Organizational effectiveness today depends largely on the ability to activate, share and transform the intellectual capital of the company into sustainable and difficult‐to‐imitate competitive advantage. This paper seeks to develop a competency typology that integrates previous definitions and frameworks from the literature and to propose a methodology for identifying competencies to aid the transition from a task‐based to a competency‐based logic for human resource management.

The paper is based on a longitudinal research project. The paper outlines a methodology and presents the findings from the implementation of a competency model in two case companies. It illustrates how the systematic use of the identified competency categories can support the identification and coding of competencies, which will facilitate the critical organizational transformation from a task‐based to a competency‐based approach.

The experience from the deployment offers potential challenges of implementing this framework in a specific cultural context. It identifies critical enablers that will contribute to successful implementation, whilst also providing insights concerning predicaments that have to be met.

The particular competency typology integrates previous definitions and frameworks from the literature, thus providing a holistic solution for supporting the implementation of a competency‐based approach. Furthermore, through the analysis of the implementation of the competency framework in two case companies it serves as the basis for illustrating the main steps, as well as the critical success factors that characterize such projects. Finally, it demonstrates the advantages of integrating the proposed competency framework and offers managerial insights and guidelines for similar implementations.