Applications of Competency Model in an organization

Organizations are using competencies in virtually every human resource domain. They provide
criteria that can be applied to each of the human resource practices shown below:

Competencies are used as the "key criteria" for implementing each application. In other words,
competencies are framed into a specific tool and accompanied by guidelines defining how
managers and employees use the tool to produce results in each of the above areas.

How can performance management work in a competency-based system?

Ideally performance management is positioned as a process comprised of steps that include planning,
managing, evaluating and rewarding performance. Often, the competencies used in performance
management are either a subset of the total competency model, or the definition. In addition, the
performance appraisal process includes goals, expected results, and competencies. It is an ongoing
process that aligns and integrates the objectives of the organization, business units, teams and
individuals. Competencies specify precisely how individuals can align their activities to the key
strategies of the organization.

What is the business impact of competency-based systems?

Often leadership programs or performance development interventions are seen as important, but focused
on "soft skills" that may not affect business results. One of the most important developments in human
resources is the clarification of the "business value" of key programs. Some of the measurable benefits
of competency-based performance development are listed below. These kinds of impacts improve talent
levels, save money, and improve business performance.

Specific Improvements Related to Using Competency-Based Systems -

• 5-10% in rate of hiring successful candidates.

• 15-20% in retention of desired employees.
• 15-25% in morale as measured in employee surveys.
• 20% in goal completion by individuals and teams.
How can competencies be used in a coaching/self-assessment process and tool?

Competencies can be formatted into a coaching/self-assessment tool that allows employees and/or
managers to rate competencies for performance level and degree of importance, and to provide evidence
(e.g., noting specific accomplishments or evidence of potential performance problems) to support their
ratings.

What are the advantages of using this coaching and self-assessment tool?

The primary advantage of this assessment tool is that it can be used in the course of day-to-day
activities.

• Managers may apply it to assess overall performance (e.g., as an adjunct to an appraisal),

conduct a dialogue comparing ratings with a direct report, or to focus on one or more
competencies in a short coaching session. Individuals can apply it as an observation checklist to
evaluate role models, as a quick method for personal assessment, or as an ad hoc multi-rater tool
(by soliciting inputs from managers, colleagues, etc.).
• Teams can use it as a vehicle to introduce the concept of competency standards and to determine
total team strengths and vulnerabilities.

What are the benefits of the coaching and self-assessment tool?

The most important benefits of the assessment tool are that it:

• Helps the manager focus coaching and development discussions, perform them faster and more
objectively, and involve their direct reports in more self-directed assessment and development;
• Helps individuals take realistic responsibility for their own evaluation and development; and
• Helps teams maintain their focus on critical success factors, and target and confront overall team
vulnerabilities.

When can and should a 360° assessment process and tool be used?

This process can be used by anyone in an organization for whom there is an appropriate competency
profile. However, a 360° assessment process works best when used selectively. The tool can provide
very accurate evaluation data when relatively unbiased information is collected from a range of people
who observe an individual's work. This form of assessment requires data processing, incurs costs, and
requires time from several people to complete ratings. Therefore, it should be used in specific situations,
such as:

• A major career transition or job change;

• A reorganization or major realignment of a team or organization (to target new performance
criteria);
• Developing objective evidence about and feedback for a problem employee;
• Developing a plan for leveraging the talents of excellent employees (e.g., high potential groups);
and
• Developing plans for high-impact groups (e.g., managers, executives, boards of directors)
360° assessment works as well for teams as it does for individuals. Composite reports for whole teams
and business units are excellent vehicles for evaluating group vulnerabilities, strengths and for
developing total team competence.

What are the benefits of a 360° assessment?

The 360° assessment process provides more accurate, objective, and extensive feedback than other
forms of competency evaluation. It is an excellent method for gaining relatively unbiased insights into
development targets and for clarifying differences of perception between an individual and their
managers, colleagues, direct reports, and customers. In addition, individuals can access development
advice related to competency gaps and create development plans at their own unique homepage.
Individuals can share their data, reports, and development plans online with their manager.

Who usually participates in the 360° assessment process?

The 360° assessment process is most effective when an individual receives feedback from a diverse
group of individuals (6-10) who directly observe an individual's work (e.g., manager, dotted-line
manager, internal and/or external customers, colleagues, and direct reports as well as themselves). While
a larger and more diverse data pool provides more valid assessment, the desire for rich data needs to be
balanced against the time and resources required to complete the tool.

How does an individual receive their feedback report?

Usually, individuals receive their feedback report online at their homepage and bring their report to a
specific debriefing session facilitated by a person certified in the process of debriefing 360° assessment
feedback. During the debriefing session, an individual evaluates the results, and creates an action plan
that helps them set goals for leveraging their strengths and developing in areas where they need
improvement. They can also go back to their homepage at the Voyagerä site and explore different
options for development. 360° assessment feedback is most effective when it is:

• Debriefed in a safe context (e.g., separate from performance appraisal);

• Debriefed by trained facilitators;
• Linked to an important human resource process or goal (e.g., a performance management
process, leadership training, etc.);
• Translated into specific development goals and actions that are tracked over time; and
• Dialogued with managers and the individual's team in follow-up discussions.

How balanced are 360° assessment tools as they relate to bias, gender, and nationality?

While 360° assessment feedback does not eliminate all forms of rater bias, well-constructed competency
profiles focus on successful behaviors of excellent performers written in neutral language and, therefore,
tends to "level the playing field" and eliminate significant bias.

What are best practices related to succession planning?

The criteria applied in succession planning should be multi-dimensional, simple to assess, and linked to
"future" success. Frequently, we help companies develop customized success factors of the following
types:
 • Critical Competencies. Behavioral criteria linked to successful performance of a key role.
• Key Experiences. Specific work settings, assignments, or accomplishments required for growth
and credibility of leaders across the career span.
• Results. Objective outcomes of negotiated goals and/or specific contributions to the team or
organization.

What's the best method for interviewing?

The best available method for overcoming potential vulnerabilities in the interview process and for
identifying specific behavioral criteria for excellence is a behaviorally-anchored evaluation. In order to
perform this type of interview, a model that describes objective criteria of success for a specific job role
(e.g., a success template) is used. In addition, an excellent hiring intervention should focus on:

• Traits and leadership skills that are most difficult to develop on the job through training and
development.
• Those skills that are critical for top performance in a specific job category.

This method of hiring and selection helps interviewers perform the most significant part of the screening
by using an objective scoring procedure.

What are best practices for individual development?

It is important for individuals to view their own development as a continuous improvement process.
Most personal change initiatives fail because of a lack of follow through. To succeed, individuals
should:

• Keep focused on targeted improvement areas

• Clarify what excellent performance looks like in action (e.g., discuss excellent performance with
manager/coach/team members; identify models to emulate)
• Arrange for frequent behavior practice
• Solicit frequent feedback
• Revise and update improvement strategies
• Track progress by reviewing objective evidence for improvement/continuing development needs