Competencies that Count

COMPETENCIES THAT COUNT
September 9, 2011

Our topic
• 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

© Beacon Associates, Inc. 2011 2

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
DISCUSSION

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?


KEY CONCEPTS


Typical Competency Use and
Alignment
Hiring and
Selection

Training
Performance
and
Management
Development

Competency

Career
Path &
Compensation
Succession
Planning


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

Influences to Performance
• The six influences that affect human
performance

Information, Expectations &
Feedback Tools & Technology Structure & Process

Selection &
Skills, Knowledge Motives & Consequences
Assignment
& Behavior (attitude)
(capacity)

Outcome – a Definition

• Outcome
DEFINITION

– 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


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
DEFINITION

demonstrate the appropriate specific
actions.”
(Boyatzis, Richard E. The Competent Manager: A Model for
Effective Performance. New York: Wiley, 1982, p. 12)


THE PERFORMANCE CHAIN
Where do competencies fit?


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

Tasks & Key Work
Influences Outcomes Results
Behaviors Processes

part of key work processes which enable successful outcomes that achieve business
results

Tasks & Key Work
Behaviors Processes

Behaviors/Activity

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

Tasks & Key Work
Behaviors Processes

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

• 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

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…”


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
DISCUSSION

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”


What did they miss?

"What does this mean for my job?"-
DISCUSSION

What do I need to accomplish every
day that shows whether or not I am
on the right path?


part of key work processes which enable successful outcomes that achieve business goals

Tasks & Key Work
Influences Outcomes Goals
Behaviors Processes

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 • A net exporter of talent
people’s development needs or preferences
rather than who can do the best job every time • Individuals developed beyond their current role

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


BUILDING THE PERFORMANCE BASED
COMPETENCY MODEL
5 STEP PROCESS


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?

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 How closely does our current Will the Vision be updated/modified
translated the vision to action execution support our vision? to reflect future trends?
in the past?
What HP factors prevent better What will the workforce need to do
Where have the disconnects alignment? in the future to align more closely
occurred? with the vision?

Mission How has our mission carried How do our current human What effect would a change in our
forward or been changed by performance factors align with mission have on the workforce?
our execution capacity? our mission?

Business How well has our workforce How is our workforce capacity What can be changed (workforce
Model performed within our business aligned to driving success within execution of the model) to drive
model? our current business model? greater success?


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!


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


Outcomes weighting and ranking
Outcome % Job time Importance Difficulty

EX 1 - An organizational design and 16% Extremely Important Very Difficult
structure that produces transformative
EX3 - Talent developed and capable of 16% Extremely Important Moderately
executing current and future strategy Difficult
EX5 – A clear strategy for the business 16% Extremely Important Moderately
unit or region Difficult
EX2 – A strategy to attract and retain 13% Important Very Difficult
top talent around the world
EX4 – A succession plan 13% Important Very Difficult

AL 1 – An integrated high performing 9% Important Moderately
team with appropriate autonomy Difficult
EN1 - A compelling vision about how 6% Moderately Moderately
the team will succeed Important Difficult
AL2 - A high performing cross-functional 6% Moderately Moderately
team Important Difficult
AL3 – Talent aligned to roles and team 3% Important Moderately
Difficult
EN2 – A strategy to communicate goals 3% Moderately Moderately
and objectives Important Difficult


• 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


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


• 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


– 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


5. Identify and Map
Competencies to the Model
Existing or Library

Critical Competency
Definitions & Key Work Activity
Outcomes
Behaviors

Alignment
Against
Each Outcome

Calculate Total Document
Alignment Identify
Identify Most Outcomes
for Each Competencies
Closely Aligned Associated
Competency with no
Competencies with each
Alignment
Competency


Sample competency alignment
grid
Competencies
Outcomes Building Business Command Customer Dealing Developing Drive Financial Hiring Motivating Strategic
effective acumen skills focus with direct for acumen and others agility
teams ambiguity reports results staffing
Well
communicated X X X X
vision
Believable well
defined goals,
roles and
X X X X X
responsibilities
clearly
communicated
Effective
execution
strategy with X
clear
milesontes
Team that
understands
what goal
attainment X X X X
means to
them
personally
Talent aligned
to team and X X X X
responsibilities
A high
performing
cross X X X X X X
functional
team
COUNT 4 0 3 0© Beacon Associates,
1 4 Inc. 2011
3 0 2 4 3 37

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 Definition Outcome Behaviors
Name


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 Contributing Independently Contributing Through Others Leading Through Vision
Stage I (Personal Leadership) (Local Leadership) (Organizational Leadership)
Stage II Stage III Stage IV

Outcome: Outcome: Outcome: Outcome:
Measured by: Measured by: Measured by:
Measured by:

• Learns the roles and • Takes into account how his/her • Has a special talent for pulling • Champions a corporate environment
interdependencies within the team actions affect the whole team together people with diverse styles, that supports effective teamwork
perspectives, backgrounds and
• Becomes familiar with team’s goals • Independently completes his/her fair • Models teamwork by working
experiences
and objectives share of the team’s work effectively with other leaders in the
• Creates a team where individual organization
• Actively participates in team activities • Considers the opinions of other team
differences and similarities are
members • Builds team leadership capabilities
• Learns and adheres to team respected, valued, understood, and
throughout the organization
principles, ground rules, and norms • Works to support a team decision optimized in the context of team
once made, even if s/he didn’t agree goals • Empowers teams by setting clear
• Learns to demonstrate respect for
initially objectives/expectations while letting
team members of all lifestyles and • Promotes a spirit of cooperation and
them decide how to successfully
backgrounds • Shares information with teammates teamwork
reach their goals
to improve team effectiveness
• Recognizes/rewards team players for
• Builds cross-organization
• Exemplifies respect for team successes and effective teamwork
management teams with diverse
members of all lifestyles and
• Makes maximum use of the styles, perspectives
backgrounds
backgrounds, and experiences of all
• Strongly supports and rewards
team members
departments that respect and
• Encourages exploration of differences leverage diversity
of opinion and potential contribution


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)


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


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

THANK YOU!
For questions – call or email
Heather Charest – 608.467.2306
hcharest@beaconassociates.net

45

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