What is Competency-based Career Planning & Development?

Part 3 of 11 of the CompetencyCore^TM Guide to Career Planning & Development 

This is the third in an eleven part series that looks at:

1. Making the Case for Competency-based Career Planning & Development
2. Facts, Figures & Findings
3. Career Planning & Development Defined
4. Key Definitions of Career Planning & Development
5. Framework for Competency-based Career Planning & Development
6. Best Practice Tools & Processes
7. Implementing Career Planning & Development – Part 1
8. Implementing Career Planning & Development – Part 2
9. Implementing Career Planning & Development – Part 3
10. Key Considerations for Software, Part 1
11. Key Considerations for Software, Part 2

Career Development Defined

Career Development
Competency-based Career Development is a planned system to link individual career needs with the organization’s workforce requirements. From the employee perspective, they are looking for career opportunities that address their strengths, support development, provide challenges and match personal interests, values and preferred working styles.  The organization on the other hand is looking to have employees develop themselves in a way the addresses the organizational needs.  Therefore, putting career development tools and processes in place to highlight the options and career paths available to employees is in both the organization’s as well as the employee’s best interests.

How Competencies Support Career Development

From the employee’s perspective, competencies:

• Define the key requirements for successful performance within jobs
• Support the identification of potential career paths within and across job families
• Allow employees to plan their careers, based on their interests as well as strengths and gaps in their personal competency inventory
• Support employees in determining and implementing targeted learning and development programs in line with their interests and competency gaps
• Increase engagement and a sense of empowerment, due to their ability to more effectively plan and manage their careers

 From the organization’s perspective, competencies:
Serve as a foundation for developing tools and programs to support employee career development, for example:

• Assessment tools and processes to support employee / job matching
• Career development self-help guides and resources for learning and development
• Coaching and mentoring programs
• Career resource centers and counseling
• Collaborative learning, knowledge sharing, communities of practice – e.g., through social networking tools, wikis, etc.
• Formal structured development programs for job groups (job rotation, in-class courses, remote on-line learning, mentoring, tuition reimbursement)

Career Development versus Succession Planning

Career Development traditionally has been driven primarily by employees.  Organizations provide the frameworks, tools and processes, but the responsibility rests with employees to take advantage of these to advance in their careers.

Succession Management, on the other hand, has traditionally been management driven.  Key roles are identified¹, and ranked lists of suitable candidates are prepared based on their existing competencies and / or potential to perform in the targeted roles or levels.  Potential to perform can be identified in a number of ways: past performance in career track positions; supervisory assessments of potential; standardized assessment programs (e.g., assessment centres); etc.  The lists are used to appoint candidates as positions become available.

More recently, however, the lines between the traditional concepts of Career Development and Succession Planning have blurred.  Organizations are instituting programs that allow employees to progress through a phased program of development aimed at increasing employee competencies and preparing them to take on increased responsibility.  These programs typically include: formalized in-class training; planned work assignments; assessments at key stages; and, “gradation” defined through some form of assessment or certification, and / or appointment to targeted roles or levels.

Technology has significantly improved the ability of organizations to address both employee needs for development, while ensuring developmental activities align with organizational goals.  Tools like CompetencyCore^TM 5 make it possible to implement blended stream-lined approaches that support all stakeholder needs.  This eliminates duplication of effort and ensures information on employees’ competencies are leveraged to achieve both personal and organization goals.

The subsequent blogs provide a more detailed look how competencies enhance the Career Planning and Development.

¹  Those positions that are important to the success of the organization and cannot remain unfilled for long.

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The next blog in this series reviews some key definitions  and foundational elements of Competency-based Career Planning & Development. Sign up to our blog’s mailing list through the form on the right-hand side to receive the rest of the series in your inbox.

HRSG is a leader in Competency-based Career Planning and Development solutions. Contact us today to find out how we can help you.

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Want to learn more? Competency-based Talent Management, or CbTM, is the best practice for defining job requirements and building effective HR programs to develop skilled, engaged and productive workforces. Download this Best Practice Guide to learn how competencies can increase workforce effectiveness and improve business practices.

