workshop: performance effectiveness, by rahila narejo

For Performance EffectivenessFor Performance Effectiveness“Knowing is not enough; we must apply.

Willing is not enough we must do.”

- Goethe

For IPM Sri LankaCourse Facilitator: Rahila NarejoJune 21, 2007

P R I V A T E L I M I T E D

N.H.R.N.H.R.www.narejohr.comwww.narejohr.com

Learning ObjectivesLearning Objectives• Define Competency and recognize its fit

within all HR practices.• Experience building a competency map

as part of a panel of subject matter experts.

• Use a competency dictionary to define strategic and functional competencies.

• Overview the competency mapping process.

Training Norms

• Mobile phones OFF!

• Be on TIME

• Participate!

• REWARDS

Brief Historical & Brief Historical & Theoretical BackgroundTheoretical Background

Brief History:Brief History:A Precursor of Competency A Precursor of Competency

ModelingModeling• 1950’s: John Flanagan

– 1954 established Critical Incidents Technique as a precursor to the key methodology used in rigorous competency studies

– significant behavioral events that distinguish between average and superior performers.

– It is Flanagan’s critical incidents technique that sixteen years later inspires David McClelland to discover and develop the term of “competency”.

Brief History: Brief History: The Concept of CompetencyThe Concept of Competency

• 1970’s: “Testing for Competence Rather than Intelligence” (McClelland, 1973)– Competency: “an underlying characteristic of a

person which enables them to deliver superior performance in a given job, role, or situation.”

• Not biased• Can be learned and developed over time• Implication: If competencies are made visible and

training is accessible, individuals can understand and develop the required level of performance.

Brief History: Brief History: Competency Modeling Competency Modeling

MaturesMatures• 1980’s: “Certain characteristics or abilities of

the person enable him or her to demonstrate the appropriate specific actions.” (Boyatzis, Richard E. The Competent Manager: A Model for Effective Performance. New York: Wiley, 1982, p. 12).– the first empirically-based and fully-researched book on

competency model developments– specific behavior and clearly defined performance outcomes– like Flanagan, stressed importance of systematic analysis in

collecting and analyzing examples of the actual performance of individuals doing the work

– behavioral event interview (BEI)

TODAY!TODAY!34 years after the first

competency model, more than half of the Fortune 500

companies are using competency modeling.

Concepts of CompetencyConcepts of Competency

Competencies are Competencies are INPUTSINPUTS

They consist of clusters of knowledge, skills, and personal

attributes that AFFECT an individual’s ability to PERFORM.

Competencies Competencies Distinguish Distinguish

ExemplaryExemplary Performers Performers from from

AverageAverage PerformersPerformers

Components of Components of CompetencyCompetency

1. Skill• capabilities acquired through practice.

2. Knowledge• understanding acquired through learning.

3. Personal attributes• inherent characteristics which are brought to the job

4. Behavior• The observable demonstration of some competency,

skill, knowledge and personal attributes attributed to excellent performance.

Competencies:Position a new productintroduction so that it is clearly differentiated in the market

Knowledge:Understand market pricing dynamics

Skill: Set up new Productintroductionproject

Figure 1. Competency ComponentsFigure 1. Competency Components

CompetenciesCompetencies

Knowledge

PersonalMotives

Skills

Competency:Uses an understanding of market pricing dynamicsto develop pricing models

Competency:Meets all commitments in a timely manner

Personal Motives:Achievement – wants to do an excellent job.

Competency Flow ModelCompetency Flow ModelPersonal Attributes/MotivesKnowledgeSkills

Competency

Observable Behaviors

Job PERFORMANCE

Competencies are to performance what DNA is to people.

Type of Competency Type of Competency

1. Employee Core Competency2. Managerial Competency3. Technical/Functional Competency4. Personal Attribute

• Job description looks at whatwhat.

•• elements of the jobselements of the jobs and defines the job into sequences of tasks sequences of tasks necessary to perform the jobnecessary to perform the job

• Competency model focuses on howhow.

• studies the people who do the job the people who do the job well (well (STARsSTARs)), and defines the job in terms of the characteristics and the characteristics and behaviors of these peoplebehaviors of these people..

Job Description vs. Job Description vs. Competency ModelCompetency Model

What is a What is a Competency Model?Competency Model?

Competency ModelCompetency Model• A set of competencies necessary for

successful performance in a particular job or job family.

• Driven by organization’s strategy.

