A competency framework broadly describes performance excellence within an organization. These frameworks usually include specific competencies that are applied to a variety of occupational roles.
Aspect
Description
Definition
A Competency Framework is a structured set of defined competencies or skills required for specific roles or positions within an organization. It provides a clear outline of the knowledge, skills, behaviors, and qualifications needed for success. It aids in employee development, performance management, and talent acquisition.
Components
The framework includes a list of competencies, each with clear definitions and behavioral indicators. Competencies may be categorized into technical (job-specific) and behavioral (soft) competencies.
Development
1. Identify Competencies: Determine the essential competencies for each role. 2. Define Competencies: Clearly articulate what each competency means and how it’s demonstrated. 3. Assessment: Evaluate employees against these competencies through assessments or observations.
Metrics
Key metrics include employee performance ratings, competency assessment scores, employee development progress, and time-to-fill positions.
Benefits
– Talent Development: Helps employees understand skill gaps and develop professionally. – Performance Management: Facilitates objective performance evaluations. – Recruitment: Streamlines hiring by aligning competencies with job requirements. – Succession Planning: Identifies potential leaders within the organization.
Drawbacks
– Complexity: Developing and implementing a framework can be resource-intensive. – Resistance: Employees may resist changes related to competency assessments. – Subjectivity: Assessment processes can be influenced by personal biases.
Applications
– Employee Training: Guides training and development programs. – Performance Appraisals: Forms the basis for objective evaluations. – Recruitment: Helps HR match candidate skills with job requirements. – Leadership Development: Identifies future leaders and their development needs.
Use Cases
– Google: Google’s competency framework, known as “Googleyness,” defines attributes such as cognitive ability, leadership, and role-related knowledge. – General Electric (GE): GE’s Leadership Competency Model guides leadership development across the organization.
Examples
– Communication Skills: This competency assesses an individual’s ability to convey information clearly and effectively. – Leadership: Evaluates leadership qualities like decision-making, team building, and strategic thinking. – Technical Proficiency: Assesses job-specific technical skills.
Table of Contents
Understanding the competency framework
Although many no doubt classify competency frameworks as corporate jargon, they are nonetheless a crucial aspect of any successful business. Indeed, an organization that neglects to create a competency framework is neglecting to define performance standards. With no standards to judge against, performance metrics are highly subjective.
Competency frameworks are developed for each distinct role within an organization. They must use clear and identifiable language that define excellence and how it might be achieved. Indeed, excellence becomes the performance standard that each employee is measured against.
How to develop a competency framework
Developing a competency framework consist of four steps:
1. Determine the purpose of the framework
When determining purpose, it’s important to realize that context is everything. A framework which determines which employees are eligible for a raise will be vastly different from a framework whose primary goal is to reduce product shrinkage.
2. Research
Once the purpose has been determined, relevant information must be collated. This can be done by:
Observing the relevant role within the organization and making competency-based notes. That is, analyzing the behaviors for each role that constitutes competency.
Liaising with employees who are the most familiar with the competency being measured. For example, a key part of reducing product shrinkage may be checking best before dates three times a day. In any case, lines of communication must be opened to glean important details. This can be done in the form of surveys or questionnaires, if not through face-to-face interviews.
3. Construct the framework
With the list of behaviors and actions, the framework should be constructed by grouping similar behaviors and actions together. An employee involved in reducing shrinkage may have grouped behaviors such as:
Thrice-daily checks of perishable goods according to best before date.
Logging products that will come out of date in the coming days on to a hand-held device.
Ensuring that the device is charged and a report printed for tomorrow’s best before check routine.
4. Implement the framework
Once implemented, employees should be informed of the reasons for creating the competency framework and what the business hopes to get out of it. Such frameworks need total buy-in to be effective, and full disclosure is one way to get it. Employees should also be trained in certain areas if they do not already possess the relevant skills.
The benefits of competency frameworks to businesses
Recruitment guidance
When a business is hiring, competency frameworks guide the suitability of interviewees for a specific role. Once employed, employees are naturally more motivated, satisfied, and remain with the company longer.
Succession planning
Many businesses are facing awkward transition phases as their predominantly baby-boomer workforce retires from management and is replaced with a younger generation. Competency frameworks can help smooth this transition by ensuring that the next generation has the requisite abilities and behaviors to be leaders of the future.
Improves productivity
Competency frameworks reduce cost overruns that result from poor employee performance and high employee turnover. It may also reduce the costs of inefficient leadership where a lack of communication on expectations creates confusion and low morale.
Competency framework example
Let’s conclude this article by having a reasonably detailed look at the United Nations Educational, Scientific and Cultural Organization (UNESCO) competency framework.
