Showing posts with label Competency Model. Show all posts
Showing posts with label Competency Model. Show all posts

Saturday, November 7, 2015

Developing Leadership Pipeline

Developing Leadership Pipeline
Every year we see surveys carried out by HBR, PWC, Deloitte, and Gartner, and major concerns for management as highlighted at the top of the list are factors such as: developing bench strength, leadership pipeline, and leadership readiness. The following quote describes the importance of Leadership. “The first lesson is: To hell with centralized strategic planning. If you don't have a good leader, it's all nothing; it's just a bunch of papers flying around.” - Robert Townsend

Developing Leadership pipeline has always been an important concern for HR Professionals. Moreover, getting a proper candidate for replacement is usually a very demanding task because that results in disturbing smooth flow of business. As Pam Brown says, “Every household has a box of odd keys. None of them will ever be found to fit any lock.” This happens when we are looking for leadership candidate from the internal talent pool. Hence, to maintain the flow of business, HR professionals have to address this issue by creating Leadership Development Program.

Following image outlines the activities for effective implementation of the Leadership Development Program. As suggested by experts and authors, the ownership lies with Management and Line Managers while HR can provide support through collaboration.   


Establish Competency Model:


The competency-based methodology was pioneered in late 1960's by Dr. David McClelland, founder of Hay McBer Company, also Psychologist at Harvard University. Subsequently many others have also contributed for the development of Competency-based HRM. It was primarily focused on assessment of employees, not just on the basis of intelligence, but on the basis of a set of competencies. Competencies are the knowledge, skills, behaviors, and attitudes that lead to high performance. [More details in “Competency-based Interview Assessment”]

For example during the tenure of Lou Gerstner, at IBM, they selected 300 employees for Senior Leadership Group (SLG) and appointed Hay Group for developing eleven "IBM Leadership Competencies." Normally companies select 10 to 15 competencies. Then they carry out the Executive assessment for actual level of each competency. Next, they analyze the gap between actual v/s. expected. The gap is minimized using Learning & Development initiatives along with Coaching and Mentoring.

While designing business strategy, Competency Models become a valuable tool for defining critical skills required for achieving success. Simultaneously it also facilitates the integration of talent Management and other HR processes within an organization. According to Jeffery S. Shippmann, "Competency approach typically include a fairly  substantial effort to understand an organization's business context and competitive strategy and to establish some direct line-of-sight between individual competency requirements and the broader goals of the organization".

Assessment of Employees:


Once we have established the set of competencies, we have to assess employees, and select them for the ‘Leadership Development Program’. In many organizations, ‘assessment’ is an on-going initiative that goes on throughout the period of employee development. The following image clearly depicts the process developed by Silzer & Church for identifying hi-potential talent.


Most of the companies use a combination of assessments to select employees. [More details - “First who then What”] Using more than one assessment instrument provides us concrete data in terms of their scores, which facilitate decision-making about their selection. The assessment instrument must be used by accredited experts while selecting them based on their validity, reliability and proven track record. Here is the list of assessments compiled by William Bergquist (Assessment Instruments: A Resource List)

Rob Silzer & Allan Church state that, “Some organizations collect these data to help make the high - potential decisions, while other organizations assess individuals only after they have been reviewed and accepted as high - potential talent.” The amount of resources, efforts, and cost involved influence the decision to use these assessments.

Performance Appraisal Data:

The appraisal process is an important source of employee performance data. However, its effectiveness depends on choosing appropriate method and tool. As they say, "When all is said and done, a company, its chief executive, and … (the) whole management team are judged by one criterion alone—performance." - Harold Geneen & Alvin Moscow.

An obvious outcome of this process is a list of ‘high performers’. However, according to CEB – SHL, “Only 1 out of 7 High performers is High Potential.” (The HR Guide to Identifying High-Potentials-2014) Hence, further assessment of these candidates becomes essential before selecting them for Leadership Development Program.

