Wednesday 31 July 2013

Competency-based 360 Multi-source Feedback: Establishing Feedback Goals

Part 1 of 4 in the CompetencyCore™ Guide to 360 Multi-source Feedbackseries:
  1. Feedback Goals
  2. Process and Resources
  3. Delivering the Project
  4. Selecting a multi-source feedback software solution
Download the complete guide to 360 Feedback
By Ian Wayne, M.Sc and
Suzanne Simpson, PhD, C. Psych.


360 Multi-source Feedback is increasingly being used in employment settings to monitor and measure performance and provide meaningful feedback to employees on their strengths and areas for development.  When used properly, this experience can be enriching for employees and managers alike; however, when improperly developed or implemented, 360 Multi-source processes can be highly damaging for both the employee and the organization.

This series takes a look at the best practices organizations need to implement to ensure a positive experience for all involved.

360 Multi-source Feedback Defined 

360 or Multi-source feedback is a process for collecting information about an individual’s performance from a range of sources. In addition to the individual being reviewed, these sources include supervisors, peers, subordinates, and in some cases customers.

Multi-source systems are primarily used for developmental purposes, promoting individual self-awareness and highlighting key strengths and areas for development. Multiple sources provide a variety of perspectives about an individual's skills and competencies, helping to build a richer and more accurate picture than could be obtained from any one source.

An effective 360 degree feedback process leads to more reliable performance ratings, better performance information, and greater performance improvements than feedback processes relying on a single source of information.  Properly constructed, they promote an increased understanding of the behaviors required to improve both individual and organizational effectiveness and focus development on those competencies required for successful performance. 


Goals of Multi-source Feedback

Clearly defined goals and objectives will help guide the adoption of a Multi-source Feedback process and enable you to determine whether it is successful. Organizations typically use 360 degree feedback for one of two reasons:

  • To support learning and development activities
  • To enhance the performance appraisal process
Before deciding on the objectives for Multi-source Feedback in your organization, it is vital to consider your organization’s culture. 360 / Multi-source Feedback is more likely to be successful when openness, mutual trust and honesty are an integral part of the organizational culture and there is a genuine desire for performance improvement. This is especially true if the results are used to support the performance appraisal process.

The purpose of feedback, whether it is for development or as part of a performance appraisal process, will influence the way the process is implemented. For example, if used for performance appraisal purposes:
  • Participation in the process is likely to be mandatory
  • It is likely to be carried out annually
  • The individual’s manager is likely to be involved in follow-up action
  • Decisions on how the feedback links to reward (e.g., bonuses; salary increases; etc.) need to be clear
Having defined the goals of your 360 Multi-source Feedback process, it then becomes possible to define and develop a system and process for achieving these goals.  The next in this blog series reviews best practices in defining your process and the resources needed to ensure effective implementation.

Sources

DTI. (2001). 360 Degree Feedback: Best Practice Guidelines. Downloaded from: www.dti.gov.uk/mbp/360feedback/360bestprgdlns.pdf‎
Maylett, T. (2009). 360-Degree Feedback Revisited: The Transition From Development to Appraisal. Compensation & Benefits Review, 41(5), 52–59.
Morgeson, F. P., Mumford, T. V., & Campion, M. A. (2005). Coming Full Circle: Using Research and Practice to Address 27 Questions About 360-Degree Feedback Programs. Consulting Psychology Journal: Practice and Research, 57(3), 196–209.

Want to learn more? Get the Guide!

This guide reviews the best practices for 360 degree feedback, beginning with establishing 360 feedback goals, to process design, project delivery and software platform selection. It also includes a 360 degree feedback checklist for a successful implementation.

Monday 22 July 2013

Scarcity of Talent – A Key and Consistent Concern


Business leaders around the world have expressed concerns about the growing scarcity of qualified talent to fill vital roles within their organizations.

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 CEO’s and corporate leaders 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.

So why are companies so worried about the scarcity of talent and how do competencies impact the most pressing needs of a talent management program?

Challenges to be addressed

A survey conducted by the Human Resource Executive magazine in 2012 reported that the biggest challenges faced by their readers 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%)

HR leaders understand that they need to protect their knowledge base – in other words, the valuable talent with the competencies required to maintain their company’s competitive edge in the marketplace.  Key to this are the use of strategies to boost employee retention that focus on communication, as well as training and career development that directly address the competencies needed to achieve both individual and organizational success.

