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Organizational Excellence Through an Effective Competency Framework

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Core competencies and workforce competencies are what differentiates an organization from its competitors and enables it to deliver superior products and services.

A competency framework is an essential requirement of the People CMM (PCMM).

This presentation covers the essentials of a competency framework and how it aligns processes like recruitment, career development, workforce planning, training, performance management and compensation to deliver short term and long term goals of an organization.

This presentation has evolved across various talks on the topic. The content was used the first time in a Webinar organized by Compulink in July 2009.

The latest version of the presentation was used at SPIN Hyderabad in June 2010. This is the uploaded version.

Published in: Business, Technology

Organizational Excellence Through an Effective Competency Framework

  1. 1. 1 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license Organizational Excellence Through an Effective Competency Framework Hyderabad SPIN 22 June 2010 Rajesh Naik Consulting Partner QAI India Ltd.
  2. 2. 2 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license Agenda/ Topics • What is competency? • Design of a Competency Framework – Job Clusters, Roles, Competencies, Proficiencies, Competency Dictionary and Competency Assessments • Competency Framework in Action – Hiring, Performance Management, Training • Refining the Competency Framework
  3. 3. 3 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license What is Competency? • In other words – Whatever make us do our job better • This characteristic is usually a combination of – Knowledge, skill, attitude/ traits and process abilities • Required for a job/ role/ objective • Possessed by an individual doing the job Underlying characteristic of an individual that is causally related to effective or superior performance in a job -Competence at Work, Spencer and Spencer
  4. 4. 4 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license What is Competency? Role Based Competency an underlying characteristic of an individual that is causally related to effective or superior performance (Spencer 1993) Organizational/ workforce Competency/ Job Clusters a cluster of knowledge, skills and individual should develop to perform a particular type of work in the organization K,S & Process Abilities K,S & Process Abilities K,S & Process Abilities K,S & Process Abilities Organizational/ workforce Competencies (Job Clusters) Core Competency the combination of technology and production skills that create a company’s products and services and provide its competitive advantage in the marketplace (Prahalad & Hamel 1990)
  5. 5. 5 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license Design of a Competency Framework Brought to you by Identify Job Clusters Identify Roles Identify Competencies Define Competencies Define Proficiencies Create Assessment Tools Create Role-Competency- Proficiency Mapping Assessment Framework
  6. 6. 6 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license Job Clusters • Similar kind of work (e.g., same department) requiring similar competencies • For example, Job Clusters in a typical IT Services organization Executive Management HRandLearning Sales&Marketing BusinessAnalysis SoftwareDevelopment ProjectManagement Finance&Legal Facilities&Admin ITInfrastructure SoftwareTesting QualityManagement
  7. 7. 7 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license Roles • Roles within a Job Cluster require similar competencies with different proficiencies • For example, roles in the “Software Development” Job Cluster could include – Programmer – Senior Programmer – Designer – Senior Designer – System Architect
  8. 8. 8 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license Competencies • Each role would require a set of competencies – typically all roles within a job cluster will require fairly similar set of competencies • The difference could be in the proficiency levels • Types of competencies could include – Functional, technical, domain – Behavioral – Process Abilities Competencies Expected Results Tasks Role
