Friday, May 21, 2010

Planning A Competency Modeling Project

If you and your organization have decided to develop job competency models or a competency-based human resource system, your plan should include answering three key questions that will affect the outcome of the project.
1. What resources do you have to build your models?
There are many ways to do competency models. Some are complex, time-consuming and expensive. Others are not. The trade offs have to do with validation and thoroughness, although the less complex approaches can include a validation step.
If you are doing more than one model, you should consider using an integrated approach that utilizes a common set of building block competencies, customizable for each job. Each model requires five to ten days of an internal or external consultant's time, including facilitation of a focus group of high performers, interviews and model development.
Pick an external consultant to get you started who is willing to transfer their methodology to you and train your staff to carry on the work, and/or have them be trained to build competency models from the start. http://www.workitect.com/building-competency-models.php
For a large retail organization, a consulting firm did the first two models while certifying an internal HR manager to do additional models. The HR manager also designed and implemented selection and performance review applications based on the models. Structured interview questions were developed for each key position to help hiring managers assess and select candidates with the required competencies. Performance goals and results forms were also developed.
2. Where should you start in the organization?
The best way to demonstrate the payoffs of a competency approach is to start with a high impact job or one that is requiring attention, i.e. high turnover, impact on company's sales, etc. Define the measurable outcomes of doing the model and specify applications.
For example, if you want to do a model of a software developer position, include an application of a selection system and interview guide that will allow you to expand the candidate pool and select superior performing software developers. Other applications can be added, but you should start with at least one visible and measurable outcome for the model. If outcomes and applications are not built in, competency modeling may be perceived as a HR exercise without payoffs.
There is a natural tendency to want to start with a low risk, low visibility position, sometimes in order to evaluate the process and the consultant. You are better off doing your homework and thoroughly checking references before selecting a consultant than to waste an opportunity to make an impact that can multiply through out the organization.
The ideal place to start is with a director or executive level position. Getting that group to develop a model for their position assures total buy-in. They have probably already gone through some strategic planning exercises that included thinking about their organization's "core competencies". Developing a model validates or alters the competencies so that the "ideal" competencies are in fact the competencies required for superior performance in the organization. It also helps them understand the job competency process and align it to the company's strategy. For example, if innovation is a desired core competency, then a "fostering innovation" competency may be included in most models in order to drive the kind of change needed. An executive model is also needed for a good succession planning system.
This is the way a large manufacturing division launched its effort to improve performance and alter its culture. A model was done for division general managers and then cascaded down to other key positions.
3. Should you do one-size-fits-all models or multiple models for multiple jobs?
Some organizations use a generic model for all management positions (one-size-fits-all model). The model may have been one developed externally to cover all management jobs in all industries. Or it may have been developed internally by surveying senior executives asking them what they thought were the key characteristics required for success in their organization. Both approaches are inexpensive to adopt.
The prime disadvantage is lack of validity in a specific organization. The externally developed model may miss several key competencies that may really make the difference between superior and average performance in your unique culture. The internally developed list is often based on opinion and false assumptions and not on hard data. There can also be a communications gap. One CEO insisted that his organization hire and develop people "with a fire in their belly". He didn't mean finding people with ulcers, but it did take a competency model to validate his opinion and to clearly and concisely describe the qualities of people who were actually successful in that organization.
The opposite end of the spectrum is to do models for every job in an organization (multiple models for multiple jobs), which is costly and unnecessary. Job models are not necessary for every single job in an organization. Jobs can be grouped into like categories or levels. For example, ten different positions in an information systems department may grouped into three levels.
These approaches, plus the single job model approach, are described in detail in an 18-page reprint from Human Resource Management magazine. http://www.workitect.com/articles.php
http://ezinearticles.com/?Planning-A-Competency-Modeling-Project&id=617863

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