Conduct an On-Site Building Competency Models Workshop

Building Competency Models workshop has been conducted on-site for Google, Air Canada, the U.S. Department of Defense, and other organizations. This workshop, and others, such as the Creating Technical Competencies workshop and Interviewing for Competencies workshop, are effective at training and certifying individuals and small teams to develop job competency models and HR applications. But, each organization has its own particular needs and situation that are difficult to address in a public workshop, even with an hour of individual consulting help that is a part of the BCM program. Onsite programs can be customized to the special needs of an organization. Consulting assistance can be a larger component, technical competencies can be included, or organizational issues addressed.

Other benefits include being able to:

  • Evaluate, and possibly modify, past or existing model building approaches,
  • Focus on strategy, planning, and implementation of specific applications
  • Achieve synergy; prepare implementation team members to collaborate and support each other
  • Ensure consistency in applying model building methodology
  • Obtain cost-savings; training more people with no travel costs

Here are a few examples of on-site workshops and planning sessions that have been conducted by Workitect:

Google:

This 3-day workshop was tailored and conducted for HR and non-HR staff responsible for rolling out a project for Google Fiber that involved the staffing of a new organization to install a fiber-optic high speed internet and TV service in major cities throughout the USA.

ac_white_stkAir Canada:

Our 3-day Building Competency Models workshop was modified to devote more time to plan the implementation of the various competency modeling approaches, and on the development of three high priority HR applications.

braskemBraskem (formerly Sunoco Chemical):

Tailored a 3-day workshop that combined the essentials of both the building competency models and building technical competencies sessions for the HR staff. The workshop also focused on developing a consistent approach for building models throughout the company.

“Workitect demystified the competency development process and gave us the confidence to move forward with our program.”

Kelly Elizardo
Director, Learning & Development

attachmentFranklin Templeton:

We developed and delivered a 2-day working session to review the essential of building competency models with the company’s HRD staff.  The second part of the program was to build expertise in how to explain and sell the benefits of competencies to clients and to facilitate a consistent process for building models throughout the company.

dod20ig20logoU.S. Department of Defense, Inspector General Office:

We delivered two 4-day on-site sessions for the staff who are charged with building models for their organization. The workshops included both building competency models and building technical models.

“This course is simultaneously practical, comprehensive, and intellectually rigorous. By providing the project methodology and modeling methodology, Workitect has given me all I need to succeed. I am ready to go!”

Deane Williams
Program Manager

Review a typical agenda for an on-site workshop.

To schedule an on-site workshop, contact Ed Cripe at 800-870-9490 or ec@workitect.com.

Editor’s Note; This post was originally posted in April, 2015 and has been updated for accuracy and comprehensiveness.

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How Competencies Drive Performance Improvement

It is probably safe to assume that, unless we are mentally or psychologically challenged, each of us wants to improve our performance and the competencies that will help us perform. So why is it so difficult for organizations to achieve high levels of individual and organizational performance? There are many factors that influence performance. The development of competencies is, in a broader sense, also about improving performance. As employees and managers working to build additional competencies, it may be helpful to understand some of the key concepts about performance improvement and management.

“Systems thinking” has been found in recent years to be a good way to analyze and solve human and organizational performance problems. Books such as ‘The Fifth Discipline” and “Improving Performance” have helped foster this belief. We can think about each of us being a human performance system. This graphic depicts the various components of this “system in which we receive inputs, and then utilize our competencies to generate outputs. 

In a business setting, the inputs we receive come from our customers and environment, internal or external. We also need clear direction on what is required, access to resources and minimal interference. As the performer, we need the necessary competencies (which include attitude and motivation). There needs to be appropriate consequences for our output. We should receive positive consequences or rewards, e.g. a pat on the back for “doing it right” and negative consequences for not doing it right. The standards or criteria for evaluating performance must be consistent and sound. Is the same “benchmark” or measurement applied to each person? And, finally, do we receive timely, adequate and appropriate feedback on how we did?

This same system applies to the performance of a group of individuals who make up a team or an entire organization. Only this time, individuals need to work together to produce output, and issues such as group processes, strategy, information flow and work processes must be managed in order for the team to be productive.

The disciplines of “organizational development” and “performance technology” utilize models like these to help analyze human and organizational performance problems, and improve performance. “Performance management” utilizes the same principles, but focuses on specific organizational and human resource processes such as goal setting, performance appraisal and pay for performance. Career planning, succession planning and progress reviews are often included. Relating back to the performance models, you can see the importance of providing clear direction, selecting and developing competent employees, providing appropriate consequences and frequent feedback.

The ultimate goal of organization development, performance technology and performance management is the same – to improve performance. Developing your own competencies, or those of others, is one of the most important requirements of performance improvement. (In fact, it is depicted as the center of both performance models.) Although the focus of our Competency Development Guide book is on developing competencies, understanding the entire human performance system may give you added appreciation for the importance of receiving clear direction on what is expected of you, obtaining feedback of how you are doing, etc.

In summary, developing additional competencies will not guarantee an improvement in performance. Other factors contribute to performance. If you have management responsibilities, pay attention to all of the factors so you’re able to create an environment where people are motivated to utilize their competencies. The ideas and tools contained in the Competency Development Guide can help you develop the competencies you need to manage the performance of yourself and others.