This framework – like those developed by most other companies – ensures staff competencies are aligned with organizational goals and clearly articulates acceptable standards of behavior.
UNESCO defines three components that lead to successful performance.
1 – Core values
Core values are principles that define and unite the way in which employees work and behave. These values include:
Commitment to the organization – employees are proud to serve UNESCO’s mission and the broader United Nations system. They are also required to act in the best interests of the organization and create awareness of UNESCO’s work across different audiences.
Integrity – decisions and actions must be guided by fairness, transparency, and honesty. This means following the Standards of Conduct set forth by the International Civil Service. Integrity is also defined as not letting personal, social, economic, or political views impact decision-making.
Respect for diversity – all individuals should be treated with respect regardless of their differences. Employees should be open-minded, challenge prejudices, promote diversity, and show empathy toward others.
Professionalism – primarily, professionalism involves an active and sustained investment in UNESCO’s mission. Professional staff demonstrate mastery of subject matter, anticipate key issues, adapt quickly, and work collaboratively.
2 – Core competencies
Core competencies are skills, abilities, and knowledge that result in essential behaviors:
Accountability – all UNESCO employees must be dependable across all facets of their role and comply with company rules and regulations. They must also be able to take personal responsibility for their words and actions and honor commitments.
Communication – effective communication means sharing ideas with others, active listening, asking questions when unsure, and considering the unique perspectives of others. Employees must also be able to hold a conversation and use a variety of different channels to disseminate their message.
Teamwork – this entails working with colleagues in a positive, collaborative environment via consensus building, respect for others, and the solicitation of input from all members of the team.
Innovation – employees demonstrate initiative and can think creatively to improve processes, procedures, activities, and methods. This requires thinking “outside the box” and the courage to take calculated risks.
Results focus – results focus means that an individual assumes accountability for the delivery of results and can understand how they contribute to organizational success. Effective time and resource management are critical, with soft skills such as adaptability and perseverance also desirable.
Planning and organizing – this is a core competency that deals with establishing a course of action to achieve a stated goal. Employees must allocate time and resources effectively and develop contingencies for unexpected obstacles. Monitoring progress using appropriate tools and considering the big picture is also key.
Knowledge sharing and continuous improvement – where possible, employees should keep abreast of new developments in their field and promote a culture where learning, improvement, and knowledge are celebrated.
3 – Managerial competencies
As the name suggests, managerial competencies are skills and abilities that are required of senior staff. For UNESCO, this denotes staff at P-4 level and above.
Competencies include:
Driving and managing change – leaders display an open and positive attitude toward change and can mobilize subordinates to implement it.
Strategic thinking – this competency involves ensuring that strategy is aligned with UNESCO’s vision and values.
Making quality decisions – in other words, decisions must be made based on the best available evidence with all risks considered. Senior employees must also be accountable for their decisions.
Building partnerships – managers should also be well-versed in establishing long-term relationships that help UNESCO achieve its goals. They should actively promote inter-sectoral alliances and understand that the best relationships are mutually beneficial.
Leading and empowering others – like any superior, UNESCO leaders need to inspire and motivate others toward a common vision. They must know the unique strengths and weaknesses of each subordinate and be visible and available for those who have queries or concerns.
Managing performance – crucial to leading and empowering others is a positive work environment where employees are given the best chance to succeed. Poor performance should be dealt with quickly, fairly, and constructively, while those who perform well should be championed, celebrated, and encouraged to advance their careers.
Case Studies
General Manager Competency Framework:
Purpose: To ensure effective overall management of the organization.
Core Competencies: Leadership, strategic planning, financial management, team development, decision-making.
Managerial Competencies: Driving and managing change, making quality decisions, building partnerships, leading and empowering others, managing performance.
Human Resources Director Competency Framework:
Purpose: To lead the HR department and support organizational goals.
Managerial Competencies: Driving and managing change, strategic thinking, making quality decisions, building partnerships, leading and empowering others, managing performance.
Finance Manager Competency Framework:
Purpose: To oversee financial operations and contribute to the financial strategy.
Managerial Competencies: Driving and managing change, making quality decisions, building partnerships, managing performance.
Marketing Manager Competency Framework:
Purpose: To develop and execute marketing strategies.
Core Competencies: Market research, branding, campaign management, digital marketing, team leadership.
Managerial Competencies: Driving and managing change, strategic thinking, building partnerships, managing performance.
IT Manager Competency Framework:
Purpose: To lead the IT department and ensure smooth technology operations.
Core Competencies: IT strategy development, network management, cybersecurity, software development, IT project management.
Managerial Competencies: Driving and managing change, strategic thinking, making quality decisions, building partnerships, managing performance.
Operations Manager Competency Framework:
Purpose: To optimize operational processes and efficiency.
