The document discusses the design and implementation of an effective competency framework for an organization. It defines competency as the underlying characteristics of an individual that are related to superior job performance. It then outlines the key elements of designing a competency framework, including identifying job clusters, roles, competencies, and proficiency levels. It also discusses how a competency framework can be used in human resource functions like hiring, performance management, and training. Finally, it notes the framework needs to be regularly refined as competencies may change over time.

1. 1
© Rajesh Naik, 2010
Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license
Organizational Excellence Through an
Effective Competency Framework
Hyderabad SPIN
22 June 2010
Rajesh Naik
Consulting Partner
QAI India Ltd.

2. 2
© Rajesh Naik, 2010
Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license
Agenda/ Topics
• What is competency?
• Design of a Competency Framework
– Job Clusters, Roles, Competencies, Proficiencies, Competency Dictionary
and Competency Assessments
• Competency Framework in Action
– Hiring, Performance Management, Training
• Refining the Competency Framework

3. 3
© Rajesh Naik, 2010
Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license
What is Competency?
• In other words
– Whatever make us do our job better
• This characteristic is usually a combination of
– Knowledge, skill, attitude/ traits and process abilities
• Required for a job/ role/ objective
• Possessed by an individual doing the job
Underlying characteristic of an individual that is causally
related to effective or superior performance in a job
-Competence at Work, Spencer and Spencer

4. 4
© Rajesh Naik, 2010
Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license
What is Competency?
Role Based Competency
an underlying characteristic of an
individual that is causally related to
effective or superior performance
(Spencer 1993)
Organizational/ workforce
Competency/ Job Clusters
a cluster of knowledge, skills and
individual should develop to perform a
particular type of work in the
organization
K,S &
Process
Abilities
K,S &
Process
Abilities
K,S &
Process
Abilities
K,S &
Process
Abilities
Organizational/ workforce
Competencies (Job Clusters)
Core Competency
the combination of technology and
production skills that create a
company’s products and services and
provide its competitive advantage in
the marketplace (Prahalad & Hamel
1990)

5. 5
© Rajesh Naik, 2010
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Design of a Competency Framework
Brought to you by
Identify
Job Clusters
Identify
Roles
Identify
Competencies
Define
Competencies
Define
Proficiencies
Create
Assessment Tools
Create
Role-Competency- Proficiency
Mapping
Assessment Framework

6. 6
© Rajesh Naik, 2010
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Job Clusters
• Similar kind of work (e.g., same department)
requiring similar competencies
• For example, Job Clusters in a typical IT
Services organization
Executive Management
HRandLearning
Sales&Marketing
BusinessAnalysis
SoftwareDevelopment
ProjectManagement
Finance&Legal
Facilities&Admin
ITInfrastructure
SoftwareTesting
QualityManagement

7. 7
© Rajesh Naik, 2010
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Roles
• Roles within a Job Cluster require similar
competencies with different proficiencies
• For example, roles in the “Software
Development” Job Cluster could include
– Programmer
– Senior Programmer
– Designer
– Senior Designer
– System Architect

8. 8
© Rajesh Naik, 2010
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Competencies
• Each role would require a set of competencies
– typically all roles within a job cluster will
require fairly similar set of competencies
• The difference could be in the proficiency
levels
• Types of competencies could include
– Functional, technical, domain
– Behavioral
– Process Abilities
Competencies
Expected Results
Tasks
Role

9. 9
© Rajesh Naik, 2010
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Types of Competencies - Examples
• Functional, technical, domain competencies
– Accounting, HR, Legal, Training, Recruitment, Software Design, Programming, Testing
– SAP, Oracle, Mainframes, Seibel, Microsoft Technologies
– Pharma, Hospitals, automobiles, telecommunication, Oil and Gas
• Behavioral
– Achievement Orientation, Creativity, Service Orientation, People Orientation, Flexibility,
Ability to Communicate, Assertiveness, Quality Orientation
• Process Abilities
– This is the ability to apply the functional and behavioral competencies using the
organization’s processes (Knows “how things are done here”
• Process abilities are built within an organization,
functional competencies are built with work
experience in an industry/ type of job, and behavioral
competencies are built from childhood

10. 10
© Rajesh Naik, 2010
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Proficiencies
• Extent of the competency
• Typically on a scale (e.g., 0-5), where
– 0- Not At All
– 5- Subject Matter Expert / Master/ Guru

