Competency Management. Helping you to develop talent Gie Kauwenberghs Petit Déjeuner HR One Luxembourg 26 mars 2015

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1 Competency Management Helping you to develop talent Gie Kauwenberghs Petit Déjeuner HR One Luxembourg 26 mars 2015

2 Meet the experts Dr. David McClelland Different jobs require different competencies Dr. Daniel Goleman The history of Hay Group and the McClelland Center What is emotional intelligence? 2

3 Meet the experts Dr. Richard Boyatzis Is emotional intelligence just a repackaging of competencies? 3

4 What is a competency? Any measurable characteristic of a person that differentiates level of performance in a given job, role, organization, or culture Skills Knowledge Social role, values Self-image Trait Motive Necessary for top performance but not sufficient Characteristics that lead to longer-term success 4

5 Competencies What are competencies Competency is the name given to the specific characteristics necessary to perform a given job well. They differentiate levels of performance in a given job, role, organization, or culture. Any characteristic cognitive, physical, or emotional that leads to outstanding performance in a given job is considered a competency for that job. What enables a person to exhibit competency behaviors include: Skills things a person knows how to do well (e.g., reading a profit-and-loss statement). Knowledge what a person knows about a particular substantive area (e.g., basic accounting principles). Values what behaviors a person sees as important or not important (e.g., coaching less important than getting the task done) Self-image the way a person sees him or herself the inner self, or internal concept of identity (e.g., seeing oneself as an expert or leader). Traits relatively enduring characteristics of a person s behavior (e.g., being a good listener, conscientious, outgoing). Motives focuses the individual on behaviors that he/she finds intrinsically satisfying. Motives are non-conscious (e.g. we are not necessarily aware of them auto-pilot). 5

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7 Benefits We have reviewed and enhanced our existing competencies to make easier their use during Talent discussions but also in the future during Selection or Development discussions. Our aim is to link expected behaviors to job HR could than trigger discussion around displayed behaviors by a person versus expected behaviors by a job 7

8 Approach followed 1.Review the existing competencies Some adjustments Introduce Proficiency Levels (1 to 4) and link behaviors 2.Leverage the Hay Methodology and Hay job evaluation done during project WD (which embeds the nature and the complexity of a job) to create 3 jobs clusters A1 Support and Policy A2 Adding to the results from a specific functionality A3 Direct Impact on P&L 3.Select limited distinguishing competencies by job clusters 4.Propose expected proficiency levels by management level 8

9 Review existing Competencies Four proficiency levels defined by competencies 2/3 behaviors by proficiency level One definition by proficiency level Red flags defined by competencies Decision making The ability to make swift decisions, based on solid information and taking into account the consequences Red flags Too much analysis leads to paralysis Is too dependent on others to make a decision Can t handle the anticipated negative reactions of others with respect to his/her decisions Level 1 Level 2 Level 3 Level 4 Describes one s own contribution towards making decisions with respect to time and efficiency Describes the thoroughness of the process that should lead to effective and efficient decision making Manages the decision making process with respect to output and other parameters (for oneself and for others) Describes one s capability to cope with the consequences of decisions (learning and resistance) Takes pragmatic decisions when a quick solution is needed Explores all realistic options before making a decision Ensures solutions are being implemented with agreed timescales Makes tough decisions that may be seen as negative by some people Makes prompt, clear and timely decisions Makes rational judgements from the available information and analysis Gathers comprehensive information to support decision making Reviews outcomes of decisions to extract learning Identifies the parameters in which a decision can be made Is able to take decisions even if they are difficult and would require courage 9

10 Leveraging the Hay Methodology to define three job clusters Support & Policy Administrative, functional support roles. Positions of this kind are required to develop, implement and advise on the application of policy, (A1) Adding to the Results from a Specific Functionality Positions which have to deliver measurable performance whilst managing considerable ambiguity, For managerial positions results must be achieved without direct control of the resources engaged in delivery, working through external or internal partners. For individual contributors the achievement of measurable targets is tempered by requirements for analysis and the simultaneous achievement of quality and other service standards which may override measured objectives. (A2) Direct Impact on P&L Highly visible and accountable roles which must deliver measurable performance cost, volume, service, sales. Where this involves supervision/management, this will be achieved through the unambiguous direction and/or control of resources. (A3) 10