What examples do you have of job competency models or competency-based performance management systems producing substantial improvements in organizational results?

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Competencies and Competitiveness

best-practicesSeveral years ago, the WorldAtWork association sponsored a research study titled “Raising the Bar – Using Competencies to Enhance Employee Performance”.  The results were published in a 76-page booklet. The findings are still relevant and insightful today. 

Competencies connect with business strategy, the techniques organizations use to build competency models, and the similarities and differences among com­petency-based human resources applications. Competency-based talent management applications are not new; but it may still be too early to judge whether competencies ful­fill their potential as a means to improve employee performance and, ultimately, enhance business results. But attitudes toward competencies are largely positive, and a large majority of organizations want to expand the role of competencies within their organizations.

Following are the key findings of the original research effort. Based on our own research and experience in the field, most are still valid in 2016.

• Competencies are used to “raise the bar” on employee performance.
HR executives say “raising the bar” is a key objective of competencies, as opposed to using competencies to establish a baseline for perfor­mance. Also, many HR executives tailor their HR applications to focus on individual performance. Competencies are defined thoroughly (often using high performers and functional experts as a primary source of input), and they often are supported with scaled levels to illustrate in­creasing levels of proficiency. This provides individuals with detailed road maps for increasing their capabilities incrementally.

For staffing applications, competencies are used to hire, place and promote people with the right capabili­ties to help the organization gain competitive advantage. For training and development, competencies are used to identify gaps in each participating employee’s capa­bilities so these gaps can be remedied. For performance management, competencies and results are assessed side by side, reminding employees that how they do things is as important as what they do. For compensation, both competencies and results impact base pay decisions to reward performance and competency development.

Competencies are used to focus on an organization’s culture and values. Many organizations use competency-based applications to communicate values to the work force and to build the proper culture for success. While these issues may ap­pear somewhat removed from the bottom line, many organizations recognize the importance of culture in achieving competitive advantage.

Business strategies drive competencies. Competency information comes from multiple sources, and strategy plays a key role in development. The most frequent source of information is senior management and strategic plans. The next most common sources of information are high performers and functional experts. These sources of information often are used in com­bination.

Competencies focus on how performance re­sults are achieved. Competencies are behavioral mod­els that are built upon skills, knowledge and personal attributes. Furthermore, all attributes of competencies should be observable and measurable, and they must contribute to enhanced employee performance and, in turn, organizational success.

• Competency applications are evolu­tionary, not revolutionary.  First, it appears that many competency-based approaches are treated as add-ons and are not leading to radical adjustments in HR processes. Sec­ond, with regard to specific HR applications, many managers continue to make the lion’s share of performance man­agement and compensation decisions. Furthermore, with the exception of the use of behaviorally anchored rating scales, base salary adjustments under competency-based systems are largely made in a traditional fashion. Finally, for staffing purposes, competencies are rarely used when checking references or as the sole basis for rejecting candidates.

Competencies provide a framework for integrating HR applications. Integrating HR applications is a desired outcome for most organizations. Many HR functions have more than one competency-based HR application. Those who have applications in place for more than a year usually desire to expand compe­tencies into additional HR areas. Lessons learned in one area of competency-based HR should be applied to other competency applications.

Compensation is the least common application. Performance management is the most cited application, and staffing and training and de­velopment are in between. Staffing applications tend to be oldest, followed by performance management, train­ing and development, and compensation applications. This may imply that staffing applications represent starting points for many organizations that are interested in competencies. Compensation is seen as an application that can be added once other applications are in place. One reason for why staffing applications are older may be historical; David McClelland and McBer’s early work with competencies was to examine them for selec­tion purposes.

These findings should not be interpreted as a prescrip­tion for the order in which to install competencies.  Many organizations start competencies in different areas of HR and then gradually work their way to other areas. In fact, many organizations also work on more than one application at once. The key is not the order in which applications are developed, but how these applications ultimately are in­tegrated and linked to business strategy.

Additional findings and other relevant studies will be published in future blogs.

Read more…….to learn more about the benefits, and how to create an integrated HR system, download Competencies & Competitiveness.

Also in “The ROI of Competency Technology” – What is superior performance worth in your organization?

15-performanceworth4c-2

“Workitect’s competency modeling process gave us a solid foundation to select and develop high performing branch managers and customer service reps. Their consultants worked well with all levels – from executive to front-line employees. They were professional, easy to work with, and good at sharing their expertise and organizational insight with us.”  Director, Organizational Learning

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Seven Factors to Consider before Building Competency Models

7-FactorsJob competency models describe what superior performers actually do on a job that produces superior results. Armed with this information, selection, retention, training, succession planning and performance management systems can be integrated and designed that will attract, develop and retain top performers.

Superior performance that produces superior results means higher sales, productivity and profits. And everything can be measured. Which explains why many organizations have embraced competency-based talent management. It has provided human resource departments with an opportunity to demonstrate to line management that HR is able to “add value” that improves organizational performance.

However, there are several factors to consider before attempting to develop and implement a competency framework for talent management – factors that can make or break your best efforts.

1. Accept or modify the terminology and educate the users
The language that consultants use to describe competency systems is often confusing, misleading and filled with jargon. It starts with the definition of competencies.

