Competencies that Count


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Presentation on using a performance approach to link competencies to outcomes and therefore to business results. First delivered at ASTD's international conference

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Competencies that Count

  1. 1. COMPETENCIES THAT COUNTSeptember 9, 2011
  2. 2. 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
  3. 3. Session Overview• Introductions• Key concepts• The performance chain and where competencies fit• 5 steps to building a performance-based competency model• Making practical use © Beacon Associates, Inc. 2011 3
  4. 4. 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? © Beacon Associates, Inc. 2011 4
  5. 5. Discussion • How many of you have ever developed aDISCUSSION 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? © Beacon Associates, Inc. 2011 5
  6. 6. KEY CONCEPTS © Beacon Associates, Inc. 2011 6
  7. 7. Typical Competency Use and Alignment Hiring and Selection TrainingPerformance andManagement Development Competency Career Path & Compensation Succession Planning © Beacon Associates, Inc. 2011 7
  8. 8. 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
  9. 9. 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)
  10. 10. Outcome – a Definition • OutcomeDEFINITION – 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 © Beacon Associates, Inc. 2011 10
  11. 11. 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 © Beacon Associates, Inc. 2011 11
  12. 12. Competency – a Definition “Certain characteristics or abilities of a person that enable him or her toDEFINITION demonstrate the appropriate specific actions.” (Boyatzis, Richard E. The Competent Manager: A Model for Effective Performance. New York: Wiley, 1982, p. 12) © Beacon Associates, Inc. 2011 12
  13. 13. THE PERFORMANCE CHAINWhere do competencies fit? © Beacon Associates, Inc. 2011 13
  14. 14. The Performance Chain Influencing factors affect people as they perform tasks that are apart of key work processes which enable successful outcomes that achieve business results Tasks & Key Work Influences Outcomes Results Behaviors Processes
  15. 15. The Performance Chain Influencing factors affect people as they perform tasks that are apart of key work processes which enable successful outcomes that achieve business results Tasks & Key Work Influences Outcomes Results Behaviors Processes Behaviors/Activity
  16. 16. The Performance ChainThe key to the performance chain is how influences, tasksand behaviors, key work processes produce outcomes that lead to results Tasks & Key Work Influences Outcomes Results Behaviors Processes
  17. 17. 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 © Beacon Associates, Inc. 2011 17
  18. 18. 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…” © Beacon Associates, Inc. 2011 18
  19. 19. 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 © Beacon Associates, Inc. 2011 19
  20. 20. Challenges “I spent months on these models and then theyDISCUSSION were barely used. Not because we didnt put the due diligence into making sure the organization was ready (we did), but because we missed something very important” © Beacon Associates, Inc. 2011 20
  21. 21. 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? © Beacon Associates, Inc. 2011 21
  22. 22. The Performance Chain Influencing factors affect people as they perform tasks that are apart of key work processes which enable successful outcomes that achieve business goals Tasks & Key Work Influences Outcomes Goals Behaviors Processes
  23. 23. 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 role2. Helps individuals leverage their unique talents, experiences, and style as they work on their development opportunities3. Schedules regular development discussions4. Works with individuals to ensure action on their IDPs5. Knows when to let go of the details in order to help others learn from experience © Beacon Associates, Inc. 2011 23
  24. 24. QUESTIONS? 24
  26. 26. 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 organizations 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? © Beacon Associates, Inc. 2011 26
  27. 27. 1. Organizational competency framework• In developing the Organizational Competency Framework, we must consider the connection to human performance factors Past Performance Current Performance Predicted PerformanceVision 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 (workforceModel performed within our business aligned to driving success within execution of the model) to drive model? our current business model? greater success? © Beacon Associates, Inc. 2011 27
  28. 28. 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! © Beacon Associates, Inc. 2011 28
  29. 29. 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? © Beacon Associates, Inc. 2011 29
  30. 30. Sample template for collecting outcomesOutcome in role (Primary)Outcome EX3 – Talent developed and capable of executing current and future strategyImportance Extremely Difficult Percent of Job time 25%Difficulty Moderately DifficultSuccess 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 directionBarriers • Lack of consistent face to face time • Giving too much responsibility too slowly • Peoples 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 dont understand how to foster senior people • Challenging to keep senior people around • Cultural challengesFacilitators • 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 © Beacon Associates, Inc. 2011 30
  31. 31. Outcomes weighting and ranking Outcome % Job time Importance DifficultyEX 1 - An organizational design and 16% Extremely Important Very Difficultstructure that produces transformativeEX3 - Talent developed and capable of 16% Extremely Important Moderatelyexecuting current and future strategy DifficultEX5 – A clear strategy for the business 16% Extremely Important Moderatelyunit or region DifficultEX2 – A strategy to attract and retain 13% Important Very Difficulttop talent around the worldEX4 – A succession plan 13% Important Very DifficultAL 1 – An integrated high performing 9% Important Moderatelyteam with appropriate autonomy DifficultEN1 - A compelling vision about how 6% Moderately Moderatelythe team will succeed Important DifficultAL2 - A high performing cross-functional 6% Moderately Moderatelyteam Important DifficultAL3 – Talent aligned to roles and team 3% Important Moderately DifficultEN2 – A strategy to communicate goals 3% Moderately Moderatelyand objectives Important Difficult © Beacon Associates, Inc. 2011 31
  32. 32. 3. Build the performance model – critical outcomes• 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 © Beacon Associates, Inc. 2011 32
  33. 33. 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 © Beacon Associates, Inc. 2011 33
  34. 34. 3. Build the performance model – critical outcomes• 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 © Beacon Associates, Inc. 2011 34
  35. 35. 4. Build the performance model – 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 © Beacon Associates, Inc. 2011 35
  36. 36. 5. Identify and Map Competencies to the Model Existing or Library Critical Competency Definitions & Key Work Activity Outcomes Behaviors Alignment Against Each OutcomeCalculate Total Document Alignment Identify Identify Most Outcomes for Each Competencies Closely Aligned Associated Competency with no Competencies with each Alignment Competency © Beacon Associates, Inc. 2011 36
  37. 37. Sample competency alignment grid CompetenciesOutcomes 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 staffingWellcommunicated X X X XvisionBelievable welldefined goals,roles and X X X X XresponsibilitiesclearlycommunicatedEffectiveexecutionstrategy with XclearmilesontesTeam thatunderstandswhat goalattainment X X X Xmeans tothempersonallyTalent alignedto team and X X X XresponsibilitiesA highperformingcross X X X X X XfunctionalteamCOUNT 4 0 3 0© Beacon Associates, 1 4 Inc. 2011 3 0 2 4 3 37
  38. 38. 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 BehaviorsName © Beacon Associates, Inc. 2011 38
  39. 39. 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 opendialogue; lets people finish and be responsible for their work; defines success in terms of the whole team; creates a feeling of belongingin 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 © Beacon Associates, Inc. 2011 39
  40. 40. MAKING PRACTICAL USE © Beacon Associates, Inc. 2011 40
  41. 41. 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) © Beacon Associates, Inc. 2011 41
  42. 42. 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 © Beacon Associates, Inc. 2011 42
  43. 43. 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 © Beacon Associates, Inc. 2011 43
  44. 44. QUESTIONS? 44
  45. 45. THANK YOU!For questions – call or emailHeather Charest – 45