Core Competencies - Part 2 of 2

C.K. Pralahad and Gary Hamel define core competencies as those capabilities that differentiate a business from its competitors – the things that make it unique and give it a competitive advantage.  But how does this translate into employees’ competencies? Part 1 of this blog post series examines the difference between organizational and employee core competencies, and how many organizations have struggled to implement core competencies in a strategic and impactful way.

Getting it Right
Core competencies can add much value to an organization when identified and implemented correctly.  Pralahad and Hamel provide numerous examples of successful companies from the 1980s that succeeded in leveraging their competencies and forecasted the demise of others.

Let’s start by first debunking some myths of core competencies.

Core Competencies are Common Competencies
Some organizations have fallen into the trap of choosing core competencies merely because they are common among all roles in their organizations.  For example, many service organizations choose client service since almost every role in their organization is customer facing.  However, this could easily fail the 3 tests.  Couldn’t everyone in your market say the same thing since you are operating in the same line of business?  While finding common strengths in your organization is a good step in identifying core competencies, they should be evaluated to see if they are really a core competency.

Core Competencies are Strengths
We need to move from the original definition of core competencies.  Yes, identifying what your organizational strengths are is one good strategy.  However, you could select your core competencies to be more forward thinking.  For example, you could select core competencies because these are the ones that are your organization’s greatest flaws and need to be developed.  Think of the slogan that Avis recently scrapped after 50 years “We try harder.” which demonstrated the company’s focus at continuous improvement due to their number two position in their market.  Core competencies might not yet be strengths, but could be something that you do differently (and presumably better) than everyone else in your market space.

Core Competencies are only for Businesses
For profit businesses do not have the market cornered on core competencies.  The three rules can easily be applied to a not-for-profit or government context.  Organizations of all sizes try and expand their market whether it is accessing new grants, signing up new members or reaching new citizens.  Every organization also has some form of product.  It might be a service, a campaign or a message, but every organization produces something, otherwise it would fail to survive.  Likewise every organization has a competitor whether they are competing for funding sources, listeners or ‘customer share’, we are all competing against another organization whether directly or indirectly.

Core Competencies are Limitless
An organization cannot have a limitless list of competencies.  Pralahad and Hamel recommend 5-8 core competencies.  I recommend maximum of 3 to 4 core organizational competencies.  Similarly, you should be able to isolate 3 to 4 core employee competencies that are fundamental to achieving the organizational competencies. (You might have core employee competencies mapped to more than one core organizational competency).  The fewer the competencies, the easier it is to apply them throughout the organization.  I find that organizations that have a more limited set of competencies can focus better on what is important to their clients.

Core Competencies are Static
Going back to recent business history, it is clearly evident that this statement is not true.  Those organizations that have not adapted to the business climate, changing consumer desires and new competitors will be, and have been, left behind.  This has been demonstrated in spades during the 2008 / 2009 world-wide economic downturn.  Organizations should set up a process to review its core competencies on a regular basis (I would recommend to align it with the business planning cycle) to determine if they are continuing to pass the three tests.

Core Competencies are Boilerplate
Core competencies are individual to your organization.  Now is not the time to use boilerplate competencies or search the web for some good definitions.  The competencies and their definitions must come from your organization and your people.  Take the time to write them well, and get everyone involved in the process.  Researching comparable organizations and competency dictionaries are a great place to start, but if you truly want to mobilize your team, you must use language that speaks to your organization or, even better, comes from your team members themselves.

Where We Go From Here
Let’s get to the glass half full part of this article since all is not lost.  I would suggest that if you are ready to define core competencies or improve the ones you have, then you are going to have to start with a clean slate.  It is a large commitment but I already warned you I don’t believe in quick-fix management snake-oil.

Let’s take this step by step:

1. Begin with your Mission and Vision Statements
If you need to dust off the plaque on your wall to know what these are, take the time to rewrite them first.  Strong core competencies come from a clear perspective of where you plan to go.  If you have written value statements you should also review those now.  You might find that these are replaced by your new core competencies.  I would recommend this replacement since they are often similar and folks will tend to get confused between the two.

2. Understand your Business
It seems simple and trivial, but do you really understand what your organization does, how it does it and who does what?  Leaders can use multiple tools to complete this step.  Perhaps you will send out a questionnaire to all of your staff asking for input on what they feel makes your organization special.  You might complete a thorough job analysis of all of your roles to better understand what everyone does.  You could complete a full competitive analysis of all of your products.  Do whatever you need to do to know more.

