Professional Documents
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Introduction
It's easy enough to find examples of competency initiatives gone awry. Who hasn't heard stories of "analysis paral-
ysis", multi-year projects, and competency models that, once developed, are never used? Risks for competency
modeling projects are typically high because of several factors, including complexity and time requirements. Most
competency model development initiatives require the participation of competency specialists, top performers, and
multiple levels of management. In addition, the development of robust, behavioral competencies is time consum-
ing, requiring performer interviews, analysis of findings, development and refinement of models, and verification
and validation of model content. The American Compensation Association surveyed organizations to determine the
time required to develop and implement competency models. Fifty-one percent of the respondents reported that
their competency model initiative required from nine to fifteen months, with approximately 40% of this time being
spent in the actual construction of the models.
Fortunately, not all competency-modeling initiatives experience difficulties. The purpose of this paper is to offer
some guidelines that can positively impact the success of competency modeling initiatives. While the author was
at Saba she conducted an extensive survey of the literature and convened a consortium of customers who
were undertaking competency-modeling initiatives. The purpose of this research and exchange of information was
to identify (1) factors that were "critical" to the success of the development and use of competency models, and (2)
best practices related to each of these. The following primary principles have been used to organize the guide-
lines and suggestions revealed through our research. Each of these is discussed in subsequent sections of this
paper:
In fact, Gubman reports that managing and getting the most out of talent is now the 'make or break skill' in today's
knowledge economy. Consequently, the time is right to examine work force competencies in light of business
strategy and the ability to produce the desired performance results. Figure 1 illustrates how strategy and results
can be linked to competencies.
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Organizational
Results
Organizational Capabilities
Economic Technological Marketing
Positions
or Job Roles
Competencies
Skills Knowledge Traits/
Attributes
Start with a clear understanding of the organization's strategy and a strategic needs assessment. This can be
accomplished by asking questions such as
• "What business results will need to be produced by each business unit to attain these strategic goals?"
Next, examine each business unit and the results it will have to produce to meet these business goals. The key
question to ask is "what capabilities will be required to meet strategic goals and produce the desired business
results?" Capabilities can be thought of as organization-level abilities that are a source of uniqueness and compet-
itiveness. Ulrich describes three distinct types of capabilities that together comprise organizational capability: eco-
nomic capability, technological capability, and marketing capability. Economic capability includes having a prod-
uct the consumer perceives as having high value or the ability to produce a valued product at lower cost.
Technological capability includes the special technologies used to build or deliver a product or service, such as
better manufacturing processes and lines, or a better order fulfillment technique. Marketing capabilities include the
ability to develop product ideas, communicate about the product effectively, and understand customer needs.
Another useful question to ask is "what new technological or marketing capabilities will be needed to produce the
desired business results in the future?" In many cases, organizations recognize that in order to continue to be suc-
cessful, they must develop and extend capabilities in these critical areas. After these critical capabilities have
been identified, it becomes easier to link competencies to strategy and business results. Ask questions such as
the following of business unit management to determine where it is most critical to develop, acquire, reinforce, or
sustain competencies:
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• "What human performance competencies will be required to ensure that we have the level of strength
needed in each of the critical capabilities identified?"
• "Which of these competencies is most critical, moderately critical, and less critical (i.e., a rank ordering) for
success in each capability area?"
• "Which job titles or positions are key to our success in each of these critical areas of capability?" or
"Where in our organization are these human competencies found?"
These questions help identify the critical human performance competencies that will be required to ensure that the
organizational capabilities needed are available. Once this has been accomplished, you can begin to align the
work force's competencies with the organization's strategy by:
(2) Determining the level of proficiency in each required competency area across the organization
(4) Putting development and learning plans in place to decrease gaps in critical areas.
A competency modeling initiative that is driven by strategy and tied to business results is far more likely to suc-
ceed than one that is not. Furthermore, the models produced by these initiatives are more likely to be used to
achieve required organizational capability.
Methodology
&
Techniques
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Organizational Support and Buy-In
Much has been written about the importance of ensuring organizational support and buy-in for any paradigm
change or large project. Support and buy-in for competency modeling initiatives must span the organization. Not
only must senior managers/executives actively demonstrate support from organization-wide efforts, but middle
managers are also critical to success. Middle managers often 'control' access to subject matter experts (SMEs) or
top performers who should be involved in the identification of critical competencies. Middle managers will them-
selves be involved in the validation of competency models, and will be critical to the implementation and use (for
hiring, development, career planning, etc.) of the competency models. Finally, buy-in is also required from individ-
ual contributors throughout the organization. Top performers and SMEs must believe the project is valid and likely
to be successful in order to feel comfortable devoting time and energy to it. Individual performers need to believe
that the competency models produced will be used to help them grow, attain their goals, and succeed in the orga-
nization.
