Competence-based strategic management is a way of thinking about how organizations gain high performance for a significant period of time. Established as a theory in the early 1990s, competence-based strategic management theory explains how organizations can develop sustainable competitive advantage in a systematic and structural way. The theory of competence-based strategic management is an integrative strategy theory that incorporates economic, organizational and behavioural concerns in a framework that is dynamic, systemic, cognitive and holistic (Sanchez and Heene, 2004). This theory defines competence as: the ability to sustain the coordinated deployment of resources in ways that helps an organization achieve its goals (creating and distributing value to customers and stakeholders), and how to initiate and manage change within an organization. The competency management definition also covers the core competencies of the organization itself. Every organization should have a competency framework, which consists of a set of four to six core competencies. This serves to strengthen and illustrate the core culture of the organization, while highlighting differences from competitors. Competence-based management can be found in areas other than strategic management, namely in human resource management.