3. Draft Your Core Competencies
Doodle, draw, brainstorm, meet, survey.  The methods are endless and some will be more appropriate to your organization than others.  Remember these are competencies that are unique to your organization and meet Pralahad and Hamel’s three tests.  If necessary, do web research, compare yourself against your competitors, talk to your clients, and consult your partners and distributors.  Sometimes it is hard to see your core organizational competencies, except through other people’s eyes. You will also want the right people around the table at this step.  Perhaps you will have a town hall to gather everyone’s feedback, or you will have a facilitated meeting with your senior leaders.  Your approach depends on what is right for you.

Once you have identified your core organizational competencies it then becomes possible to identify the core employee competencies that will drive your organization down the road to success.  Again, this will involve leaders, key clients / customers, and others that understand what it takes to deliver on the organization’s identified core organizational competencies.

4. Validate your Core Competencies
An easy way to fail is to only have 3 heads defining the core competencies for the whole organization.  Especially if you are in a people-driven business, you should receive feedback from every employee impacted by these core competencies.  As with the previous step, you might want to go outside your organization and hear from clients or end users.  Regardless, get feedback and incorporate it into your final version.

5. Preach the Core Competencies
The next easiest way to fail is to leave your core competencies in a binder on a shelf to collect dust or hide them in a dark corner of your company website.  Take every opportunity to get the word out on the new competencies and how they can be used in your organization; publish them, use them in daily business life, put posters up on the wall.  I once encountered an organization that had safety as a core competency.  Every meeting began with a safety tip, even those with contractors in the corporate office far from their production facilities.

6. Implement the Core Competencies
Spending a lot of time here is critical to ensuring that your competencies endure and actually provide you with some value.  Your core competencies must be integrated into your regular business practices to actually make a difference.  This might mean including them in everyone’s performance evaluations, reorganizing a production line or having clients more involved in a planning process.  Set measurable objectives for your core competency implementation and report back on your progress to everyone in your organization.  The more employees that are accountable the better chance that actual change can occur.

Finally, if you complete this process in a week, you haven’t done your job right.  Expect a full core competency implementation (core organizational or employee competencies) to take months to fully come to fruition, especially if you are completing all of the work in-house. 

If you’re unsure of your abilities, invest in some consulting assistance.  A consultant will often have a more objective view and be able to pick up on issues and ideas that are hard identify as an insider. They are also likely to have many tools and techniques that will streamline the process.  After all, if you are going to use resources to develop core competencies anyhow, you might as well make sure you engage help that can get you to the end goal faster and help you avoid common pitfalls.

References:

Edelman, B., & Eisenmann, T. R. (2011). Google Inc. HBS Premier Business Cases. 9-910-036

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HRSG is a leader in Competency Development and Competency-based Talent Management. Contact us today to find out how we can help you.
 

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Want to learn more? Competency-based Talent Management, or CbTM, is the best practice for defining job requirements and building effective HR programs to develop skilled, engaged and productive workforces. Download this Best Practice Guide to learn how competencies can increase workforce effectiveness and improve business practices.

Core Competencies – Part 1 of 2

Pop quiz:

Question 1: What are your organization’s core competencies? 
Question 2: Provide an example of the last time that you demonstrated all of them.

Were you able to answer these two questions?  If you are like employees of most organizations I come across, the answer is no.  Worse, I find the further away you are from the leadership team, the less likely you are able to answer these two questions.  Bear with me for a few paragraphs while I explain where organizations have gone wrong, and how we make it better.

In the Beginning
My first exposure to core competencies, like many others, is through the theories proposed by C.K. Pralahad and Gary Hamel in “The Core Competence of the Corporation.”  Pralahad and Hamel introduce core competencies as those capabilities that differentiate a business from its competitors – the things that make it unique and give it a competitive advantage.  Some refer to this as a Core Organizational Competency.

They proposed three tests to validate that the competencies are core to the business:

1. They must provide the opportunity to access diverse markets.
2. They must add value to the end product.
3. They must be difficult to imitate by the competition.

