Competencies that Count

COMPETENCIES THAT COUNT

September 9, 2011

Our topic

© Beacon Associates, Inc. 2011 2

• A performance based approach to identifying important organizational or job competencies and the outcomes or artifacts that an individual needs to produce as a result of that competency, in order to, drive organizational results

Session Overview

• Introductions

• Key concepts

• The performance chain and where competencies fit

• 5 steps to building a performance-based competency model

• Making practical use


Introductions

• Name and where you are from

• Why do you hope to get out of this session?

• What are your critical priorities for the future?


Discussion


• How many of you have ever developed a competency model?

• How many of the small businesses you support have some sort of a competency model in place?

• What would you say are the biggest influences and obstacles to performance in the small businesses you support?

DIS

CUSS

ION

KEY CONCEPTS


Typical Competency Use and Alignment


Competency

Hiring and Selection

Training and

Development

Compensation

Career Path &

Succession Planning

Performance Management

Presenter

Presentation Notes

Organizations use competencies in a variety of ways – the ultimate goal would be for an organization to utilize and integrate their competencies into all listed here in order to insure they have an organization engineered to achieve desired business goals. Most organizations however only apply a competency based approach in one or two of these areas – I have worked with a number of organizations and developed competencies for use in just one or two of these applications. Each time I ask or provide insight as to how competencies can be integrated to a greater degree in other applications – I get some resistance. I have never been able to get a good answer as to why companies to apply them more broad based – its not really a matter of extra work – its just a matter of being more thoughtful and more STRATEGIC During our discussion today we will talk first and foremost about how to define competencies and the results they must produce as well as touch on how to then integrate these competencies and corresponding outcomes into various applications throughout an organization. Let’s move on and look at a some key concepts and terminology to keep in mind when thinking about developing competencies that count

Human Performance Improvement

• Human Performance Improvement – The theory of human performance improvement (HPI)

focuses on defining the outcomes, results and accomplishments achieved by a person, group or organization that lead to organizational success

• Thomas Gilbert – Human Competence – Engineering Worthy Performance

• Behavior is a necessary and integral part of performance, but we must not confuse the two.

– In performance, behavior is a means, and its consequence is the end – Observing a behavior in isolation tells us very little about performance

Presenter

Presentation Notes

The foundation of the work to define a strategic performance based competency model is rooted in the theory of HPI There are many variations on the definition of HPI – but the core of HPI focuses on the outcomes, results, accomplishments achieved by a person, group or organization. One of the key thought leaders that we follow is Thomas Gilbert – author of Human Competence As Gilbert says – behavior is a necessary and integral part of performance, but we must not confuse the two – we cannot assume that a behavior will produce the results that we need It is important for us to look at and define the results or “consequences” the behavior produces and determining whether or not those results are valuable to our organization’s success Let’s move on to cover a few other concepts

Influences to Performance

• The six influences that affect human performance

Information, Expectations & Feedback Tools & Technology Structure & Process

Skills, Knowledge

& Behavior

Selection &

Assignment

(capacity)

Motives & Consequences (attitude)

Presenter

Presentation Notes

Gilbert also developed the 6-Box theory of HPI – now this isn’t a class in the theory of HPI – this is just background and foundation for why we should be developing competencies that count The 6-Box theory is simple – it says that there are 6 influences to our ability to perform on the job The top three – are external influences to our performance The bottom three are internal influences – Notice how behavior is just one of the influences Gilbert’s 6-Box model reinforces his point that behavior is a necessary and integral part of performance, but we must not confuse the two and assume that a person’s behavior alone leads them to produce critical job outcomes – there’s more to it – We need to take all of these into consideration – an individual’s competency levels is just one of the key components to look at

Outcome – a Definition


• Outcome

– The output or end result of a set of actions by a performer that is directly linked to producing a desired business result

– Sample outcomes are:

• A strategic plan

• A quarterly report

• A succession plan

• A successful proposal

DEF

INIT

ION

Presenter

Presentation Notes

A very important term and concept that is key to developing competencies that count is - outcomes Outcomes are at the heart of HPI They are the end result of a set of actions by a performer that is directly linked to producing desired business results. Said another way – outcomes are what we leave behind or artifacts that we produce on the job Outcomes should be directly related to producing desired business results. We’ll see in a minute how outcomes, and competencies fit into the performance chain

Some properties of outcomes

• Any job can be defined and measured in terms of outcomes

• Outcomes provide a ‘lens’ for us to differentiate between high and low value activity

• 99% of jobs roles can be defined in fewer than 9 outcomes

• Outcomes make it clear where to focus time and energy

• Outcomes provide a foundation for development and improve transfer of training


Competency – a Definition


“Certain characteristics or abilities of a person that enable him or her to demonstrate the appropriate specific actions.”

(Boyatzis, Richard E. The Competent Manager: A Model for Effective Performance. New York: Wiley, 1982, p. 12)

DEFIN

ITION

Presenter

Presentation Notes

A competency is defined as…. Let’s transition now to look at the Performance Chain and how this all fits together and how outcomes and competencies fit into this performance chain

THE PERFORMANCE CHAIN Where do competencies fit?


The Performance Chain

Influences Tasks & Behaviors

Key Work Processes Outcomes Results

Influencing factors affect people as they perform tasks that are a part of key work processes which enable successful outcomes that achieve business

results




Influencing factors affect people as they perform tasks that are a part of key work processes which enable successful outcomes that achieve business

results

Behaviors/Activity




The key to the performance chain is how influences, tasks and behaviors, key work processes produce outcomes that

lead to results

Presenter

Presentation Notes

What we want is RESULTS – so defining the outcomes a behavior needs to produce is critical component to help us achieve the results we need. Many organizations assume an incorrect assumption -- that - because a set of behaviors CAN lead to desired business results, does not mean that they WILL

The Transitive Principle of Performance

• In business, we often assume that: – IF Behaviors A with Performer A = Results A

• THEN Behaviors A with Performer B = Results A This is NOT the case with behaviors

• For a deeper explanation of this point see Human Competence: Engineering Worthy Performance by Thomas Gilbert


The Transitive principle states: IF A=B AND B=C THEN A=C

Competent – Yes…Valuable…Maybe?


“Congratulations, your competencies ratings are all exceptional!

Now as soon as we can figure out what you actually accomplish for the company…”

Presenter

Presentation Notes

This is the challenge that only defining competencies/behaviors present --- they don’t describe exactly what you are supposed to accomplish with the behavior!

Challenges

• Relevance – job performers don’t

understand “how this applies to me”

• Attention span – models get too large and

unwieldy

• Disconnect from performance – models

describe CAPACITY for successful

performance and miss the link to results


Challenges


“I spent months on these models and then they were barely used. Not because we didn't put the due diligence into making sure the organization was ready (we did), but because we missed something very important”

DIS

CUSS

ION

What did they miss?


"What does this mean for my job?"- What do I need to accomplish every day that shows whether or not I am on the right path?

DIS

CUSS

ION

Presenter

Presentation Notes

They missed the step to define the critical job outcomes necessary to be produced by the competency so that The performer knows what they need to accomplish in order to drive results Managers and leaders can measure and evaluate performance and provide coaching and feedback Can develop selection models that help to hire for people that have the ability to produce critical job outcomes



Key Work Processes Outcomes Goals

Influencing factors affect people as they perform tasks that are a part of key work processes which enable successful outcomes that achieve business goals

Presenter

Presentation Notes

They stopped here…. Tasks and behaviors and KWPs …they didn’t define outcomes that the behavior needs to produce So the key is to then define outcomes that need to be produced as a result of demonstrating that behavior Let’s take a look at an example

Competencies that count

• Consider the following competency: Developing Direct Reports


Provides challenging and stretching tasks and assignments; holds frequent development discussions; is aware of each direct report’s career goals; constructs compelling development plans and executes them; pushes direct reports to accept developmental moves; will take direct reports who need work; is a people builder.