A competency is a “skill, knowledge, motive, attitude, or personal characteristic that causes or predicts outstanding performance”. Most standard dictionaries, however, define competence and competency as “sufficient” or average performance as in “competent to stand trial”. Several HR directors have told me that, with the flip side of “competent” being “incompetent”, they are concerned that the image that competency systems raises for some people is that of incompetence, an implication that people are incompetent until receiving the benefit of competency modeling.

In truth, one of the purposes of competency technology is to help competent people become more competent – in areas where increased competence will produce superior performance. Each of us has strengths and areas where we can improve. Competency modeling just does a better job of identifying the specific competencies that drive superior performance and assessing the degree to which individuals have demonstrated those competencies. Our experience has been that once employees understand the concept and purpose of competency modeling, they accept it

A competency model does a better job of conveying the idea of superior performance because the word model means “something to be copied or imitated”. A job competency model, therefore, is a “blueprint” for all current and prospective job holders to copy, that includes a list of competencies that are required for superior performance. Competencies required for average performance, those required to just survive in a job, can also be spelled out in a job model.

Don’t expect everyone to immediately understand and appreciate the significance of competency modeling. Some may feel threatened by it. Go slow and educate people as you progress.

2. Think in terms of measurable payoffs.
The key question to ask yourself and others in your organization is: “what is superior performance worth?” This is easier to answer for some jobs than others, but there is an answer for every job. It first requires clarity about performance measures.

Since sales jobs have fairly clear measures, let’s look at sales jobs to illustrate the point. In one client’s organization, the average annual sales for all sales people were $3.0 million. The top sales people averaged $6.7 million in annual sales. Superior performance was worth $3.7 million in sales per sales person. Now translate this into the bell-shaped curve that depicts the distribution of performance ratings in many organizations. If you can, in fact, increase the percentage of superior performers and move the curve to the right, you will add economic value. Each sales position that is filled by a superior performer, in the case above, will add $3.7 million of sales per year.

***HR ValueChart4:c

Line executives understand this kind of thinking, where they often do not understand other HR approaches that are seen as having little impact on the bottom line.

3. Consider alternative approaches, including “doing-it-yourself”.
There are several ways to develop competency models. If you are doing more than one model, consider using an integrated approach that utilizes a competency dictionary, a common set of building block competencies, customizable for each job. Each model requires six 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 attend Workitect’s three-day Building Competency Models certification workshop.

For a large retail organization, we developed the first two models while training an internal HR manager to do additional models. She also designed and implemented selection and performance management 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.

4. Start small, don’t oversell, but start with a critical job
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, 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 the top executive group. Getting that group to develop a model for their position assures buy-in. They may have already gone through a strategic planning exercise that included identifying their organization’s “core competencies”. Developing a model 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.

5. “One size fits all” model or multiple models for multiple jobs
Some organizations use a generic off-the-shelf model for all manager positions. 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, 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 be grouped into three levels.

For another manufacturing company, this is the process that was followed. Models for thirteen key management and professional positions at the plant and headquarters facilities were completed within a relatively short period of time.

6. Maximize the uses and benefits.
There are many possible applications and uses of competency models. Unfortunately, a lot of organizations go to the trouble of developing models, use them for one purpose and put them on the shelf. Here are some ways in which you can take full advantage of competency models. Use them to:

  • Integrate all HR and talent management processes using a common framework to select, train and reward people.
  • Assess internal and external candidates using assessment exercises, interviewing and instruments.
  • Develop a model for high performing teams. Select and train team members, use for team building.
  • Expand hiring and succession pool. Models may challenge assumptions about required competencies and identify alternative sources of talent
  • Retain key employees. Target retention of top performers. Employees who see expanded opportunities for growth are more likely to stay (also impacts morale).
  • Redesign jobs. Analysis of a job during model building can reveal ineffective job design plus suggested improvements from focus group.
  • Certify competence levels. Design certification programs to develop and reward competency development.
  • Design 360° feedback instruments and other developmental tools.
  • Determine staffing of merged organization. Keep the top performers in the key positions.
  • Create the learning organization. Use the models as templates to guide development.

7. High tech or low tech?
Competency technology has evolved to the point where you can now buy software programs to help construct competency models. These programs contain competency dictionaries, i.e. lists of competencies that can be used to analyze jobs. Some companies have designed their own customized programs for the same use. As we move closer to computerizing all paper transactions and making greater use of the intranet, this seems to make sense. The more we can use technology to simplify our lives, the better.

However, the process of developing competency models remains basically a human process. It requires interviewing, collecting and analyzing data, observing behavior, skillful facilitation of a focus group and drafting a model document. Judgment, ability to react and adapt to situations, to deal with conflict and resistance and uncover unexpected opportunities to improve an organization’s performance are required.

Using automated tools to assist in the application of competency technology is a good idea. Employees who can access competency models and developmental opportunities through a computer terminal feel more empowered and more in control of their destiny. Just be careful to not put the cart before the horse. Remember GIGO (garbage in, garbage out)? Develop good models and good systems before computerizing. Concentrate first on practicality and fit, not on technical sophistication.

