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© Lemon Pip Consulting Limited Using Competencies In Performance Management Tuesday, 24 May 2016 at 16:30 -17:30 (UAE Time) Presentation by: Robert Mosley

Webinar: Using Competencies In Performance Management

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© Lemon Pip Consulting Limited

Using Competencies In Performance Management

Tuesday, 24 May 2016 at 16:30 -17:30 (UAE Time)

Presentation by: Robert Mosley

© Lemon Pip Consulting Limited

About The HR Observer

• The HR Observer is an initiative by Informa Middle East aimed at becoming a platform for HR professionals in the Middle East to exchange insights and expertise, both online and offline, in an effort to take the HR industry forward in the GCC region.

• The initiative features a blog, LinkedIn group, Twitter feed, online webinars and a series of offline informal networking functions.

© Lemon Pip Consulting Limited

Housekeeping

• Please wait to the end of the session to type questions

• Time will be allocated at the end to address questions

• Slides and the recording of the webinar will be available to view for the next four weeks, and the link will be emailed to you

• Please complete survey that will pop-up at the end of this webinar

© Lemon Pip Consulting Limited

Today’s Presenter

Robert Mosley is one of the leading global experts on compensation and benefits in all sectors across the GCC. He was head of the Middle East practice with Hay Group in 1987-1990 before joining the Emirates Group to later become the SVP Human Resources. He spent 13 years based in Dubai at Emirates Group, before starting his own compensation consulting business, Lemon Pip Consulting, where he is working with over 400 companies in the Middle East and 80 airlines globally.

© Lemon Pip Consulting Limited

Using Competencies In Performance Management

Presentation Facilitator: Robert Mosley

Location: Webinar by Informa

Contact Email: [email protected]

Presentation Date: Tuesday, 24 May 2016

Presentation Time: 16:30 to 17:30 (UAE)

© Lemon Pip Consulting Limited

Robert Mosley:1980-1983: MA in Mathematics at Oxford University1983-1985: MBA in Business Studies at London Business and Chicago Business School1985-1990: Hay Group Management Consultants (UK and UAE)1990-2003: Emirates Airline Group in UAE (Senior Vice President Human Resources)2003-2005: Qatar Airways in Qatar (Group General Manager Human Resources)2007-2009: Travelport-Galileo in UK (Group Vice President Global Reward)

2003-: Fellow of the Chartered Institute of Personnel and Development (FCIPD)2005-: CEO of Lemon Pip Consulting (Reward and HR Consulting in GCC)2015-: Master Trainer for CIPD and Member of “CIPD Reward Advisory Board”

Lemon Pip Consulting Limited:Specialism: Reward Consulting and Training Courses in Total Reward ManagementMain Services: Grading, Compensation, Performance Management, Pay for PerformanceGCC Clients: Over 400 clients globally (mainly in the Middle East and Asia)Email: [email protected]

Your Seminar Leader: Robert Mosley

© Lemon Pip Consulting Limited

(01) COMPETENCES or COMPETENCIES ?

Competences

Competence

Technical Skills

Necessary for All Job Holders

Can Be Learnt from Zero

Learnt by Training

• Competencies

• Competency

• Behaviours and Attitudes

• Differentiate Best from Rest

• Can Be Developed/Improved

• Developed by Coaching

© Lemon Pip Consulting Limited

JOB

PERFORMANCE

MARKETPERSON

$

ODJOBDESC

JE

GRADESKRAs

KPIs

GOALSOBJECTIVES

BEHAVIOURSCOMPETENCIES

APPRAISALS

PAY-REVIEW& BONUS

PAYSTRATEGY

PAYSURVEYS

BENCHMARK

PAY RANGES& ALLOWs

JEJA

RATINGS

(02) WHERE DO COMPETENCIES FIT WITH HR ?

© Lemon Pip Consulting Limited

Objective SettingEmployees must know what is expected of them, and have the opportunity to agree their individual and team goals, and know their KRAs and KPIs that define “what” that must achieve.

Competencies and BehavioursEmployees must have the attitudes and behaviours and know “how” to deliver on these expectations of “what” is expected”.

Development PlanningEmployees must be supported by the organisation to develop personal capacity to meet their expectations and get feedback.

