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Developing and implementing a competency framework
Session Code: HRSA09
“Starting the Journey”- Developing a Behavioural Competency Model in Organisations
Brent Herman
Lead Consultant- Hay Group South Africa
STARTING THE JOURNEYDeveloping a Competency Model
18 SEPTEMBER, 2015
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1. WHAT ARE COMPETENCIES?
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BEST BOSS / WORST BOSS
Answer the following questions for each boss:
How did you feel when you worked for that boss? How did you perform when you worked for that boss?
How long did you work for that boss? What were the business results?
__________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _______________________________________
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HOW WE DEFINE A “COMPETENCY”
A relatively enduring characteristic of a person
Displayed more often and more consistently by outstanding performers
In a given role, job, situation or culture
To get outstanding, strategic results
What it is about you, that makes you great at your job?
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THE ICEBERG MODEL OF COMPETENCIES
Social Role
Values
TraitsMotive
SkillKnowledge
The image one projects to others (“outer-self”) e.g. manager, teacher
Recurrent thoughtthat drive behaviour
Behavioural demonstration of expertise
Information that a personhas in a particular area
A general disposition to behave in a certain way
A person’s beliefs and things that are important to them
Self Image
A person’s view of themselves or sense of worth e.g. technical expert
Technical Expertise: Easier to see, measure and develop
Behavioural Competencies: More difficult to see, measure and develop Characteristics that lead to
longer-termsuccess
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SOME COMPETENCIES BECOME MORE IMPORTANT AS JOB COMPLEXITY INCREASES
Natural tendencies and traits For example:
- Tenacity- Initiative
- Interpersonal sensitivity- Self confidence
Task-related knowledge and skills For example:
- Knowledge of electronics, company products- Market awareness, labor relations, law,- Skill in active listening, negotiating
REL
ATIV
E IM
POR
TAN
CE
JOB COMPLEXITY
High
HighLow
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2. HOW DO COMPETENCIES LINK TO OTHER HR DELIVERABLES?
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COMPETENCIES – NOT IN A SILO
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COMPETENCY APPLICATIONS
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EXECUTIVE TURNOVER RATES AND COSTS BY TRADITIONAL AND COMPETENCY-BASED HIRING SYSTEMS
PER
CE
NTA
GE
OF
EXE
CU
TIVE
S LE
AVIN
G W
ITH
IN T
WO
YE
ARS
PER
CE
NTA
GE
OF
EXE
CU
TIVE
S LE
AVIN
G W
ITH
IN T
WO
YE
ARS
N=35 N=32Total sample
N=17 N=2Total sample
100%
0%
60%
80%
40%
$4.5
$3.5
$0.5
$1.5
$2.5
Competency based hiring improves retention of executives
The dollar value of improved retention of executives
Key: Traditional Competency based
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COMPETENCIES AND LEADERSHIP DEVELOPMENT
Job CompetencyRequirements
LeadershipStyle
OrganisationalClimate
Our Framework for Development: The Four Circle Model
provides a proven framework & language for analysing and addressing individual & team performance development opportunities
• Growth in Organisation Revenue
• Increase in Effectiveness
• Attainment of Broader Strategic Objectives
70%30%
INDIVIDUALCOMPETENCE Motives Values Behaviours
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PERFORMANCE BELL CURVE
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PERFORMANCE BELL CURVE
What will you pay for?
What will the balance be?
What will you pay for?Role
Performance Competencies
What will you pay for?
RolePerformance
Competencies
RolePerformance
Competencies
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3. COMPETENCY MODELLING – HOW DO YOU GO ABOUT IT?
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COMMON DATA SOURCES FOR COMPETENCY MODELSObservation: Watching outstanding and average performers, seeing what they do, using this to input to a model. Most suitable for front line jobs which are relatively simple (e.g., bank branch manager, retail sales person, call centre manager).
Behavioural event interviewing: Interviewing outstanding and average performers to understand how they do what they do. Closest thing to observation, more practical for senior executives with jobs which are too complex to simply observe.
Subject matter expert / stakeholder interviewing: Interviews to understand what SMEs and senior leaders believe are the critical behaviours for the role. Often misses critical competencies, but helps to articulate organisational expectations and aspirations.
Customer interviews: Interviews with internal or external customers of a function / role, to understand customers’ needs and impact of competencies on customer satisfaction.