  9. 9. 9 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license Types of Competencies - Examples • Functional, technical, domain competencies – Accounting, HR, Legal, Training, Recruitment, Software Design, Programming, Testing – SAP, Oracle, Mainframes, Seibel, Microsoft Technologies – Pharma, Hospitals, automobiles, telecommunication, Oil and Gas • Behavioral – Achievement Orientation, Creativity, Service Orientation, People Orientation, Flexibility, Ability to Communicate, Assertiveness, Quality Orientation • Process Abilities – This is the ability to apply the functional and behavioral competencies using the organization’s processes (Knows “how things are done here” • Process abilities are built within an organization, functional competencies are built with work experience in an industry/ type of job, and behavioral competencies are built from childhood
  10. 10. 10 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license Proficiencies • Extent of the competency • Typically on a scale (e.g., 0-5), where – 0- Not At All – 5- Subject Matter Expert / Master/ Guru
  11. 11. 11 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license Competency Dictionary • Description of all competencies, proficiencies • Mapping of Competencies and Proficiencies for various roles (Role Profiles) Flexibility Flexibility is the ability to adapt seamlessly to changes. Flexible people recognize the multiple viewpoints and can flexibly apply the most suitable solution in a given situation in the context of a larger objective 0 Not flexible at all; Rigid 1 Able to defer the decision till other viepoints are heard 2 Able to appreciate others viewpoints 3 Able to appreciate others viewpoints and generate alternate viewpoints himself/ herself 4 Able to change one's behaviour dynamically, depending on the situation 5 Able to coach and train others to adapt flexible behaviour Expected ROLE : PROJECT MANAGER Proficiency Behavioral Achievement Orientation 3 Creativity 2 Service Orientation 4 People Orientation 3 Flexibility 3 Ability to Communicate 3 Assertiveness 4 Quality Orientation 3 Functional/ Technical Estimation 4 Project Monitoring 4 Managing Finances 2 Scheduling 3 Metrics and Reporting 4
  12. 12. 12 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license Competency Assessments • At hiring time • While promoting a person (in the same Job Cluster) • While shifting a person from one job cluster to another • To identify competency gaps and development needs on a periodic basis Note: • Some competencies (technical) can change at a fast rate • Some competencies (behavioral) change very slowly
  13. 13. 13 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license Competency Framework in Action – Hiring Short Description NA Under Guidance Indepen- dent Guiding Others Ö Ö Ö Ö Ö Ö Ö Ö Ö NR Novice Productive Master Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö NR Learning Average Excellent Ö Ö Ö Ö Ö Ö Initiative Support to Seniors JOB PROFILE Project Manager Customer Focus Helpfullness to Peers Problem Solving Support to Juniors English-Written Communication English-Oral Communication English-Presentation Education & Training & Qualifications Attitudes At least one of the following: BSc (or equi) with 9 yrs experiece in IT BE (or equi) with 5 yrs experience in IT ME (or equi) with 3 yrs experience in IT Technology Knowledge (one of client server, IBM mainframe, Web Based, eCommerce) Rational Rose or System Architect One Language Skills (C++, JAVA, etc.) One Test Tool (Team Test or Segue or Mercury) One of SSAD/ OOAD Techniques Requirements Management with DOORS One CM Tool (VSS or PVCS or Clearcase) Domain Knowledge (one of Hospital, Hotel, Airline, Metrics Tool MPP Project Management Techniques Estimation Method (IFPUG or FFP) Statistical Methods (7 QC Tools) Industry Quality Standards (ISO & CMM) Knowledge Mgmt Quality Management Main Tasks Knowledge/ Skills Plan & execute projects / modules within pre - determined People Mgmt that includes mobilization, motivation and Takes part in sales process with new prospect Proposal / Contract Mgmt Our QMS Leading and managing large projects or multiple small projects with the aim of completing projects on time and on budget to the desired quality, economically, successfully and to the satisfaction of the customer. Also, developing repeat business from exis Business responsibility with P & L responsibility Customer Mgmt (Develop and Manage existing customer Analyze, Design and Implement software solutions Short Description NA Under Guidance Indepen- dent Guiding Others Ö Ö Ö Ö Ö Ö Ö Ö Ö NR Novice Productive Master Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö NR Learning Average Excellent Ö Ö Ö Ö