(03) COMPONENTS OF PERFORMANCE MANAGEMENT

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(04) WEIGHTING: OBJECTIVES vs BEHAVIOURS

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(05) WEIGHTING: OBJECTIVES vs BEHAVIOURS

Weighting onOutcomes

Weighting onCompetencies

Comments and Observations

100% 0% This weighting would be an appraisal that is based solely on “results andachievements” with no consideration of “behaviours”, and this is of course theweighting used by organisations who don’t use competencies.

75% 25% If an organisation does include competencies in performance management, thenusually the minimum weighting that is given to them would be 25% to make thembe seen as sufficiently important by employees, as anything less than 25% wouldnot communicate a powerful message that “behaviours matter”.

70% 30% This is the most common ratio used both in the GCC and globally, and is the two-thirds to one-third approach, which says that “competencies” matter, but“outcomes” matter even more with double the emphasis.

60% 40% This is the common weighting for organisations that ideally want a balanced 50%-50%, but still want to give the message that “outcomes” have slightly moreimportance than “competencies”.

50% 50% This is the completely balanced 50%-50% approach where there is equal emphasison “outcomes” and “competencies”, and this is the second most common ratioused in the GCC and globally.

Below 50% Above 50% This is extremely rare, and very few organisations (less than 1%) put a greateremphasis on “competencies and behaviours” compared to “outcomes and results”.

© Lemon Pip Consulting Limited

(06) WHAT IS A COMPETENCY?

A competency is the practical application of essential skills and knowledge through appropriate behaviours as measured against a predetermined standard of performance which is defined by the organisation and the needs of the business.

It is the “how” of how a job should be performed (and not the “what” of what has to be achieved).

© Lemon Pip Consulting Limited

(07) COMPETENCIES AND BEHAVIOURS

Why Use Competencies and Behaviours?

• Focusing on Traits and Motives that Improve Performance

• Not Just “What” But Also “How”

• Closer Match Between Job and Person Recruited

• Assessment is Objective, Clear, and as Accurate as possible

• Constructive Feedback is Given to Develop or Focus the Employee on Areas to Improve

© Lemon Pip Consulting Limited

How Many Types of “Competencies” Exist?

Email me for a copy of:

“Global Competencies Dictionary”

[email protected]

(08) GLOBAL COMPETENCY DICTIONARY

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(09) DEVELOPING A COMPETENCY FRAMEWORK

STAGE-1:

Form a “Steering Group”

Typically about 4-5 Senior Managers:

• 2 from HR (one from PM, one from OD)

• 2 from Key Line Areas (eg: Sales and Operations)

• 1 from Strategy or Business Performance

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(10) DEVELOPING A COMPETENCY FRAMEWORK

STAGE-2:

Reduce the Global List (of 160+) to a Company List

Typically select 12-20 Competencies at “Company Level”

Steering Group agrees the list of 12-20 for Company

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(11) DEVELOPING A COMPETENCY FRAMEWORK

MOST COMMON “CORE” AREAS OF COMPETENCIES IN GCC:

• Leadership• Strategic and Change Management• Judgement and Decision Making• Problem Solving• Attention to Detail or Quality• Customer Orientation• Negotiation• Teamwork• Building Effective Work Relationships• Communication and Listening Skills• Coaching• Managing Staff Performance• Safety

© Lemon Pip Consulting Limited

STAGE-3:

Develop a “Company Competencies Framework”

One-Page Summary on Each Selected Competency

Remember:Select about 12-20 Competencies at Company Level

(12) DEVELOPING A COMPETENCY FRAMEWORK

© Lemon Pip Consulting Limited

(13) DEVELOPING A COMPETENY FRAMEWORK

Why Use a Competency Framework?

• An opportunity for all managers and supervisors to agree a common language for describing what is effective behaviour across an organisation.

• An opportunity to achieve a high level of consistency when assessing and appraising performance.

• Can improve performance by clearly communicating what is a “job well done” within the organisation.

• Can improve performance by listing behaviours that the highest-performers show that explain their success.