The authors are careful to explain that competence and performance are two very different things.  For example, Google and Microsoft have very powerful search engines.  However, Google’s core competence lies in their ability to sell your search information to advertisers (Edelman & Eisenmann, 2011).  Both may perform well, however Google has a strong core competence that meets all of the tests listed above.

Core Competence and Competency-based HR Management
So how does Pralahad and Hamel’s definition of core competence fit into competency-based management (CBM)? 

At CompetencyCore.com, we define competencies, the central element to CBM, as the observable abilities, skills, knowledge, motivations or traits, defined in terms of the behaviors, needed for successful job performance.  There are however many different types of competencies, for example general (behavioral/soft skills), technical (hard skills) and leadership.  Together, these form a dictionary of competencies that an organization can use.  In addition, an organization should also select a specific number of competencies from their dictionary that are core.

We use the term core competency to denote those competencies that are fundamental to organizational success; tied to the vision, values and core business; and needed by every employee.  They are the competencies that appear on everyone’s job competency profile, and are incorporated into every competency-based HR activity.  So where Pralahad and Hamel have defined CORPORATE or ORGANIZATIONAL core competencies, we have provided a definition for core EMPLOYEE competencies.

On the surface, the two definitions for core competencies might seem completely different; however, I believe that the two definitions work hand in hand.  For an organization to truly succeed they must find those unique characteristics that allow it to pass Pralahad and Hamel’s three tests.  And in order to take action and actually leverage those abilities, they must be demonstrated by everyone in the organization and therefore must be integrated into each HR function within the organization.

Let’s go back to our Google example mentioned earlier.  Here’s how Google’s core competency might be represented by the two different definitions:

Core Organizational Competency

Core Employee Competencies

Leveraging personal and search information for sale to advertisers

Information Gathering and Processing: Locating and collecting data from appropriate sources and analyzing it to prepare meaningful and concise reports that summarize the information. Business Perspective: Using an understanding of business issues, processes and outcomes to enhance business performance. Resource Management:  Manages resources (financial, physical and information) to achieve planned goals

So by taking their core organizational competency and mapping it to specific employee competencies we have made the logical and important link between the two definitions of core competency. Using this strategy, each employee in the organization can be selected, evaluated and developed based on these core employee competencies; therefore, building a strong employee base equipped to support the achievement of the core organizational competency.

So to sum up, your organization should be able to define the core organizational competencies that meet Pralahad and Hamel’s three tests and that are fundamental to achieving success.  These should be linked to the individual core competencies that each employee must display to achieve the organization’s vision and values, and deliver on the core organizational competencies.

For the rest of this post I will refer to both types of core competencies, since both should be defined together, used together and meet all of the tests and defined above.

Where it all Went Wrong
Although I am a progeny of a business school, I tend to be a cynic of management cure-all theories.  Much of what I find on the “Business” shelves of the local bookstore, I liken to snake oil.  However, much of the error in business school theory lies in the application.  Leaders tend to read the latest and greatest theory and haphazardly apply it to their organization seeking a short-term fix to whatever the organizational ailment might be. 

I’ve already discussed how some organizations have lost sight of their competency initiatives, and thus their laser-focus on core competencies.  The issue is not due to a failure of the theory, but its application.  Few organizations of late have focused, and identified and leveraged their core competencies (think of Apple¹), while others have failed (I will refrain from pointing fingers here, but there are more than a handful that come to mind). 

Most organizations that I have encountered have identified some form of core competencies, but many easily fail Palahad and Hamel’s test and therefore have failed to have any impact on the organizations.  Where most fail is test three.  If I had a nickel for every organization I’ve worked with who has at least one of Teamwork, Communication and Customer Service in their core competencies... well, I think you know where this is going.

Check back later this week for the Part 2 in this series to learn more about how effectively applying core competencies can add significant value to an organization. We will examine some common myths related to core competencies as well as a step by step process to ensure successful and effective implementation.

¹ http://techland.time.com/2012/05/07/six-reasons-why-apple-is-successful/  (Point 3)
 

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HRSG is a leader in Competency Development and Competency-based Talent Management. Contact us today to find out how we can help you.
 

