Overview Of Competencies & Benefits and Uses of a Competency-Based System

Slide 1: July 10, 2008 Overview of Competencies & Benefits and Uses of a Competency-Based System Patrick Shannon Sherry Deng

Slide 2: What are Competencies? Definition  What superior performers do COMPETENCIES more often, more completely and consistently  Observable behaviors that “make a difference” BEHAVIORS  The “how” side of performance (actions) OUTPUTS ORGANIZATION RESULTS 2

Slide 3: Defining Competencies Skills, knowledge, behaviors and other characteristics that are important for: Skills Visible Knowledge • Organizational success • Personal performance • Enhanced contribution Hidden Values Traits Self-Image Motives Sends the message that “how” matters as much as “what” 3

Slide 4: Types of Competencies General Behavioral Competencies Technical Competencies s Behaviors critical to individual s Demonstrated knowledge in a and group performance technical or professional area s Example: Relationship Building – s May or may not require ongoing, Builds and maintains a wide continual adaptation, retraining, variety of positive relationships, upgrading or new learning both formal and informal to meet s Example: Knowledge of the needs of external and internal customers Employment Law – Demonstrates knowledge of employment law by accurately applying legal guidelines when Our Focus: hiring employees General Behavioral Competencies for LEADERS 4

Slide 5: Competencies Provide Prescriptive Language That Can Clarify and Integrate HR Programs Uses of a Competency Model “…all that separates you from your competitors are the Recruiting skills, knowledge, Assessment & selection commitment, and abilities of the people who work for you… Business process Compensation Companies that manage & rewards people right will outperform companies that don’t by 30% Competency Career Framework New hire to 40%… If you don’t believe roadmaps orientation me, look at the numbers.” Fast Company “Danger: Toxic Company” Training & Performance Jeffrey Pfeffer, Stanford University management development Succession planning 5

Slide 6: Preliminary Guiding Principles for the State of California Leadership Competency Model Competency Model Development Principles 1. The competency model should be Aligned with aligned with the State’s objectives State of CA’s and culture, and support the HR strategies, Modernization project culture and modernization 2. The competency model should be efforts developed from current research and validated by internal subject matter experts State of California Leadership Model 3. The competency model should lend itself to multiple HR programs including workforce planning, Built and performance management, and validated with Integrated into training input from HR processes State of CA 4. The competency model should be Leaders clear and compelling, and easy to communicate 6

Slide 7: 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 ▼ GEN Developing  Performs own work in a way  Promotes an “I can” culture  Identifies and effectively Still developing; may that is consistent with the to various audiences works through resistance to ERI show proficiency in culture change change some areas Proficient Fully proficient without C  Translates organization’s new direction into specific SAM  Tailors culture change messages to win over key  Anticipates barriers and resistance to change and PLE additional coaching steps that enable others to stakeholders achieves successful implement change resolution Expert  Actively oversees and  Creates/delivers a clear and  Directly confronts significant Seen as role model; champions the new culture compelling vision to focus challenges and leads efforts teaches others change priorities across key internal/external to convert resistance into organization stakeholders on priorities strong support 1. Competency name and definition 2. Key concepts or dimensions 3. Descriptions of sample behavioral indicators at three stages or levels 7

Slide 8: Key Uses and Benefits of a Competency-Based System

Slide 9: Drivers for Introducing the Use of Competencies Sets Clear  Provides employees with clear direction on how Expectations they can contribute  Reinforces behaviors that are consistent with the organization’s mission, culture and priorities Identifies  Provides employees with a roadmap for building Training and strengths and closing development gaps Development  Ties to career growth and becoming a “learning Actions organization” Integrates HR  Improves consistency in recruiting and selection, Programs training, performance management and workforce/succession planning  Streamlines and simplifies HR operations 9

Slide 10: Training & Uses of a Competency Model: Example #1 Development Development Actions 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 GEN  Debrief after negotiating session; give/accept honest feedback and apply key learnings ERI C  Practice identifying and adapting to a range of specific provider negotiating styles; SAM seek input from colleagues on “best practices” Coaching/ PLE  “Sit in” (or listen in) with senior colleagues in negotiation meetings; summarize observations and implications for how to improve personal negotiating style mentoring  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  Take a negotiation skills course training  Take a sales training course (e.g., listening skills, reading body language, asking effective questions, persuasiveness, closing skills) 10