Organizations that have experienced the failure or minimal success of other 'high-profile' projects are strongly
advised to seek support in both planning the competency project and in managing readiness for change. One of
the major activities of a large competency modeling initiative is to prepare the organization to implement and use
the competencies. Ideally, this is accomplished using a well-develop change management plan that is created at
the beginning of the project and is implemented throughout the competency development activities. If the project
is to be successful, the organization must be ready and able to accept and take advantage of the competencies
once they have been developed.
Specific "best practices" in the area of organizational support and buy-in include:
1. Get top management/leadership buy-in from the start and ensure continuing commitment to the project
throughout its life. This includes frequent communications to sponsoring leadership. It also must include
leadership behavior that demonstrates support for the project through memos/messages, resource
allocation, and "cheerleading" activities.
2. In addition to top management/leadership support, the project must have an internal sponsor or champion
throughout the competency modeling and implementation process. This sponsor should be from a business
unit to ensure that the competency modeling initiative is tied to business results and seen as a strategic
initiative to improve business performance.
3. If the initiative is managed by the training department, it is essential that the project have buy-in from
organizations other than training, and use cross-functional teams to help anchor the modeling effort to
performance that matters.
4. Build a business case up front to identify and document goals, and then market the business case to
management and pertinent functional organizations.
5. Identify motivation/incentive factors for multiple levels of the organization so the program passes the
"what's in it for me" test for all groups that might be impacted by the development and use of the
competency models.
6. Elicit and maintain strong support from SMEs and the exemplar performers who will be providing critical
competency information. Without their support, the content of the competency models will not reflect the
most critical skills, knowledge, and behaviors for a job title or position.
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Project Management
Regardless of the domain or focus of a project, project management is a critical success factor. Not surprisingly,
some competency modeling initiatives fail because of nonexistent or weak project management. Tips and lessons
learned in this area include the following:
1. Keep the project size manageable. Don't try to develop competencies for the entire organization all at once.
Based on business strategy and critical capabilities, select an area in which to begin the effort. Rank order
the job titles for which competency models will be developed. Demonstrate success in the selected area
first, and then tackle other areas.
2. If other strategic initiatives and critical projects exist within the organization, proceed with caution.
They have the potential to dilute support and focus for the competency initiative, especially if the same indi-
viduals might be asked to assist with both initiatives. If you must proceed in parallel with another
critical project, separate out the competency initiative and have clear delineation of responsibilities to
manage scope and focus.
3. Apply good project management skills to the competency initiative. Two roles are of great importance: a
strong project manager, and an individual who has the vision and can drive the project toward realization
of that vision. Project management skills that make a difference include: task and schedule execution and
control; budget control; staffing and personnel management; and customer and stakeholder relationship
management.
4. Apply good project management process. A strong project plan is a must. This should include a work
breakdown structure and associated schedule and should indicate individual roles responsible and
accountable for completing the activities. Additionally, a full risk assessment (including stakeholder
analysis) should be done on the project, and a risk management plan developed to mitigate the impact
of the identified risks.
5. Stakeholders must be engaged in the process through project updates, reviews of developing material, or
as a steering committee. Multiple steering committees may be required to support the project, including
an executive steering committee and one comprised of managers who will be validating the resulting
competency models.
1. Consider the "fit" or appropriateness of the methodology (including its processes and tools) with the organi-
zational culture. For example, if you are a global organization with top performers around the world, a
methodology that relies solely on one-on-one interviews with performers will be difficult to implement logisti-
cally. In this type of situation it would be wise to choose a methodology that includes using a web-based
tool to elicit information from top performers around the world (which can then analyzed by specialists).
2. Consider bringing in an outside consulting group with well-defined processes and tools to conduct the ini-
tial competency modeling initiative. Organizations have found that this is often cheaper in the long run, and
is more likely to mean that the project is well run. Furthermore, some organizations are more apt to per-
ceive that outside experts who do this work for a living are more credible than practitioners within the orga-
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nization. If bringing in an outside expert can increase the probability that the resulting models will be
accepted by the organization, it is well worth the cost and effort.
3. Regardless of the methodology used, you must ensure access to employees who represent SME/exemplars
during competency modeling and validation activities. This is a common factor associated with the ability of
the project to be completed on time.
4. When developing the competency model, go with a "straw man" even if it is not perfect, and get feedback.
People usually find it easier to provide useful comments, insights, and extensions once they see a sample
model for their job.
