What is Competence Development

Nowadays knowledge and competencies are the key productive factors, and the organizational capability for continuous learning, development and renewal has become the main driver of competitiveness. In this chapter the authors explore how organizational measurement should change in order to remain relevant in the face of the recent increase in the knowledge-intensiveness of work, organizing and value creation. First they argue that, while traditionally measurement has mostly been used for control purposes, recent changes in the nature of work have brought on new challenges which can no longer be met with old mindsets and measures. Then they focus on two novel approaches, intellectual capital and competence development, and examine the current state of the art. Finally, the authors construct foundations for a knowledge-based approach to organizational measurement and set some future directions in which measures should be developed in order to portray and enable knowledge work and knowledge-based value creation.