There are several methods and there is different school of thought, suggesting the use of a particular method. However, according to Laszlo Bock, (Head HR – Google) there is no one particular method superior to others which accurately analyze employee performance. He says they have used several scientific methods and tools, and the only thing that has a significant impact on the process is “Goal Setting”. In the book “Work Rules!” (2015) he further suggests that we must split rewards conversations from development conversations, for improving its effectiveness. Once you have sufficient data with trends / past employee history, it would certainly assist in the accurate assessment of employees.  

360 Degree Competency Feedback:

Many organizations now use 360-degree competency feedback surveys, primarily for providing development feedback to individuals. “We use it when coaching individuals, and in helping teams improve their effectiveness. We never use it as a selection tool, as it was designed to help develop people.” – Hay Group. It provides potentially accurate and diverse information on where employees stand in relation to where they should be in terms of skills and behaviors.

Normally it involves assessment by Self, Manager, Direct Reports, & Peers. There are set of questions (i.e. 5 to 7 questions for each competency) and the raters choose a most suitable answer from the scale. (i.e. Consistently, Often, Sometimes, Rarely, Never) Some of them also have an option for providing written comments about behavior and performance. The report for each employee provides us detailed competency scores, by rater group, with competency definitions along with a summary of strengths and areas for improvement.

However, there is one caution as pointed out by Richard E. Boyatzis, “But when we move to a 360 test, we are asking untrained informants – not trained coders – to assess an individual and his or her behavior. And when informants are responding they need more guidance.”

Personality Inventory:

Apart from 360-Degree survey, some organizations use formal personality inventories, such as the California Psychological Inventory and the Hogan Personality Inventory, to measure personality variables. Such tests normally require an applicant to answer 200 or more (yes/no) questions. These questions attempt to get to the core of the personality, values and the things that make one successful.

According to Rob Silzer & Allan Church, “many organizations administer personality inventories after the individuals have been identified as high potential.” Since, there are legal concerns in several countries about using these instruments for selection, many authors suggest using them for development purposes. Silzer & Church further states that the use of personality inventories has tremendously increased over the years for assessment of potential leadership candidates.   

Other Tests:

We can use several other options for assessment of candidates i.e. career background interviews, Cognitive Ability Tests, Personality Tests, Assessment Centers, individual assessments, Job Fit Test, Culture Fit Test, & Job Simulations etc.

Employee Selection for development:


The next step in this process is preparing a list of potential candidates by using nine-box talent matrix as shown in the following image. By using this tool, we can determine which employees to invest in and the level of investment required.


Once we have identified and designate employees as ‘high potential’ (formally / informally), we have to give them opportunities for accelerated development. Designing formal ‘Individual Development Plan’ [IDP] would facilitate effective implementation of this process. Talent review meetings would be a better option to set expectations around roles and the goals. "The cause of almost all relationship difficulties is rooted in conflicting or ambiguous expectations around roles and goals." - Stephen Covey. The company should provide an opportunity for the boss and the employee to have a conversation to clarify and align their expectations about the development plan. This could be the ‘development discussion’ as mentioned earlier in the appraisal example of Laszlo Bock.

This conversation can include the use of different options for employee development (for achieving expected level of competencies). For example, formal leadership programs (with well-defined curriculum), providing a coach or mentor, in-depth executive assessment, career planning, job rotation, job enrichment, provide experiences, special work assignments (projects, task forces, temporary assignments), or executive education courses. These options play an important part in the development of these high potentials.

As stated by Michael Bergdahl, “Ideas are the easy part of strategic planning; it is the implementation of the tactics that is tough.” Hence, the success of this process hinges on the effective implementation of the Individual Development Plan. According to the study conducted by Corporate Leadership Council (2005) following factors are important drivers for developing employee potential: 1. the quality and skills of the current manager and, 2. a customized and achievable development plan.

Training, Coaching & Mentoring:

We all know the 70-20-10 model normally used as part of Training and Development initiatives. (70% - On the job 20% - Learning from others & 10% - Structured Learning) It is a continuous process, which begins with the identification of high potential employees, and goes on until removing the gap between expected and the actual level of competencies. The focal objective of these initiatives should be capability development and achieving required level of competencies. In fact, it should be reviewed periodically as per organizational requirements. According to Peter Senge, “Over the long run, superior performance depends on superior learning.” 

