This chapter introduces a new approach in organizational Competency Management which is based on Korossy’s competence performance approach and which rests on the central idea of connecting competencies to actual job performance. Such an approach has several important benefits when compared to more traditional approaches. First, it brings competency modeling and assessment more closely to the actual work processes and tasks. Secondly, it makes possible validation of the models and the assessment within the modeling and assessment procedure. Finally, it is better able to cope with more dynamic and knowledge based settings. Three case studies in Engineering, Human Resource Management and Research and Development illustrate how the approach is introduced, evaluated and applied. The purpose of the chapter is to inform researchers in eLearning and Knowledge Management of how competencies can be used to support work integrated assessment and learning.