Conclusion
The downside of outlining all the things one should consider before doing something is that it will have the unintended effect of discouraging the reader from doing the “something”. Hopefully, that will not be the case here because the payoffs for your organization and for you personally of undertaking a competency approach far outweigh the pain you may incur. Thoughtful consideration of the seven tips described above should minimize the pain and maximize the gain. Read more.. Insights: Superior Performers Produce Superior Results

Also included in Workitect’s Building Competency Models Workshop and applied in our consulting practice to help organizations develop job competency models and HR and talent management applications, including performance management, succession planning, assessment and selection, and training and development.
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Eliminate HR? No problem? Not so fast.

Eliminate HR? No problem? Not so fast.	“Sometimes, the only thing worse than having an HR department is not having one.”

So begins a recent article published in the Careers section of the Wall Street Journal.

“Companies Say No to Having an HR Department”

“Employers Come Up With New Ways to Manage Hiring, Firing and Benefits”

There have been many articles written about the effectiveness of HR departments across the nation, the main criticism being that they have become inefficient in nature.

Yet, if HR has lost some of its appeal in eyes of line managers, the answer shouldn’t be to rid companies of its intrinsic value, but rather to identify the causes of this downfall. After all, when sales are down quarter over quarter, does a board choose to eliminate the sales department?

Why HR’s success is everyone’s business

One of the biggest challenges with some organizations is that HR is seen as a freestanding entity, controlling every facet of workforce management almost in an outsourced manner. Typically, when a manager obtains a green light to hire a new employee, he/she turns to HR with the expectation that it’ll know what to do to find that ideal candidate to fulfill the newly opened position.

But HR is no crystal ball. To do its job as intended, it requires input from those who know the company’s reality most: managers and executives. How can one reasonably expect anyone, regardless of their expertise in their given field, to have the ability to fill a position with no concrete knowledge of what success entails in this role?

The truth is, painting Human Resources as a silo at the service of the entire corporation is bound to lead to inefficiencies and excessive wastes of money… and talent. It is common knowledge that silos, in any part of the organization, should be eliminated, and HR should be invited to sit at the table regularly, if only to get a better pulse of where the company is heading and what it is lacking to get there.

If a company’s success depends on the quality and motivation of its employees, HR’s participation in your everyday processes means it can provide much needed expertise in terms of workforce planning, performance incentives and talent management to help ensure that every one of your projects accomplishes their intended objectives.

Without a HR Department….

To do without a Human Resources department, companies would need to first make sure they can accurately evaluate the cost of managers and other employees taking control of HR-related functions.

Granted, such a structure may promote accountability amongst your staff in charge and should, in theory, help optimize some of your talent management processes, but there is more to eliminating HR than what meets the eye.

Just think about potential liabilities and legalities, financial and managerial risks, missed opportunities with strategic deployments, conflict resolutions, etc. These are issues that no company can afford to neglect. If your organization has determined that it would best be served by cutting out ‘the middle man’ and attributing HR functions, such as recruiting, outsourcing, and succession planning, to its executives, there’s an important opportunity cost that must also be taken into consideration.

It may seem more efficient to let your existing managers handle the basic tasks that are often relayed to HR, but there’s a much bigger reason for the existence of a department dedicated to the expert management of your workforce.

A neglected source of profitability

Because it rarely deals directly with business development, HR is often perceived as an administrative cost center. Yet, when we consider that the cost of recruiting for a new position in this day and age has been reported to be approximately $3,500, wouldn’t it be important for your business’ profitability to ensure that you have the right experts working to minimize these costs?

And this is only one aspect of HR’s functions within an organization.

The HR Difference website describes HR’s true purpose as helping “make effective continues: “HR’s orientation is one of responsiveness to both immediate and long-term business needs, providing both operational excellence and strategic insight.”

In more specific terms, Human Resources deals with:

  • Recruiting and employment
  • Training and professional development
  • Remuneration and benefits
  • Internal policies and legalities
  • Culture and philosophy
  • Equality and diversity
  • Disciplinary and rewards programs
  • Corporate alignment and vision

This list is not exhaustive, but taking a good look at it may help you understand why relying on your managers to handle these tasks can be of great cost to your productivity. Do you really want your best executives to allocate so much of their time to these duties, for which they may not possess the right expertise and training?

In an upcoming article, we will discuss how you can streamline these processes to ensure profitability and value in your HR department.

In the meantime, we invite you to sign up to our newsletter to receive other materials designed to help you better understand, analyze and optimize your talent management processes.

BNA Guide to HR Benchmarks

http://www.bna.com/HR-Benchmarks-27417/

http://www.bna.com/uploadedFiles/Content/Products/Human_Resources/Reports/Guide%20to%20HR%20Benchmarks%202013_Web%20preview.pdf

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Competency-based performance management to reward top performers

Rewarding top performers through a behavior-based performance management processCountless books and articles have been written on the subject of performance management and performance appraisal. “New and improved” systems have been launched in most companies and yet, the same cynicism and dissatisfaction exists, particularly at the employee and lower management levels.

It is a constant battle for employers to find and properly implement an efficient performance management process by which valuable and accurate data can be used to assess the true ROI and potential ROI of your workforce.

Even here, at Workitect, we have discussed the topic of performance management in several articles, supporting companies in their search for bar raisers and top performers. But what is top performance anyway? How can a manager identify and properly reward those individuals who exemplify the qualities and attributes needed to continuously increase a company’s efficiency, competitiveness and future chances of success?

