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COMPETENCE, PERFORMANCE, AND COMPETENCY
MODELS
Introduction
Discussions about human competence have been occurring in academic and HR circles
since the ‘70s. However, because intellectual assets are now recognized as one of the
foundations for competitiveness, competence and competency management have
become strategic issues. The ability to implement strategy and achieve “bottom line”
results requires that organizations take stock of available competencies and manage them
in a way that increases the effectiveness of performance throughout the value chain.
Competence While most people believe they know competence when they see it, they typically have
trouble defining it. In fact, it may be easier to think of competence in terms of what it is not.
…a function of the ratio of valuable
It is not a specific set of behaviors, although these may be evidence of competence. One
accomplishments to costly behavior.
way to define competence is as a “function of the ratio of valuable accomplishments to
costly behavior” (Gilbert, 1978). That is, a performer is competent to the extent he or she
can produce accomplishments that are of value to the organization without incurring more
costs than the accomplishment is worth. For example, a new performer may be able to
produce a desired accomplishment—but at what cost? How long does it take to do so?
How many times was it reworked before it was of acceptable quantity? If answers to
questions reveal that the accomplishment was produced at great cost, the organization
may not have achieved any real value. When someone is competent, they increase the
value of accomplishments while reducing the cost and energy put into the effort. The true
nature of competence is derived from the value of our accomplishments; as Gilbert noted,
competence is a comparative judgment about the worth of performance.
Finding competence that predicts exceptional performance in an organization or its value-
producing network requires examining the top performers in specific job roles. They are
able to consistently produce outcomes or accomplishments that are valued by, and bring
value to, the organization. Not only do they consistently produce these accomplishments,
but also are able to do so in a manner that increases the value of the accomplishment to
the organization. Exemplary performance must consider the quality of the work (accuracy,
etc.), the quantity or productivity of the work (the rate, timeliness, volume), and the
associated cost (labor, material, management). Top, or exemplary performers produce
accomplishments that meet or surpass a standard for quality, quantity, and cost.
Competencies
Top performers are able to produce high-value accomplishments primarily because they
have the required competencies and they know how to do things more productively than
Skills, knowledge, and traits, attitudes,
others. Competencies are abilities and traits that predict and enable effective or exemplary
or abilities that enable effective
performance of a job within a specific organizational context. To be deemed ‘competent’ in
performance of a job within a specific
an area a performer must have requisite skills, the appropriate body of knowledge, and
organizational context.
traits or personal characteristics that contribute to success. Some texts define
competencies as “skills, knowledge, and abilities or talents” or “skills, knowledge, and
attitudes”. Others use the terms “traits and personal characteristics” to encompass talents
and abilities, which we prefer. We can observe evidence of the existence of personal traits
and characteristics, and research has shown their impact on performance (Spencer and
Spencer, 1993).
For example, one competency for the job of a project manager might be “customer
relationship management.” This could be defined as the ability to articulate project vision
and definition, define scope and success criteria, identify assumptions, and communicate
to ensure client satisfaction. Specific knowledge and skills would be required to enable an
individual to demonstrate this competency, such as: knowledge of the client’s business
need, and skills like listening and conflict resolution. Specific personal characteristics and
traits that would contribute to success include ‘interpersonal understanding’ and ‘client
focus’.
Competencies alone cannot ensure effective job performance, however. As Figure 1
illustrates, organizational support can make the occurrence of effective or exemplary
performance more or less likely. Organizational support includes the following, each of
which is known to influence performance:
Motivation & incentives—what performers are motivated to do, based on their
compensation structure and incentives
Environment & culture—the physical environment in which work occurs, and the
mindset and shared belief system of the organization (i.e., “the way we work”)
Job design—the way particular jobs are designed to spread responsibility and
accomplishments across the workforce
Management practices—how management acquires, develops, reinforces, and retains
competencies.
Effective
Job
Performance
Motivation & Environment Job Design Management
Incentives & Culture Practices
Consequently, the existence of competencies alone does not ensure performance at the
desired level. Not only must requisite competencies be available, but also the organization
must do all it can to increase the likelihood that competent performers produce the desired
outcomes of value.
