The Competency Based Performance Management System

A System for Enabling a High Performance Organization

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The Competency Based Performance Management System

Identify Core Positions within the Organization Identify Key Soft Skills & Competencies for the Positions Assess Current Skill/Competency Levels of Incumbents and Candidates with Feedback Mechanisms Provide Training & Development in the Necessary Competencies

The Competency Based Performance Management System

Conduct Behavioral Interviewing the Best Predictors of Future Performance

Reflect the Competencies Required in the Performance Appraisal

Establish Competency Performance Expectations for Incumbents

Provide On-Going Feedback, Coaching, Evaluation, Recognition ALD, Inc

What is a Competency Based Performance Management System?

Competencies or talents are the foundation for people to achieve superior performance in any job. Few organizations, based on research and experience, have a performance management system that contains all the elements necessary for a highly productive and motivated workforce.

A system for effective performance management starts with the identification of critical positions, agreement on the top hard and soft skills required for those positions and then provides the hiring, promotion, training and evaluation practices necessary to put the right people in the right job.

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What Does a Competency Based Performance Management System Provide?

Every company or employer wants top-performers. No one deliberately hires or promotes people who, they believe, will not succeed. However, most hiring and promotion processes do not include a consistent approach in order to place the most qualified personnel. Gut feel is common among interviewers. However, being able to compare a persons experiences, behaviors and knowledge of a position will enable a higher quality hire and placement of people in critical jobs. A system, such as the competency-based performance management system, that is implemented and followed effectively, will help to insure the right person for the right job.

Where Does a Good Performance Management System Start?

The process begins with the identification of the critical positions within the organization. Senior level and management positions often come to mind first, but identifying those positions that have direct interface with your customers should be considered as well. After all, these are the people who determine how your organization will be perceived. A question to consider in deciding on those critical positions would be: To what degree

would less than superior performance in this position have a negative impact on our business?

Once those critical positions are determined, it is imperative to understand the soft and hard skills required of that position in order to achieve superior performance. Determining the hard skills is relatively easy. However, determining and reaching agreement on the soft skills required for performance in a position can be more difficult. There are several tools available to assist with identification of the soft skills. Whatever tool is used must be comprehensive enough to identify the critical enablers to superior performance. Once the core positions are understood and the critical competencies or talents required for superior performance in that position have been determined, a method of assessing how peoples talents and current performance compares to the competencies identified is required. Feedback is critical at this stage. Utilizing multi-source feedback will identify current skills levels both from a strength and developmental need standpoint. Multi-source feedback is generally taken more seriously by an individual than is feedback from a single source. It is difficult to rationalize away consistent feedback from a variety of sources while being fairly easy to view single source feedback as just an opinion. The feedback should focus on the critical competencies identified for superior performance. The results of that feedback will provide the information needed by an individual to utilize the strengths indicated to a greater degree and to put a developmental action plan together to strengthen those critical areas needed to improve performance.

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If we continue doing tomorrow what we did today, we will get the same results. The next three elements of the Competency Based Performance Management System are: (1) training and development, (2) behavioral interviewing and (3) performance appraisal system. To this point, we have determined the core critical positions within the organization. We have answered the question: To what degree would less than superior performance in this position have a negative impact on our business? Once core positions are determined, the critical soft and hard skills necessary for success are identified. Now it is imperative to assess the level of competence and effectiveness of incumbents and candidates for these positions. This will provide a map both for the individual and the organization to use in guiding them in the next step of the system: the training and development needed in the critical competencies.

Provide Training and Development in the Necessary Competencies

Many organizations have good training programs they have developed internally or purchased externally. A question to be asked is: To what degree do these training and development

opportunities support the identified competencies for a particular position?

We often find that the links between the training being offered and the critical requirements of the position are not always in sync. A training programs objectives and outcomes should be targeted to the critical needs of the organization and to the positions they support. If that alignment is absent, the training and development group must reevaluate the courses being offered and design training that does support the competencies identified. That analysis will answer the following question: Can we identify

the behavioral change that supports the critical competencies identified from this training?