70% - On the job learning
20% - Learning from others
10% - Structured Learning
Action Learning & Problem Solving
Placements, Job rotations
Self-directed and incidental learning
Projects and special assignments
Subject Matter networks
User Generated content
Collaboration platforms
Coaching, Mentoring
Feedback
Workshops, Classroom
Webinars
Online Learning
E-learning
M-Learning


Following quote clearly outline the importance of learning and development initiatives. “You can have the best product and store location around but if your staff is weak or poorly trained you will experience mediocre results.” -  Michael Bergdahl, Walmart

Many organizations provide Coaching & Mentoring to facilitate the development of selected employees. Like training, this initiative is also an ongoing process. Due to budgetary constraints, companies are becoming more selective while using external coaches. Normally companies use them for senior level positions.

“External coaches can bring greater objectivity, fresher perspectives, higher levels of confidentiality and experience in many different organizations, industries, and business environments.” – “Coaching: A Global Study of Successful Practices,” AMA, 2008

According to Silzer & Church companies are also training HR professionals and Line managers to coach employees internally. In fact, Dave Ulrich says, "HR professionals can coach business leaders to raise employee and organizational productivity by setting standards, giving feedback, and becoming personal leadership trainers."

With impartial view of the situation, they can advise and support high potentials to:
- achieve their objectives.
- enhance their performance.
- create and support their ‘Individual Development Plan’.
- develop certain competencies and capabilities.
- facilitate progression through different levels of those competencies.

“Leaders cannot succeed on their own; even the most outwardly confident executives need support and advice”. - B. George & P. Sims

Promoting to new position:


After successfully implementing IDP, if the employee is ‘high potential’ and ‘consistently exceeds performance expectations’ (improved assessment results) he/she can be considered for placement in the leadership position. However, the support system must provide backing through continuous ‘Training’, ‘Coaching’ and ‘Mentoring’. According to Michael Watkins, while going through transitions, it takes minimum 6 months for an employee to reach the ‘break-even point’. The focal objective of an onboarding program should be to fasten the speed of employees to reach the break-even point ASAP. The company must provide specific feedback, guidance and needed support to the employee during this period.

Managing their transition into new position becomes crucial for Leadership development program. We may have to focus on five aspects of onboarding process to address this issue. These core aspects are (RECAP) - building Relationships and networks, setting Expectations, Cultural indoctrination, Administrative formalities, and structured Process. [More details - “Onboarding”]

Conclusion:


“In conclusion – the phrase that wakes up the audience.” – Herbert Prochnow. Leadership is a vast subject and here we have tried to focus only on very few activities that we can implement for Leadership Development Program. As correctly said by Peter Drucker, “Leaders are not born; they are grown.” Hence, identification of high potentials and their development become important aspects for the internal development of leaders. Leadership development program should be integrated with the overall talent management strategy of the organization. It should also have backing with appropriate motivation (intrinsic - extrinsic), retention and rewards & recognition. As stated by Jim Collins, “The key is to develop and promote insiders who are highly capable of stimulating healthy change and progress, while preserving the core.”

Competency models facilitate the integration of Leadership development program and business strategy of the organization. Performance management system can provide accurate details of the 'high performing' employees. Whereas, we can get valid data pertaining to their actual potential using appropriate assessment instruments. Then we can select most suitable candidates with maximum scores for Leadership Development Program.

We have to establish an Individual development plan for each selected employee. However, the success of this process largely depends on effective implementation of IDP, using proper development options such as Job Rotation, Job Enrichment, Special Assignment, etc. Training & Development is a huge subject in itself and we are taking only surface view out here. Through using proper training (70-20-10) coupled with Coaching and Mentoring on an on-going basis, we can polish the 'rough diamonds' and turn them into 'consistent stars'. HR has a major responsibility once they have been promoted into new positions by providing them support through proper on-boarding. “Leadership occurs when the organization builds a cadre of future leaders who have the capacity to shape an organization’s culture and create patterns of success.” – Ulrich & Smallwood

Developing leadership pipeline is going to be crucial for the ongoing success of any company and HR has a major part to play in this regard. However, HR must share ownership with Management and Line Managers. Because “The most significant contribution leaders make is not simply to today’s bottom line, (but) to the long-term development of people and institutions, so they can adapt, change, prosper, and grow.” - Barry Z. Posner & James M. Kouzes.