Debunking the myths of performance in the workplace

One of the most common myths of performance management is that the best employees should get all the glory. After all, they not only deliver, but rewarding them gives an incentive to others.

While this strategy may help you retain your best employees, it can also create an unbalanced work environment, which could in turn lead to demotivation and high turnover rates. Remember that approximately ¾ of your workforce is made up of “average” performers; those very workers who, day in and day out, do what is asked of them. They may not exceed expectations, but they nevertheless are committed to doing what is required, and doing it well.

Neglecting to nurture or develop these individuals’ competencies so that they may derive satisfaction from their work and achieve their career objectives is the equivalent of setting roadblocks to your company’s success. A top performer may possess the will or drive to excel, but an average performer still delivers on the work that matters.

What’s more, by recognizing good performers, rather than just the top 5%, you are investing in their potential and motive to improve their performance. Your average workers may be average today, but it is your responsibility to give them the tools they need to become bar raisers.

Let’s however note that this doesn’t mean you should reward poor performers, nor that you should reward good and top performers the same. There is an important distinction to be made, but more on that later.

Step by step: understanding performance management as a behavioral tool

Performance management is much more than periodic performance appraisals; it aligns individual professional development to overall corporate results. In an interview given to Performance Management Magazine, the father of performance management, Dr. Aubrey C. Daniels, describes performance management as:

A scientifically based, data-oriented management system [consisting] of three primary elements – measurement, feedback and positive reinforcement. Although each of these three elements can exist alone, all three must be present [implemented systematically and in sequence] before you have true Performance Management.

In this definition, measurement refers to collected and anticipated performance data; feedback is the discussion between employer and employee on said data; and positive reinforcement is the reward or recognition of improvement in performance.

By Dr. Daniels’ definition, successful performance management takes a page out of behavioral theories, confirming the power of positive reinforcement in behavior modification. He indeed suggests that to promote a culture of top performers, companies must avoid two unfortunately all-too-common practices:

  1. Generalized rewards, such as an extra week of vacation every 5 years of employment or an x% raise every year, as this sort of incentive program rewards good, bad and top performers equally. “The good ones will conclude that it doesn’t pay to perform well, and the poor ones will conclude that it does pay to perform poorly. After a while, the extra week will just be taken for granted anyway.”
  2. Negative reinforcement – “No one works up to his/her potential unless he or she is positively motivated. For example, if you threaten an employee with being fired, chances are he’ll do just enough to keep his job, but no more. And, if jobs are plentiful, he might pull a Johnny Paycheck and tell you to “take this job and shove it.”

So what should a performance manager do to promote performance? Reward good performers with something (tangible or not) that is meaningful to them and 100% contingent on improved performance. Once again, understanding your employees’ motives to performance is a crucial tool in adapting your performance management reward system to yield the right results. Employers should make good use of the feedback session with their employees to understand their drive in the workplace – not just to read and explain the comments on the performance appraisal review.

Remember that not everyone aspires to become a leader. Success is subjective, and assuming that you can motivate your team simply by dangling the reward or promotion carrot is ludicrous. To succeed, a person must not only want to, but he/she must also be motivated to invest in developing the competencies that matter. In other words, if you want top performers, you need to know your team and give them the tools to succeed in accordance with their individual motives.

Measurement: It all goes (down or up)hill from here!

If finding the right reward is important to the success of your performance management system, identifying the right behaviors is even more crucial to the process. If you have difficulty recognizing good or outstanding performance from average or poor performance, even the best performance management system cannot be sustained efficiently.

Some organizations have found that managers should be evaluating employee behaviors and competencies demonstrated, in addition to organizational results achieved. Just as acquired skills and education cannot predict a person’s performance in a given job role, vague or subjective measurement points cannot support a healthy and future-oriented performance management process.

In an article published last month, we mentioned that one of the most common flaws of performance appraisals is that they focus on evaluating workers’ quantitative output, rather than their competencies and potential for outstanding performance. By focusing on purely quantitative results achieved (e.g., number of sales, revenue generated, etc.), you are overlooking several other elements of performance (e.g., leadership, team work, availability, etc) that may be impacting your business more than you think.

Many organizations shy away from a competency-based performance management system simply because it is easier to hold employees accountable for hitting or missing quantitative targets, rather than attempting to measure their qualitative input and planning for their future development. In a way, companies primarily use performance management to determine compensation and meet certain professional development targets, rather than using them as strategies to create bar raisers.

There are several guidelines for effective performance management, but the human factor is critical. Once you lose sight of the fact that you are dealing with individuals, each of whom have personal goals, interests, motives and competencies, evolving over time, no matter how brilliant your performance management process, you are bound to continue experiencing the same results.

For more information on performance management, browse our free resources or contact us for personalized advice!

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Workforce Planning: Do More with Less

mentoring_leaders

The latest criticism to come out of the Affordable Care Act relates to the idea that the law is motivating workers to work less in order to retain their eligibility for federal subsidies. Conversely, some companies – particularly small businesses – have been reported as claiming that the ACA may force them to either halt their hiring/growth strategy or cut their employees’ hours, both in order to avoid the penalty for not offering health coverage under Obamacare.

And to top it off, the prospect of minimum wage increases now has several employers squeezed between having to absorb increased costs or raise prices, either of which could lead to a reduction in labor and/or consumer demand.

