Key Findings of a Recent Survey
Just under half of the respondents state their organisations have a competency
system. Almost another quarter say their organisation is planning to adopt this approach.
The most popular reason for adopting a competency approach is to use it as a
training and development tool - over half of the respondents state this. Significantly,
over a third stated a desire for a more systematic human resource management function as
the reason, and a further one in three view a competency approach as useful to support a
change in organisational culture.
The survey reveals that the three key areas of a manager's performance are team
working, people management and communication - almost three quarters of
respondents state their organisation had a competency covering these areas.
The major benefit of a competency approach, according to our data, is the shift
towards the individual taking responsibility for their own
development through continuous learning - 62% state this. Other benefits are that a
competency approach focuses on continuous development, it defines explicit standards, and
concentrates on outcomes.
The main drawback of a competency approach is that it is time consuming - 67% of
respondents state this. Respondents also claim that it is difficult to convey the concept,
as well as stating that managers feel threatened by the approach.
Case Studies
The six organisations profiled in available case studies have all implemented a
competency approach, using several different methods, and all tend to use them for a
variety of purposes. However, several best practice features were identified by all of
them.
Each organisation has tried to make their scheme as simple as possible in order
to ensure its success. Linking the competencies to the overall business strategy was
seen as vital to their success and the success of the business.
All the case studies saw the competencies as providing explicit standards and
guidance to staff about what the organisation required of them. This has the advantage of
helping to motivate staff and showing them how they can progress through the organisation.
Consultancy
The need for organisations to gain the edge on their competitors has made it
essential for managers to be able to measure the performance of their staff and identify
improvement measures. A competency approach aims to do just this by identifying the
competencies required to do a job. From this real development needs can be assessed, and
measurable performance improvements can then be evaluated.
However, the mistake that organisations can make when adopting a competency
approach is to see it as just a training initiative, and divorce the competencies from
other areas of the business. Organisations must identify competencies that have a
direct link to the business values. They must also involve the people who they are
asking to live up to the competencies when defining them in the first place. Initially
managers can feel nervous about a competency approach, but with support and training this
should be short-lived.
A competency approach also shifts the responsibility for a person's development
onto that individual. The person now has to demonstrate their value for money. They can no
longer depend on enjoying the security of a job for life. However, in our opinion this is
not necessarily a bad thing; hopefully it means that they can enjoy the security of their
own resources and competence.
The conclusion is that British industry is crying out for a competency approach.
Reviewing a manager's performance in the past has too often been an act of faith, while a
competencies approach provides a mechanism to more accurately review performance.
What are Competencies?
"A competency is the set of behaviour patterns that the incumbent needs to
bring to a position in order to perform its tasks and functions with competence" Boam
and Sparrow. The key point however is that being competent means performing to
professional or occupational standards.
Why Competencies?
The prime business case for the development and use of competencies is to
improve the profitability of the business. This is achieved by maintaining a
competitive edge through ensuring the right people, in the right jobs, doing
the right things, in a superior way. Other benefits include:-
- Improved individual performance: working with a competency approach allows
employees to be very clear about the standard of work that is expected of them.
- Business alignment of the human resource strategy: by providing HR systems
which focus on standards of performance identified to improve individuals and the
business. There is also increased potential to spell out standards of performance to line
managers, as well as providing a common language for desired business performance.
- Recruitment: When organisations are clear about the competencies they
require, then prospective employees - and internal candidates - can identify where they
match them. This encourages focused applications. Also it enables the selection of staff
to be linked more clearly to the business needs.
Organisational Culture
If an organisation needs a major culture change then the introduction of
competencies can be a key factor in effecting change. The main benefit of this
approach is that it enables the organisation to firstly identify the success factors
they want to gain and then determine the sort of competencies their staff will need
to achieve their success. Organising a strategic plan around individuals and agreed
standards rather than structure and jobs represents a different
paradigm and as such requires new systems. The explicitness of the competencies then
provides a sense of purpose and a focal point for cultural change.