Competency Models
A competency model is a mechanism or framework to organize the skills, knowledge, and
traits that result in effective or exemplary performance of a specific job. Good competency
models can be extremely useful to an organization or enterprise as it attempts to
accomplish the following:
Explicitly link performance to business results
Develop a shared mindset about what is important in a job, what will be monitored, and
what should be measured
Develop behavioral interviewing questions and a model against which to judge
candidates to ensure the organization acquires the needed competencies
Identify priorities for development to fill the “gap” between the competencies an
individual has and those needed to perform a job at the desired level of proficiency
Facilitate more effective performance feedback, review, and appraisal
Help individuals plan career growth
Provide links from a needed competency to learning resources or interventions.
People often encounter a similar set of problems when working through a competency
assessment and modeling activity. One of the most common problems is that they rarely
understand up front the true size of the endeavor and the amount of labor required to do it
well. Because they tend to underestimate it, they often fail to produce the results
promised within the timeframe required, and may lose their focus, funding, or both.
Another typical problem is that management may consider the project too “academic” or
impractical if any of the following conditions exist:
The resulting list of competencies for a job is too long to be practical or manageable. For
example, one model we reviewed had 54 competencies for one job, some of which were
obviously trivial and not likely to produce an accomplishment of great value.
The methodology is too arduous, takes too long, or is too costly. Some businesses will
not tolerate a methodology that can’t show results quickly, or one that takes months to
analyze mounds of statistics. The project dies a slow death.
Analysis paralysis sets in. Because the team does not approach the task looking for
accomplishments that matter, they don’t know where to focus. They try to cover the
whole job and each miniscule task instead of focusing on the competencies that produce
the accomplishments of value. Or in an effort to be diplomatic, they attempt to talk to
people performing the job from all over, without regard to who is doing it well. They end
up with too much data that is too hard to manage, compile, or analyze. The project
stalls.
The competency model is developed using a flawed methodology. For example, the
process produces models that would “clone” current employees in a position without
regard to the changing business strategies and new capabilities needed. Or the team
purchased and fielded generic competencies without regard to their ability to address
specific needs of the business. Perhaps the process did tap workers within the specific
organization during the competency assessment process, but failed to focus on top
performers. The resulting competency model might succeed in developing average
performers, but will not increase the percentage of exemplary or top performers.
PCCA Benefits The output of the PCCA methodology is a preliminary model that can be validated both
• Avoids analysis paralysis
internally (with staff and managers) and externally (through benchmarking). The result is
a valid, job-specific competency model that addresses accomplishments of value that are
• Produces definitions for outcomes and
important to the organization. Benefits of the PCCA include avoidance of some of the
metrics that can be used to measure
typical problems associated with competency modeling. For example, the “analysis
job performance
paralysis” phenomenon can be avoided, and the model can be constructed in a timely
• Focuses on top performers fashion. Additionally, the PCCA methodology results in the definition of outcomes for
• Produces models that are appropriate which metrics can be defined to measure job performance. Furthermore, the PCCA
to client’s value-producing network focuses on top performers to identify the accomplishments and outcomes that are valued
by the organization. Consequently, it eliminates the need to interview and analyze
mediocre performers to determine discriminating competencies.
The PCCA supports the development of competency models that are appropriate to the
client’s value-producing network. These models have high fidelity (e.g., they represent
how specific jobs are performed within a specific organization or enterprise) and reflect
good coverage of the competencies required within this context. As a result, the PCCA
methodology can be a very cost effective approach to the development of organization-
specific models.
After the competency model has been completed and validated for the selected job
position, Cognitive Technologies can provide follow-on review and coaching, if necessary,
as the client team builds models for other key positions within their organization or value-
producing network.
References:
Boulter, N., Dalziel, M. & Hill, J. (Eds.) (1998). Achieving the Perfect Fit, Gulf Publishing
Co.
Gilbert, T. (1978). Human Competence, McGraw-Hill.
Lucia, A. & Lepsinger, R. (1999). The Art & Science of Competency Models, Josey-Bass
Pfeiffer.
Spencer, L. & Spencer, S. (1993). Competence at Work: Models for Superior
Performance, John Wiley & Sons.