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Describes how competencies work. Shows the benefits of using competencies for hiring.
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Overview of Competencies & Benefits and Uses of a Competency-Based System
July 10, 2008
Patrick ShannonSherry Deng
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What are Competencies?
What superior performers do more often, more completely and consistently
Observable behaviors that “make a difference”
The “how” side of performance
Definition
COMPETENCIES
BEHAVIORS(actions)
OUTPUTS
ORGANIZATION RESULTS
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Skills, knowledge, behaviors and other characteristics that are important for:
• Organizational success• Personal performance• Enhanced contribution
Sends the message that “how” matters as much as “what”
Defining Competencies
Visible
Hidden
Skills
Knowledge
Values
Self-Image
Traits
Motives
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General Behavioral CompetenciesGeneral Behavioral Competencies
Behaviors critical to individual and group performance
Example: Relationship Building – Builds and maintains a wide variety of positive relationships, both formal and informal to meet the needs of external and internal customers
Technical CompetenciesTechnical Competencies
Demonstrated knowledge in a technical or professional area
May or may not require ongoing, continual adaptation, retraining, upgrading or new learning
Example: Knowledge of Employment Law – Demonstrates knowledge of employment law by accurately applying legal guidelines when hiring employees
Types of Competencies
Our Focus:
General Behavioral Competencies for
LEADERS
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Competencies Provide Prescriptive Language That Can Clarify and Integrate HR Programs
“…all that separates you from your competitors are the skills, knowledge, commitment, and abilities of the people who work for you…
Companies that manage people right will outperform companies that don’t by 30% to 40%… If you don’t believe me, look at the numbers.”
Fast Company “Danger: Toxic Company”
Jeffrey Pfeffer, Stanford University
New hire orientation
Training & development
Compensation & rewards
Recruiting & selection
Assessment
Careerroadmaps
Performancemanagement
Successionplanning
Business process
CompetencyFramework
Uses of a Competency Model
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Preliminary Guiding Principles for the State of California Leadership Competency Model
Competency Model Development Principles
1. The competency model should be aligned with the State’s objectives and culture, and support the HR Modernization project
2. The competency model should be developed from current research and validated by internal subject matter experts
3. The competency model should lend itself to multiple HR programs including workforce planning, performance management, and training
4. The competency model should be clear and compelling, and easy to communicate
Built and validated with
input from State of CA
Leaders
Aligned with State of CA’s
strategies, culture and
modernization efforts
Integrated into HR processes
State of California Leadership Model
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GENERIC SAMPLE
1. Competency name and definition
2. Key concepts or dimensions3. Descriptions of sample behavioral indicators at three stages or levels
Competencies Should be Prescriptive and Define the Expected Level of Proficiency
1. Leading ChangeDefinition: Includes facilitating and communicating change across the organization, and overcoming resistance.
Key Concepts ► Facilitates change Communicates change Overcomes resistance
Sample Indicators ▼ Sample Indicators ▼ Sample Indicators ▼
DevelopingStill developing; may show proficiency in
some areas
Performs own work in a way that is consistent with the culture change
Promotes an “I can” culture to various audiences
Identifies and effectively works through resistance to change
ProficientFully proficient without
additional coaching
Translates organization’s new direction into specific steps that enable others to implement change
Tailors culture change messages to win over key stakeholders
Anticipates barriers and resistance to change and achieves successful resolution
ExpertSeen as role model;
teaches others
Actively oversees and champions the new culture change priorities across organization
Creates/delivers a clear and compelling vision to focus key internal/external stakeholders on priorities
Directly confronts significant challenges and leads efforts to convert resistance into strong support
Key Uses and Benefits of a Competency-Based System
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Drivers for Introducing the Use of Competencies
Sets Clear Expectations
Provides employees with clear direction on how they can contribute
Reinforces behaviors that are consistent with the organization’s mission, culture and priorities
Identifies Training and Development Actions
Provides employees with a roadmap for building strengths and closing development gaps
Ties to career growth and becoming a “learning organization”
Integrates HR Programs
Improves consistency in recruiting and selection, training, performance management and workforce/succession planning
Streamlines and simplifies HR operations
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GENERIC SAMPLE
Uses of a Competency Model: Example #1Development Actions
Building Negotiation Skills: Development Actions
On the job Prepare for negotiations by conducting a mock/role play session; practice listening and probing skills
Shadow senior colleagues as they prepare for critical negotiating sessions
Debrief after negotiating session; give/accept honest feedback and apply key learnings
Practice identifying and adapting to a range of specific provider negotiating styles; seek input from colleagues on “best practices”
Coaching/ mentoring
“Sit in” (or listen in) with senior colleagues in negotiation meetings; summarize observations and implications for how to improve personal negotiating style
Engage a partner to provide feedback on maintaining composure under pressure
Seek feedback from your manager on how to handle a challenging employee issue (e.g., strong performer who does not collaborate well); take action and follow up
Formal training
Take a negotiation skills course
Take a sales training course (e.g., listening skills, reading body language, asking effective questions, persuasiveness, closing skills)
Training & Development
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Uses of a Competency Model: Example #2Career Development Maps
GENERIC SAMPLE
Career Roadmaps
Competencies can help define and communicate career opportunities – both lateral and vertical moves
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GENERIC SAMPLE
Uses of a Competency Model: Example #3 Performance Management Tools
3. Competencies and Values (How was it accomplished?) Planning (Dec/Jan): Discuss how the values and competencies apply to the employee’s position, including the relative importance of each.