Wednesday, May 28, 2014

Competency-based Job Description



Once, I heard someone say, what is so important about the Job Description? After all, it's just a piece of paper & what difference does that make?

The Job Description can best be compared to a 'User Manual' which tells us 'how to' operate particular device or machine. It gives precise details about components, requirements, directions for effective and efficient use.

As they say 'When all else fails, read the instructions', and, 'When all else fails, and the instructions are missing - kick it'. In our case we can't kick it; hence a wise option is to 'read the instructions'. Let us see why a Job Description is so important.

As we all know the process involved for this is called 'Job Analysis' and theoretically the output is 'Job Description' and 'Job Specification'. [While the Job Description describes tasks to be accomplished, the Job Specifications lists the Knowledge, Skills, and Abilities (KSA's) needed to accomplish these tasks.] Though they are defined separately, however in practice, they are written in the same document under different headings.

In fact, there is no one right way or format for writing a job description. It is better explained by Crawford H. Greenwalt, President, E I DuPont, "...There are many ways in which a good job can be done - as many ways, in fact, as there are men to whom the task is given."

Due to various benefits and convenience many companies prefer computerized Job Analysis. There are many software's available for this process for e.g. Job Evaluation Manager (JEM) -Online tool (Haygroup), Talent | Reward (Towerswatson).

Following are four Principles of Job Analysis:

1. Analysis NOT List: The focus must remain on in-depth analysis of the Job and not just preparing a list of the tasks.

2. Jobs NOT People: The analysis must focus on the job and not on the jobholder's performance, style, character or career history.

3. Facts NOT Judgment: The focus must be on communicating the 'facts' as they are and avoid making any judgment about the job.

4. The Job as it is now: The job needs to be analyzed as it is now or is planned to develop over the next 1-2 years.

JOB DESCRIPTION - PURPOSES:


The main purpose (use) of the job description is to provide precise information to the Job holder, about his contribution for achieving organizational objectives. It is a fundamental tool for a Line Manager who can use it to ensure that his/her subordinates understand what they have to achieve and the criteria on which their performance will be measured. Beyond this main purpose, job description provides information to support other HR Processes; however it must be reviewed and updated periodically.





JOB DESCRIPTION & COMPETENCIES:

I have already covered the importance of competency models in my previous post. However, it is important to note the views of Mr. Dipak Kumar Bhattacharyya, in his book, 'HR Research Methods' (2007). He says, "The need to link the intellectual capital of the firm to the strategic objective is the order of the day. Firms have realized that unless they align themselves accordingly they will not be able to gain a competitive advantage: Thus, a competency-based approach is today used by a lot many organizations in achieving their strategic objectives.

Competency mapping, therefore, has now become essential for every organization to achieve excellence, gain competitive advantage, and renew them through proper restructuring."

In any Job Description, Key Result Area (KRA's) represents the "Output" of the job. And the knowledge, skills and competencies represent the "Inputs" of the job. Competency-based job analysis basically means writing job description based on competencies rather than just job duties.

The validated competencies can be taken directly from existing library in case the company has already adopted a competency model. Alternatively if the company is in the "process of developing competency model", then during the "data collection" phase (step no. 3 of process - as shown in previous post) various assessment methods can be used. However, "Behavioral Event Interview" (BEI) is given more importance by Haygroup. Other methods include Expert Panels or Focus Group and Surveys. These methods either can be used on their own or along with other methods for effective results.

A directory / library typically contain a list of approximately 15 to 20 tailored competencies. These competencies are key to high performance in the organization.

For each competency we require:
-   A definition
-   A business rationale (why it matters to the business)
-   Levels of demonstration, with behavioral indicators

The Panel identifies the 8-10 key competencies required which are important for achieving success in a particular position (Position Level and Functional / Technical Competencies). The 'Core competency' is also identified in the process. For e.g. "Passion for the Business" [ IBM - List of competencies page 210, Who Says Elephants Can't Dance? (2002) ].  And finally specify the 'levels' of demonstration of each competency which is required.

