Capability is the capacity to do something — including potential not yet realised. Competency is demonstrated skill meeting a defined standard. An organisation may have the capability to enter a market; an individual is assessed as competent against criteria. Capability is about what is possible, competency about what is proven.
The core difference
Both concern ability. They differ on whether it has been demonstrated and measured.
- capability — capacity or potential, often organisational: manufacturing capability, the capability to scale.
- competency — a defined, assessable skill: a competency framework, assessed as competent.
Where each is used
Capability dominates in strategy, defence and engineering, where the question is what an organisation or system can do. Competency dominates in HR, education and regulated professions, where individuals are measured against standards.
Competence or competency?
Competence is the general quality of being competent. Competency normally names a specific assessable skill, which is why frameworks list competencies. Many writers use them interchangeably and few readers object.
Frequently asked questions
What is the difference between competence and competency?
Competence is the general quality of being competent; a competency is a specific, assessable skill. Frameworks list competencies.
Which word suits an organisation?
Capability. It describes what an organisation or system can do, including potential not yet used.
Does capability imply proven skill?
Not necessarily — it can describe potential. Competency implies the skill has been demonstrated against a standard.