11. 11
© Rajesh Naik, 2010
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Competency Dictionary
• Description of all competencies, proficiencies
• Mapping of Competencies and Proficiencies for various
roles (Role Profiles)
Flexibility Flexibility is the ability to adapt seamlessly to changes.
Flexible people recognize the multiple viewpoints and can
flexibly apply the most suitable solution in a given situation
in the context of a larger objective
0 Not flexible at all; Rigid
1 Able to defer the decision till other viepoints are heard
2 Able to appreciate others viewpoints
3 Able to appreciate others viewpoints and generate alternate
viewpoints himself/ herself
4 Able to change one's behaviour dynamically, depending on
the situation
5 Able to coach and train others to adapt flexible behaviour
Expected
ROLE : PROJECT MANAGER Proficiency
Behavioral
Achievement Orientation 3
Creativity 2
Service Orientation 4
People Orientation 3
Flexibility 3
Ability to Communicate 3
Assertiveness 4
Quality Orientation 3
Functional/ Technical
Estimation 4
Project Monitoring 4
Managing Finances 2
Scheduling 3
Metrics and Reporting 4

12. 12
© Rajesh Naik, 2010
Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license
Competency Assessments
• At hiring time
• While promoting a person (in the same Job Cluster)
• While shifting a person from one job cluster to
another
• To identify competency gaps and development
needs on a periodic basis
Note:
• Some competencies (technical) can change at a
fast rate
• Some competencies (behavioral) change very
slowly