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Want to learn more? Competency-based Talent Management, or CbTM, is the best practice for defining job requirements and building effective HR programs to develop skilled, engaged and productive workforces. Download this Best Practice Guide to learn how competencies can increase workforce effectiveness and improve business practices.

Career Planning & Development: Facts, Figures & Findings

Part 2 of 11 of the CompetencyCore^TM Guide to Career Planning & Development 

This is the second in an eleven part series that looks at:

1. Making the Case for Competency-based Career Planning & Development
2. Facts, Figures & Findings
3. Career Planning & Development Defined
4. Key Definitions of Career Planning & Development
5. Framework for Competency-based Career Planning & Development
6. Best Practice Tools & Processes
7. Implementing Career Planning & Development – Part 1
8. Implementing Career Planning & Development – Part 2
9. Implementing Career Planning & Development – Part 3
10. Key Considerations for Software, Part 1
11. Key Considerations for Software, Part 2

Scarcity of Talent – A Key and Consistent Concern
There is resounding world-wide concern being expressed by CEOs, CFOs and HR leaders about the scarcity of qualified talent to fill vital roles to position their organizations to achieve their strategic goals.  In a 2012 survey of global leaders (Lloyd’s Risk Index) conducted by The Economist and Lloyd’s  of London, “talent and skills shortages” ranked as the second most pressing concern for companies, trailing “loss of customers” by a small margin.  In a survey of 1,605 HR Professionals around the world, Towers Watson found that 72 percent of the respondents reported difficulty in attracting and retaining the high-potential and critical-skill employees necessary to increase their global competitiveness.  In the same study, 61 percent of the US based HR Professionals reported that they were having difficulty attracting employees with the critical skills needed, increasing for the third consecutive year.  Similarly, a shortage of key skills in the external market was the number one pressure identified in Aberdeen’s September 2012, Talent Acquisition study (cited by 55% of respondents).

This begs the question as to why companies are so worried about the scarcity of talent when the talent pool in the market is large.  The answer is that while the overall unemployment rate may be high in many parts of the world, the people with the vital skills and capabilities needed are already employed.

Challenges to be addressed
In a 2012 study of 410 readers responding to an online survey conducted by the Human Resource Executive magazine (September 2012), HR leaders reported that their biggest challenges were:

• Ensuring employees remain engaged and productive (34%)
• Retaining key talent as the economy recovers (33%), with 91% reporting that they are moderately to extremely worried about losing their top talent when the recovery takes hold
• Developing leaders (32%, up from 28% in the previous year)
• Aligning people strategies with business strategies (30%)

Commentary on the results noted that in order to remain competitive in a changing market, HR leaders understand that they need to protect their knowledge base – in other words, the valuable talent that resides within the organization.  Strategies organizations are using to boost employee retention include:

• Increasing employee communication (60%)
• Providing employees with additional training and development (57%), and
• Assisting employees in their career development (46%)

The same study notes that these challenges will be compounded in the near future, with more respondents reporting that they foresee baby boomers retiring in greater numbers (43% versus 36% last year).  Thus, preparing for the brain drain by developing Gen X and millennial workers should be forefront in HR leaders’ minds, at least in the Western and European parts of the world where there is a much older age demographic in the workforce.

The results are similar in a recent survey conducted by Ernst & Young in which just 20% of the 810 executives polled believe their company manages talent effectively across all markets, with just 18% indicating that they achieve the right balance of local talent and expatriate managers in international markets.   Korn/Ferry (2012) found that three-quarters of more than 400 executives at various levels pointed to budget, staff and skills shortages as hindrances to effectively developing the talent they do have, with only 29% reporting that they have technology needed to integrate their talent data.

Measuring & Managing the Impact
The impact on the bottom-line of not having good talent management strategies in place is underscored in a recent study conducted by the American Institute of CPAs (AICPA) and Charted Institute of Management Accountants entitled Talent Pipeline Draining Growth: Connecting Human Capital to the Growth Agenda.  A noteworthy 43% of the CEOs, CFOs and HR directors surveyed said their companies have missed financial goals in the past 18 months because of inadequacies in human capital management.  Almost the same number (40%) indicated that shortcomings such as insufficient systems, processes or management information have hindered their ability to innovate.  In a commentary on the study (See Human Resource Executive, November 2012), Arleen Thomas, AICPA senior vice-president for management accounting, noted that, “Ideas are the currency of the knowledge economy, so human capital must be managed as rigorously as financial capital.”  “It is clear from our research that many companies are falling short of their potential because they lack thorough, relevant information about their people to support effective strategy, hiring and training decisions.”