1. Is willing to make job assignments based on people’s development needs or preferences rather than who can do the best job every time

2. Helps individuals leverage their unique talents, experiences, and style as they work on their development opportunities

3. Schedules regular development discussions

4. Works with individuals to ensure action on their IDPs

5. Knows when to let go of the details in order to help others learn from experience

• A net exporter of talent

• Individuals developed beyond their current role

Presenter

Presentation Notes

Here’s an example of a competency – Developing Direct reports The definition is ….. On the left hand side are a set of behavioral indicators On the right are a few possible outcomes that may be produced as a result of demonstrating this behavior ASK can you think of others – Others may be An autonomous high performing team A culture of performance Talent aligned to roles and team

QUESTIONS?

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Presenter

Presentation Notes

I WOULD LIKE TO STOP HERE AND ASK FOR QUESTIONS

BUILDING THE PERFORMANCE BASED COMPETENCY MODEL 5 STEP PROCESS


Presenter

Presentation Notes

Let’s move on to now talking about the steps to developing a performance based competency model

1. Organizational competency framework

• Develop an Organizational Competency Framework • Should answer the questions…

– How do competencies “fit” in the organization? • To extend and support the organizations vision/mission • To plan for and meet execution capacity requirements

– How do the organization's goals and its strategic initiatives for achieving those goals rely on capacity?

– How does development of performance capacity integrate with the HR and Learning functions?

– How do Human Performance requirements integrate with strategic management plans and where are the capacity needs and gaps?


Presenter

Presentation Notes

Developing an organizational competency framework is an exercise in evaluating what an organization needs from its human capital, both currently and in the future in order to achieve strategic success. The organizational competency framework provides an organization with the clarity on what HP factors / competencies the organization needs to achieve and sustain that success

1. Organizational competency framework

• In developing the Organizational Competency Framework, we must consider the connection to human performance factors


Past Performance Current Performance Predicted Performance

Vision How has the workforce translated the vision to action in the past?

Where have the disconnects occurred?

How closely does our current execution support our vision?

What HP factors prevent better alignment?

Will the Vision be updated/modified to reflect future trends?

What will the workforce need to do in the future to align more closely with the vision?

Mission How has our mission carried forward or been changed by our execution capacity?

How do our current human performance factors align with our mission?

What effect would a change in our mission have on the workforce?

Business Model

How well has our workforce performed within our business model?

How is our workforce capacity aligned to driving success within our current business model?

What can be changed (workforce execution of the model) to drive greater success?

Presenter

Presentation Notes

In developing the Org Competency Framework we must consider the connection between the fundamental operating principles and human performance factors We need to consider our vision – Past How has our workforce translated that vision into action in the past? Where have the disconnects occurred? Have disconnects occurred because of things like, individual performer capacity or motivations, if so then how perhaps do we need to consider adding a competency like organizational orientation to our competencies. Current Need to assess if current execution and results is in alignment with our vision. Consider and evaluate what HP factors/influences may be both supporting alignment or preventing alignment Future Need to consider if vision will be updated/modified to reflect future trends – if so need to consider what the workforce will need in the future Next we need to look at our mission and ask ourselves…. Past – how has our employee capacity or motivation affected or supported our mission. Has it changed our mission? Current – does our current workforce produce results and outcomes in line with our mission? Future – How will a change in our mission or vision change our employees ability to produce results? Will the change be so dramatic that our current workforce will not have the capability to produce the results we need? Lastly – we need to look at the connection between the business model and HP factors and…. Past – evaluate how well our workforce has performed within our business model. If an organization is achieving the success they set out to in their business model – then this may be an indication that they selected the right people with the right behaviors to produce the results they need Current – Evaluate if the current workforce is producing results and leading the organization to the desired success Future – If the business model changes – how can we change the ability of the workforce to continuously achieve success This is an exercise in determining what competencies and outcomes an organization needs from its workforce to achieve success now and into the future. When conducting this exercise its critical to consider past, current and future performance needed to sustain and continuously achieve success. Unless the organization employs robots – this activity is important because it will help the organization define what performance criteria they need now and into the future. Those performance criteria should be based on the organization’s mission, vision and business model STOP – ASK FOR QUESTIONS

2. Establish and define use scenarios

• Performer application – How will the model provide clarity for performance? – How will the model be used to illuminate a development path?

