Competency romance pt3 O'Connor + Markus ~ Making competencies work - NZPsS 0608

• 1. THE COMPETENCY ROMANCE3 - MAKING COMPETENCIES WORK Frank OCONNORRAP [email protected] MARKUSPerformance Group International; Centranum

2. MAKING COMPETENCIES WORKMany organisations have put substantial time andmoney into the use of competencies andcompetency frameworksThe usual aggravations appearOrganisations are too busy operating to get everyone involvedThe benefits are hard to measure or evaluateWeak distinction between the standards of work and workerCompetencies focus on knowledge skill and abilityWorse, the individual competencies used in many organisations have little direct connection to the purpose of the enterprise, so they dont impact consistently on organisational resultsHow do we get greater organisational leverage from these competency things? 3. HOW CAN WE GET GREATERORGANISATIONAL LEVERAGE?We see organisational effectiveness when:1. Core competence matches peoples capabilities2. Goals flow from organisation to individual and back3. Results expected are specified and understood4. Participants and their contributions are supported consistently 4. 1CORE COMPETENCE MATCHESPEOPLES CAPABILITIESCompetent organisations use their peoplescapabilities, to:Gain competitive advantage, with customers, funders or suppliersImprove key aspects of performance, compared to others 5. A CORE COMPETENCE IS SOMETHING THAT AN ORGANISATION CAN DO WELLIt provides customer benefitsThey want or need the product or serviceIt is hard for competitors to imitateOthers are less ready, willing or able to provideIt can be applied widely to many products and marketsA range of customer needs can be met using the competenceHamel and Prahalad (1990)A core competence includes the collective knowledge of people and the organisational procedures that shape the way employees interact to produce something particularCore competences are fundamental to the organisation 6. COMPETENT PEOPLE CONTRIBUTE TOCORE COMPETENCIESA core competence can take various forms, eg:technical / subject matter know howa reliable processclose relationships with customers and suppliersMascarenhas et al. 1998It may also include less tangible attributes, eg:innovative product developmenta work culture of high employee dedicationSome say outsource activities that are not part of core competenceCore competence is more than individuals traits"aggregates of capabilities, where synergy is created that has sustainable value and broad applicability"Gallon, Stillman, and Coates (1995) 7. KNOWLEDGE AND SKILLS BOUND TOPRODUCTION PROCESSES"a core competence is a combination of complementary skills and knowledge bases embedded in a group or team that results in the ability to execute one or more critical processes to a world class standard." Coyne, Hall, and Clifford (1997)The skills or knowledge must be complementary tothe processes taken together, they make itpossible to provide a superior producta core competence differentiates not only between firms but also inside a firm it differentiates amongst several competencies. In other words, a core competency guides a firm recombining its competencies in response to demands from the environmentGalunic and Rodan (1998) 8. WHAT IS YOUR CORE COMPETENCE?When most products are modifications of a basictechnology, your people must make these wellCombining skills, knowledge, equipment and processesWorking to higher standards of consistency or reliabilityTake Black and Decker offerings to three markets: sHome workshopsdrills, circular saws, sanders, routers, polishers, screwdriversHome cleaning and maintenancedust busters, etcKitchen appliancescan openers, food processors, blenders, bread makers, fansWhat is their core competence? 9. EXERCISE: MAKING A STANDARDPROCESS INTO A CORE COMPETENCE?A process which uses common methods andpeople with basic training cannot be regarded as acore competenceSkills or resources that are standardized or easily available do not enable an organisation to achieve a competitive advantageSpecialised equipment and training applied to such a process might generate a differentiating advantage over rivalsSome organisations, such as in the public sector,do not compete for customers, but they do competefor skilled staffHow could the recruitment process be revisited to compete better? 10. 2GOALS FLOW FROMORGANISATION TO INDIVIDUAL AND BACKAligned goals get better results at lower costCascade from organisational goals to individual workplansSet standards of work in terms of output delivered to customerUntil they learn not to, people naturally reviewachievementAccept intentions are good, but measure the essential resultsSupport individual work standards with unit goals 11. VIEW FROM THE TOP: THE BRITISH COUNCILS INTRODUCTIONThe purpose of the British Council is to buildmutually beneficial relationships between people inthe UK and other countries and to increaseappreciation of the UKs ideas and achievementsEverything we do must contribute to one or more of the following outcomes:Improved perception of the UK in other countriesGreater mutual understanding between the UK and other countriesStronger ties between the UK and other countriesThe work of every British Council member of staff contributes in some way to the achievement of these outcomes, and it is therefore important that we all have a clear understanding of what our role is and what is expected of us. 12. CASCADE FROM GOALS TO PLANSOrganisationalOrganisational