To adopt a competency approach without integrating it into the overall
strategy of the organisation will dilute most of its effectiveness.
Setting up a Competency System
In order for the competencies to have real benefit they must be integrated into
the overall business strategy. Organisations need to identify what kind of organisation
they want to be and then define the competencies they need in order to achieve this.
Key areas to pay attention to:
- Involve staff: it is vital to involve staff from the beginning - avoid trying to make it a "secret" approach. Have focus groups to identify
competencies, and then make sure that you canvass as many views as possible.
- Define the right competencies - make sure they are not just an amalgam of
different competencies. It is very useful to involve an outside consultant, not
necessarily to design the competencies, but to help identify and tailor the competencies
to the specific organisation.
It can be useful to separate the competencies into three categories. Technical
- the specific skills required; functional - the processes that form the role, for
example, running a meeting, coaching staff and finally behavioural - this looks at "how" a person does their job - the behaviours they display. The behavioural
competencies require the most attention. It is far more difficult to change
behaviour and deal with the underlying values and motives than to help people to learn the
technical skills and processes.
- Future orientated: Make sure the competencies are not retrospective. An
organisation needs to identify the competencies required for their future success.
However, avoid the danger of including ill-defined desirable organisational
characteristics which have no measurable impact on superior performance.
- Benchmark against other organisations: When designing a competency scheme,
it can be very useful to consider how other organisations have approached it. Also the Management
Charter Initiative (MCI) provides a generic list of competencies, put together through
a thorough consultation process with managers across the UK. It can be useful to view the
MCI generic competencies as a benchmark when forming your own set.
Measuring Competencies
Having defined the standards of competence required, it is useful to produce a
scale or range of levels to match job profiles against. Once people become familiar with
the approach it becomes easier to identify what they need to do to progress.
Each competency must be clearly defined so that managers know what standards are
required of them. However the scale system should embrace a development approach, with
people moving from an adequate performance - just doing the job -to a superior
performance.
Managing Competencies
When implementing a competency programme keep in mind the following:-
- Involve managers from the start, and continue to get feedback from them as to how
the approach is working.
- Make sure that people understand the competencies - otherwise this could lead to
frustration and confusion.
- Don't keep the competencies a secret - make sure all staff are aware of the
competency standards.
- Make sure the standards are fair and don't prejudice any sectors of staff.
Use of Competencies
The competency approach is particularly useful in the following areas:-
- Change management: by identifying the behaviours required for improvement
and establishing a mechanism for driving through change.
- Succession management: the competence approach gives clear information on
individuals and their potential.
- Performance management: the competencies provide clear and specific
information on performance with criteria for reward focused on key competencies.
- Selection and recruitment: the competencies provide a framework for
identifying the standards required for superior performance. This means that the
interviewing process can be more objective and have key, measurable standards to judge
candidates against.
- Development: competencies enable development and training to be focused on
specific needs. Inappropriate nominations for development can then be reduced.
Self-development is encouraged because the competencies identify explicit learning and
development gaps.
- Human resource planning: again the competencies should improve HR
planning, as the core competencies allow for a better managed workforce profile.
- Appraisal the competencies provide a constructive basis for any appraisal
system, mainly because they provide measurable outcomes, and also help to clearly identify
training and development needs. As all competencies should tie into the overall business
strategy they help the appraisal to focus the individuals on their vital role in the
overall success of the business.
Evaluating Competencies
If the competencies have been evolved as part of the overall business strategy,
then the best way to evaluate their effectiveness is by linking them to the business
results. Ultimately an organisation would expect to see match between the improved
performance and the increased business success.
Another way to monitor the effectiveness of the competencies is through an employee
opinion survey. The results of a survey, after a competency approach is established,
should show an improvement in staff opinion, particularly in the area of leadership,
management style and culture.
It is important to review the competencies regularly. Just as
business is not static so also some competencies will mature and die; just as parts of the
business do. Others will emerge as markets and services change. They are definitely not "tablets of stone". Reviewing their relevance will ensure their continued
vitality. |
