Competency-Based Management

Agenda

What are competencies?

Building a competency model
Why competencies?
Designing an integrated HRM system
Performance management
Rewarding for competencies

What are Competencies?

Personal
Characteristics

Behavior

Performance

What are Competencies?

Customer
Responsiveness

Clarifies customer
requirements and develops
ways to address them
Continuously evaluates
customers goals and concerns
to maintain responsiveness
Looks for ways to add value
by improving process
Builds confidence in
customers that their needs are
given the highest priority.

Sales
Customer
satisfaction
New products,
services, and
processes

What Competencies are not

Exclude baseline behaviors
Follows-up on customer contacts
Answers customers inquiries accurately
Responds quickly to customers complaints

Exclude baseline skills

Programming skills
Research skills
Knowledge of financial systems
These do not distinguish excellent performers from others!

Building a Competency Model

CORE

Core Competencies:
Competencies that are important for all jobs at all
levels of the organization

Building a Competency Model

Functional Competencies

nce
Fina

H
Re um
s o an
ur
ce
s

Sales

Ma

h& t
c
r
s e a pm e n
e
R elo
v
De

CORE
n
u
fac
tu
r
ing

In
f
o
r
m
a
tion
Sy ste m
s

In
di

i st

de
r

te g

Le
a
vi d
ua

Te
am

H
Re um
s o an
ur
ce
St
s
ra

Role Competencies

nce
Fina
Ma

n
u
fac

tu
r
ing

h& t
c
r
s e a pm e n
e
R elo
v
De

Building a Competency Model

Sales

CORE

In
f
o
r
m
a
tion
System
s

Developing Others

Relationship
Building

Organizational Awareness

Direct Persuasion

Strategic Thinking

Group Leadership

Concern for Personal Impact

Concern for Order

Achievement

Takes Initiative

Technical Expertise

Group Leadership

Building a Competency Model

Executive

Manager

Individual
Contributor

Sample Competency Models

Customer Service

Information Technology

Sales Orientation
Rapid Relationship
Building
Problem Solving
Resilience/Persistence
Self-Management and
Organization

Information Technology
Leadership
Technology Application
Consultation
Project Performance
Systems Development
and Implementation

Tools for Building Competency

Models
VALIDITY

METHOD

Behavioral Event
Interview
Focus Groups
Surveys
Management
Decision
Expert Systems

EFFICIENCY

BUY-IN

Competencies Must Be . . .
Aligned with vision, values, and strategic
business goals
Relevant to a wide range of jobs
Observable
Predictive of exceptional performance in
the job

Why Competencies?
Competencies improve individual and
organizational performance to the extent they:
Raise the bar
Provide anchors, expectations, and relatively stable
measures of success
Provide a method for empowerment and accountability
Provide a method for more equitable (and full of
impact) appraisal and compensation
Represent the engine for an integrated performance
management system

An Integrated Human Resource

System
Performance
Management

Compensation

Succession
Planning

COMPETENCIES

Selection

Career
Development

Training