• Key Stakeholder needs – What are critical expectations from Key Stakeholders? – How will Key Stakeholders make use of the model to drive business

results? • Applications – How will the model be used in the organization

– Hiring and Selection – Talent Development – Succession Planning – Performance Management

• NOTICE THE ORDER!


Presenter

Presentation Notes

Establish and define use scenarios – how will the competencies be used in the organization First – consider how will an employee use and or apply this model – or how it will benefit their performance Ask – How will the model provide clarity for performance How will the model be used to illuminate a development path Next – define what key stakeholders or business leaders need Define their expectations How and will key stakeholders make use of the model to drive business results Lastly – define how the model will be used in the organization Define to what degree the competencies will be implemented into various applications like Hiring and selection Training and development Succession planning It’s important to notice the order here – the primary focus for the models should be – how will the models improve performance for the employees in the organization.

3. Build the performance model – critical outcomes

• Options – if building organically – Use a HPI analysis methodology such as

Performance DNA™ to capture critical outcomes produced by key performers

– Sample questions • What do you produce in your job that is the most

important?

• When your day (and job activities) has gone very well and everything has fallen into place, what do you leave behind when you are done with everything?


Sample template for collecting outcomes


Outcome in role (Primary) Outcome EX3 – Talent developed and capable of executing current and future strategy Importance Extremely Difficult Percent of Job time 25% Difficulty Moderately Difficult Success Criteria • Talent can own what they do and represent it

• Talent is capable to move on to another role • Talent is capable of doing their work on their own • Talent that can take on stretch assignments with little direct oversight and direction

Barriers • Lack of consistent face to face time • Giving too much responsibility too slowly • People's self interest • Lack of HR presence in some regions to lead these initiatives • Lack of investment • Lack of training to help bring people to senior levels • lack of standards for leadership training • Silos • Managers who don't understand how to foster senior people • Challenging to keep senior people around • Cultural challenges

Facilitators • Performance management systems tied to competencies and goals and mission • Career ladder for development into senior (technical) roles • Strong leadership capability to coach and mentor • Constant feedback • Know when to let go • Expect the best • Celebrate success • Leadership commitment across the organization to develop talent into senior roles within

functional roles - leaders need to understand what their peers are doing in terms of talent development and find common ground

• Leadership support that encourages cross-functional assignments

Presenter

Presentation Notes

HAND OUT TEMPLATE FOR COLLECTING OUTCOMES – Let’s look at a sample completed outcome template This is an example from a CVP role After asking the key performer what they produce in their job then identify the importance and the difficulty as well as percent job time – This will help us to rank these outcomes and corresponding competencies in terms of importance and drivers for success in producing critical job outcomes

Outcomes weighting and ranking


Outcome % Job time Importance Difficulty

EX 1 - An organizational design and structure that produces transformative

16% Extremely Important Very Difficult

EX3 - Talent developed and capable of executing current and future strategy

16% Extremely Important Moderately Difficult

EX5 – A clear strategy for the business unit or region

16% Extremely Important Moderately Difficult

EX2 – A strategy to attract and retain top talent around the world

13% Important Very Difficult

EX4 – A succession plan 13% Important Very Difficult

AL 1 – An integrated high performing team with appropriate autonomy

9% Important Moderately Difficult

EN1 - A compelling vision about how the team will succeed

6% Moderately Important

Moderately Difficult

AL2 - A high performing cross-functional team



AL3 – Talent aligned to roles and team 3% Important Moderately Difficult

EN2 – A strategy to communicate goals and objectives



Presenter

Presentation Notes

Weighting and ranking the outcomes collected for a given job/role will help us to evaluate the outcomes and corresponding competencies when it comes to developing things like a selection model We will look at a sample matrix that shows an alignment of outcomes to competencies shortly


• Options – working with a generic competency dictionary/library – Review generic competencies and define outcomes to be produced as

a result of each behavior that will lead to desired business results


Presenter

Presentation Notes

In some cases the organizations you support may not have a staff of key performers to interview – in that case you may refer to a generic competency dictionary and select the competencies you feel are necessary to produce critical job outcomes. Your selection should be based on the competency framework and the key questions and answers related to current and future performance.

