Overview of Competencies & Benefits and Uses of a Competency-Based System July 10, 2008 Patrick Shannon Sherry Deng

What are Competencies? What superior performers do more often, more completely and consistently Observable behaviors that “make a difference” The “how” side of performance Definition COMPETENCIES BEHAVIORS (actions) OUTPUTS ORGANIZATION RESULTS

What superior performers do more often, more completely and consistently

Observable behaviors that “make a difference”

The “how” side of performance

Defining Competencies Skills, knowledge, behaviors and other characteristics that are important for: Organizational success Personal performance Enhanced contribution Sends the message that “how” matters as much as “what” Visible Hidden Skills Knowledge Values Self-Image Traits Motives

Skills, knowledge, behaviors and other characteristics that are important for:

Organizational success

Personal performance

Enhanced contribution

Sends the message that “how” matters as much as “what”

Types of Competencies General Behavioral Competencies Behaviors critical to individual and group performance Example: Relationship Building – Builds and maintains a wide variety of positive relationships, both formal and informal to meet the needs of external and internal customers Technical Competencies Demonstrated knowledge in a technical or professional area May or may not require ongoing, continual adaptation, retraining, upgrading or new learning Example: Knowledge of Employment Law – Demonstrates knowledge of employment law by accurately applying legal guidelines when hiring employees Our Focus: General Behavioral Competencies for LEADERS

Behaviors critical to individual and group performance

Example: Relationship Building – Builds and maintains a wide variety of positive relationships, both formal and informal to meet the needs of external and internal customers

Demonstrated knowledge in a technical or professional area

May or may not require ongoing, continual adaptation, retraining, upgrading or new learning

Example: Knowledge of Employment Law – Demonstrates knowledge of employment law by accurately applying legal guidelines when hiring employees

Competencies Provide Prescriptive Language That Can Clarify and Integrate HR Programs “… all that separates you from your competitors are the skills, knowledge, commitment, and abilities of the people who work for you… Companies that manage people right will outperform companies that don’t by 30% to 40%… If you don’t believe me, look at the numbers.” Fast Company “Danger: Toxic Company” Jeffrey Pfeffer, Stanford University New hire orientation Training & development Compensation & rewards Recruiting & selection Assessment Career roadmaps Performance management Succession planning Business process Competency Framework Uses of a Competency Model

Preliminary Guiding Principles for the State of California Leadership Competency Model Built and validated with input from State of CA Leaders Aligned with State of CA’s strategies, culture and modernization efforts Integrated into HR processes State of California Leadership Model Competency Model Development Principles The competency model should be aligned with the State’s objectives and culture, and support the HR Modernization project The competency model should be developed from current research and validated by internal subject matter experts The competency model should lend itself to multiple HR programs including workforce planning, performance management, and training The competency model should be clear and compelling, and easy to communicate

The competency model should be aligned with the State’s objectives and culture, and support the HR Modernization project

The competency model should be developed from current research and validated by internal subject matter experts

The competency model should lend itself to multiple HR programs including workforce planning, performance management, and training

The competency model should be clear and compelling, and easy to communicate

GENERIC SAMPLE 1. Competency name and definition 2. Key concepts or dimensions 3. Descriptions of sample behavioral indicators at three stages or levels Competencies Should be Prescriptive and Define the Expected Level of Proficiency 1. Leading Change Definition: Includes facilitating and communicating change across the organization, and overcoming resistance. Key Concepts ► Facilitates change Communicates change Overcomes resistance Sample Indicators ▼ Sample Indicators ▼ Sample Indicators ▼ Developing Still developing; may show proficiency in some areas Performs own work in a way that is consistent with the culture change Promotes an “I can” culture to various audiences Identifies and effectively works through resistance to change Proficient Fully proficient without additional coaching Translates organization’s new direction into specific steps that enable others to implement change Tailors culture change messages to win over key stakeholders Anticipates barriers and resistance to change and achieves successful resolution Expert Seen as role model; teaches others Actively oversees and champions the new culture change priorities across organization Creates/delivers a clear and compelling vision to focus key internal/external stakeholders on priorities Directly confronts significant challenges and leads efforts to convert resistance into strong support