A. Competencies Rating (see scale below)
(SE, EE, ME, NI or NM)
Technical Competence – Demonstrates breath and depth of technical skills and capabilities required for position; shares technical knowledge; sets or contributes to company direction within area of technical expertise.
Customer Focus – Provides high quality, proactive service to external and internal customers; seeks feedback and is committed to increase customer satisfaction; builds long-term relationships.
Delivering on Commitments – Meets and strives to exceed all commitments and safety requirements; accepts full accountability; overcomes obstacles; stays focused under pressure; conveys a sense of urgency.
Creating Value – Meets and strives to exceed performance metrics; facilitates and implements value-added changes; challenges the status quo to stimulate innovation.
Managing People and/or Projects – Manages collaboratively and coaches others to achieve optimal performance; delegates effectively; praises/rewards contributions; defines clear roles and responsibilities; sets goals and leads initiatives; adjusts plans as necessary.
Employee Year End Comments on Competencies (Optional)
Manager’s Year End Comments on Competencies (Optional; examples required for SE, NI or NM ratings)
Does Not Meet Minimum
Expectations (NM) Needs
Improvement (NI)
Meets Expectations (Strong Performance)
(ME) Exceeds
Expectations (EE) Significantly Exceeds
Expectations (SE) Year-End
Competency Ratings
. Rarely demonstrates expected behaviors
Usually demonstrates expected behaviors
Consistently demonstrates expected behaviors
Often exceeds expected behaviors
Always exceeds expected behaviors
Performance Management
Many organizations include competencies in their performance management programs to assess “how” employees are performing in their jobs
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GENERIC SAMPLE
Uses of a Competency Model: Example #4Selection – Structured Interview Guides
1. Developing Market Intelligence Understanding what’s happening out there – society, lifestyles, technology, customers (consumers, dental professionals, retail) and competitors – and turning this intelligence into insights about the market and opportunities for ABC.
Targeted Questions
1. Describe your experience in understanding and predicting needs of your customers.
2. What steps would you (do you) take to stay informed about ABC’s competitive market and what new products will help us stay ahead of the competition? What information is important to understand competitors? Give me an example of a nontraditional competitor you would want to learn more about in this role.
3. Give me an example of how you have addressed customer or partner segmentation. What were some of the more interesting findings? Which dimensions were more or less important? How did you apply the lessons learned to business decisions and what was the result?
Developing Evidence Moderate Evidence Strong Evidence
No direct examples or describes concepts in very abstract terms
Understands some facts about the market but does not take the time to think through a structure or an approach to actually apply the information
Gets sidetracked on irrelevant issues
Sometimes ignores potential issues among customers
Generally modest examples
Shows some initiative to stay informed of the market
Moderate ability to leverage information on customers and competition to anticipate product needs
Actively researches and organizes market research data to understand customer segments
Demonstrates a deep understanding of customer needs
Takes a structured and analytical approach to solving problems
Ability to think creatively about the competitive market and customer needs
Develops recommendations on marketing strategies based on customer/partner segmentation
Recruiting & Selection
Competencies provide content that can be converted into selection tools with scoring guides to assist with more effective hiring
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Uses of a Competency Model: Example #5Workforce/Succession Planning
Source: The Leadership Pipeline, 2001, by Ram Charan, Stephen Drotter, and James Noel.
Competencies can help define expectations at each level of management, which supports clear and transparent promotion guidelines
Succession Planning
GENERIC SAMPLE
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Key Takeaways
Competencies set clear behavioral expectations
Competencies can help identify training and development actions
Competencies can help integrate HR programs
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Thank you!
QQ & A