Core Competencies: Process improvement, supply chain management, quality control, project management, team coordination.
Managerial Competencies: Driving and managing change, making quality decisions, building partnerships, leading and empowering others, managing performance.
Sales Manager Competency Framework:
Purpose: To lead a sales team and achieve revenue targets.
Managerial Competencies: Driving and managing change, making quality decisions, building partnerships, leading and empowering others, managing performance.
Managerial Competencies: Driving and managing change, strategic thinking, making quality decisions, building partnerships, leading and empowering others, managing performance.
Retail District Manager Competency Framework:
Purpose: To oversee multiple retail stores and drive sales growth.
Managerial Competencies: Driving and managing change, making quality decisions, building partnerships, leading and empowering others, managing performance.
Key takeaways
A competency framework broadly defines how an organization might strive for excellence – either within the organization itself or in the sector as a whole.
Developing a competency framework is a four-step process that is iterative and specific to individual employee roles.
Competency frameworks have several benefits including increased staff retention, morale, and productivity. They may also assist in succession planning and hiring.
Key Highlights
Introduction to the Competency Framework:
A competency framework defines performance excellence within an organization and outlines specific competencies applicable to various roles.
It establishes performance standards and helps quantify subjective performance metrics.
Importance and Purpose:
Competency frameworks are crucial for successful businesses, as they define excellence and provide measurable benchmarks for evaluating employee performance.
These frameworks are tailored for each role within the organization, ensuring clarity in expectations.
Steps to Develop a Competency Framework:
Determine Purpose: Identify the context and purpose of the framework, as it varies based on goals (e.g., raise eligibility, reduce product shrinkage).
Research: Collect relevant information by observing behaviors, behaviors analysis, and engaging employees through surveys or interviews.
Construct Framework: Group similar behaviors and actions together to create a structured framework.
Implement Framework: Inform employees of the framework’s purpose and goals, gain their buy-in, and provide necessary training.
Benefits of Competency Frameworks:
Recruitment Guidance: Helps assess interviewees’ suitability for specific roles, leading to motivated and satisfied employees.
Succession Planning: Facilitates smoother transition as older generations retire, ensuring the next generation is equipped with required abilities.
Improved Productivity: Reduces cost overruns due to poor performance or high turnover, and enhances leadership communication and morale.
Competency Framework Example – UNESCO:
UNESCO’s framework ensures alignment of staff competencies with organizational goals and sets behavior standards.
Core Values: Includes commitment to the organization, integrity, respect for diversity, and professionalism.
Core Competencies: Encompass skills like accountability, communication, teamwork, innovation, results focus, planning and organizing, and knowledge sharing.
Managerial Competencies: For senior staff, include driving and managing change, strategic thinking, making quality decisions, building partnerships, leading and empowering others, and managing performance.
Key Takeaways:
A competency framework defines performance excellence and provides clear standards for different roles.
It involves determining the framework’s purpose, research, construction, and implementation.
Competency frameworks offer recruitment guidance, succession planning, and enhanced productivity.
The UNESCO example showcases core values, competencies, and managerial competencies that guide employee behavior and performance.
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Mintzberg’s 5Ps of Strategy is a strategy development model that examines five different perspectives (plan, ploy, pattern, position, perspective) to develop a successful business strategy. A sixth perspective has been developed over the years, called Practice, which was created to help businesses execute their strategies.
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Lewin’s change management model helps businesses manage the uncertainty and resistance associated with change. Kurt Lewin, one of the first academics to focus his research on group dynamics, developed a three-stage model. He proposed that the behavior of individuals happened as a function of group behavior.
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eBay was until recently a multi-divisional (M-form) organization with semi-autonomous units grouped according to the services they provided. Today, eBay has a single division called Marketplace, which includes eBay and its international iterations.
IBM has an organizational structure characterized by product-based divisions, enabling its strategy to develop innovative and competitive products in multiple markets. IBM is also characterized by function-based segments that support product development and innovation for each product-based division, which include Global Markets, Integrated Supply Chain, Research, Development, and Intellectual Property.
Sony has a matrix organizational structure primarily based on function-based groups and product/business divisions. The structure also incorporates geographical divisions. In 2021, Sony announced the overhauling of its organizational structure, changing its name from Sony Corporation to Sony Group Corporation to better identify itself as the headquarters of the Sony group of companies skewing the company toward product divisions.
Facebook is characterized by a multi-faceted matrix organizational structure. The company utilizes a flat organizational structure in combination with corporate function-based teams and product-based or geographic divisions. The flat organization structure is organized around the leadership of Mark Zuckerberg, and the key executives around him. On the other hand, the function-based teams based on the main corporate functions (like HR, product management, investor relations, and so on).
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Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