Ö Ö Initiative Support to Seniors JOB PROFILE Project Manager Customer Focus Helpfullness to Peers Problem Solving Support to Juniors English-Written Communication English-Oral Communication English-Presentation Education & Training & Qualifications Attitudes At least one of the following: BSc (or equi) with 9 yrs experiece in IT BE (or equi) with 5 yrs experience in IT ME (or equi) with 3 yrs experience in IT Technology Knowledge (one of client server, IBM mainframe, Web Based, eCommerce) Rational Rose or System Architect One Language Skills (C++, JAVA, etc.) One Test Tool (Team Test or Segue or Mercury) One of SSAD/ OOAD Techniques Requirements Management with DOORS One CM Tool (VSS or PVCS or Clearcase) Domain Knowledge (one of Hospital, Hotel, Airline, Metrics Tool MPP Project Management Techniques Estimation Method (IFPUG or FFP) Statistical Methods (7 QC Tools) Industry Quality Standards (ISO & CMM) Knowledge Mgmt Quality Management Main Tasks Knowledge/ Skills Plan & execute projects / modules within pre - determined People Mgmt that includes mobilization, motivation and Takes part in sales process with new prospect Proposal / Contract Mgmt Our QMS Leading and managing large projects or multiple small projects with the aim of completing projects on time and on budget to the desired quality, economically, successfully and to the satisfaction of the customer. Also, developing repeat business from exis Business responsibility with P & L responsibility Customer Mgmt (Develop and Manage existing customer Analyze, Design and Implement software solutions Short Description NA Under Guidance Indepen- dent Guiding Others Ö Ö Ö Ö Ö Ö Ö Ö Ö NR Novice Productive Master Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö NR Learning Average Excellent Ö Ö Ö Ö Ö Ö Initiative Support to Seniors JOB PROFILE Project Manager Customer Focus Helpfullness to Peers Problem Solving Support to Juniors English-Written Communication English-Oral Communication English-Presentation Education & Training & Qualifications Attitudes At least one of the following: BSc (or equi) with 9 yrs experiece in IT BE (or equi) with 5 yrs experience in IT ME (or equi) with 3 yrs experience in IT Technology Knowledge (one of client server, IBM mainframe, Web Based, eCommerce) Rational Rose or System Architect One Language Skills (C++, JAVA, etc.) One Test Tool (Team Test or Segue or Mercury) One of SSAD/ OOAD Techniques Requirements Management with DOORS One CM Tool (VSS or PVCS or Clearcase) Domain Knowledge (one of Hospital, Hotel, Airline, Metrics Tool MPP Project Management Techniques Estimation Method (IFPUG or FFP) Statistical Methods (7 QC Tools) Industry Quality Standards (ISO & CMM) Knowledge Mgmt Quality Management Main Tasks Knowledge/ Skills Plan & execute projects / modules within pre - determined People Mgmt that includes mobilization, motivation and Takes part in sales process with new prospect Proposal / Contract Mgmt Our QMS Leading and managing large projects or multiple small projects with the aim of completing projects on time and on budget to the desired quality, economically, successfully and to the satisfaction of the customer. Also, developing repeat business from exis Business responsibility with P & L responsibility Customer Mgmt (Develop and Manage existing customer Analyze, Design and Implement software solutions Short Description NA Under Guidance Indepen- dent Guiding Others Ö Ö Ö Ö Ö Ö Ö Ö Ö NR Novice Productive Master Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö NR Learning Average Excellent Ö Ö Ö Ö Ö Ö Initiative Support to Seniors JOB PROFILE Project Manager Customer Focus Helpfullness to Peers Problem Solving Support to Juniors English-Written Communication English-Oral Communication English-Presentation Education & Training & Qualifications Attitudes At least one of the following: BSc (or equi) with 9 yrs experiece in IT BE (or equi) with 5 yrs experience in IT ME (or equi) with 3 yrs experience in IT Technology Knowledge (one of client server, IBM mainframe, Web Based, eCommerce) Rational Rose or System Architect One Language Skills (C++, JAVA, etc.) One Test Tool (Team Test or Segue or Mercury) One of SSAD/ OOAD Techniques Requirements Management with DOORS One CM Tool (VSS or PVCS or Clearcase) Domain Knowledge (one of Hospital, Hotel, Airline, Metrics Tool MPP Project Management Techniques Estimation Method (IFPUG or FFP) Statistical Methods (7 QC Tools) Industry Quality Standards (ISO & CMM) Knowledge Mgmt Quality Management Main Tasks