Conduct Behavioral Interviewing

Selecting the right people for the right job is critical to matching the requirements of the position with the talents of the person. Ninety percent of all hiring and promotion decisions are made by an interview. Yet, traditional interviewing methods are effective less than one out of five times. Some reasons for this are: Interviewers not trained Emotional decisions based on chemistry or style Placing too much emphasis on education and technical (hard) skills and not enough on soft skills A lack of consistent understanding by the interviewer/s as to the critical behaviors/skills required for the position

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Behavioral interviewing is key to success in placing the right person in the right job the first time. By understanding the soft and hard skills/competencies needed in the position, questions can be asked that will require the candidate to demonstrate the knowledge and experience required for success. All interviewers demonstrate some bias in their approach to interviewing and tend to see peoples qualifications based on their view of the position. A clear understanding of the behaviors, competencies and skills required for superior performance in a position, the development of behaviorally oriented questions and a consistent approach to the interviewing process, will lead to a more objective hiring and promotion decision.

The Performance Appraisal System Infrastructure is Important

In all focus groups conducted with employees concerning what they would like to see more of from management, one item is predictable: they want regular and consistent feedback on their job performance. All of the elements of the competency based performance management system discussed to this point are without value if the performance appraisal system does not measure and provide feedback on the critical skills required of the position. There must be consistency in evaluations across all persons in that position. Therefore, the current performance appraisal system must be evaluated and the necessary changes made to ensure that key competencies are part of the performance appraisal.

You must inspect what you expect AND You must expect what you inspect
The final components of the Competency Based Performance Management System examines: (1) establishing performance expectations for incumbents based on the competencies identified for that position, and (2) providing on-going feedback, coaching, evaluation and recognition. To this point, we have established the solid foundation for building a competency based performance management system. By determining the competencies required for superior performance in key positions we are, as an organization, able to: Provide consistent feedback Develop and train critical skills Hire and promote the right people to the right jobs and Establish the performance appraisal system that reflects the success factors for superior performance

These final components of the system enable us to communicate the expectations to current jobholders and to reinforce the critical competencies by providing feedback, coaching, evaluation and recognition.

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Establish Competency Performance Expectations for Incumbents

As the foundation for a competency based performance management system is completed, it is important that everyone understands the competencies that apply to their position/s. At all levels of the organization the people in critical positions must understand the hard and soft skills required of them to achieve superior performance. It is the role of management to hold a face-to-face meeting with each person to discuss the skills and competencies required. Every organization has goals and objectives that the senior management team has established. These goals and objectives must be cascaded throughout the company in order for all energies to be focused on the accomplishment of those objectives. All employees should have objectives and performance expectations that relate to the companies goals. People, to perform well, must be able to see the value and the fit they and their performance add to the success of the organization. Without that, people see their jobs as just work rather than a contribution of value. The development of competencies is part of the expectation setting discussion.

Inspecting what you expect and expecting what you inspect

Every step in the competency based performance management system is without value unless there is a process in place to communicate actual performance. Every person wants and needs feedback on their performance. It is the role of management to provide quality feedback to people on the areas of their performance that are meeting, exceeding and under achieving the agreed upon performance standards. Feedback should be given on a regular basis and should be the lead-in to constructive coaching. Coaching is a critical enabler for achieving superior performance. Coaching is the tool that management uses to assist people in their development by providing resources, training, education and guidance. Coaching is a critical skill and all effective managers consider coaching to be an important part of their role. Evaluation and Recognition go hand in hand in emphasizing the importance of all phases of the competency based performance management system. A formal evaluation is only the summation of the feedback and coaching on performance of an individual at a point in time. Evaluation reinforces the need for superior performance of critical competencies, both the hard and soft skills. Recognition is a conscious behavior on the part of the organization to reward and recognize the behaviors of individuals that support the goals and objectives of both the organization and the individuals job. For example: if the organization defines high level of integrity as an expectation of a manager, then only people that demonstrate and are perceived as
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possessing and demonstrating a high level of integrity would be promoted or recognized. The key is recognizing the behaviors you wish to reinforce. Summary: Every organization wants and should expect high performance from each employee. The elements of the Competency Based Performance Management System will, if implemented well, enable high performance, which will define organizational and personal success. By identifying the critical positions, determining the most important competencies for those positions, providing the education, coaching and feedback to people and by holding each person accountable for their results, an organization can better meet the competitive challenges of todays marketplace.

ALD, Inc. assists organizations in the development of competency based performance management systems, leadership and employee development by providing the guidance and tools for successful implementation.

For more information please contact ALD, Inc. 1-888-762-9699 or 208-762-1322 info@ald-inc.com www.YouNeverStopLearning.com

ALD, Inc. 888-762-9699

 ALD, Inc. 888-762-9699