Performs own work in a way that is consistent with the culture change

Promotes an “I can” culture to various audiences

Identifies and effectively works through resistance to change

Translates organization’s new direction into specific steps that enable others to implement change

Tailors culture change messages to win over key stakeholders

Anticipates barriers and resistance to change and achieves successful resolution

Actively oversees and champions the new culture change priorities across organization

Creates/delivers a clear and compelling vision to focus key internal/external stakeholders on priorities

Directly confronts significant challenges and leads efforts to convert resistance into strong support

Key Uses and Benefits of a Competency-Based System

Drivers for Introducing the Use of Competencies Sets Clear Expectations Provides employees with clear direction on how they can contribute Reinforces behaviors that are consistent with the organization’s mission, culture and priorities Identifies Training and Development Actions Provides employees with a roadmap for building strengths and closing development gaps Ties to career growth and becoming a “learning organization” Integrates HR Programs Improves consistency in recruiting and selection, training, performance management and workforce/succession planning Streamlines and simplifies HR operations

Provides employees with clear direction on how they can contribute

Reinforces behaviors that are consistent with the organization’s mission, culture and priorities

Provides employees with a roadmap for building strengths and closing development gaps

Ties to career growth and becoming a “learning organization”

Improves consistency in recruiting and selection, training, performance management and workforce/succession planning

Streamlines and simplifies HR operations

Uses of a Competency Model: Example #1 Development Actions GENERIC SAMPLE Training & Development Building Negotiation Skills: Development Actions On the job Prepare for negotiations by conducting a mock/role play session; practice listening and probing skills Shadow senior colleagues as they prepare for critical negotiating sessions Debrief after negotiating session; give/accept honest feedback and apply key learnings Practice identifying and adapting to a range of specific provider negotiating styles; seek input from colleagues on “best practices” Coaching/ mentoring “ Sit in” (or listen in) with senior colleagues in negotiation meetings; summarize observations and implications for how to improve personal negotiating style Engage a partner to provide feedback on maintaining composure under pressure Seek feedback from your manager on how to handle a challenging employee issue (e.g., strong performer who does not collaborate well); take action and follow up Formal training Take a negotiation skills course Take a sales training course (e.g., listening skills, reading body language, asking effective questions, persuasiveness, closing skills)

Prepare for negotiations by conducting a mock/role play session; practice listening and probing skills

Shadow senior colleagues as they prepare for critical negotiating sessions

Debrief after negotiating session; give/accept honest feedback and apply key learnings

Practice identifying and adapting to a range of specific provider negotiating styles; seek input from colleagues on “best practices”

“ Sit in” (or listen in) with senior colleagues in negotiation meetings; summarize observations and implications for how to improve personal negotiating style

Engage a partner to provide feedback on maintaining composure under pressure

Seek feedback from your manager on how to handle a challenging employee issue (e.g., strong performer who does not collaborate well); take action and follow up

Take a negotiation skills course

Take a sales training course (e.g., listening skills, reading body language, asking effective questions, persuasiveness, closing skills)

Uses of a Competency Model: Example #2 Career Development Maps GENERIC SAMPLE Career Roadmaps Competencies can help define and communicate career opportunities – both lateral and vertical moves

Competencies can help define and communicate career opportunities – both lateral and vertical moves

Uses of a Competency Model: Example #3 Performance Management Tools GENERIC SAMPLE Performance Management Many organizations include competencies in their performance management programs to assess “how” employees are performing in their jobs

Many organizations include competencies in their performance management programs to assess “how” employees are performing in their jobs

Uses of a Competency Model: Example #4 Selection – Structured Interview Guides GENERIC SAMPLE Recruiting & Selection Competencies provide content that can be converted into selection tools with scoring guides to assist with more effective hiring

Uses of a Competency Model: Example #5 Workforce/Succession Planning Source: The Leadership Pipeline, 2001, by Ram Charan, Stephen Drotter, and James Noel. Competencies can help define expectations at each level of management, which supports clear and transparent promotion guidelines Succession Planning GENERIC SAMPLE

Key Takeaways Competencies set clear behavioral expectations Competencies can help identify training and development actions Competencies can help integrate HR programs

Thank you! Q & A