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.”

The key to addressing these challenges is to have a solid framework for managing people based on the competencies needed to drive organizational success.  By understanding and clearly articulating the competency standards, organizations can build talent management strategies focused on hiring, training, developing, managing and retaining the human capital needed to achieve the organization’s vision and strategic goals.

HR leaders must understand what is important in their business and translate this into the competency and talent management  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.

All of this underscores the need for competency-based management 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.   Based on my experience, companies can develop highly quality “paper-based” tools and processes for managing their talent; but, these are unwieldy for employees, managers and HR staff to use effectively.  Data cannot be easily consolidated and analyzed for strategic decision-making, and information on the talent of the organization becomes quickly out-dated because of the difficulty in maintaining “paper-based” information and processes.  Early adopters of competency-based management quickly became frustrated, not because the processes were flawed, but because they lacked the systems for managing and updating the competencies and competency profiles, as well as for using the competencies in a systematic way to manage their human capital.    Having an effective competency management system is essential for success.



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.





Monday 15 July 2013

Designing A Competency-Based Talent Management Framework: Selecting A Software System

Part 7 of 7 of the CompetencyCoreTM Guide to Designing a Competency-based Talent Management Framework

By Ian Wayne, M.Sc and Suzanne Simpson, PhD, C. Psych.

This is the sixth in a seven part series that looks at key decisions in designing and implementing a competency-based talent management (CbTM) framework:
  1. Some Basic Definitions
  2. Defining the Goals and Evaluating the Impact of your Initiative
  3. Competency Structure and Types
  4. Importance of Defining your Competency Architecture
  5. Developing Job Competency Profiles
  6. Project and Change Management
  7. Key Decisions in Selecting a Software System

Throughout this series, we have been discussing key decisions in designing and implementing a competency-based talent management framework.  In particular, we have addressed the importance of defining the goals of the system and establishing a competency architecture that fits with the critical success criteria for your framework.

We then discussed some of the typical approaches and methods for defining the Job Family Competency Profiles, as well as governance, project and change management considerations that need to be taken into account when designing and developing your framework.

But for all of this to be successful, it is important to have a software system that supports the design, development, delivery and ongoing maintenance of your Competency Framework.

Why a competency management software system is important

Designing, developing, implementing and maintaining a competency framework is difficult to do in a paper-based format.  It can quickly become unwieldy and out of control if not managed through a competency management software system.

As a case in point, in one national organization in Canada it was decided that they would maintain and publish their competency library and job competency profiles through MS Word documents.  The organization was large and complex and their employees were located in almost every village, town, and city across the country.  The job family competency profiles consisted of the general competencies needed for success as well as highly technical and detailed competencies.  In addition, while the organization had a base library of competencies, it needed to develop and publish technical competencies unique to their organization.

All competencies were defined on a five-level proficiency scale with multiple behavioral indicators for each level of each competency scale.  Naturally, as the competencies and job competency profiles were developed, changes were identified.  Eventually, it became almost impossible for the organization to reflect later changes in the competencies in all the job competency profiles that had already been developed.  The organization eventually gave up trying to make changes to the competencies.  If this organization had had a competency management software system like CompetencyCore, this situation could have easily been avoided.

 What to look for in a system

  •  A system with existing well-researched competency content
This includes a library of the general competencies as well as technical / professional competencies that are suited to your organization.  These days, it is not necessary or even advisable to develop your competencies from scratch.  It can take years to develop high-quality competencies.

Reputable vendors will have lists of competencies that are generally found in many different types of jobs as well as technical / professional competencies that are typical to functions or areas within the organization (e.g., IT; HR; Finance; etc.).  And, it is also possible to acquire libraries that are specific to industry sectors (e.g., Oil & Gas, Police and Security, Banking, etc.).

Vendors often also have standard job competency profiles available that reflect the job duties / tasks typically required in jobs within specific functional areas as well as industry sectors.  These can then become the starting point for use within your organization, editing and adjusting them to fit the unique requirements of your organization.
  • Software that supports the standardized implementation of competencies
If you have a software system that supports the adoption, editing and publishing of the competencies and job competency profiles, it becomes easier to ensure that HR professionals, managers and employees are accessing a uniform and approved set of competencies and job competency profiles across the organization.  This becomes increasingly important as organizations go national or global.
  • A system configurable to your competency structure / architecture
The software housing your competencies and job competency profiles should be configurable to your architecture.  The structure of the competencies can vary – for example, they can be defined in scales that reflect the level of proficiency needed across jobs within the organization, or include both positive and negative behavioural indicators.  In our library, the competencies are typically formatted on a four to five level proficiency scale.