Activity

• Instructions – Select a small business your group is working with

– Choose one or two competencies your group feels are critical to support current and future success

– Review the competency and behavioral indicators

– Define the critical outcomes that must be produced to achieve business results

– Share findings with the large group


Presenter

Presentation Notes

Let’s work through an activity in small groups For this activity, discuss and select as a group which type of business you are working with As a group - review the competency and behavioral and define the critical outcomes that must be produced by demonstrating that competency for your organization Let’s look at an example


• Base the data collection on identified use cases – Focus on core outcomes if the model is meant to

serve a broad population in the organization

– Could be job-specific

• Remember – the closer the outcome definition is to actual performance, the higher connection will be to real results


4. Build the performance model – Map key work activity

• Use a HPI analysis methodology such as Performance DNA™ to capture critical work process and task data

• Focus on getting a clear picture of – How the work supports the outcomes – Work processes – which are critical, where are the

challenges and what facilitates success – Tasks – what are the skills, knowledge and

characteristics required


Presenter

Presentation Notes

HAND OUT TEMPLATES FOR COLLECTING WORK PROCESSES AND TASKS Need to define – key work processes and tasks – how do they support outcomes

5. Identify and Map Competencies to the Model


Calculate Total Alignment

for Each Competency

Identify Most Closely Aligned Competencies

Identify Competencies

with no Alignment

Document Outcomes Associated with each

Competency

Alignment Against

Each Outcome

Key Work Activity Competency Definitions &

Behaviors

Existing or Library

Critical Outcomes

Sample competency alignment grid


Competencies Outcomes Building

effective teams

Business acumen

Command skills

Customer focus

Dealing with ambiguity

Developing direct reports

Drive for results

Financial acumen

Hiring and staffing

Motivating others

Strategic agility

Well communicated vision

X X X X

Believable well defined goals, roles and responsibilities clearly communicated

X X X X X

Effective execution strategy with clear milesontes

X

Team that understands what goal attainment means to them personally

X X X X

Talent aligned to team and responsibilities

X X X X

A high performing cross functional team

X X X X X X

COUNT 4 0 3 0 1 4 3 0 2 4 3

Adding Competencies

• When adding competencies, use outcomes as a lens through which to review and refine behaviors

• Identify “behaviors” and ensure they are measurable and contribute directly to the outcomes.

• Identify new “behaviors” that need to be added to reflect ‘critical actions’.


Competency Name

Definition Outcome Behaviors

Presenter

Presentation Notes

Think back to the org competency framework we reviewed in step 1 – Let’s say an organization’s business model is changing and they need to add or take away a competency They shouldn’t just add the competency “because” – there should be some need like - the current competency and outcomes produced no longer is critical for organizational success. Example – Sepracor – Organizational Orientation – was a core competency hired for. Once the organization had grown into a larger and more sustainable organization – we removed that competency and added competencies related to Resilience and Self-Confidence. This was because it was once critical for individuals to make considerable sacrifices to build the organization – but once the organization grew into a larger more sustainable organization – making those sacrifices to produce critical outcomes – was less critically important. The organization now needed confident and resilitient sales people out in the field – representing the organization and their products. In short they had worked hard to get skin in the game and now they needed to maintain their place/standing in the game

Adding Outcomes to Competency Models: Example – “Building Effective Teams”


Blends people into teams when needed; creates strong morale and spirit in his/her team; shares wins and successes; fosters open dialogue; lets people finish and be responsible for their work; defines success in terms of the whole team; creates a feeling of belonging in the team.

