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This is the second of a two-case series (405-044-1 and 405-045-1). The case analyses the introduction of the top-down competency model at Canon Italia, a company undergoing major organisational and strategic changes. The advent of digital technology in the early 1990s, introduced production logic with respect to the past, and the sector became intensely competitive due to the entrance of new, highly aggressive competitors. Faced with these trends, beginning in 1996, top management and personnel administration started the implementation of a competence-based system that allowed Canon to link business objectives to personnel management policies and hence to the human resource development system, making the former coherent with the latter. The case in question describes the implementation and functioning of this system.