Example:
Self Confidence                      Level 4
Achievement Orientation         Level 3
Transparency                         Level 5
Service Orientation                 Level 3
Teamwork & Collaboration       Level 4

Prof. / Dr. David McClelland had already stated the importance of competencies compared to intelligence. Where competencies are more likely to contribute towards the achievement of success in a particular job. In fact, they are perceived as predictors of superior performance. Hence, a competency based job description can be used in various HR processes, especially to distinguish the "best from the rest".

BENEFITS / ADVANTAGES:

1. Communicating competencies: A Job Description can be an important tool for effectively communicating needed 'competencies' to employees. i.e. which competencies are important for achieving success in a particular job. And the needed 'Level' of each competency. 


2. Facilitate processes integration: Since the Job Description is an important document that facilitate executing various HR processes as shown in the above image. Competency-based Job Description provides 'Lingua Franca' (common language) to integrate these processes. ( For strategic HR, the lingua franca is competencies - The Art and Science of competency Modeling - Kornferry Institute [pdf] )

3. Measurable competencies: Since job competencies are always observable and 'measurable' behaviors comprising part of a job, they provide a sound basis for Performance Management, Training & other HR initiatives compared to tasks and duties. Needless to say, “What gets measured gets done” as correctly said by Peter Drucker, in fact, there is similar quote by Lou Gerstner "people don’t do what you expect but what you inspect".

4. Provides Strategic approach: Designing competency-based Job Description is more strategic approach since it provides a direct link to business goals and organization strategy. Mr. Jeffery S. Shippmann, very clearly explain it in his article, "The Practice of Competency Modeling" [pdf] (Personnel Psychology 2000)

He says, "Competency approach typically include a fairly  substantial effort to understand an organization's business context and competitive strategy and to establish some direct line-of-sight between individual competency requirements and the broader goals of the organization".

5. Assessment & Development: As researchers have advocated the use of the competency-based approach for assessment and development purposes. Such job description would facilitate the process of Training Need Analysis and provide concrete basis for designing training and development strategies. Similarly, it may benefit to other HR Processes such as HRP, Career Planning and Succession Planning.

6. Predictive HR Analytics: There is a vast amount of data being collected during Job Analysis and Competency development process. In the advent of HR Analytics, a competency based job description would certainly provide a sound basis to facilitate predicting future success. Here competencies can play an important role since they consider other aspects such as Belief, Interest, Values, Self-image, Traits and Motive; apart from Experience, Qualifications, and skills. Typically underlying elements of competencies which are less visible ( "Ice-berg Model" ) but they largely direct and control surface behavior.

PRECAUTIONS :

However, according to Mr. Frederick Morgeson there are two possibilities that affect the analysis. ( "Self Presentation Process in Job Analysis" [pdf] Journal of Applied Psychology 2004)

1. Normally respondents give higher ratings for competencies.  Employees tend to inflate their job during the process of interview since the result has direct impact on job grade, compensation and employee status. The purpose of the analysis (e.g., strategic clarification vs. organizational restructuring) is also likely to exert a strong influence on employee response.

2. Respondents give lower ratings for entry-level competencies. For example, we tend to use lower 'levels' of particular competency for the entry-level job (Trainee, Junior Associate) compared to senior positions.

To sum it up, the competency-based approach certainly helps to enhance performance, manage change and drive cultural transformation, while at the same time empower and motivate the employees.

I would like to conclude with another approach in addition to Job Description, by designing 'Job families' & 'personal scorecards' for every employee. Robert Kaplan & David Norton have articulated the significance of this approach in their book - "The Execution Premium" (2008). It says,

“we have described how to identify strategic job families. ... They create the differentiation in the strategy for sustainable competitive advantage. ... the HR processes eventually need to ensure that all employees have competency development programs in place that will give them the knowledge, skills, and values they need in order to achieve the targeted performance on their personal scorecards."