Knowledge/ Skills Plan & execute projects / modules within pre - determined People Mgmt that includes mobilization, motivation and Takes part in sales process with new prospect Proposal / Contract Mgmt Our QMS Leading and managing large projects or multiple small projects with the aim of completing projects on time and on budget to the desired quality, economically, successfully and to the satisfaction of the customer. Also, developing repeat business from exis Business responsibility with P & L responsibility Customer Mgmt (Develop and Manage existing customer Analyze, Design and Implement software solutions Short Description NA Under Guidance Indepen- dent Guiding Others Ö Ö Ö Ö Ö Ö Ö Ö Ö NR Novice Productive Master Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö NR Learning Average Excellent Ö Ö Ö Ö Ö Ö Initiative Support to Seniors JOB PROFILE Project Manager Customer Focus Helpfullness to Peers Problem Solving Support to Juniors English-Written Communication English-Oral Communication English-Presentation Education & Training & Qualifications Attitudes At least one of the following: BSc (or equi) with 9 yrs experiece in IT BE (or equi) with 5 yrs experience in IT ME (or equi) with 3 yrs experience in IT Technology Knowledge (one of client server, IBM mainframe, Web Based, eCommerce) Rational Rose or System Architect One Language Skills (C++, JAVA, etc.) One Test Tool (Team Test or Segue or Mercury) One of SSAD/ OOAD Techniques Requirements Management with DOORS One CM Tool (VSS or PVCS or Clearcase) Domain Knowledge (one of Hospital, Hotel, Airline, Metrics Tool MPP Project Management Techniques Estimation Method (IFPUG or FFP) Statistical Methods (7 QC Tools) Industry Quality Standards (ISO & CMM) Knowledge Mgmt Quality Management Main Tasks Knowledge/ Skills Plan & execute projects / modules within pre - determined People Mgmt that includes mobilization, motivation and Takes part in sales process with new prospect Proposal / Contract Mgmt Our QMS Leading and managing large projects or multiple small projects with the aim of completing projects on time and on budget to the desired quality, economically, successfully and to the satisfaction of the customer. Also, developing repeat business from exis Business responsibility with P & L responsibility Customer Mgmt (Develop and Manage existing customer Analyze, Design and Implement software solutions Identify a vacancy in terms of the Role Profile Add specific competencies required for: •the project/ dept •long term org. needs 0 20 40 60 80 Hospital Hotels Airlines Education Domain Competency Projection Present Reqd by Dec '03 0 20 40 60 80 Hospital Hotels Airlines Education Domain Competency Projection Present Reqd by Dec '03 0 20 40 60 80 Hospital Hotels Airlines Education Domain Competency Projection Present Reqd by Dec '03 Use Role Profiles during selection
  14. 14. 14 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license Competency Framework in Action – Performance Management Short Description NA Under Guidance Indepen- dent Guiding Others Ö Ö Ö Ö Ö Ö Ö Ö Ö NR Novice Productive Master Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö NR Learning Average Excellent Ö Ö Ö Ö Ö Ö Initiative Support to Seniors JOB PROFILE Project Manager Customer Focus Helpfullness to Peers Problem Solving Support to Juniors English-Written Communication English-Oral Communication English-Presentation Education & Training & Qualifications Attitudes At least one of the following: BSc (or equi) with 9 yrs experiece in IT BE (or equi) with 5 yrs experience in IT ME (or equi) with 3 yrs experience in IT Technology Knowledge (one of client server, IBM mainframe, Web Based, eCommerce) Rational Rose or System Architect One Language Skills (C++, JAVA, etc.) One Test Tool (Team Test or Segue or Mercury) One of SSAD/ OOAD Techniques Requirements Management with DOORS One CM Tool (VSS or PVCS or Clearcase) Domain Knowledge (one of Hospital, Hotel, Airline, Metrics Tool MPP Project Management Techniques Estimation Method (IFPUG or FFP) Statistical Methods (7 QC Tools) Industry Quality Standards (ISO & CMM) Knowledge Mgmt Quality Management Main Tasks Knowledge/ Skills Plan & execute projects / modules within pre - determined People Mgmt that includes mobilization, motivation and Takes part in sales process with new prospect Proposal / Contract Mgmt Our QMS Leading and managing large projects or multiple small projects with the aim of completing projects on time and on budget to the desired quality, economically, successfully and to the satisfaction of the customer. Also, developing repeat business from exis Business responsibility with P & L responsibility Customer Mgmt (Develop and Manage existing customer Analyze, Design and Implement software solutions Job Profile for Current RoleSet objectives to close competency gaps Identify action plans to help close the gaps Training, education, certification, job rotation, mentoring/ coaching Development Plan Performance Appraisal; Goal Setting Evaluate for competencies required for the current role And desired role