Existing competency models in the organisation: Often useful context, and can help avoid re-inventing the wheel and creating more change than is necessary.
Competency model benchmarks: Gathering and analysing competency models from other relevant organisations to ensure nothing is ‘missing’ from above data gathering.
Role / strategy benchmarks: Gathering and analysing competencies demonstrated by executives in similar roles or delivering same strategic initiatives, to ensure nothing is ‘missing’ from above data gathering.
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COMPETENCY MODEL DATA COLLECTION METHODSRelationship between methods and validity of results
Benchmarking
Generic model
Heavy duty research-based model (35+ BEI’s)
Full-scale BEI-based model (20+ BEI’s)
Hybrid model (5-15 BEI’s)
Expert panel and benchmarking and strategic interviewing
Expert panel
INVE
STM
EN
T $$
$
CRITICALITY / PRECISION AND VALIDITY OF RESULTS
Key: [ ]TargetTipping point /
algorithmROI
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OUR RESEARCH METHODS COMBINEBIG PICTURE AND DETAILS; NUMBERS AND TEXT
Big Picture / Strategy / Concepts
Details / Behavior / Analysis
Qua
ntita
tive
/ N
umbe
rs
Qua
litat
ive
/ Tex
t
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RIGOR OF ANALYSIS
Not coded because anassertion
Not coded because can’ttell who “we” is - and it’s an assertion
Coded because 1st person, past tense, and specific words said
Straight Talk
1. Uses “tact” or says things in an indirect way.2. Gives individuals honest assessments.3. Publicly gives one’s team an honest viewpoint.4. Makes differences of opinion stunningly clear in a noncontentious manner.
Coded for “Straight Talk” Level 3
Exec:
Exec:
Int:Exec:
I structured X into a profitable business unit and theseguys all grew. We gave them responsibility to createtheir own destiny...I called the meeting. I said, “Today, the purpose of this meeting for the next two days is I want you to sober up.The party is over. I’m going to take you through the real data of how much money you have and haven’t made.”That’s what you said?Yeah, a quote. “The party is over. You’vebeen telling yourselves you’re great...Today you are going to see the real numbers, the numbers as wesee them.”
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COMPETENCY MODEL BUILDING PROCESS
Define and agree purpose
Steps Purpose (HR
tool, capability building, culture change, etc)
Ownership and governance (HR, Line, Functional head)
End users (Top 250, Finance function, High potentials, etc)
Define/agree methodology aligned to purpose
StepsData sources:
Executive Interviews
Behavioural Event Interviews
Expert Panels Previous
Models & Values Statements
External Benchmarking
Implement methodology and build model
Steps Gather data
Build the model by clustering the competencies into themes, and with defined levels
Assign target levels to different roles / categories
Validate and rollout
Steps Approval of
models by the Executive Team
Communication to all Employees
Possible training on management (specially if it will be included in the PM system)
Implement competencies
Steps Implement in
the HR systems that will support the acquisition and development of competencies:
- Performance,- Recruitment,- Development,- etc.
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ALIGNING THE PURPOSE OF THE MODEL TO THE OWNERSHIP OF THE MODEL
Driven by HR with Line support
Driven by Line with HR support
Transformational Change
(e.g. Building Strategic Capability, Step
Change in Performance)
Fails to deliverHR cannot gain the traction required to drive real change without the Line taking the lead
Succeeds in driving change……when (and only when) the Line and HR work
together to embed the behaviours through communications, development programmes, succession planning, selection, performance
management, etc
HR Architecture (eg, Competencies to
be slotted into role descriptions, development
programmes, etc)
Succeeds in providing best practice HR support to the business…
…when (and only when) HR then embeds the competencies into HR processes
Poor use of resourcesBecause line leadership is not necessary if the purpose is simply to provide HR architecture
PURPOSE
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KEY CRITERIA THAT ANY EFFECTIVE METHODOLOGY SHOULD MEET
Why it matters How to ensure success To ensure you’re focusing people in the
right places, its critical to ensure you identify the competencies that will drive the strategy..
Use internal best practice and role models within DBSA to shape the competencies – this
ensures they reflect the reality of how work gets done in DBSA.
To ensure people can develop the new competencies, you need to ensure they understand what the competencies mean for them in their roles, and how they connect to their daily lives.