[Inputs taken from Haygroup - Job Analysis - Training Material]



Saturday, April 19, 2014

COMPETENCY BASED INTERVIEW - ASSESSMENT




[Image source: Google Image]

While going through SHL - "2013 Global Assessment Trends Report", trends reflected that 'Creating / implementing Competency Model (s) was ranking at number eleven (11) in list of 'HR Priorities - 2013'. And only one-third of respondents indicated that Competency Models are used effectively in their organizations.  Now, that was an unexpected finding, considering the fact that Competency Development and Management is an integral part of strategic HR initiatives. In fact mission critical for successful strategy implementation for any organization. ( 'The Execution Premium' by Robert S. Kaplan, David P. Norton )

It also reminded me of a well-known quote, "Most of us spend too much time on what is urgent and not enough time on what is important" by Stephen R. Covey.

As a matter of fact it was Hay Group that assisted Mr. Lou Gerstner Jr. Chairman & CEO, IBM (1993-2002) in developing eleven "IBM Leadership Competencies"  ( Leadership Run Amok, HBR - June 2006 ).  Importance of this initiative is underlined by the fact that it was part of the largest turnaround strategy of corporate history, successfully headed by Mr. Gerstner.

I would like to refer to his remarkable comments in the book ( Who Says Elephants Can't Dance? 2002 )
" Specifically, people wanted to know how they could make it into the SLG (Senior Leadership Group) one day. Our answer was to create a set of common attributes that we wanted all of our leaders to have, and to formalize them as ' IBM Leadership Competencies'." ( p. 210 List of 11 competencies) (Details of these competencies available in the book Management and Organizational Behavior by Laurie J. Mullins 2005)

Leadership performance within IBM was assessed in line with these eleven competencies. As stated by him,  "The competencies became the basis for evaluating every executive in the company. It did not take long for people to realize that this was going to be how you got ahead in the new IBM."

It is important to note that he personally advocated and promoted this initiative. He spent three days in the training session for this initiative along with his team of 300 selected Executives within IBM. He wanted his Executives to adopt and display behavior in line with his turnaround strategy. And he successfully implemented this change management process. He further states that " Although I actively promulgated the principles and built our management training and evaluation around the Leadership Competencies, the new ways of doing things were much less codified than what they had replaced. That was how I wanted it to be and it did produce a marked change in our leadership's behavior and focus".

The competency-based methodology was pioneered in late 1960's by Dr. David McClelland, Founder of Hay McBer Company, also Psychologist at Harvard University. Subsequently many others had also contributed for the development of Competency-based HRM. It was primarily focused on an assessment of employees, not just on the basis of intelligence, but on the basis of a set of competencies. Competencies are the knowledge, skills, behaviors, and attitudes that lead to high performance.

TYPES OF COMPETENCIES:

Three types of competencies are specified by Korn Ferry Institute in the white paper, 'The Art & Science of Competency Modeling' (2010) 1) Core Competencies 2) Position Level Competencies & 3) Functional Competencies.

1) Core Competencies: These are set of critical competencies that result in shaping organizational capabilities and required culture to achieve strategic objectives.

2) Position Level Competencies: These are competencies which are critical for success in relevant position i.e. Individual Contributor, Manager or Executive.


3) Functional Area Competencies: These are competencies which are most critical for different functions within an organization. For e.g. Creativity - more important for Marketing and less important for Finance.




[ Image source: "The Art and Science of Competency Modeling" 2010 The Korn/Ferry Institute ]

Some authors have also defined other types of competencies, such as Organizational Competencies, Technical Competencies, Behavioral Competencies, and Management Competencies etc.

COMPETENCY LIBRARY:

There are many institutions which have already designed set of universally applicable competencies; for e.g. Hay Group, Center for Creative Leadership ( CCL) , Lominger / PDI ( Kornferry) , DDISHL - CEBKenexa. Different experts may call the competencies by different names or differentiate them on the basis of different levels. However, the content and essence of these competencies is essentially the same. These Competency Libraries are updated and validated periodically, and hence are the better option than developing our own library. In addition certified professionals bring in value-added assistance and support throughout the implementation process. The success of the Competency Model and the entire initiative hinges on competency  library, in terms of quality of its contents. Hence, it deserves special attention and care in the decision-making process.