The system should also support the grouping of the competencies according to your architecture (e.g., Core, Job Family General and Technical / Professional, etc.) as well as the Job Families within your organization.

The bottom line is that the software should be easily adjusted to meet your unique organizational needs and competency structures.
  • A system that supports integration and ongoing changes and updates
As noted in the case example above, it is very important, especially in large complex nationally or globally distributed organizations, to have system that can be accessed by users in all locations and can be updated and published simultaneously throughout the organization.

These are only a few of the elements that you should look for in a competency management software system.  Follow this link  for more information on the CompetencyCore solution.

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.





Tuesday 9 July 2013

Part 6 of 7 of the CompetencyCoreTM Guide to Designing a Competency-based Talent Management Framework

By Ian Wayne, M.Sc and Suzanne Simpson, PhD, C. Psych.

This is the sixth in a seven part series that looks at key decisions in designing and implementing a competency-based talent management (CbTM) framework:
  1. Some Basic Definitions
  2. Defining the Goals and Evaluating the Impact of your Initiative
  3. Competency Structure and Types
  4. Importance of Defining your Competency Architecture
  5. Developing Job Competency Profiles
  6. Project and Change Management
  7. Key Decisions in Selecting a Software System

In the previous blog in this series we walked through the process of identifying the competencies that contribute to success in jobs and the whole organization.  However, to have a successful program, all stakeholders must see the value for competency-based talent management for them.   

The bottom line is that you must craft a communications plan, change and project a management approach that shows the various stakeholders – employees, supervisors, senior leaders, as well as human resources – what’s in it for them.


Communication and Change Management


Throughout every stage of your competency initiative it is important to communicate the goals, benefits and expected outcomes for all stakeholders. This can be achieved through processes specifically designed for this purpose (e.g., employee orientation sessions, newsletters, e-mails, etc.) as well as through the ongoing processes that are part of the overall project plan (e.g., competency profiling focus groups).

If employees, managers and other stakeholders understand the benefits of the tools and feel they have contributed to the development process, there will be a higher chance for project success.
Starting with HR processes that are less ‘threatening’ (e.g., training/learning programs, career development) are most likely to minimize potential resistance and maximize the likelihood of successful implementation. Subsequent steps can gradually move to areas that more directly impact employee performance reviews, compensation, promotion and advancement.

KEY DECISIONS:


  • How will the competency initiative be communicated? At what point? Through which vehicles? By whom?
  • What are the key messages? What is the focus of the business case?
  • Will you seek out high need areas to address first, demonstration projects or “quick wins”?

Project Management and Governance 

Competency initiatives can fail to have the desired results for a number of reasons. Some of the major obstacles to success include: lack of effective sponsorship; resistance to change; failure to involve key stakeholders; loss of momentum; lack of required training; and inadequate project management.

The biggest challenge we see in organizations is not managing the initiative as a “project” with a beginning, middle and end.  Too frequently, organizations assume that the HR Department can undertake an initiative like this “off the side of their desk”, without due consideration for the extra effort and time that it will take.  This is a recipe for failure.  There must be clearly defined governance and project management structures in place, with appropriate resources assigned and clear time lines, division of responsibilities as well as identified outcomes and deliverables.  Organizations also have to have a clear plan to transition to a normal ongoing process for managing and updating the competency profiles. 

KEY DECISIONS:

  • What are the barriers to success and how will you address them? What are the areas of strength and how will you leverage them?
  • Will a steering committee be used to guide the competency initiative? If so, who will participate in the committee?
  • Will resources be assigned to manage the initiative?
  • Do you need to use external consulting resources to support stages of the project?
  • Do you intend to use expert panels? If so, what are the criteria for identifying suitable experts? What will their role be in the profiling process?
  • Do you intend to use champions? At what level will they operate and what is their relationship to the steering committee and expert panels?
  • Who will approve the competency profiles?
  • How will business leaders be involved in implementing competency profiles?
  • What are the timelines for various stages of the initiative?

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.

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