This article explores the concept of contextual competence and its function and role in effective management and consulting. Contextual competence is composed of the synergy of both contextual intelligence and action intelligence. Contextual intelligence is the ability to grasp the appropriate sense of situations, diagnose, and identify options to address opportunities and challenges. Action intelligence is the adeptness to respond and act efficiently and achieve the intended results. Contextual competence is a valuable requisite asset underpinning effective consulting. It can elevate both the client and consultant’s contextual perspectives, and provide novel effective pathways for success.