13. 13
© Rajesh Naik, 2010
Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license
Competency Framework in Action – Hiring
Short Description
NA Under
Guidance
Indepen-
dent
Guiding
Others
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
NR Novice Productive Master
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
NR Learning Average Excellent
Ö
Ö
Ö
Ö
Ö
Ö
Initiative
Support to Seniors
JOB PROFILE
Project Manager
Customer Focus
Helpfullness to Peers
Problem Solving
Support to Juniors
English-Written Communication
English-Oral Communication
English-Presentation
Education & Training & Qualifications
Attitudes
At least one of the following:
BSc (or equi) with 9 yrs experiece in IT
BE (or equi) with 5 yrs experience in IT
ME (or equi) with 3 yrs experience in IT
Technology Knowledge (one of client server, IBM
mainframe, Web Based, eCommerce)
Rational Rose or System Architect
One Language Skills (C++, JAVA, etc.)
One Test Tool (Team Test or Segue or Mercury)
One of SSAD/ OOAD Techniques
Requirements Management with DOORS
One CM Tool (VSS or PVCS or Clearcase)
Domain Knowledge (one of Hospital, Hotel, Airline,
Metrics Tool
MPP
Project Management Techniques
Estimation Method (IFPUG or FFP)
Statistical Methods (7 QC Tools)
Industry Quality Standards (ISO & CMM)
Knowledge Mgmt
Quality Management
Main Tasks
Knowledge/ Skills
Plan & execute projects / modules within pre - determined
People Mgmt that includes mobilization, motivation and
Takes part in sales process with new prospect
Proposal / Contract Mgmt
Our QMS
Leading and managing large projects or multiple small projects with the aim
of completing projects on time and on budget to the desired quality,
economically, successfully and to the satisfaction of the customer. Also,
developing repeat business from exis
Business responsibility with P & L responsibility
Customer Mgmt (Develop and Manage existing customer
Analyze, Design and Implement software solutions
Short Description
NA Under
Guidance
Indepen-
dent
Guiding
Others
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
NR Novice Productive Master
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
NR Learning Average Excellent
Ö
Ö
Ö
Ö
Ö
Ö
Initiative
Support to Seniors
JOB PROFILE
Project Manager
Customer Focus
Helpfullness to Peers
Problem Solving
Support to Juniors
English-Written Communication
English-Oral Communication
English-Presentation
Education & Training & Qualifications
Attitudes
At least one of the following:
BSc (or equi) with 9 yrs experiece in IT
BE (or equi) with 5 yrs experience in IT
ME (or equi) with 3 yrs experience in IT
Technology Knowledge (one of client server, IBM
mainframe, Web Based, eCommerce)
Rational Rose or System Architect
One Language Skills (C++, JAVA, etc.)
One Test Tool (Team Test or Segue or Mercury)
One of SSAD/ OOAD Techniques
Requirements Management with DOORS
One CM Tool (VSS or PVCS or Clearcase)
Domain Knowledge (one of Hospital, Hotel, Airline,
Metrics Tool
MPP
Project Management Techniques
Estimation Method (IFPUG or FFP)
Statistical Methods (7 QC Tools)
Industry Quality Standards (ISO & CMM)
Knowledge Mgmt
Quality Management
Main Tasks
Knowledge/ Skills
Plan & execute projects / modules within pre - determined
People Mgmt that includes mobilization, motivation and
Takes part in sales process with new prospect
Proposal / Contract Mgmt
Our QMS
Leading and managing large projects or multiple small projects with the aim
of completing projects on time and on budget to the desired quality,
economically, successfully and to the satisfaction of the customer. Also,
developing repeat business from exis
Business responsibility with P & L responsibility
Customer Mgmt (Develop and Manage existing customer
Analyze, Design and Implement software solutions
Short Description
NA Under
Guidance
Indepen-
dent
Guiding
Others
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
NR Novice Productive Master
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
NR Learning Average Excellent
Ö
Ö
Ö
Ö
Ö
Ö
Initiative
Support to Seniors
JOB PROFILE
Project Manager
Customer Focus
Helpfullness to Peers
Problem Solving
Support to Juniors
English-Written Communication
English-Oral Communication
English-Presentation
Education & Training & Qualifications
Attitudes
At least one of the following:
BSc (or equi) with 9 yrs experiece in IT
BE (or equi) with 5 yrs experience in IT
ME (or equi) with 3 yrs experience in IT
Technology Knowledge (one of client server, IBM
mainframe, Web Based, eCommerce)
Rational Rose or System Architect
One Language Skills (C++, JAVA, etc.)
One Test Tool (Team Test or Segue or Mercury)
One of SSAD/ OOAD Techniques
Requirements Management with DOORS
One CM Tool (VSS or PVCS or Clearcase)
Domain Knowledge (one of Hospital, Hotel, Airline,
Metrics Tool
MPP
Project Management Techniques
Estimation Method (IFPUG or FFP)
Statistical Methods (7 QC Tools)
Industry Quality Standards (ISO & CMM)
Knowledge Mgmt
Quality Management
Main Tasks
Knowledge/ Skills
Plan & execute projects / modules within pre - determined
People Mgmt that includes mobilization, motivation and
Takes part in sales process with new prospect
Proposal / Contract Mgmt
Our QMS
Leading and managing large projects or multiple small projects with the aim
of completing projects on time and on budget to the desired quality,
economically, successfully and to the satisfaction of the customer. Also,
developing repeat business from exis
Business responsibility with P & L responsibility
Customer Mgmt (Develop and Manage existing customer
Analyze, Design and Implement software solutions
Short Description
NA Under
Guidance
Indepen-
dent
Guiding
Others
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
NR Novice Productive Master
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
NR Learning Average Excellent
Ö
Ö
Ö
Ö
Ö
Ö
Initiative
Support to Seniors
JOB PROFILE
Project Manager
Customer Focus
Helpfullness to Peers
Problem Solving
Support to Juniors
English-Written Communication
English-Oral Communication
English-Presentation
Education & Training & Qualifications
Attitudes
At least one of the following:
BSc (or equi) with 9 yrs experiece in IT
BE (or equi) with 5 yrs experience in IT
ME (or equi) with 3 yrs experience in IT
Technology Knowledge (one of client server, IBM
mainframe, Web Based, eCommerce)
Rational Rose or System Architect
One Language Skills (C++, JAVA, etc.)
One Test Tool (Team Test or Segue or Mercury)
One of SSAD/ OOAD Techniques
Requirements Management with DOORS
One CM Tool (VSS or PVCS or Clearcase)
Domain Knowledge (one of Hospital, Hotel, Airline,
Metrics Tool
MPP
Project Management Techniques
Estimation Method (IFPUG or FFP)
Statistical Methods (7 QC Tools)
Industry Quality Standards (ISO & CMM)
Knowledge Mgmt
Quality Management
Main Tasks
Knowledge/ Skills
Plan & execute projects / modules within pre - determined
People Mgmt that includes mobilization, motivation and
Takes part in sales process with new prospect
Proposal / Contract Mgmt
Our QMS
Leading and managing large projects or multiple small projects with the aim
of completing projects on time and on budget to the desired quality,
economically, successfully and to the satisfaction of the customer. Also,
developing repeat business from exis
Business responsibility with P & L responsibility
Customer Mgmt (Develop and Manage existing customer
Analyze, Design and Implement software solutions
Short Description
NA Under
Guidance
Indepen-
dent
Guiding
Others
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
NR Novice Productive Master
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
NR Learning Average Excellent
Ö
Ö
Ö
Ö
Ö
Ö
Initiative
Support to Seniors
JOB PROFILE
Project Manager
Customer Focus
Helpfullness to Peers
Problem Solving
Support to Juniors
English-Written Communication
English-Oral Communication
English-Presentation
Education & Training & Qualifications
Attitudes
At least one of the following:
BSc (or equi) with 9 yrs experiece in IT
BE (or equi) with 5 yrs experience in IT
ME (or equi) with 3 yrs experience in IT
Technology Knowledge (one of client server, IBM
mainframe, Web Based, eCommerce)
Rational Rose or System Architect
One Language Skills (C++, JAVA, etc.)
One Test Tool (Team Test or Segue or Mercury)
One of SSAD/ OOAD Techniques
Requirements Management with DOORS
One CM Tool (VSS or PVCS or Clearcase)
Domain Knowledge (one of Hospital, Hotel, Airline,
Metrics Tool
MPP
Project Management Techniques
Estimation Method (IFPUG or FFP)
Statistical Methods (7 QC Tools)
Industry Quality Standards (ISO & CMM)
Knowledge Mgmt
Quality Management
Main Tasks
Knowledge/ Skills
Plan & execute projects / modules within pre - determined
People Mgmt that includes mobilization, motivation and
Takes part in sales process with new prospect
Proposal / Contract Mgmt
Our QMS
Leading and managing large projects or multiple small projects with the aim
of completing projects on time and on budget to the desired quality,
economically, successfully and to the satisfaction of the customer. Also,
developing repeat business from exis
Business responsibility with P & L responsibility
Customer Mgmt (Develop and Manage existing customer
Analyze, Design and Implement software solutions
Identify a vacancy
in terms of the
Role Profile
Add specific
competencies required
for:
•the project/ dept
•long term org. needs
0
20
40
60
80
Hospital Hotels Airlines Education
Domain Competency Projection Present
Reqd by Dec '03
0
20
40
60
80
Hospital Hotels Airlines Education
Domain Competency Projection Present
Reqd by Dec '03
0
20
40
60
80
Hospital Hotels Airlines Education
Domain Competency Projection Present
Reqd by Dec '03
Use Role Profiles during
selection

