objectives. In the future, companies will lean toward systems that are more varied, such as management by mission.

Executive Summary
Prof. Cardona puts forth an optimistic prediction over the next 25 years. In the future, companies will recognize the need to manage their people more effectively . A big step forward! Management by competencies offers a viable way for leading people over the next quarter of a century. But, to put this system into action, companies will need to change their management philosophy: from financial objectives to objectives that encompass the real mission of the company. This will be the challenge over the next 25 years, for business leaders capable of generating a sense of mission among their staff.

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