ObligationsObligations & Goals & Goals Met Priorities, requirements & resultsResults Achieved for CustomersUnit Plans Annual tasks/activities,Products and Services outputs, outcomes andDelivered achievement indicators Individual Work Plans Core Work DoneIndividual tasks/activities,outputs and achievementindicatorsEXPECTED STANDARDSIndividualof skill, style & Effort knowledge required forsatisfactory achievementSUPPORT at specific workdepends on style &content of work 13. SUPPORT: THE LITMUS TESTWhat are the [three] key goals this organisation hasthis year?What are the core processes that will deliver these goals?What are the key actions carried out by your department to support these processes?What do we have to do to be and stay competent at these actions? People can do this when they have to! 14. SUPPORT: OBSERVABLE COMPETENCIESA child calls Hey Dad! Come and watch me do .,to give evidence of competenceStart with the same sentence, say with TeamworkWhat would you see from understands and supports diversity ?What does cooperation look like?Results-based competencies go further:Hey Dad! Come and watch me increase sales by doing .How do these affect overall achievement of goals? Thanks to Carol Barnett, who taught me this People learn to do this when they want to! 15. SUPPORT: REAL DISTINCTIONS IN OUTPUT STANDARD AND CONSEQUENCESSupportJuniorIntermediate Senior ACTING TO ACHIEVE RESULTS I got my work I worked withI planned for,I decided how we done on time andothers to plan for monitored and balanced work in the right way, and achieveevaluated the within my area, so so other people results that results achieved in we achieved the can get on with contribute tomy area ofplanned their contributionachievements accountability, contribution to to our goalsoutside my workcorrecting where it our KRAs in the groupfell shortbest way for staffand clients WORKING TOGETHER I worked with I planned, did and I led and developed I led the actions of other people in evaluated work staff in our andgroups that work and beyond my done with otherclientwith other group I fitted in people, so all organizations toorganizations to with everyone elsework used theget work done achieve shared so we achievedright informationtogether to the goals using good resultsand achieved the right standard andseparate togetherright resultstiming, withresources andproblems resolved knowledgeefficiently andeffectively 16. EXERCISE: RESULTS OR INPUTSIdentifying and developing abilities and potentialusing job-relevant tests, learning processes and other exercises inselection, development and career counsellingInfluencing the motivation of staffdesigning payment and reward systems, and advising on health andsafety issuesAssessing achievement, in and around the job designing goal setting and appraisal systems for groups orindividuals, advising on stress management, and in designingmachines and computer systems that are easy to useDesigning effective organisationsadvising on the best type of management systems, identifyingeffective human resources strategies, and designing jobs to fitpeoplesskillsIf we looked at the output of a years work,what would we see? 17. 3RESULTS EXPECTED ARE SPECIFIED AND UNDERSTOODResults are delivered better when they are specifiedbetterConsistent standards are critical, for individualsand organisationsFeedback on fit of work done to end use savesmoney and time 18. HOW CAN INDIVIDUAL COMPETENCIES BEUSED AS AN ACHIEVEMENT LEVER?If organisations are to achieve useful productivityleverage from competency initiatives, there mustbe a direct relationship to organisationalachievement through the development of suchorganisational capabilitiesPersonnel show these capabilities as individual competencies, which vary with scope and type of workOne challenge is to integrate these input competencies in a way that fits with overall outcome objectives 19. BOC: CORE COMPETENCIES PUT SIMPLYACTS cultural pillars underpin everything we do at BOC; the way we behave, theway we speak, the things we praise, the things we reward, the people we hire, thepeople we promote, the procedures we implement. The ACTS Cultural pillars are:Accountability CollaborationTransparency StretchPeople knowWe maximiseWe believe thatWe continuouslywhat they areour achievementsvisible problems push the accountable foras a group, can be solved andboundaries and are not as individualsthat informed of performance empoweredpeople make betterto deliver decisions Add GAS and you have their core business 20. EXERCISE: SPECIFYING RESULTSEXPECTED concerned with the organisation and planninginvolved in systematic assessment, evaluationand problem solving with individuals, groups,organisations, and the communityBe able to demonstrate:Problem definitionCollection and analysis of data relevant to the problemInterpretation of data within a relevant conceptual frameworkDetermination of strategies supported by the best available evidenceImplementation of ongoing evaluation gathering information; defining and specifying the problem; generating hypotheses; tool / method selection and use What does this competency produce? 21. 