© Lemon Pip Consulting Limited

STAGE-4:

Circulate the “Company Competencies Framework”• Training for All Line Managers• Open Access on Intranet for All Employees

Remember:Select about 12-20 Competencies at Company Level

(14) DEVELOPING A COMPETENCY FRAMEWORK

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(15) COMPANY COMPETENCY FRAMEWORK

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STAGE-5:

From Company List of 12-20

Select the Most Critical 6-8 for Each Job

• Recommended by Each Line Manager• Agreed by Steering Committee

(16) SELECTING COMPETENCIES AT JOB-LEVEL

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1) JOB PURPOSE

2) MINIMUM QUALIFICATIONS/KNOWLEDGE

3) ACCOUNTABILITIES AND OBJECTIVES

4) COMMUNICATION AND WORKING RELATIONSHIPS

5) KEY DIMENSIONS

6) OPERATING ENVIRONMENT

7) KEY COMPETENCIES

8) ORGANISATION CHART

(17) EMBEDDING COMPETENCIES IN JDs

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REMINDER ON STAGE-5:

From Company List of 12-20

Select the Most Critical 6-8 for Each Job

BUT …

Will Some Competencies Be Compulsory ?

(18) SELECTING COMPETENCIES AT JOB-LEVEL

© Lemon Pip Consulting Limited

STAGE-6:

Will Some Competencies Be Compulsory ?

EITHER:Let Each Line Manager Select 6-8 from 12-20

OR:Make Up To 4 Compulsory To Reflect Company ValuesBut Must Allow At Least Other 4 to Be Selected

(19) SELECTING COMPETENCIES AT JOB-LEVEL

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(20) EXAMPLE OF COMPULSORY COMPETENCIES

SHOULD SOME COMPETENCIES BE EMBEDDED ANDBE COMPULSORY IN ALL JOBS COMPANY-WIDE?

Reflect Core Values and CultureRequired in All JobsBut How Many Competencies Can Be Measured?

Example:These Four Competencies Are Required In All Jobs at Air Asia:(1) Communication(2) Flexibility(3) Safety and Security(4) Teamwork

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(21) MEASURING LEVELS OF COMPETENCY ABILITY

Initial Approach:

Define Positive and Negative Behaviours

Advanced Approach:

Define Levels of Demonstrated Ability

© Lemon Pip Consulting Limited

STAGE-7:

Advanced Concept: Target Levels of Competencies

Use E-D-C-B-A for “Target Levels”

Don’t Confuse With 1-2-3-4-5 for “Performance Ratings”

(22) USING TARGET-LEVELS FOR COMPETENCIES

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Target Levels of Demonstrated Ability:

A. Role-Model or Exceptional Perfect Mastery

B. Expert or Full Depth and Breadth

C. Advanced or Extensive Experience

D. Competent or Working Experience

E. Developing or Minimal Understanding

(23) USING TARGET-LEVELS FOR COMPETENCIES

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(24) PERFORMANCE RATINGS ON COMPETENCIES

Performance Ratings Based Upon “Expectations”

5: Outstanding: Significantly Exceeds Target

4: Excellent: Exceeds Target-Level

3: Well Done: Meets Target-Level

2: Developing: Almost Meets Target-Level

1: Unsatisfactory: Falls Below Target-Level

© Lemon Pip Consulting Limited

(25) PUSHING COMPETENCIES DEEPER …

Pushing Competencies Deeper into the Company:

• Improved Recruitment and Selection• Improved Assessment of Potential• Improved Performance Appraisal Process• Common Language to Describe Effectiveness• Self-Assessment and Self-Development• Basis of Coaching and L&D Initiatives• Develops Internal Organisational Culture• Supports Building Successful Teams

© Lemon Pip Consulting Limited

Tuesday 31st May and Wednesday 1st June:

20th Annual Middle East C&B Forum in Dubai.

(26) COMING SOON – NEXT WEEK !

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(27) ANY QUESTIONS ?

Any Questions ?

Or contact me for future consulting support:

[email protected]

© Lemon Pip Consulting Limited

Using Competencies in Performance Management

Presentation Facilitator: Robert Mosley

Location: Webinar by Informa

Presentation Title: Using Competencies in PM

Contact Email: [email protected]

Presentation Date: Tuesday 24th May 2016

Presentation Time: 16:30pm to 17:30pm (UAE)