Slide 11: Career Uses of a Competency Model: Example #2 Roadmaps Career Development Maps Competencies can help define and communicate GEN career opportunities – ERI both lateral and vertical C SAM moves PLE 11

Slide 12: Performance Uses of a Competency Model: Example #3 Management Performance Management Tools Many organizations 3. Competencies and Values (How was it accomplished?) include competencies Planning (Dec/Jan): Discuss how the values and competencies apply to the employee’s position, including the relative importance of each. A. Competencies Rating (see scale below) in their performance GEN (SE, EE, ME, NI or NM) Technical Competence – Demonstrates breath and depth of technical skills and capabilities required for position; shares technical knowledge; sets or contributes to company direction within area of management ERI technical expertise. Customer Focus – Provides high quality, proactive service to external and internal customers; seeks C feedback and is committed to increase customer satisfaction; builds long-term relationships. programs to assess SAM Delivering on Commitments – Meets and strives to exceed all commitments and safety requirements; accepts full accountability; overcomes obstacles; stays focused under pressure; conveys a sense of urgency. “how” employees are Creating Value – Meets and strives to exceed performance metrics; facilitates and implements value- PLE added changes; challenges the status quo to stimulate innovation. Managing People and/or Projects – Manages collaboratively and coaches others to achieve optimal performing in their performance; delegates effectively; praises/rewards contributions; defines clear roles and responsibilities; sets goals and leads initiatives; adjusts plans as necessary. Employee Year End Comments on Competencies (Optional) jobs Manager’s Year End Comments on Competencies (Optional; examples required for SE, NI or NM ratings) Does Not Meet Meets Expectations Year-End Minimum Needs (Strong Performance) Exceeds Significantly Exceeds Competency Expectations (NM) Improvement (NI) (ME) Expectations (EE) Expectations (SE) Ratings . Rarely demonstrates Usually demonstrates Consistently demonstrates Often exceeds Always exceeds expected behaviors expected behaviors expected behaviors expected behaviors expected behaviors 12

Slide 13: Recruiting & Uses of a Competency Model: Example #4 Selection Selection – Structured Interview Guides 1. Developing Market Intelligence Competencies Understanding what’s happening out there – society, lifestyles, technology, customers (consumers, dental professionals, retail) and competitors – and turning this intelligence into insights about the market and opportunities for ABC. provide content Targeted Questions GEN 1. Describe your experience in understanding and predicting needs of your customers. that can be 2. What steps would you (do you) take to stay informed about ABC’s competitive market and what new products will help us stay ahead of the ERI competition? What information is important to understand competitors? Give me an example of a nontraditional competitor you would want converted into to learn more about in this role. C 3. Give me an example of how you have addressed customer or partner segmentation. What were some of the more interesting findings? selection tools SAM Which dimensions were more or less important? How did you apply the lessons learned to business decisions and what was the result? Developing Evidence Moderate Evidence Strong Evidence PLE with scoring  No direct examples or  Generally modest  Demonstrates a deep describes concepts in very examples understanding of customer abstract terms  Shows some initiative to needs  Understands some facts stay informed of the  Takes a structured and guides to assist about the market but does not take the time to think through a structure or an  market Moderate ability to leverage information on  analytical approach to solving problems Ability to think creatively with more  approach to actually apply the information Gets sidetracked on customers and competition to anticipate product needs about the competitive market and customer needs effective hiring irrelevant issues  Actively researches and  Develops  Sometimes ignores organizes market research recommendations on potential issues among data to understand marketing strategies customers customer segments based on customer/partner segmentation 13

Slide 14: Succession Uses of a Competency Model: Example #5 Planning Workforce/Succession Planning Competencies can help define expectations at GEN ERI each level of management, which supports C SAM clear and PLE transparent promotion guidelines Source: The Leadership Pipeline, 2001, by Ram Charan, Stephen Drotter, and James Noel. 14

Slide 15: Key Takeaways Competencies set clear behavioral expectations Competencies can help identify training and development actions Competencies can help integrate HR programs 15

Slide 16: Q&A Thank you! 16