4PARTICIPANTS AND THEIR CONTRIBUTIONS ARE SUPPORTEDCONSISTENTLYSupported participants make better contributionsMost people want to do work well enough, once they know howmatch support delivery to style & content of work doneCourage and preparation enable difficult conversationsIndividual and workgroup performance must haveFeedback on achievement against plansSpecific, measurable, achievable, realistic and time-bound resultsConformance with standards on how things will be doneexpectations matching achievement 22. CONSISTENCY:WHAT I SAYWHAT I MEANI hate what you just told meThank you for the feedback. and I disagree with you.I am not happy with yourI am offering you a performance so Im movingdevelopmental opportunity.you somewhere else.I have confidence in you. I have concerns and doubtsabout your ability but I wantto make you feel good.Its a very interesting idea.I really want to express myindifference or objection. 23. ORGANISATIONS PERFORMAS WELL AS THEIR PEOPLE ALLOWThe best use of people requires firm expectationsclear plans and how its to be donefeedback on whats done and neededUse the cascade / technology pairOnce people throughout the organisation Understand what results are wantedIdentify and develop skills neededMonitor and evaluate their own effectiveness their organisation can deliver on itspromises 24. EXERCISE: WHERE COMPETENCIES MOST AFFECT BUSINESS ACHIEVEMENTStrategy, Mission and Business ObjectivesOrganisation StructureLeadership & CommunicationHuman Resources Strategy Management ProcessesRecognition Job Design& Information Systems & Rewards Appraisal &RecruitmentGoal Setting& PlacementACHIEVEMENT ACHIEVEMENT DevelopmentWorkforceSuccessionCareer Planning & TrainingPlanningPlanning 25. GREATEST PRODUCTIVITY WITHA framework that makes it easy for peopleAssess and discuss their own performance and that of others in the context of the organisations obligations and goalsAddress individual training and development needsIdentify trends in skill gaps across the organisationTo get and use information about work planned and doneTechnology makes this practicableClear expectationsPeople cant do their jobs if they donknow what is expected tWhats measured? Whats in the job description? What matters?Useful feedbackachievement improves with constructive and prompt feedbackMost employees appreciate feedback on what has worked well and,given opportunity, will monitor and evaluate their own achievements 26. GREATEST BENEFITS COMEWhen competence is derived from the resultssought by the organisationmeeting standards in the competencies is essential to acceptable achievement in the job andachievement in the job is essential to acceptable organisational achievementWhen competence is relevant and necessaryto the actions of the workerfor the success of the organisationWhen standards are clear and consistentplain distinctions are made between not good enough and good enough outputsalso applies to intangibles such as relationships and reputations 27. TEST QUESTIONS FROM EXPERIENCEWhat are the organisational results expected?We need to know outputs & outcomes, not intentions or inputsWhat are we asking people to do differently?We need to describe it, see it and do it.How does the competency impact on these results?Consistent and direct leverage on organisational achievementWhat does good enough look like on the job?We need to see the organisation showing that these minimumstandards matterAre staff showing that meeting the standards matters to them?We need to see and hear them demonstrate relevance in actions True Love or Hawthorne Effect? 28. SOME REFERENCESGalunic, D.C. and Rodan, S. (1998) "Resource recombinations in the firm: knowledge structures and the potential for Schumpeterian innovation". Strategic Management Journal vol 19. pp1193-1201.Hamel, G and Prahalad, C.K. (1990) "The core competence of the corporation", Harvard Business Review, vol. 68, no. 3, May- June 1990, pp 79-93.Levenson, A.R., Van der Stede, W.A. and Cohen, S.G. (2006) Measuring the relationship between managerial competencies and performance, Journal of Management, vol. 32, no. 3, June 2006, pp360-380Mascarenhas, B., Baveja, A., and Jamil, M. (1998) "Dynamics of core competencies in leading multinational companies", California Management Review, vol 40, no. 4, pp117-132.Schneider, W.E. (1997) "Aligning strategy, culture and leadership." In Neumann, J.E.; Kellner, K.; & Dawson-Shepherd, A. (Eds.), Developing Organisational Consultancy. London: Routledge 29. YOUR CHOICE 30. Hawthorne Effect 1924-1933 from WesternElectrics Hawthorne (Chicago) works "Parsons (1974) described it as: "Generalizing from the particularsituation at Hawthorne, I would define the Hawthorne Effect as theconfounding that occurs if experimenters fail to realize how theconsequences of subjectsperformance affect what subjects do". Studies were done between 1924 and around 1933. Fritz J.Roethlisberger and William J. Dickson give a great amount of detail,but little interpretation. Elton Mayo of Harvard Business School givesa shorter account, including the interpretation which has been soinfluential: that it was feeling they were being closely attended to thatcaused the improvement in performance. Research was a series of studies on the productivity of workersmanipulated various conditions (pay, light levels, rest breaks, etc.)but each change resulted on average over time in productivity rising,including, eventually, a return to the original conditions. This was trueof each of the individual workers as well as of the group mean. The variables the experimenters manipulated were not the only nordominant causes of productivity changes. One interpretation, mainlydue to Mayo, was that the important effect here was the feeling ofbeing studied: it is this that is now referred to as "the Hawthorneeffect".