Helping and Learning

Stage I

Contributing Independently

(Personal Leadership)

Stage II

Contributing Through Others

(Local Leadership)

Stage III

Leading Through Vision

(Organizational Leadership)

Stage IV

Outcome:

Measured by:

Outcome: Measured by:



• Learns the roles and interdependencies within the team

• Becomes familiar with team’s goals and objectives

• Actively participates in team activities

• Learns and adheres to team principles, ground rules, and norms

• Learns to demonstrate respect for team members of all lifestyles and backgrounds

• Takes into account how his/her actions affect the whole team

• Independently completes his/her fair share of the team’s work

• Considers the opinions of other team members

• Works to support a team decision once made, even if s/he didn’t agree initially

• Shares information with teammates to improve team effectiveness

• Exemplifies respect for team members of all lifestyles and backgrounds

• Has a special talent for pulling together people with diverse styles, perspectives, backgrounds and experiences

• Creates a team where individual differences and similarities are respected, valued, understood, and optimized in the context of team goals

• Promotes a spirit of cooperation and teamwork

• Recognizes/rewards team players for successes and effective teamwork

• Makes maximum use of the styles, backgrounds, and experiences of all team members

• Encourages exploration of differences of opinion and potential contribution

• Champions a corporate environment that supports effective teamwork

• Models teamwork by working effectively with other leaders in the organization

• Builds team leadership capabilities throughout the organization

• Empowers teams by setting clear objectives/expectations while letting them decide how to successfully reach their goals

• Builds cross-organization management teams with diverse perspectives

• Strongly supports and rewards departments that respect and leverage diversity

MAKING PRACTICAL USE


Developing Selection Profiles

• Define and categorize job responsibilities • Allocate time if possible

• Identify job outcomes

• Map outcomes to competencies

• Identify targeted selection questions – Use a targeted interviewing technique like the

Behavioral Event Interview (BEI)


Presenter

Presentation Notes

Hand out examples

Integrating into Performance Management

• Define outcomes by job/role • Link outcomes to competencies • Define success criteria

– Exceeds expectations – Meets expectations – Does not meet expectations

• Communicate performance outcomes and success criteria • Establish frequent performance related discussions

– More than a once a year discussion • Implement (where possible) tools or systems to allow

employees to track and manage their performance


Presenter

Presentation Notes

Communicate performance outcomes and success criteria Establish frequent performance related discussions More than a once a year discussion In order to establish a culture of performance in your organization – have frequent performance related discussions – performance management should be an ongoing discussion – not a one time event Implement (where possible) tools or systems to allow employees to track and manage their performance – these tools become the tools that empower a performance culture and allow employees to effectively monitor perf Halogen Cornerstone Review Snap DISCUSS BEACON EXAMPLE HERE

Designing Training

• Identify critical job outcomes

• Link outcomes to competencies

• Map training curricula and other training tools and resources to the required outcomes detailed in the model

• Design and develop training to produce critical job outcomes using a model like the PERFORM model


Step Guidance Preview Provide the learner with a contextual overview-- a ‘big picture’ contextual

organizer Enable Provide the learner with key terminology, prerequisite skills, facilitating skills, or

basic subject matter needed to be able to work through the lesson presented. This basic subject matter is presented in the context of the job and behaviors or outcomes to be produced.

Respond Provide the learner with a clear presentation of the performance to be learned, engage the learner in the new behavior, and provide initial feedback

Facilitate Provide the learner with cues and support to further engage the learner in the target behaviors

Operate Provide the learner with an opportunity to demonstrate a target behavior without external assistance

Rehearse Provide the learner with an opportunity to practice the new behavior in contextually-appropriate situations

Merge Provide the learner with practice that requires the integration of multiple units of instruction in situations that reflect real world tasks and behaviors

QUESTIONS?

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Presenter

Presentation Notes

So that ends our discussion today I would like to ask again for any additional questions

THANK YOU! For questions – call or email

Heather Charest – 608.467.2306

[email protected]

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