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.