  15. 15. 15 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license Competency Framework in Action - Training • Link Training Programs to the Competency Framework Training Program Competencies Addressed Minimum Pre Prociency Level Expected Post Prociency Level # CS-101 Creating Customer Delight Integrity 2 3 Service Orientation 2 4 Interpersonal Skills 1 2 # EX-390 Insurance Basics Insurance Domain 0 2 # PM-445 Negotiating Skills Negotiating Skills 0 3 Interpersonal Skills 2 3 Service Orientation 2 3 Listening Skills 1 3 • Training programs become more focused • Overlapping training programs can be merged/ dropped • Identification of participants is sharper
  16. 16. 16 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license Refining the Competency Framework • New roles will get added • Definitions of competencies/ proficiencies will get refined • Role requirements will change based on results achieved
  17. 17. 17 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license SEI’s People CMM® Project • Mission – To help the readiness of organizations to undertake increasingly complex work by helping them attract, grow, motivate, deploy, and retain the talent needed to improve their capability Authors of the P-CMM: Bill Curtis William Hefley Sally Miller
  18. 18. 18 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license Maturity Levels © Software Engineering Institute Basic HR Operational Practices Competency Based Practices Measured & Empowered Practices Continuous Improvement Level 1 Initial Level 2 Managed Level 3 Defined Level 4 Predictable Level 5 Optimizing
  19. 19. 19 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license Process Areas
  20. 20. 20 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license “Learning Organization” Source: TeraQuest
  21. 21. 21 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license “Culture OfTeamwork” Source: TeraQuest
  22. 22. 22 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license “Performance Orientation” Source: TeraQuest
  23. 23. 23 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license Source: TeraQuest “Workforce toStrategy”
  24. 24. 24 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license References • The Core Competency of the Corporation by CK Prahlad and Gary Hamel (HBR May-June 1990) • Competency-Based Human Resource Management by David D. Dubois • Competence at Work: Models for Superior Performance by Signe M. Spencer, Lyle M. Spencer • The Art and Science of Competency Models: Pinpointing Critical Success Factors in Organizations by Anntoinette D. Lucia and Richard Lepsinger
  25. 25. 25 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license About this Presentation More resources on the subject are available from the creator of this presentation at: http://www.rajeshnaik.com © Rajesh Naik, 2010 This work is released under a Creative Commons Attribution-NonCommercial- ShareAlike 3.0 Unported License license. This means you can use it for non- commercial purposes so long as you include the copyright line “© Rajesh Naik, 2010". If you create derivative works using this work, they should also be made available under a similar license. For further information go to http://creativecommons.org/licenses/by-nc-sa/3.0/ For uses outside the scope of the license, contact Rajesh Naik at naik.rajeshnaik@gmail.com Author: Rajesh Naik Consulting Partner QAI India Limited rajesh.naik@qaiglobal.com naik.rajeshnaik@gmail.com +91 9845488767
  26. 26. 26 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license Thank You Rajesh Naik Founding Partner QAI India Limited Email naik.rajeshnaik@gmail.com Mobile +91 9845488767 Website www.rajeshnaik.com Also, have a look at the latest “business novel”: Aligning Ferret: How an Organization Meets Extraordinary Challenges By Swapna Kishore & Rajesh Naik Available at Amazon: http://www.amazon.com/dp/B00CZA94XC

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