HR leaders, therefore, must understand what is important in their business and translate this into talent metrics that are aligned with the business requirements, including such things as ability to fill key positions, ability for the organization to resource growth initiatives, ability to address critical skills gaps and the strength of succession management within the organization.  While historical data are helpful, to be of true value the analytics gathered should be anticipatory and predictive nature, so that key decisions can be made to address talent requirements before they become a problem.  Beyond this, HR Analytics should demonstrate the return on investment for the talent management programs, processes, systems and tools that have been, or will be implemented.

Need for Competency-based Career Planning & Development
All of this underscores the need for competency-based career planning and development programs supported by technology and tools that enable organizations to more effectively manage their human capital, as well as make evidence-based decisions that enhance and protect the organization’s most important asset – their valued talent.

The rest of this blog series focuses on how having a good Competency Framework supported by enabling software and predictive tools form the foundational building blocks for high impact Career Development.

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The next blog in this series reviews the basics of Competency-based Career Planning & Development and some of the key foundational pieces needed for successful implementation. Sign up to our blog’s mailing list through the form on the right-hand side to receive the rest of the series in your inbox.

HRSG is a leader in Competency-based Career Planning and Development solutions. Contact us today to find out how we can help you.

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Want to learn more? Competency-based Talent Management, or CbTM, is the best practice for defining job requirements and building effective HR programs to develop skilled, engaged and productive workforces. Download this Best Practice Guide to learn how competencies can increase workforce effectiveness and improve business practices.

Making the Case for Competency-based Career Planning & Development

Part 1 of 11 of the CompetencyCore^TM Guide to Career Planning & Development 

This is the first in an eleven part series that looks at:

1. Making the Case for Competency-based Career Planning & Development
2. Facts, Figures & Findings
3. Career Planning & Development Defined
4. Key Definitions of Career Planning & Development
5. Framework for Competency-based Career Planning & Development
6. Best Practice Tools & Processes
7. Implementing Career Planning & Development – Part 1
8. Implementing Career Planning & Development – Part 2
9. Implementing Career Planning & Development – Part 3
10. Key Considerations for Software, Part 1
11. Key Considerations for Software, Part 2

Most economies around the world are experiencing an accelerated demand for qualified workers.  As a result, organizations are realizing the importance of putting programs and initiatives in place to attract well-qualified workers and retain them once they have been hired.  These trends underscore the importance of career development programs aimed at preparing employees for taking on increased responsibilities within their organizations.

By adopting a competency-based approach to talent management, the job competency profiles can be identified for the various jobs and levels within an organization. It now becomes possible for employees to understand the competency requirements for lateral movement and advancement along a chosen career path.  This greatly facilitates a sense of empowerment and engagement among employees, as they have a better understanding of what it will take to advance in their careers and how to set plans to achieve their goals.  Employees, therefore, are more likely to stay with the organization longer, increasing retention rates and reducing turnover costs.  Conversely, employees who cannot see a career path within their organization are more likely to leave for other organizations offering more opportunities for career growth.

From an organizational perspective, it makes sense to design and implement tools and processes to support Career Development.  It encourages staff to develop themselves in line with organizational needs, providing a pool of qualified and motivated employees who are willing and interested in filling jobs and roles as they become vacant.  Programs and initiatives that support career development benefit organizations both in terms of attracting high potential and qualified applicants as well as retaining and motivating employees once they are part of the organization.  The cost of replacing employees after the organization has invested heavily in their development is high.  There is the loss of training and development funds invested in the departing employee, as well as the redundant costs associated with developing a replacement.  Beyond this, there is a loss of corporate knowledge as employees leave, not to mention the negative impact on the employer’s reputation and brand in the market place.

The bottom line is that it makes good business sense to implement effective Career Planning & Development programs, and a competency-based approach helps you do this more effectively.

