The paper discusses the role that formal modelling, both qualitative and qu
antitative, and the use of a group support system can play in developing st
rategic direction. In particular the paper focuses on the modelling of comp
etencies as patterns and the way in which patterns often express the distin
ctiveness of competencies. The relationship between patterns of competencie
s and the goals of an organisation are explored as the basis for establishi
ng core distinctive competencies and for developing and exploring the busin
ess model which will inform strategic direction. As an introduction the nat
ure of strategic management is discussed, as it relates to the role of mode
lling competencies.