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NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"
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NOVA SHRM SIG "Aligning Competencies To Your Organizations Mission"

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  • 1. Competency Modeling & Aligning Competencies to Your Organization’s Mission Armando Justo September, 2009 The opinions expressed in this presentation are entirely those of the author and should not be attributed in any manner to his current work or employer.
  • 2. Objectives • Increase the understanding of competency-based management – The foundational models (functionalist, behavioral, and constructivist) – The use of competencies in the different human resources processes – Best practices and lessons learned in the implementation of competencies 2
  • 3. Contents Competitiveness and employability 1 Theory of competencies 2 Competency modeling 3 Competency-based management 4 Change management planning 5 3
  • 4. Competitiveness and employability 1 4
  • 5. Competitiveness and employability…. …..the business case for competencies Renovation Clients Competition Continuous Innovation Improvement Workforce Technology Transformation 5
  • 6. Turbulence in the business environment… 6
  • 7. ...risks and opportunities What are doing leading Technology organizations to better adapt and thrive? Strategy Processes People 7
  • 8. “The ability to learn faster than your competitors may be only sustainable competitive advantage.” Arie de Geus 8
  • 9. Theory of competencies 2 9
  • 10. Why competencies? Competencies are the characteristics that individuals have and use in appropriate, consistent ways in order to achieve desired performance 10
  • 11. Integrated performance-oriented capabilities… …..which are conditional for carrying out tasks, solving problems and more generally, effectively functioning in a certain profession, organization, position or role Competencies Clusters of Personal Knowledge Traits and Skills and values Abilities 11
  • 12. Origin and evolution of competencies Medieval Societies 1954 Apprentices developed John C. Flanagan their skills utilized the critical Incidents technique 1959 working with a master. to examine what Robert White people do; analyzing identified a work processes and personality documenting trait which observed incidents he called to allow inferences competence. and predictions about the individual performing the act. 12
  • 13. Origin and evolution of competencies… Most of today’s organizations use competencies to increase their productivity and competitive advantages. 1973 McClelland supported that 1994 a person’s self Gary Hammel and C.K. 2005 motivation, Prahalad introduced results the term “core A study conducted orientation, and competency” referring by Hewitt self image have to organizational Associates a bigger impact capabilities difficult to involving 373 on performance imitate that create companies than his/her advantages with revealed that 73% intelligence competitors. of these level. organizations use competencies 13
  • 14. The elements of competencies IE S E TENC Values C OMP and Traits Observable Observable Clusters of Knowledge Skills and Abilities Behaviors 14
  • 15. Behaviors Clusters of knowledge / cognitive, interactive, affective and psychomotor capabilities / attitudes and values 15
  • 16. Competency modeling 3 16
  • 17. Foundational competency approaches Behavioral Functional Constructivist 17
  • 18. Behavioral competency approach History: • David McClelland and Richard Boyatzis • McBerth Associates Characteristics: • Focus on successful performance • 19 generic characteristics of outstanding managers • Historic models related to the past The difference between average and superior performance is to focus on what managers can do and how they do things. In other words, how they behave rather than what skills or knowledge they have. 18
  • 19. Functionalist competency approach History: • Gilbert Jessup (Head of Curriculum Design NCVQ) • Reforms in the national educational systems of the UK (1980s) • National Council of Vocational Qualifications –NCVQ • National Vocational Qualifications Frameworks –NVQ • National Skills Standards Board –NSSB (USA) Characteristics: • Competency standards across all sectors of industry • An NVQ comprises units of competence that can be separately achieved and certified • The NVQ framework covers five levels • Focus on certification • Detaching -- work roles -- units of competence --elements of competence 19
