Threshold competence
A threshold competence is an ability to perform an activity to the minimum standard needed for the organisation to compete or fulfil its purpose. It concerns using and combining resources, rather than simply possessing them. Standards can rise as expectations change. A competence that once differentiated the organisation can become an ordinary participation requirement.
Worked example
A payment provider must process routine transactions accurately and reliably. Having servers is not enough; it must demonstrate the operational ability to deliver the required service standard.
Common mistake
Do not assume every competence is a source of sustainable advantage. Distinguish being sufficiently capable to participate from performing a valued activity in a way competitors cannot readily match.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBL | Direct | September 2026–June 2027 |