11 P Introduce Management Levels within Job Clusters Support & Policy Accountable for a major function e.g. Legal, Human Resources, across the whole of a major business enterprise which has scale and global reach. Adding to the Results from a Specific Functionality Accountable for the planning and delivery of a major line of business but required to work through a matrix to secure business results. The business will be global and demand a long-term perspective. Direct Impact on P&L Accountable for the bottom line of a substantial business portfolio. Business development will involve the development of new products and markets outside the scope of the existing business. Likely to have a global perspective and to report to the CEO of the business. Likely to be looking 5 years ahead. VP Accountable for a major function, including finance in a division of a major enterprise. The division will itself have scale and significant internationality. Functionally reporting to the President accountable across the totality of the enterprise. Accountable for the development and delivery of a major business service IT, Logistics, Purchasing in a major and complex business division where the position reports through another director to the main board. OR Accountable for a smaller/less complex business division and/or reporting through another director to the main board Accountable for a business where product and market development are largely extending current technical capability and market presence. OR Accountable for operations or sales in a business division. D Functional head in a discrete business unit concerned with the application of a range of corporate policies in a way which best meets the needs of the business in which the position is located. Will have the opportunity to contribute to corporate policy. Accountable for the development and delivery of a major business service IT, Logistics, Purchasing in a major division/subsidiary. Focused on the efficient exploitation of known products in existing markets. Focused on the year ahead in the context of medium term plans. OR Accountable for operations or sales in a business. SM D A functional advisor accountable for the translation and application of policy in a defined organizational unit. Accountable for the provision of a business service in a defined organizational/business unit. A unit manager either operations or sales - with accountability for the delivery of business results in terms of cost or revenue. Generally working to an annual horizon. SM A professional advisory role which interprets functional policy and provides advice to line management in a discrete part of the total organization. Accountable for the delivery of professionally based, technical solutions to internal or external customers. The position may manage projects/resources but may also be an individual contributor. An operational manager production, sales or service delivery focused on the achievement of specific targets which are often physical rather than financial. The emphasis is on the allocation and management of resources to achieve short term goals. 11

12 Operational LEVELS OF WORK Strategic Select limited distinguishing competencies by job clusters Proximity to business results A1 A2 A3 Global enterprise leadership 87% Enterprise leadership 76% Building Relationships Conceptual thinking Organizational Commitment Achievement Achievement Building Teams Strategy formation 66% Strategic alignment 57% Strategic implementation 50% Tactical implementation 43% Customer Focus Dealing with Ambiguity and Change Organisational Savvy Situational Influence Situational Influence Building Relationships Developing Others Decision Making Resource Utilisation Managing Vision 12

13 Expected Proficiency Level for Manager Building relationships A1 A2 A3 1 Organisational Commitment 2 Achievement 2 Conceptual Thinking 1 Achievement 2 Building Teams 2 Customer Focus 2 Situational Influence 2 Developing Others 2 Dealing with Ambiguity and Change 2 Building Relationships 2 Decision Making 3 Organisational Savvy 2 Resource Utilisation 2 Situational Influence 1 Managing Vision 2 13

14 Complexity of strategic challenges LOW MEDIUM HIGH Using the role-profile matrix, risks can be identified of stretching people too far Support & Policy Coordination Direct Impact on P&L Support & Policy Coordination Direct Impact on P&L HIGH TARGET POSITION 1 TARGET POSITION 2 Moderate risk CURRENT POSITION TARGET POSITION 1 CURRENT POSITION Minimal risk Considerable risk TARGET POSITION 2 MEDIUM LOW Example 1 Example 2 14