The important question here is that whether these competencies are suitable or can be customized according to strategic requirements / cultural norms of our organization. In fact, some experts say that organizations should not “plugin” ready-made competencies from an existing library unless they truly reflect the company’s culture, business strategy and unique market dynamics. Please note what Mr. Dave Ulrich and Mr. Norm Smallwood state in their HBR-July 2007 article 'Building Leadership Brand'. It says, "...vanilla competency models generate vanilla leadership.... Expanding the competency model to include an external focus allow companies to offset that risk, by enabling them to tailor their leadership model to their own requirements".

PROCESS FOR DEVELOPING COMPETENCY MODEL:

1. Establish the performance criteria.
2. Identify people for the criterion samples.
3. Collect data through behavioral event interviews (BEIs) or other assessment methods.
4. Analyze data and define the competencies.
5. Validate the model.
6. Design applications.

These are six stages in the process of developing Competency Model according to working paper, prepared by Hay Group - "Using Competencies to identify High Performers" - 2003. Each consultancy has their own process which is more or less the same.

INTEGRATED APPROACH:

While designing business strategy, Competency Models become a valuable tool for defining critical skills required for achieving success.  Simultaneously it also facilitates the integration of talent Management and other HR processes within an organization. ( e.g. Recruitment & Selection, Career Planning, Succession Planning, Training & Development, Management Development, Performance Management, Compensation & Benefits, and Workforce Planning ) Effectively designed models are capable of delivering expected transformation in organization culture. ( Strategy-driven Talent Management 2010). A transformation that Mr. Gerstner completed successfully, hence he says, " I came to see, in my time at IBM , that culture isn’t just one aspect of the game—it is the game."

Software implementation can be a wise option to ameliorate the burden while simplifying the entire process. There are many software’s available for implementing competency framework while ensuring integration with other Talent Management initiatives. [ERP : Taleo ( Oracle), Success Factors ( SAP), & Workday. Standalone : SabaCornerstoneonDemandHalogen SoftwareSum TotalLumesse, & Peoplefluent] They provide an effective solution in association with above-mentioned companies. Especially by capitalizing on their expertise with competency libraries  (e.g. DDI, PDI, Lominger) and latest research & development in the field.

COMPETENCY- BASED ASSESSMENT:

Now the big question is 'where to begin'? Here I would like to refer to remarks made in the white paper 'The Art and Science of competency Modeling' - Kornferry. It says, "Processes that are widespread and well-implemented may be a harder place to start because of the change management involved. Take interviewing and selection, for example. If the current state is decentralized and mostly managed by the individual hiring manager, offering a competency-based selection process not only adds science to the process but it makes it easier for those hiring managers. Identify the greatest need and begin there - other talent management practices will follow."

Besides it makes more sense to recruit or select for the Competencies that are being developed, rather than to train people for them in the short term. A competency-based selection process help organizations by providing a framework to consistently hire, develop and promote top performers. When you employ the process turnover drops, Individual and Group performance improves and your organization builds a strong & agile workforce that can solve problems, change with the times, and meet organization-wide goals. It reminds me of a remarkable quote by David Ogilvy, he summed up the importance of careful hiring when he wrote, “If each of us hires people who are smaller than we are, we shall become a company of dwarfs. But if each of us hires people who are bigger than we are, we shall become a company of giants.”

I have managed to design a Competency-based Interview Assessment Form. There are 78 Competencies based on which we can assess employees for selected 8 competencies relevant to the position. You can download the same using link provided below. Or send an email to vijay.bankar@gmail.com and I will forward it to you immediately. It can be used either for recruitment of employees or it can be used for employee assessment - for selecting employees for Leadership roles / promotion. Please note that the assessment form is being developed based on conceptual understanding. However, so far, it has not been administered on employees. Please do provide your valuable feedback.

As my previous post, I would like to conclude with a quote:

Jack Welch said that the core competency of GE is not making some product or GE's ability to grow at a double-digit rate: "GE's core competency is the development of people. In the end, great people make things happen. Involving all of them is really the answer."


... The Jack Welch Lexicon of Leadership, 2002 - Jeffrey A. Krames