5. Usability of the model is of paramount importance. Keep the competency model content simple, aiming
toward ease of use rather than academic perfection and technicality. Terminology used in competency
labels, definitions, and other content should be recognizable and understood by constituents who will
review and use the model. "Operationalize" competencies by using behavioral language that (a) describes
actions needed to do the job well and (b) can be observed and verified. This increases the competency
model's readability and usability, as well as its reliability and validity.
6. Don't get "bogged down" in the lexicon and semantics of competencies. It is futile to spend hours arguing
over the exact definition of "leadership". Keep the focus on what the competency means within your organi-
zational context.
To do this, develop a short, succinct definition for the competency, and then provide a listing of observable
behaviors that a person in your organization who had that competency would be able to demonstrate.
Another suggestion is to take advantage of existing competency and skills databases. These tools provide
hundreds of competencies and definitions from which you can select. While the competency term and its
definition may be somewhat generic, you can customize these, or customize the behaviors you expect in
your organization. If your project team is likely to engage in lengthy discussion on the exact term to use or
precisely how it should be defined, competency databases provide an excellent solution to help you move
the project along.
7. Competency models go beyond a listing of the standards or core competencies that the job requires; they
should include competencies that distinguish above average or exemplary performance. The purpose is to
use the models to produce organizational capability, and to increase the percentage of performers who
function at, or above average.
8. The development of the model must focus both on competencies required for competent performance
today, as well as competencies that are likely to be required in the near-term future. This requires asking
additional questions during the modeling process, such as "Given the organization's strategy and the busi-
ness context, how will the job have to change in the near future? What new competencies may be
required?"
9. Carefully consider the type of rating scale to be used to define desired vs. actual proficiency. Most models
use a numeric proficiency scale with short labels (e.g., "Prof. 3=demonstrates most behaviors in standard
situations"), although some use behaviorally-anchored scales. While behaviorally-anchored proficiency rat-
ings are more specific and may be easier to use in determining the level of proficiency, they take consider-
ably more time to develop and validate.
10. Validation of the resulting competency model content with managers is an important part of the activity. This
may require simple feedback and refinement during a focus group, or it may be a more in-depth effort,
requiring managers to rate and blind sort their employees against the model. Top performing employees
should be rated higher, and poor performing employees should be rated lower if the competency model is
indeed a valid way to differentiate performance.
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11. Provide commitment to update competency models on a regular basis. Competency models must be
dynamic and responsive to changing markets and strategies.
12. To ensure institutionalization and use of competency models, create processes for reviewing, using, devel-
oping, assessing, and maintaining competency models, and communicate these processes to all levels of
the work force. This may require changes to existing policies and processes, and always requires training
managers and individual performer to use competency models appropriately.
Well-Developed
Competency Models within a
Learning Management System
For example, Saba's learning management system enables individual employees to compare their competency
profile to a competency model developed for the specific job title or role they hold. The system highlights any
"gaps" between the proficiency level they have attained for each competency, and the desired proficiency level. If
their proficiency level is lower than the desired level for a particular competency, they can view and select target-
ed learning interventions that have been linked to the competency. In this way, they can build their own learning
plan to enhance their proficiency in the job they currently hold.
Furthermore, employees can interact online to build their personal career development plan. For example, an
employee could select the job title for the position they desire and compare his or her own competency profile
against the job's competencies and proficiencies. This enables employees to see areas in which they need to
develop new competencies or greater proficiency in a competency they already have, in order to be considered
for a new title or position.
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From an organizational perspective, executives and managers can view capability gaps across the organization
and put plans in place to acquire or speed up the development of needed competencies for key positions and
business units. This ability directly ties competencies to organizational capabilities and business strategies and
demonstrates the payoff of managing competencies across the organization.
Summary
Today, being a capable organization-one that is able to meet competitive challenges and business goals-depends
on the competencies of individual performers. More than ever before, organizations who want to ensure strong
organizational capabilities are developing competency models to help guide hiring/staffing, job design, perfor-
mance reviews, continual development, and career and succession plans for key positions.
This paper describes three principles that can increase the successfulness of (1) competency model development
initiatives and (2) the implementation and use of competency models. Most importantly, organizations should
focus on strategy and business results to ensure that their competency initiatives are well grounded. It is also
important that organizations learn from previous competency modeling initiatives to take advantage of best prac-
tices and lessons learned in the areas of: organization support and buy-in, project management, and methodology
and techniques. Finally, organizations should use learning management system technologies to increase the ease
with which individuals can interact with their competency model, compare it to the standard for the position they
hold, and use it to develop their learning and career plans. Only when individuals actively use their competency
models will organizations be able to use these models for succession planning, gap analysis, and effective man-
agement of their valuable human asset.
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Email kmcgraw@cognitive-technologies.com
Web www.cognitive-technologies.com
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