  • 20. Constructivist competency approach History: • Bertrand Schwartz • Training program for unskilled workers in depressed areas (1960) • National Institute for Adult Education (Mission locale d'insertion -1982) Characteristics: • On-the-job training and reorganization of work process • Integral, lifelong education • Equal importance: non-formal adult education -- school- based formal education • Combination technical and practical instruction • Training -- trust -- responsibility 20
  • 21. Behavioral Functional Constructivist Industry The individual Superior sector and the performers standards environment Key High Collective activities, performance learning Performance behaviors needs criteria Correct a Develop traits Certification problem / associated Standardization Improve a with results process 21
  • 22. Combining the competency approaches Foundational Approaches Competency Functionalist Model Behavioral Constructivist 22
  • 23. Functionalist Competency Approach Unit of Performance Competence 1.1 Indicator Key Work Unit of Performance Function # 1 Competence 1.2 Indicator Unit of Performance Competence 1.3 Indicator Critical Work Key Work Unit of Performance Function Function # 2 Competence 2.1 Indicator Unit of Performance Competence 3.1 Indicator Key Work Unit of Performance Function # 3 Competence 3.2 Indicator Unit of Performance Competence 3.3 Indicator 23
  • 24. Behaviorist Competency Approach Competency: Accountability Level 1: Communicates requirements and expectations Level 2: Sets limits Level 3: Demands high performance Level 4: Confronts performance problems Level 5: Creates a culture of responsibility Source: Journal of Healthcare Management (Nov/2008) 24
  • 25. Competency Model “…..written description of the competencies required for fully successful or exemplary performance in a job category, work team, department, division, or organization.” David D. Dubois & William Rothwell, Competency-based Human Resource Management How many competencies should include the competency model? 25
  • 26. The ASTD WLP Competency Model • Roles, areas of xamp le E expertise, and foundational competencies. • Foundation for the ASTD Certification. Source: ASTD WLP Competency Model 26
  • 27. Functionalist Competency Model Ex amp le “Promoting Development, Saving the Planet” Policy Making Capacity Building Renewal Technologies Partnering with Countries Climate Change Environmental Governance Country and Mitigation Development Dialogue Knowledge Needs Management Outcome-based Sustainable Renewal Evaluation Development Energy Finance Project Project Execution Design & Supervision Development Technical Excellence Fiduciary Excellence 27
  • 28. Functional Analysis Map E xamp le Main Main Competency Units Competency Elements Purpose Functions Thematic Knowledge* Climate change and Mitigation Policies and Strategies Advise Dialogue Country Sector Knowledge government to Knowledge address climate Management change Change Promote Management sustainable development Analysis in Countries and Design Competency Elements Manage explain in detail the Project Environmental Management requirements for each Projects Competency Unit. Outcome- based Evaluation Interpersonal and Leadership competencies 28
  • 29. Three levels for each competency le E xamp Level Sector knowledge Solid Team member for non-complex environmental projects; applies technical concepts, methodologies and tools. Sector knowledge and experience Team leader/team member for complex environmental projects; Advanced develops new tools and methodologies; advises and raises awareness in key stakeholders; solves complex problems. Recognized as an environmental expert in the region Responsible for the positioning of the organization as a leader in Expert climate change and mitigation issues in the country; sphere of influence is large, complex, and global; team leader for complex sustainable development projects; leads the formulation of sector strategies, policies and methodologies; establishes best practices. 29
  • 30. Climate Change and Mitigation Dialogue Ability to facilitate policy dialogue and raise awareness for climate change with key stakeholders in the country amp le Ex Competency Solid Advanced Expert Elements Thematic • Applies • Provides solutions • Leads sustainable Knowledge thematic based on thorough development knowledge. experience. efforts. Conducts Ability to Keeps current on Demonstrates the policy dialogue on perform technical capacity to establish priority topics at the environmental advances within constructive policy highest country analysis and the climate dialogue with key levels. Identifies propose actions change sector. stakeholders. Offers innovative actions in line with Disseminates practical and effective that respond to country experiences, solutions to problems. country needs. development lessons learned Involves key needs and best constituencies in the practices. analysis of sector- related topics. Develops new tools.
