Begins by outlining McKinsey′s Seven S Framework, applying it to the telecommunications industry, and concluding that it is the skills of the people which will give one company competitive advantage over another. Describes a two‐year research project which examined the relative value placed on 22 management competences by managers in six European telecommunications companies. The similarities and differences between these telecommunications companies is discussed, based on the valued competences. Concludes with the belief that competitive advantage can be achieved through the skills and shared values of an organization′s people and encourages human resources professionals to help their organization reach competitive advantage through its people.