The debate rages on and whether the widely anticipated workforce reduction will come from workers’ decision, the aging of the population or a drop in businesses’ demand, the fact remains that numerous organizations are now faced with the conundrum of having to do more with less in order to remain competitive and relevant in today’s highly globalized marketplace.

Here are 3 solutions to consider:

Don’t reinvent the wheel; learn to use it better

Research shows that when dealing with limited resources, companies find more benefits from repurposing their existing processes, rather than attempting to create new ones, which too often only serve to further weigh down operations.

Case in point: Performance reviews are a time-consuming chore for both your managers and employees and while many argue that it is quickly becoming a dated practice, our experience shows that the main challenge of performance management resides in understanding its true value and purpose: i.e., not just evaluating past performance but mainly improving an individual’s productivity, which in turn, leads to improved organizational performance. (Read more about how performance reviews can actually add value for your company.)

What’s more, since the financial crisis, many mid-level employees have been assigned additional responsibilities in light of their employers’ cost-cutting strategies, and most now claim they can’t physically sustain the pace at which they have been working. This is extremely unhealthy for companies because while your bottom line may not yet suffer the consequences, the resulting costs can be exponential over time, namely in terms of healthcare, as well as the impact of stress and fear of layoffs on employee morale and productivity.

One counter measure to this scenario consists in combining processes, for instance, by merging your performance reviews with your recruiting strategy. The concept is rather simple: Performance reviews, when done right, serve to assess your current workforce’s output and plan for future actions that will allow you to reach your business objectives. By using the data gathered through performance reviews to pinpoint the specific areas where you are lacking talent, you can quickly identify the very competencies that are necessary to your future success. Your performance reviews could therefore be used to support your coaching and professional development needs, as well as identify those competency gaps that are preventing you from achieving an optimal output rate, i.e., your recruiting needs.

In other words, combining your workforce planning and management processes into one globally strategic practice is a much more cost-effective solution than requesting that your already-overloaded mid-level managers attempt to define your company’s needs – a costly hit-or-miss strategy when not based on real insights. In fact, by using the data already gathered through an existing process, rather than handling recruiting, reviews and development separately, companies are more likely to observe an amplified workforce planning, reduction, and management ROI for minimized and more targeted efforts – a win-win strategy for both employers and employees.

Achieving this isn’t all that complex, but it does require a thorough understanding of the variety of competencies and what they mean for your organization and business sector.

If you already have a competency-based recruiting or evaluation approach in place:

  1. Start with your most comprehensive competency model
  2. For every position, combine the skills, behavioral traits and objectives you may have spread across different documents (performance evaluation, recruitment, salary revisions, succession planning, etc.)
  3. Eliminate duplicates and remove obsolete data
  4. Streamline the competency descriptions with the use of a competency dictionary, and try to narrow it down to a maximum of 10 competencies per position (the higher the responsibility level, the more competencies you may require)
  5. Stress test your new model across different processes with the use of resource panels and event interviews
  6. Implement!

If your company doesn’t use competency models, first begin by determining the approach that is best suited to your needs. Then make sure you have the right tools at your disposal; generic competency dictionaries are often times crucial to the development of such a framework, and they allow you to build and implement integrated talent management systems. But beyond the dictionaries, you may also want to look into acquiring competency development tools, such as eDeveloper™, 360° survey instruments and interview guides. Many of these tools can be purchased or licensed, and can prove to be indispensable to your modeling process.

Once you have determined your approach and selected the tools to help you, follow the steps highlighted above.

At any time, you may contact us for advice or the development of a customized solution for your business. You may also attend one of our popular competency model building events, or book one of our expert consultants to visit your head office for a tailored onsite workshop.

Let go of the control

Silos can be destructive to a company’s productivity and as stated in a Forbes article “it is the duty of the executive leaders and management to prepare and equip their teams with the proper mind-set to break down this destructive organizational barrier”.

Over the past decade, numerous organizations have restructured specifically to avoid this very configuration, mainly because it created an unbalanced workload at the conjunction point of the silos, which was generally at a managerial level (e.g., approvals, sign-offs, strategic planning, etc.).

Such a blockage caused by an individual’s time constraints has dire consequences on the rest of your operations. When your mid-level managers cannot find the time to properly evaluate, review, optimize, and support their teams, they get caught in inefficient labor-intensive processes, and the benefits of having recruited great strategic thinkers are practically – if not entirely – erased.

Instead, try redistributing some the workload in a manner that allows your best non-managerial performers to oversee, or at the very least help manage, your recruiting and development processes. A recent Wall Street Journal article discusses how Amazon has implemented such bar-raising practices, which lie on the following premise:

Bar raisers are skilled evaluators who, while holding full-time jobs at the company in a range of departments, play a crucial role in the hiring process by interviewing job candidates in other parts of the company.