  • 31. Competency modeling: Key insights Get a mandate • Develop a solid business case (competitiveness and productivity) • Align with career development (employability and transparency) Obtain top level support • Obtain visible support from key sponsors Align the competency model with the business • Map the competency model with the company’s vision, priorities and key processes. Develop change advocates • Involve people with strong skills and good reputation Make the competency model simple and thorough • Different layers to allow simplicity while making the model robust enough • Start with the HR application in mind Imaging a supervisor using the model to provide feedback: – Is the model connected to the business strategy? – Are behaviors observable to clarify desired level of performance? 31
  • 32. Competency-based management 4 32
  • 33. Integration of competencies Competency Model Recruitment / Performance Selection / On Management boarding Competency- Talent based Compensation Planning Management Mobility, Career Development, Learning and Promotion Development 33
  • 34. Competency-based mgt: a comparison Traditional HR Competency-based Management Management Fundamental • Work functions: • Competencies: base Fulfill work Superior requirements performance and productivity Human • Quantitative • Quantitative and Resources (Headcount) Qualitative (Headcount Planning and Competencies) Recruitment • Education and • Proficiency in work and Selection Experience functions / competencies 34
  • 35. Competency-based mgt: a comparison… Traditional HR Competency-based Management Management Performance • Subjective criteria • Behaviors / performance criteria Compensation • Equal for same job / • Differentiation based level on performance • Requirements • Business needs Training (Union / supervisors / (performance gaps) employees) Development • Based on seniority / • Directed / lateral vertical and vertical 35
  • 36. Competency-based human resource management Top trends in leadership competencies Top 20 Other Characteristics Companies Companies Companies with competencies 100% 73% …succession planning 100% 73% ….performance management 95% 69% …development 90% 65% ….long-term incentives 65% 23% …base salaries 60% 30% ….annual incentives 60% 31% Source: Corporate Leadership Council. (2006); “Transitioning to a Competency-based Workforce” 36
  • 37. Competencies and career development Useful framework for career development 37
  • 38. Career Paths and Progressions Exa mple Project Path Management V: Management V: Project V: Technical Manager Manager IV: Senior III: Specialist Horizontal and vertical learning II: Analyst and growth I: Entry Technical 38
  • 39. Selection based on competencies les E xamp • Online evaluations +200 • Case studies 50-60 • Reference checks 8-12 • Interviews 3-4 • Individual interviews (behavioral interviewing) • Panel interviews 39
  • 40. Competency inventory: analysis of gaps Competencies Exa mple Competency 3 Competency 4 Competency 6 Competency 2 Competency 5 Competency 1 Average Employees Employee 1 8 6 3 2 8 6 5.5 Employee 2 10 8 9 9 5 8.2 Employee 3 4 6 3 4.3 Employee 4 4 5 4 4 4 5 4.3 Average 7.3 5.8 4.3 5.0 7.0 4.8 5.7 Standard Deviation 3.1 1.7 1.5 3.6 2.6 1.3 Basic Level (1,2,3,4) Advanced Level (5,6,7) Expert Level (8,9,10) 40
  • 41. Competency Gaps Average competency levels le Competency 12 Ex amp Competency 11 Competency 1 6.18 Competency 10 5.06 Competency 2 4.9 6.26 4.92 Competency 9 5.41 Competency 3 4.84 5.67 5.58 Competency 8 5.32 5.05 Competency 4 5.99 Competency 7 Competency 5 Competency 6 41
  • 42. Competency Gaps Vs. Business Needs How would you prioritize competency gaps? High 4.0 Exa mple Required Vs. Existing competencies Competency 12 Competency 9 Gap analysis Competency 7 Competency 1 3.0 Competency 11 Competency 4 Competency 5 Competency 2 Competency 3 2.0 Competency 10 Competency 6 Competency 8 Low 1.0 1.0 2.0 3.0 4.0 Low High Business Needs Contribution of competencies to business objectives 42
  • 43. Targeted learning solutions Managing the business paradoxes + Productivity and competitiveness + Employability + Learning styles and employee needs - Learning budgets amp les Ex On-the-job Brown Bag training Literature Coaching Lunch Workshops Short-term Learning Webinars assignments Mentoring Missions 43
