High performing organisations recognise that an integrated competency framework results in improved project delivery and increased business benefits.

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1 High performing organisations recognise that an integrated competency framework results in improved project delivery and increased business benefits. A competency framework is made up of a number of interrelated dimensions but most businesses only focus on one or two, such as individual performance and development management or providing standard methodologies, processes and tools. In this article we explore those key competency dimensions and how you can integrate them to improve project success. How does competency impact project delivery and business outcomes? The majority of organisations report program and project delivery is compromised through delays and unnecessary costs incurred due to a range of common issues, including: commencement delays due to lack of staff availability reduced project productivity due to inappropriate staffing delays in project completion and delivery due to project staff attrition and key man risk the need to recover projects in trouble due to allocation of inappropriate staff related to project complexity/risk over reliance on contract resources to fill gaps due to lack of staff mobility between divisions Research has found that these issues are related to structural problems within the organisation, including: lack of a dedicated pool of project staff lack of recognition of project delivery roles being distinct and different to operational roles lack of recognition of project delivery roles having commonality regardless of function, division or region disengagement by project staff due to lack of career path clarity inconsistent application of a robust performance management framework across project delivery roles that are appropriately differentiated from operation roles lack of consistent remuneration strategy and policy based on project delivery capability MetaPM s experience across a wide range of organisations and industries has identified that higher performing businesses employ a number of solutions to address these issues but it is rare that a comprehensive and integrated solution is in place. 1

2 Why use an integrated competency framework? An integrated project professional competency framework provides a holistic approach to project delivery and leads to a range of benefits, including: increased engagement of project professionals reduced turnover of project professionals increased capability of project professionals increase in perception within organisation of the importance of project professionals uplift in project delivery improvement in load balancing of project professionals to meet business demand However, a competency framework is not just about individuals, it is also about an organisation s capability to support the framework. As a result, best practice frameworks need to combine competency models for individuals with supporting models and processes for the organisation. MetaPM Competency Development Framework Copyright MetaPM

3 MetaPM use a competency development model with seven key dimensions that form an integrated competency framework addressed to key areas that impact on portfolio management, and program and project delivery: Individual Competencies: 1. Career Progression and Professional Development Closely aligned to individual capability development and role families, this includes the mapping of career paths, role entry/exit criteria and guidelines. Together, the three dimensions provide clarity of the capabilities and competencies required to move along a career path and between related roles, such as project management and change management. This dimension also supports the creation of learning and development guidelines, identifying and agreeing approved courses, accreditation and suppliers. 2. Individual Capability Development Capability development for individual staff includes a range of activities, including mentoring and coaching, development courses, tertiary study, cross-skilling, volunteering in professional associations, etc. This is the bread and butter of development for many organisations but it is often driven by the relationship between an employee and their manager, which makes it hard to ensure the individual s needs align with the organisation s. At the other end of the spectrum is the HR department that decides the development opportunities (usually approved training) and allocates budget based on headcount. When used with Role Families, Career and Professional Development, and Performance Management staff understand their role in delivering projects, and identify the most appropriate development to improve performance and enhance career prospects. 3. Role Families A Project Professional Role Family is a set of defined role descriptions for each of the core project roles, including the dimensions, attributes and required competencies, accountabilities, reporting lines and delegated authorities. When MetaPM first researched Role Families we found that,while larger organisations often had defined role (or job) families; especially in ICT where the SFIA framework is used, or Australian Public Service where a Job Family Model is available, we were unable to identify a model tailored to Project Delivery roles. We have developed a Project Professional Role Family model, which organisations can tailor to form the basis of a structured and consistent approach to roles, performance management and remuneration. This has been shown to deliver quick benefits and identify those exploiting inconsistencies (role arbitrage) in existing organisational structures. Project professional role families provide a common language and description but need to take into account the contextual competencies of a role, which will differ between business units and projects. However, descriptions for many of the skills and knowledge areas, for example Network Engineer will already exist in BAU roles descriptions, simplifying the task of creating a Role Family model. Business Competencies: 4. Knowledge Management Many organisations have developed knowledge management systems and processes for capturing, mining and sharing knowledge. It is often easier to capture information knowledge but challenges come from the mining and sharing. We have seen many examples of where lessons are captured but not used, or documents containing valuable knowledge about systems or assets are stored on a shared file system but lost in a sea of documents. This highlights the value of another simple and cheap form of knowledge management - Communities of Practice. People in organisations represent the largest repository of knowledge in an organisation but often more money is spent on technology solutions than facilitating the sharing of knowledge between people. Getting people together builds relationships and networks, develops understanding and supports the integration of innovation and continuous improvement into project management. 3