14. 14
© Rajesh Naik, 2010
Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license
Competency Framework in Action – Performance Management
Short Description
NA Under
Guidance
Indepen-
dent
Guiding
Others
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
NR Novice Productive Master
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
Ö
NR Learning Average Excellent
Ö
Ö
Ö
Ö
Ö
Ö
Initiative
Support to Seniors
JOB PROFILE
Project Manager
Customer Focus
Helpfullness to Peers
Problem Solving
Support to Juniors
English-Written Communication
English-Oral Communication
English-Presentation
Education & Training & Qualifications
Attitudes
At least one of the following:
BSc (or equi) with 9 yrs experiece in IT
BE (or equi) with 5 yrs experience in IT
ME (or equi) with 3 yrs experience in IT
Technology Knowledge (one of client server, IBM
mainframe, Web Based, eCommerce)
Rational Rose or System Architect
One Language Skills (C++, JAVA, etc.)
One Test Tool (Team Test or Segue or Mercury)
One of SSAD/ OOAD Techniques
Requirements Management with DOORS
One CM Tool (VSS or PVCS or Clearcase)
Domain Knowledge (one of Hospital, Hotel, Airline,
Metrics Tool
MPP
Project Management Techniques
Estimation Method (IFPUG or FFP)
Statistical Methods (7 QC Tools)
Industry Quality Standards (ISO & CMM)
Knowledge Mgmt
Quality Management
Main Tasks
Knowledge/ Skills
Plan & execute projects / modules within pre - determined
People Mgmt that includes mobilization, motivation and
Takes part in sales process with new prospect
Proposal / Contract Mgmt
Our QMS
Leading and managing large projects or multiple small projects with the aim
of completing projects on time and on budget to the desired quality,
economically, successfully and to the satisfaction of the customer. Also,
developing repeat business from exis
Business responsibility with P & L responsibility
Customer Mgmt (Develop and Manage existing customer
Analyze, Design and Implement software solutions
Job Profile for
Current RoleSet objectives to close
competency gaps
Identify action plans to help
close the gaps
Training, education,
certification, job rotation,
mentoring/ coaching
Development
Plan
Performance
Appraisal;
Goal Setting
Evaluate for competencies required
for the current role
And desired role

