Emerging Trends in Competency-based Management

Competency profiles a prerequisite to contract award
As a competency professional working in this field for over 25 years, I have worked with and trained clients of all shapes and sizes around the world in the area of competency-based management , or CBM. What I am seeing are more client organizations insisting on their suppliers being “CBM certified” either as a contract condition or prior to contract award. Many of the organizations that attend my CBM workshops at HRSG are there because they need to implement a competency-based framework within their organization as part of a contractual requirement. Their clients want to know if they are competent in what they do, they want to be certain they possess the needed skills, have the proper qualifications, or are aligned with their corporate culture.

As companies squeeze out their own operational waste, they turn to their suppliers to help them eliminate inefficient processes. It is not uncommon for organization to utilize competency-based performance management for individuals and some are event using it to manage supplier performance. The competency model identifies specific behaviors that allow the measurement of the progress and development. The set of defined behaviors contribute to the success of an efficient supply chain. We see this approach used in creating “Lean Environments”. A company can align with other business organizations who reflect the same core values and business philosophy. Competencies then provide a grid by which to measure the pursuit of the Lean Journey.

In the United States a “Certificate of Competency” is issued by the small business administration (SBA) to prove that a small business is capable of contractual performance. The certificate is necessary in cases where the small business is the low bidder on a government contract and the contracting officer who is charged with awarding a bid does not believe that the small business can carry out the duties required under the bid. SBA experts review the business in detail to assess its performance capabilities and issue a Certificate of Competency that requires that the contract be awarded to the business. Without it, businesses that are new to bidding on government contracts may have difficulty being awarded contracts by contracting officers who are unsure about their ability to perform.