Competency Model FrameworkCompetency Model FrameworkVision & MissionCore capabilitiesStakeholder requirementsMarket realities

Competency Model

BUSINESS STRATEGY

Success FactorsBehaviors

Competency Requirements

SkillKnowledgeAttributes

The Competency ContinuumThe Competency Continuum

““OneOne--SizeSize ““Full ModelFull Model””FitsFits--All ModelAll Model””

e.g.corefor all

PersonalPersonalAttributesAttributes

e.g. group,family or rolecompetencies

Abilities/Abilities/SkillsSkills

competencies down to the job level

KnowledgeKnowledge

A DIAGNOSTIC MODEL TO DEFINE A DIAGNOSTIC MODEL TO DEFINE

COMPETENCIESCOMPETENCIESExisting Behavior Targeted Behavior

PartnerAdversaryConsulted with"Sold to"

CUSTOMER FOCUS

People "involved," listened to pPeople "told"Extensive sharingLimited sharingMultidirectionalTop-down

COMMUNICATION

Decisive consensusUnilateral action"Follow my example""Do what I say"Coach and role modelManage and superviseInspire goal achievementCommand and control

LEADERSHIP

SAMPLE CORE IDEOLOGIES OF SELECTED COMPANIES American Express Co.: customer service, reliability, initiative The Boeing Co.: leading edge, pioneers; challenges and risks; product safety and quality; integrity and ethics; aeronautics Citicorp: expansionism; being out front (best, innovative); autonomy and entrepreneurship; meritocracy; aggressiveness and self-confidence General Electric Co.: technology and innovation, balance among stakeholders, responsibility and opportunity, honesty and integrity Hewlett Packard Co.: technical contribution, respect and opportunity for HP people, contribution and responsibility, affordable quality, profit and growth Procter & Gamble Co.: product excellence, self-improvement, honesty and fairness, respect for individual 3M Corp.: innovation, integrity, initiative and personal growth, tolerance for honest mistakes, product quality and reliability, problem solving Wal-Mart Stores Inc.: value to customers; buck conventional wisdom; partnership with employees; passion, commitment, enthusiasm; run lean; pursue high goals Walt Disney Co.: no cynicism; consistency and detail; creativity, dreams, imagination; "magic"; "bring happiness" and "American values"

SHARED COMPETENCIES IDENTIFIED IN A 10-COMPANY

SAMPLE Competency

Frequency of Use

Customer Focus 8 Communication 7 Team orientation 6 Technical expertise 6 Results orientation 6 Leadership 6 Adaptability 5 Innovation 5

Design DecisionDesign Decision1. Context2. Level of Orientation3. Level of Complexity4. Linked to Strategy5. Company Specific6. Flexible7. Future Oriented

Design DecisionDesign Decision1. Context• ‘What does a superior performer look like in a

specific setting?’• effective competencies are linked to a particular

organizational target or goal. • the design of models may be geared toward:

– the total organization (e.g., core competencies or values)– an entire function (e.g., finance, human resources)– a specific role (e.g., HR generalist)– a specific job (e.g., compensation analyst)

Design DecisionDesign Decision2. Level of Orientation• Will the model reflect future or current

job requirements.

Design DecisionDesign Decision3. Level of Complexity• The length of models and the degree of

complexity and detail described in behavioral indicators.

• Number one reason competency initiatives fail.

• Provide a simple framework to users in a timely manner.

• 80-20 rule– 20% of behaviors that drive 80% of excellent

performance.

Design DecisionDesign Decision4. The model should be linked to strategy• Effective competency models support and contribute

to the company's and the function's strategy and goals.

• For instance, if a goal of the company is to transcend functional barriers, the model needs to describe the behaviors that demonstrate that competency.

• If goal is all employees communicate and work together effectively, the model should describe the behaviors that demonstrate that competency.

Design DecisionDesign Decision5. The model should be company-specific• Unlike many job descriptions, competency

models are not easily transferable. • Competencies are determined by the

company's unique characteristics:– Culture– Strategy– Size– industry

Design DecisionDesign Decision6. The developed model should be flexible• May use as performance management tool with

enough detail to distinguish between employees at different levels of proficiency.

• Yet flexible enough to accommodate differing approaches to success, simple enough to be easily understood, and readily adaptable to changing business environments.

Design DecisionDesign Decision7. The model should be future-oriented• Forward-looking perspective stimulates

organizational change. • Articulate how the job is evolving and will

best be performed in the future. • Increases model's shelf life• Ensures employees have enough time to

understand and to develop.

Firm Core Competence and Firm Core Competence and Employee Core CompetenciesEmployee Core Competencies

FIRM• Strategic strength, the

essence of what makes one firm competitive in its environment – McDonald’s: production

and delivery speed.– Microsoft’s: user friendly

software.

• translated into…

EMPLOYEE• McDonald (production

and delivery speed) • all McDonald employees

should generate competencies that reflect these core competencies.