Focus on the fewest competencies that make the biggest difference – don’t try to describe every single skill required to execute the role.
Use examples and provide employees with guidance on how to develop the competencies, so they become real.
To ensure people embrace the new competencies and drive the change towards stronger decision support, it is critical that they are seen as credible.
Use a blend of internal best practice and role models, and external benchmarks, to shape the competencies, to avoid common pushback such as ‘We’re unique and different, so these competencies don’t apply to us.’
Regardless of purpose,
competencies must be:
Accurate
Understandable
Credible
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OPTIONS:
Some organisations have a history of building competency profiles on a role by role basis.
Many other organisations build models which can be applied to a range of roles.
This section will present different ways that organisations structure their competencies and competency models.
There is no ‘right way’; rather the key challenge is to find what will work best for the organisation, given its structure, operating model, strategy, and its history with competencies and how they’ve used them in the past.
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COMMON WAYS OF LEVELLING COMPETENCIES
‘Degree’ levels: This is where you have one set of behavioural indicators, and the assessor is asked to determine the degree to which the individual satisfies the criteria.
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COMMON WAYS OF LEVELLING COMPETENCIES‘Developmental’ levels: This is where you have a cluster of behaviours, some more sophisticated than others, which are levelled with the least sophisticated / easiest at the bottom, and most sophisticated / most difficult at the top.
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4. COMPETENCY FRAMEWORK OPTIONS
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EXAMPLE OF HOW TO STRUCTURE COMPETENCY MODELS: CATERPILLAR
Individual Contributors
First Line / Middle / Senior
Managers
Senior Leaders
•Built this model first, and invested most in it.•Heavy emphasis on behavioural competencies.•Applies to all top 250, regardless of role.•Has flexibility built in through an empirically derived ‘algorithm’•Built this model second.•Started with Senior Leader model and adapted to make it appropriate for managers; where possible competencies are the same, to create clear ‘line of site’ when transitioning from manager to leader.
•This model was created independently of the senior leader and manager models.• This model was retrofitted to work more like the senior leader models.• Its primary application is via performance management.
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EXAMPLE OF HOW TO STRUCTURE COMPETENCY MODELS: IBM
Individual Contributors
First Line / Middle / Senior
Managers
Senior Leaders
IBM also has different models and different levels, and these models apply to people across different functions.
In addition, for mission critical roles and for mission critical functions, they have developed more specific competencies models.
• For the mission critical Sales function, we helped them build a specific sales competency model which stretched further down the organisation and included specific sales competencies which weren’t relevant for other functions and so hadn’t been included in the leadership model.• We also built a similar model for senior research scientists.• For the mission critical ‘Managing Director’ role, which looked after $1 billion dollar accounts with IBMs largest global clients, we built a specific model for that role, to help IBM select the right internal candidates for that role.
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EXAMPLE OF HOW TO STRUCTURE COMPETENCY MODELS: VODAFONE
Individual Contributors
Leaders
Vodafone has one integrated, very high level model, which applies to the entire organisation. Some behavioural indicators under each competency apply only to senior leaders, so there is some differentiation.
In addition, for every function they have a competency model, and a core set of 3 competencies which are relevant to every function.
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EXAMPLE
Cluster or “Theme” Managerial Roles Specialist Roles Operational Roles
Managing Others
Developing Others (4) Flexibility (4) Flexibility (3)
Empowerment (4) Teamwork & Cooperation (4) Teamwork & Cooperation (3)
Team Leadership (5) Customer Service (4) Customer Service (3)
Managing Self
Initiative (4) Initiative (3) Initiative (2)
Achievement Orientation (5) Achievement Orientation (4) Achievement Orientation (3)
Strategic Thinking (4) Conceptual Thinking (4) Analytical Thinking (3)
Concern for Order & Quality (3)
Managing the Organisation
Organisational Commitment (4) Organisational Commitment (3) Organisational Commitment (2)
Impact and Influence (4) Impact and Influence (3)
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Q&A
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THANK YOU
w www.haygroup.comb www.blog.haygroup.com
© 2015 HayGroup. All rights reserved.
THANK YOU Brent HermanLead ConsultantHay Group [email protected]+27 72 480 2968
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Developing and implementing a competency framework
Session Code: HRSA09