15. 15
© Rajesh Naik, 2010
Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license
Competency Framework in Action - Training
• Link Training Programs to the Competency
Framework
Training Program Competencies Addressed
Minimum Pre
Prociency
Level
Expected Post
Prociency
Level
# CS-101 Creating Customer Delight Integrity 2 3
Service Orientation 2 4
Interpersonal Skills 1 2
# EX-390 Insurance Basics Insurance Domain 0 2
# PM-445 Negotiating Skills Negotiating Skills 0 3
Interpersonal Skills 2 3
Service Orientation 2 3
Listening Skills 1 3
• Training programs become more focused
• Overlapping training programs can be
merged/ dropped
• Identification of participants is sharper

16. 16
© Rajesh Naik, 2010
Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license
Refining the Competency Framework
• New roles will get added
• Definitions of competencies/ proficiencies will
get refined
• Role requirements will change based on
results achieved

17. 17
© Rajesh Naik, 2010
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SEI’s People CMM® Project
• Mission
– To help the readiness of organizations to undertake increasingly complex work by
helping them attract, grow, motivate, deploy, and retain the talent needed to improve
their capability
Authors of the P-CMM:
Bill Curtis
William Hefley
Sally Miller

18. 18
© Rajesh Naik, 2010
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Maturity Levels
© Software Engineering Institute
Basic HR
Operational
Practices
Competency
Based
Practices
Measured &
Empowered
Practices
Continuous
Improvement
Level 1
Initial
Level 2
Managed
Level 3
Defined
Level 4
Predictable
Level 5
Optimizing

19. 19
© Rajesh Naik, 2010
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Process Areas

20. 20
© Rajesh Naik, 2010
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“Learning
Organization”
Source: TeraQuest

21. 21
© Rajesh Naik, 2010
Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license
“Culture
OfTeamwork”
Source: TeraQuest

22. 22
© Rajesh Naik, 2010
Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license
“Performance
Orientation”
Source: TeraQuest

23. 23
© Rajesh Naik, 2010
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Source: TeraQuest
“Workforce
toStrategy”

24. 24
© Rajesh Naik, 2010
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References
• The Core Competency of the Corporation by CK Prahlad and
Gary Hamel (HBR May-June 1990)
• Competency-Based Human Resource Management by David
D. Dubois
• Competence at Work: Models for Superior Performance by
Signe M. Spencer, Lyle M. Spencer
• The Art and Science of Competency Models: Pinpointing
Critical Success Factors in Organizations by Anntoinette D.
Lucia and Richard Lepsinger

25. 25
© Rajesh Naik, 2010
Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license
About this Presentation
More resources on the subject are available from the creator of this presentation at:
http://www.rajeshnaik.com
© Rajesh Naik, 2010
This work is released under a Creative Commons Attribution-NonCommercial-
ShareAlike 3.0 Unported License license. This means you can use it for non-
commercial purposes so long as you include the copyright line “© Rajesh Naik,
2010". If you create derivative works using this work, they should also be made
available under a similar license. For further information go to
http://creativecommons.org/licenses/by-nc-sa/3.0/ For uses outside the scope of the
license, contact Rajesh Naik at naik.rajeshnaik@gmail.com
Author: Rajesh Naik
Consulting Partner
QAI India Limited
rajesh.naik@qaiglobal.com
naik.rajeshnaik@gmail.com
+91 9845488767

26. 26
© Rajesh Naik, 2010
Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license
Thank You
Rajesh Naik
Founding Partner
QAI India Limited
Email
naik.rajeshnaik@gmail.com
Mobile
+91 9845488767
Website
www.rajeshnaik.com
Also, have a look at the latest “business novel”:
Aligning Ferret: How an Organization Meets
Extraordinary Challenges
By Swapna Kishore & Rajesh Naik
Available at Amazon:
http://www.amazon.com/dp/B00CZA94XC