About this Series

This series:

• Explores some interesting facts, figures and findings about Career Development;
• Provides definitions and key information related to Competency-based Career Planning & Development;
• Discusses how competencies support more effective Career Planning & Development
• Reviews some key requirements for making a Competency-based approach towards Career Planning & Development work effectively;
• Explores some best practice tools and processes to enhance career planning and development; and
• Reviews recommended stages and steps for implementing a Competency-based Career Planning & Development initiative.

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The next blog in this series examines facts, figures and findings in Competency-based Career Planning & Development. Sign up to our blog’s mailing list through the form on the right-hand side to receive the rest of the series in your inbox.

HRSG is a leader in Competency-based Career Planning and Development solutions. Contact us today to find out how we can help you.

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Want to learn more? Competency-based Talent Management, or CbTM, is the best practice for defining job requirements and building effective HR programs to develop skilled, engaged and productive workforces. Download this Best Practice Guide to learn how competencies can increase workforce effectiveness and improve business practices.

Best Practices in Implementing Competency-based Learning & Development

Part 7 of 7 of the CompetencyCore^TM Guide to Learning & Development 

This is the seventh in a seven part series that looks at:

1. Making the Case for Competency-based Learning & Development
2. Learning & Development: Facts, Figures & Findings
3. How Competencies Support Learning & Development
4. The Learning Cycle at the Individual Level
5. The Learning Cycle at the Organizational Level
6. Evaluating the Impact of Competency-based Learning and Development
7. Implementing Competency-based Learning & Development

Competency-based Learning & Development is typically introduced as part of a larger Competency-based Talent Management (CbTM) initiative, and in our experience, is being done to support major change in the organization. Perhaps the organization is trying to accomplish a major change in culture, perhaps it is shifting its vision and strategic direction, or perhaps it is facing the harsh realities of trying to maximize efficiencies and cope with major economic shifts in the market.

Regardless of the reason, changing the learning culture of the organization requires careful planning, good communication strategies targeted to different stakeholder perspectives and interests (i.e., senior leaders, managers / supervisors, employees, clients , partners, etc.), as well as training programs to equip managers and employees with the skills needed to participate in a competency-based learning and development process.

Best Practices for Effective Competency-based Learning & Development
Some of the key best practices in Competency-based Learning & Development include the following features:

• Learning that links individual performance to the corporate and work unit business plans and goals;
• Learning that focuses on results - i.e., desired behaviors (competencies);
• Regular reviews and updating of learning plans to address changing demands;
• Training for both managers and employees on how to effectively participate in a development process based on competencies;
• Catalogs of learning resources and options (including formal training programs) mapped to competencies in order to support employees in identifying learning options that fit with their learning style and the resources available within the organization;
• Competency-based learning curricula that focus learning on the key requirements for success;
• Review and evaluation processes that determine the impact of learning, both at the individual and organizational levels.

Implementation Stages
The following implementation stages are suggested for mid to large organizations implementing competencies in Learning and Development on a corporate-wide basis.

Stage 1:

• Determine policy for integrating competencies in Learning and Development.
• Design individual learning tools and processes (Learning Plan Form; associated instructions / tools) and / or acquire tools to support individual Learning Planning
• Build and / or acquire a catalog of learning resources organized by competencies in the Dictionary and classify organization specific programs and tools in the catalog.  Advertise and make the catalog widely available to employees and managers (e.g., post the catalog on an intranet site; acquire and implement web-based software to support employee).
• Develop and introduce training / communications related to competencies and their use in the learning and development process in the organization.
• Implement self-assessment and reporting processes as competency profiles become available for job groups.  Introduce supervisor and multi-source assessments as employees become familiar and comfortable with the competencies and the assessment process.

Stage 2:

• Conduct a needs assessment / analysis and design / develop tools and reporting processes to support aggregate analysis and reporting of organizational strengths and gaps in competencies.
• Assess how curriculum / learning program design and development could be improved with the introduction of competency-based management.  Implement changes, as required.
• Review current processes for conducting evaluations of learning programs within the organization and integrate competencies, as required, to determine:
• the extent to which workplace behavior and outcomes have changed in the desired direction; as well as,
• the impact and return on investment for the learning / training provided.

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HRSG is a leader in competency-based learning and development solutions and training. Contact us today to find out how we can help you.