By empowering your top employees to select and coach new talent, you help ensure that your workforce planning, recruiting, reviewing and professional development processes (now that it’s all combined into one) is:

  • Cost-effective (your top performers being ‘on the clock’ already)
  • Fitting to your organizational culture (who better to understand the behavioral traits that will strengthen or harm the welfare of other employees than those who take your success to heart)
  • Optimized to the task at hand (top performers understand what others lack and what is required to get the job done right)
  • Productive (freeing your managers and HR staff of some responsibilities to focus on areas of more pressing importance)

Many companies feel reluctant to implementing such a process when it is first brought to their attention; after all, letting go of the control means giving your employees the opportunity to fail. Yet, keep in mind that those you are giving power to are the same individuals who, day in and day out, exemplify the ability to change, accept extenuating circumstances, ask the tough questions, and earn a reputation for success… all without expecting extra compensation.

When dealing with having to do more with less, this delegation of responsibility opens up a whole new level of job performance, on which it is difficult to place a price tag.

Make time for strategic thinking to boost productivity

According to Mark Sanborn, president of Sanborn and Associates and best-selling author of The Fred Factor and You Don’t Need a Title to be a Leader, most executives don’t think as much as they react to their environment.

The ability to think strategically is one of the most prominent competencies sought out in leaders, surpassing innovation; yet, a survey published on Talentlens.com reported that the competency most next-generation leaders lack the most is strategic thinking, followed by vision and the ability to understand the total enterprise, i.e., how the parts work together.

It may seem counter-productive to invest time each day to rethink operational processes when you are struggling to do more with less but remember that if you want to remain relevant with less resources, you need to fully leverage your executive expertise with the objective to draw up more cost-effective solutions.

In fact, a certifiedceo.com article reminds us that:

“Critical thinking enables leaders (…) to understand the impact of their decisions on the business as a whole, and ensures both alignment with organizational goals and accountability for results.”

If you’re not focusing on the big picture, there are very few chances that others will. What results from this are inefficient and outdated processes and reduced productivity for less-than-optimal results.

If there are always 3 sides to a story, there are always 3 solutions to a problem: your way, your competitors’ way and the right way. Critical and strategic thinking allows you to play the devil’s advocate to your ‘old’ ways, critique your competitors’ choices, and gather these results to find opportunities to carve your way forward. Creativity may seem to be key to doing more with less but in order to concoct creative solutions, you first need to sit down and think.

If you find yourself unable to make time to think, consider delegating some of your responsibilities to one of the employees you have identified as a potential successor. Of course, this requires you to have a valid succession planning system in place already, but we can help you with this as well. Click here to read a recent article about the development and implementation of a succession-planning program that ties into your competency-based multi-purpose approach described earlier.

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What if your employees controlled your recruiting process?

Raising the bar: What if your employees controlled your recruiting process?Whether they are for the purpose of recruiting, coaching or managing performance, competency models are intricate and complex processes to develop and implement. And as director, manager or CEO of a company that employs HR professionals, you may not view these tools as cost-efficient.

Yet, when used correctly, the proof of their efficiency stems beyond simply having narrowed down the right candidates for the job. Employees selected via carefully developed and customized competency models have the potential to become what field experts call “bar raisers”.

We have the proof in this week’s HR pudding.

A culture of stars selecting stars

In a recent Wall Street Journal article, Amazon received some rather interesting press for having coveted the culture of bar-raising practices, and sticking to it. But just what do bar raisers do?

“Bar raisers are skilled evaluators who, while holding full-time jobs at the company in a range of departments, play a crucial role in the hiring process by interviewing job candidates in other parts of the company.”

In light of this definition, let’s revisit the title of this article: What if your bar raisers – those employees who go far and beyond their job description, with outstanding results – had a say in your recruiting talent management process?

Imagine that! Creating a business culture through which your star employees are empowered and trusted to select new stars. It’s certainly not mere luck that the process of recruiting and selecting the right candidates or developing employee performance could then lead to their initiation into that of a bar raiser. And yes, it all begins with developing and implementing the right competency models for your organization.

The foundation for performance

When used during the recruiting process, competency models have proven effective in identifying certain behaviors that could affect the welfare of other individuals or groups within an organization. Because they extend beyond the typical technical requirements for a given position, behavioral repertoires, such as motive and various personality traits, offer a better means of predicting an employee’s success within your company.

Knowing that, who better placed than your bar raisers to determine which competency or behavior benefits and which harms your group’s productivity as a whole? Imagine having your competency models developed by your bar raisers; those very individuals who, day in and day out, exemplify the ability to change, accept extenuating circumstances, ask the tough questions, and earn a reputation for success… all without expecting extra compensation. It’s not all rainbows and gumdrops, but it opens up a whole new level of job performance, on which it is difficult to place a price tag.

Read, network or call!

To learn more about how competency models can help you recruit or develop bar raisers, we invite you to browse other sections of our website, or register to attend our upcoming workshop in Washington, DC.

If you prefer, we also offer one-on-one consultations at your office. Simply contact us for more information.

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A Competency Model for Career Mobility

The Value of Competency Models for Employees: When Performance Evaluations Aren’t Enough for Career MobilityOur intention is not to burst your bubble about your professional future, but let’s be honest: Your potential to be promoted to other roles within your organization has most likely already been evaluated by your employer, based on the skills, competencies, knowledge and those ‘wish list’ attributes you are perceived to possess.

But just how accurate is your employer’s perception of your capabilities? And what if the skills required for the role you wish to obtain were competencies you haven’t been given the opportunity to demonstrate yet? Is there even a way for you to know what is contained in this proverbial wish list?