  • 44. 2008: sustained support to learning 2008 ASTD State of the Industry Report revealed that companies maintained a sustained support to learning What will be the impact for 2009 due to the economic downturn? Average learning investment Number of training hours per employee per employee (USD$) Participating companies Participating companies Global companies Global companies $1,800 50 BEST companies BEST companies 45 $1,600 40 44.7 44.3 $1,400 35 $1,531 $1,451 $1,200 30 $1,609 43.0 $1,000 25 40.7 $1,320 $1,040 $1,103 $800 20 15 35.1 37.4 $600 $400 10 5 $200 0 $0 2006 2007 2006 2007 Source: 2008 State of the Industry Report, ASTD, November 2008 44
  • 45. Certification processes Competency Norms Performance Evidences Comparison Vs. Competency Register Norms Competent Competent? Certified Non-Competent Training Needs Training and Development Source: Irigoin, M.; Vargas, F.; Competencia laboral: manual de conceptos, métodos y aplicaciones en el sector salud; Montevideo : Cinterfor, 2002. 45
  • 46. Certification processes: Key learning • Industry sectors must guide the development of competency standards – Public-private alliances for defining labor competency norms – Separation of responsibilities (competency definition / assessment / training) – Focus on productivity and competitiveness – Alignment with education and employment policies • Strategic alignment with industry sectors – Pilot experiences with demonstrative effects • Coordination and teamwork – Clarity in objectives and benefits for stakeholders – Future economic sustainability – Long-term process 46
  • 47. Competencies / Quality Mgt. System A quality management system provides confidence in the organization’s ability to deliver products and services that fulfill customer needs and expectations Quality Management System • ISO 9000 norms • Malcolm Baldrige Quality Award • Six-sigma • Lean manufacturing • Business Process Management 47
  • 48. Complementary systems Competency-based Quality Management Management System • Focus on individuals • Focus on processes • Performance criteria for • Consistency in work people processes • Development of capacities • Process improvement • Certification of people • Certification of work processes / companies Creation of competitive advantages • Continuous improvement, productivity, innovation 48
  • 49. Implementing both systems What should be first? Quality Competency-based a) Management Management System Quality Competency-based Management b) Management System Quality Management System c) Competency-based Management 49
  • 50. Competencies in higher education The Tuning Project seeks to 'fine tune' educational structures • Learning outcomes, competencies, and student centered – Competencies (generic and specific for thematic areas) – New approaches for teaching-learning • 19 countries and 190 Universities in Latin America • Create conditions to foster future employability – Develop knowledge and skills for a profession – Develop motivations, values, skills and personal resources – Creating links between universities and other appropriate and qualified bodies. 50
  • 51. Tuning: The six most important competencies According to academics of Latin America Ethical commitment Capacity to learn and keep updated Capacity of abstraction, analysis, and synthesis Capacity to apply knowledge to real situations Capacity to analyze, and solve problems Commitment with quality Source: Informe Final del Proyecto Tuning América Latina: Reflexiones y perspectivas de la Educación Superior en América Latina. 51
  • 52. Alignment of competencies with HR processes: Insights Performance Management – Clarify performance expectations / Improve quality of feedback (Performance management processes) Training and Career Development – Targeted learning solutions (Workshops, coaching, mentoring, blended learning, etc) Talent Recruitment and Selection – Help to migrate from a gut feeling approach to a comprehensive assessment process (structured-based behavioral interviews, personality tests, case studies, and assessment centers) Promotions, Mobility – Transparency in lateral assignments and promotion decisions (Promotions criteria) Workforce Planning – Translate business needs into concrete talent demands (Gap analysis) Compensation – Pay for performance (Combining the achievement of results (tangible elements) and competencies (observed behaviors) 52