4 5. Standards, Methods, Processes Most organisations offer standards or methods for project management, such as PRINCE2 or PMBOK. Program and portfolio management standards, such as MSP and MoP are less common but gaining ground. These are supported by standards or processes common across an organisation, finance, procurement, risk, etc. Project delivery will also use processes relevant to the specialist techniques required, such as SCRUM, DSDM, or SDLC for software development; and Model Tender and Contract Documentation or GAA Engineering Design and Construction Manual for construction, building and infrastructure. Together, these provide an organisational foundation for project delivery but are dependent on people with the right competencies for the actual delivery. 6. Capability Assurance Capability Assurance provides the processes to perform a baseline assessment of capabilities and subsequent annual benchmarking. These processes use data from Resource and Performance Measurement to measure improvements in capabilities but they also require an understanding of what to measure and the systems to capture the data, which come from Role Families and Standards, Processes and Methods. Capability assurance is usually an extension of existing processes for ongoing project review and assurance, such as P3M3, or benefits tracking. 7. Resource and Performance Management By monitoring project performance measures, together with other performance criteria, organisations are able to identify issues early and take actions to reduce any impact. Project performance management is often limited to status reporting and time tracking; and it is rare that performance management is extended to the effective monitoring, tracking, and reporting of performance of project managers and staff. Requirements for resource and performance management are usually enshrined in Standards, Processes and Methods, drawing on information from Role Families and Individual Capability Development. Without the knowledge gained from analysing this information, it is difficult to understand what resources are best suited to a project or develop selection/allocation guidelines for project staff. This is a key factor in why project resources are often selected on availability rather than suitability. What are the business benefits of an integrated competency framework? Integrating the competency dimensions into a competency framework supports the realisation of direct cost benefits from: Selection Training and Development Performance Management Career Paths Succession Planning Staff Engagement and Retention Consistent role and pay grades with a rationalised recruitment and remuneration policy Visibility and transparency of available skills and capabilities leading to: Project cost control improved Improved workforce planning and flexibility Reduction in reliance on contract resources Common language/understanding applied globally 4

5 MetaPM has seen these result in quantifiable benefits, and in one case a client calculated improvements in their framework delivered a 500% return on investment in the first 12 months. Two years later they are still seeing the benefits and now implementing further improvements to integrate their framework further. Where to get started? Most organisations will have some elements of a competency framework in place, such as project management standards and processes, or personal development planning. They will be experiencing some or all of the issues described above and have the desire to improve project delivery. MetaPM recommends that organisatations do not implement a comprehensive Competency Framework in a big bang approach, as it can involve significant organisational change and requires a strong emphasis on stakeholder engagement and communications. Our approach with clients is to take an incremental approach, building an understanding of the current competency dimensions being used and the level of integration. This is used to create and implement a road map that delivers prioritised activities, balancing the early delivery of benefits with establishing firm foundations for the overall solution. If you recognise or are seeking to resolve any of the issues detailed above, or you are interested in finding out more about MetaPM s Competency Development Model, please contact us for more information. MetaPM s Service Offer When you need a new perspective on enabling and leading change effectively within your organisation, benefit from our deep specialist knowledge. MetaPM can help you understand how to achieve greater competitive advantage for your organisation and your career, and shape the development of internal capabilities for long term, strategic value. Providing clear definition of benefits and planning for their realisation is critical because the ability to demonstrate results is one of the strongest success factors in any organisation. We specialise in enabling successful change, so we have invested in truly understanding what works, what doesn t, and how to establish a sustainable benefits management capability. For further information on what we offer please visit: Or Contact Us at: Ph: E: enquiries@metapm.com.au Level 3, 420 Collins Street, Melbourne 3000 T: F: enquiries@metapm.com.au