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Want to learn more? Competency-based Talent Management, or CbTM, is the best practice for defining job requirements and building effective HR programs to develop skilled, engaged and productive workforces. Download this Best Practice Guide to learn how competencies can increase workforce effectiveness and improve business practices.

Evaluating the Impact of Competency-Based Learning & Development

Part 6 of 7 of the CompetencyCore^TM Guide to Learning & Development 

This is the sixth in a seven part series that looks at:

1. Making the Case for Competency-based Learning & Development
2. Learning & Development: Facts, Figures & Findings
3. How Competencies Support Learning & Development
4. The Learning Cycle at the Individual Level
5. The Learning Cycle at the Organizational Level
6. Evaluating the Impact of Competency-based Learning and Development
7. Implementing Competency-based Learning & Development

In the previous blogs we discussed the Learning Cycle and how this model addresses the process of learning and development both at the individual employee as well as the organizational levels.

The next key step in the Learning process that we will examine is how to determine whether the activities / program(s) implemented have had the desired impact (Review & Evaluation).

How Competencies Support the Review & Evaluation of Learning
Competencies that have been identified for roles within the organization can serve as the standards or criteria for determining the level of success of learning interventions. This approach is particularly powerful because assessments based on the competencies provide the organization with an indication of the extent to which employee workplace behavior has improved. For example, pre- and post-learning event testing / assessments can be conducted to evaluate the extent of development at both the individual and aggregate level (i.e., all employees who have completed the program). Based on this, the organization can determine whether the learning investments are paying off and, as appropriate, what changes need to be made to address performance gaps.

Measuring the Impact and Value of Learning
Organizations place a great deal of importance on the learning and development of its employees. In fact, we know of one organization that had to shut down their plant operations because a large percentage of the employees did have the necessary skills / competencies to operate safely and effectively. It is, therefore, important to assess whether the training is achieving the desired impact and outcomes.

At the organization level, the value of training / learning can be assessed on a number of levels. Jack Phillips (2012) has detailed a five-level model for assessing learning, ranging from Reaction – Level 1 (e.g., participant reviews completed at the end of training), to demonstrated Learning – Level 2 (e.g., test results at the end of a course), to Application – Level 3 (e.g., uses the learning on the job), to Business Impact – Level 4 (e.g., learning has had a measurable impact on things like productivity and efficiencies), and finally to Return on Investment (ROI) – Level 5 (e.g., learning has had a measurable impact on overall organizational financial performance, such as profits, sales, etc.).

How and What to Measure
As noted in this model, it is possible and sometimes important to measure and evaluate learning from a number of levels and perspectives. The first step is to determine the goals and / or outcomes you hope to achieve through the learning program. In some cases, the organization may be implementing learning solely to improve the quality of working life (e.g., creating a more respectful workplace), and in others there may a large financial imperative (e.g., increasing sales and / or profitability). Regardless, the goals and outcomes for the learning program should be clearly articulated in advance. It then becomes possible to design and implement measurement standards and processes for determining the success of the program.

The following diagram provides some illustrative examples of success indicators (green circles) and how they could be measured (arrows leading from circles). Often success indicators (program goals / outcomes) are articulated in ways that cannot be directly measured (e.g., reduced anxiety when dealing with organizational change), so it is important to identify proxy measures, which when used alone or in combination, provide an indication of the extent to which the program has been successful. The arrows associated with each of the green circles in the diagram provide some examples of how various goals or success indicators could be measured.

The key is to ensure that outcomes or success indicators for the program are clearly indicated in advance and that measurement standards and processes for determining levels of success have been identified, developed and implemented. In this way, HR and Learning professionals will be in a good position to demonstrate whether in fact the intended goals of the program have been accomplished.

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The next and final blog in this series summarizes some of the best practices in implementing competency-based learning and development. Sign up to our blog’s mailing list through the form on the right-hand side to receive the rest of the series in your inbox.

HRSG is a leader in competency-based learning and development solutions and training. Contact us today to find out how we can help you.

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Want to learn more? Competency-based Talent Management, or CbTM, is the best practice for defining job requirements and building effective HR programs to develop skilled, engaged and productive workforces. Download this Best Practice Guide to learn how competencies can increase workforce effectiveness and improve business practices.