  • 53. Change management 5 53
  • 54. Change is great as long as it affects somebody else... Change is great as long as it affects somebody else... 54
  • 55. Basic approaches for managing change Managed Transition “Hammer” Approach ENDING, LOSING, THE LETTING GO NEUTRAL THE ZONE NEW BEGINNING Unfreezing Transition Freezing Transition Unfreezing Freezing Period Period Post- Actual Post- Actual Operation Transition Implementation Operation Implementation Transition 55
  • 56. Managing the implementation of competencies Alignment with Business Strategy Alignment Climate with Rewards Evaluation Change Training Agents Plans Involvement Communication Planning 56
  • 57. Managing change: Key Insights Ownership of the competency initiative • The business areas should be sponsoring the competency initiative • Pay attention to the “project” and the “process” Communications and involvement • Business sponsors should be visible • Competency workshops to better align competencies with the business and engage change agents Focus on easy wins • Start with most common application of competencies (training and development, performance management, recruitment, promotions) Align incentives • Link competencies with rewards (promotions, desired behaviors) Long-term process • Do not create higher expectations. Competencies are useful tools but they do not substitute an articulated business strategy 57
  • 58. Further reading • Anderson, Roger. (1999). Introduction to Competency Modeling (Part 1): Learning tools, techniques and theories. Linkage Incorporated. • Banco Interamericano de Desarrollo. (2002). La función del Fondo Multilateral de Inversiones en cuanto a normas para certificación de aptitudes (MIF/GN-85). • ChileCalifica. (2008). National System for Competency Certification. Chile. www.chilecalifica.cl • Cinterfor/ILO. Gestión de calidad en la Formación. ISO 9000 y Competencia Laboral. Obtenido de http://www.oitcinterfor.org/public/spanish/region/ampro/cinterfor/temas/calidad/doc/iso_comp/int.htm • Corporate Leadership Council. (February 2006). Literature Key Findings: Transitioning to a Competency-based workforce. Washington, DC: Corporate Leadership Council. • Corporate Leadership Council. (September 2004). Literature Review Findings: Using Competencies for Employee Management. Washington, DC: Corporate Leadership Council. • Corporate Leadership Council. (June 2002). Literature Review Findings: Use of Competencies within the HR function. Washington, DC: Corporate Leadership Council. • Corporate Leadership Council. (October 2002). Literature Review: Competency-Driven Workforce Planning. Washington, DC: Corporate Leadership Council. • Deloitte Development LLC. (2008). The Chemistry of Talent. Deloitte Touche Tohmatsu. • Dubois, D. & Rothwell, W. (2004). Competency-Based Human Resources Management. Palo Alto, CA: Davies Black Publishing. • Green, P. (1999). Building Robust Competencies: Linking human resource systems to organizational strategies. San Francisco: Jossey-Bass. • International Organization for Standardization (ISO). http://www.iso.org/ • Kahane, E. (2008). Competency Management: Cracking the code for organizational impact. ASTD. • Mertens, Leonard. Competencia Laboral. Sistemas, surgimiento y modelos. CINTERFOR/OIT. Montevideo. 1996. • Universidad de Deusto. (2007). Informe Final del Proyecto Tuning América Latina: Reflexiones y perspectivas de la Educación Superior en América Latina. Alfa/Europeaid. http://tuning.unideusto.org/tuningal • Hammel, G. & Prahalad, C. (1994). Competing for the Future: Breakthrough strategies for seizing control of your industry and creating the markets of tomorrow. Boston. MA: Harvard Business School Press. • Vargas Zúñiga, F. (2005). Key Competencies and lifelong learning. Montevideo. ILO/Cinterfor 58
  • 59. Thank you! armandojusto@live.com 59

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