15 Promotion and Succession Questions example 1 Move from SM (Strategy Implementation) to Director (Strategy Alignment ) Strategy Translating: Can this person grasp the strategy for the business and its implications for their part of the organization? Integrative Thinking: Can this person integrate multiple functions into a cohesive operating plan? Transmitting the Strategy: Does this person have the capability to translate and communicate their operating plans in a way that is actionable for their part of the organization? Bigger Scope: Does this person have the maturity, confidence and resilience to cope with a significantly broader scope of operation? Longer Term View: Can this person balance future goals with present needs, making appropriate trade-offs? Shift in Management: Can this person shift from holding reports accountable for work to holding them accountable for their leadership and for their managerial work? 15

16 Promotion and Succession Questions - example 2 Move from A1 role (staff/advisory; the left) to A2 role (coordination-based jobs; the middle) Responsibility: Is this person capable of and willing to deliver specific results for which they are directly responsible? Willingness to Partner: Does this person understand and is this person capable of partnering with colleagues and/or serving as an advisor (vs. driving results)? Influencing Others: Is this person capable of influencing others effectively other than through their expertise? Practical Solutions: Can this person offer practical and actionable recommendations to others? Diverse Groups: Can this person lead and motivate groups of people with diverse backgrounds (vs. professionals from the same discipline)? 16

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18 Achievement Orientation - example A concern for working well or for surpassing a standard of excellence. Setting challenging goals and /or outperforming others. Red flags Tolerates mediocrity Stays in comfort zone; does not try to improve things Tolerates waste, inefficiency or poor quality Leaves tasks unfinished; misses deadlines Level 1 Level 2 Level 3 Level 4 Tries to do the job right. Uses own specific methods of measuring outcomes against own standard of excellence. Completes own actions as agreed Focuses on key activities, prioritizing the important Identifies and manages the most efficient process to get things done Uses time efficiently Strives to do a very good job Is managing the shop Clearly assigns responsibilities for tasks an decisions Gives regular feedback on progress Measures performance against goals Orchestrates multiple activities at once to accomplish goals Provides the information people need to do their jobs and make accurate decisions Ensures team accomplishes all agreed actions Sets challenging, stretching goals (50-50 chance of achieving ). Creates a delta Deals with performance issues directly, firmly and in a timely manner Encourages direct and tough debate but isn t afraid to end it and move on Energized by tough challenges Provides direction and guidance to help others achieve their business goals Sets clear, challenging goals Makes decisions, based on calculated inputs and outputs. Is ROI driven. Commits significant resources to increase benefits. Makes decisions, based on calculated inputs and outputs. Is ROI driven. Commits significant resources to increase benefits Reviews and shares learning from own and team s work after completion Stays focused on business value Takes calculated risks to deliver significant value to the business Thoughtfully commits significant resources in the face of uncertainty to reach challenging goals 18

19 Organisational Savvy - example Knows how the horses run in the organisation and can constructivbely leverage that insight Red flags Uses only formal channels, even when it is clear these are not enough Violates the norms in the organization Politically naive Makes unintended mis-steps due to not getting the politics and relationships of the organization Annoys the hierarchy by inappropriate escalation Level 1 Level 2 Level 3 Level 4 Understands the formal and informal structure Recognizes or uses the formal structure of the organization Knows where to find what they need to get the job done Respects the norms about how things get done Understands how decisions are made in own area Understands relevant policies and procedures and where to find them Understands the culture Uses the informal structure of the organization when the formal structure does not work Knows how to get things done Identifies the key stakeholders in the organization Understands the impact of the organization s mission and values Understands politics Recognizes informal political relationships and power dynamics within the organization Understands or manipulates political relationships within the organization with a clear sense of organisational impact Reads the political landscape Considers the informal political dimensions of a situation when considering an approach or response Recognizes unspoken organisational limitations Has deep insight in the organisation Understands the reasons or history behind decisions and practices and takes these into account when deciding on a course of action Understands an addresses the underlying reasons for ongoing organisational behavior Takes impact on external stakeholders into account when making decisions Shows leadership solidarity by understanding before critisising 19

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