Evaluating the skills and knowledge you’ve already acquired and used in your current role is one thing, but it’s those intangibles on your employer’s ‘dream candidate’ wish list that truly make the difference in terms of assessing your potential for career mobility.

When organizations use customized competency models, it provides you – and all employees – the consistency and objectivity you need to understand not only your performance and potential, but also what it takes to move up. Think of these models as road maps to your professional success, charting your course towards the progression you seek in your career.

Core skills are not enough

If you’re looking for career mobility, it’s not enough to simply possess and master the core technical skills required by your current job role. What makes you most attractive and valuable to your organization is a combination of, yes, these core skills, but also personal and intangible competencies. These intangibles are what sets you apart and what makes you shine in the eye of your employer.

But intangibles are, by definition, things that are not concrete. More specifically, they can be explained as things you can grasp the meaning of, but can’t wrap your hands around. So how can you know what is expected of you and, better yet, how can you develop competencies that are typically so subjective?

In comparing candidates’ performance and potential, a competency model provides a consistent, objective and valid framework for the evaluation of your skills. If none exists, you cannot really know what is being used as a measuring stick, e.g. loyalty to boss, tenure, etc. A model allows your employer to give you clearer, more concise and understandable feedback about your strengths and development opportunities. For instance, would you prefer to hear “you need to work on your selling skills” or “you would be more effective in selling your ideas if you more actively sought to understand others’ needs and concerns before trying to promote your ideas”? The latter is a lot more specific and helpful to you.

A competency model therefore helps you build your own development plan by pointing to specific behaviors that you master and those that you should improve. That’s the true value of a competency model for you.

Half the battle to your aspirations

When your company hired you, they were most likely evaluating you against a holistic group of qualifications: core, personal and potential intangible skills. Really, half the battle to achieving your career aspirations has already been won – you’re hired!

Now, as your workplace and industry evolve, you are expected to continue to learn and develop new skills, to adapt to change and take ownership over your professional growth. A well-executed competency model approach can help provide this… and we can help!

To learn more, visit our webpage here and don’t hesitate to share this article with your employer!

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Modernize and reduce the cost of your workforce planning strategies

Your HR team is tasked with many responsibilities: recruiting, performance management, coaching and training, compensation, succession, etc. But how do these functions tie in to your business goals? In other words: Is your HR department compliance driven, i.e., focused on independently dispensing services such as payroll and benefits, or is it integrated to your high-level business strategy?

According to HR expert Karen O’Leonard, business-integrated organizations have ‘40% lower turnover and more than twice the revenue per employee, as compared with compliance-driven organizations’. Additionally, these companies generate higher employee engagement, higher promotion rates, and superior capabilities in workforce planning, including succession.

The grass isn’t always greener: The benefits of looking inward

In a recent post, we mentioned how recruiting and talent management processes can no longer focus on a company’s immediate staffing needs. The typical idea of posting a job to find a qualified applicant to fill an open position is a passive and ineffective way to build a high-performing workforce. Plus, let’s face it: the recruiting process can quickly become very costly, as it has been shown to generate higher turnover rates.

As a result, more and more employers have been tweaking their workforce planning strategy to focus on developing leaders in house, instead of finding promising free agents on the marketplace. In fact, according to a study on leadership development, companies are now investing 14% more resources in developing leaders than they have in years, with a focus on training high-potential leaders, i.e., those individuals who are critical to a business meeting its goals now and in the future.

Show me – and the world – the money

It’s no secret that most organizations dream of compensating employees strictly based on performance. While this is difficult to implement as most workers seek a secure and steady salary, a business-integrated talent management process can help you allocate your payroll budget wisely by rewarding high performers. In other words, you still hold the power in driving performance… if you know how to show employees ‘what’s in it for them’.

One way to achieve the level of performance you seek is to ensure that your evaluation tools are not only intended for your HR staff to assess employees’ contribution to your organizational success, but also to identify the results these employees need to generate to get what they want: more money and better career mobility. By being transparent in your remuneration and performance evaluation process, you engage employees and set the roadmap to performance.

Case in point

Digital news publication, Quartz, just recently published an article about a social media startup, Buffer, which publishes the salaries of every one of its employees for the public to see. While this strategy is intended to make operations as transparent as possible, it also serves to explain how management calculates an employee’s worth. By creating a transparent formula, Buffer is working to promote long-term engagement with its workforce. And it is difficult to argue that such a transparent map to performance – and higher wages – isn’t likely to convince motivated employees to ‘get to work’.

The journey to self-reliance

Admittedly, changing your HR processes takes time and some level of investment. Yet, the payoff can be quite high – not only in monetary terms with considerable decreases in turnover costs, but also with respect to employee engagement, satisfaction and performance.

As you may know, at the very heart of an effective talent management and leadership development program are competencies and the first step to improving any workforce planning process first entails understanding the skills required for success in each role, and having the ability to accurately assess the strengths, weaknesses and intent of current employees. It’s by bridging that gap between where you are today and where you want to be tomorrow – rather than by filling an immediate void that may not be needed tomorrow – that you achieve success over the long term.

So instead of spending money on non-critical immediate hires, why not invest in training your HR team to better analyze and strategize for future needs?

For further assistance and tips on improving the output of your HR function, please contact us or browse our website for more insights.

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