Competencies Competencies ––A Holistic ApplicationA Holistic Application

• Help companies “raise the bar” for performance expectations

• Help managers align subordinates’behaviors with key organizational strategy

• Each employee understands how to achieve expectations

Developing a Developing a Competency CatalogueCompetency Catalogue

Stages of Competency Catalogue Stages of Competency Catalogue DevelopmentDevelopment

Stage 2

IdentifyingCompetencyComponents

Stage 2

IdentifyingCompetencyComponents

Stage 3

DevelopingCompetencyCatalogue

Stage 3

DevelopingCompetencyCatalogue

Stage 4

DevelopingCompetencyProfile

Stage 4

DevelopingCompetencyProfile

Stage 1

ConductingCompetencyWorkshop

Stage 1

ConductingCompetencyWorkshop

• introduce the concept of competency • deciding the scope of competency

project

Stage 1

ConductingCompetencyWorkshop

Stage 1

ConductingCompetencyWorkshop

Stage 2

IdentifyingCompetencyComponents

Stage 2

IdentifyingCompetencyComponents

Stage 2a: Identifying Employee Core Competenciespossessed by all employees regardless of their functions.Review business vision and strategyIdentify Employee Core Competencies (behaviors) to achieve strategy

Stage 2b: Identifying Job Relevant CompetenciesRelevant to each existing function/job/role.Determine and understand the nature of the job/role/position to be analyzed.Conduct focus group discussion

What is the Secret to What is the Secret to Success?Success?

• What characteristics most distinguish a star sales person from an average one?

• Discuss and select 8 competencies of a star

Stage 3

DevelopingCompetencyCatalogue

Stage 3

DevelopingCompetencyCatalogue

• Conduct behavioral event interview to identify behavior indicators.

• Define the competency with a description which includes the previously identified behavior indicators

• Scale each identified behavior indicator from lower to higher levels of performance.

• Validate and confirm the matrix of competency catalogue with key stakeholders

Stage 4:

DevelopingCompetencyProfile

Stage 4:

DevelopingCompetencyProfile

• Define number of positions to be reviewed• Identify roles and responsibilities of each position

(JD or JA)• Establish competency matrix: match the roles and

responsibilities with the competencies• Analyze the weight of the roles and responsibilities

as a basis to decide the level of proficiencies.

““They donThey don’’t actually do anything. I just like the way t actually do anything. I just like the way they make me feel.they make me feel.””

What CompetencyWhat Competency--Based Based Management does, in Management does, in

contrast, is connect these contrast, is connect these pulleys and levers pulleys and levers -- to to

connect our various HR connect our various HR processes. processes.

Alignment of HR SystemsAlignment of HR SystemsRecruitment & Selection

Performancemanagement

Compensation

Training &Development

CompetencyCompetencyModelModel

• Links HR activities through a common language

• Reflects the values and mission of the organization

• Establishes clear expectations - competencies are observable and measurable

• Facilitates employee development

• Streamlines HR activities

ADVANTAGESADVANTAGES

Competency Based Competency Based RecruitmentRecruitment

• Competency based interviews reduce the risk of hiring mistakes and increase the likelihood of identifying and selecting the right person for the right job.

“…“… First, we compose a profile on your personal First, we compose a profile on your personal habits, traits, basic attitude and job skills. Then we try habits, traits, basic attitude and job skills. Then we try to match you with a supervisor who wouldnto match you with a supervisor who wouldn’’t be t be affected by it affected by it …”…”

Competency based Competency based Performance AppraisalPerformance Appraisal

• Establishment of clear high performance standards

• Collection and proper analysis of factual data against set standards

• Conduct objective feedback meetings• Clear direction in regards to specific

areas of improvement

CBPM SCALECBPM SCALE0 - Cannot Rate - Insufficient information to assess

1 - Introductory - Little or no knowledge/proficiency. Rarely demonstrates. Needs significant development.

2 - Basic - Basic knowledge/proficiency. Sometimesdemonstrates. May need development.

3 - Proficient - Knowledgeable/proficient. Usuallydemonstrates. Little development required.

4 - Very Proficient - In-depth knowledge/proficiency.Demonstrates most of the time. No development required.

5 - Mastery - Expert knowledge/proficiency.

Competency based Competency based TrainingTraining

• CB PM leads to effective identification of training needs

• Identify/develop targeted training programs – focused training investment

• Focused training enables improvement in specific and aligned technical and managerial competencies

Competency based Competency based DevelopmentDevelopment

• Gives individual the tools to take responsibility for their own development.

• Gives line manager a tool to empower them to develop their people.

Competency based Competency based CompensationCompensation

• Provides an incentive for employees to grow and enhance their abilities.

• Review• Evaluations• Thank You!

ClosingClosing