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26 VOLUME 10 NUMBER 4 2003 COMPETENCY described in terms that have real meaning for all users; and defined to a level of detail that is sufficient to enable use within the full range of possible applications, eg selection, development, performance management, retention and reward. 1. Process for realigning competencies with changing business strategy PurposeOutputs 1.1 Form hypothesis: strategic context interviews 1.2 Form hypothesis: agree design principles 1.3 Form hypothesis: desk review of existing data 2.1 Test hypothesis: focus groups 2.2 Test hypothesis: behavioural event interviews 2.3 Test hypothesis: benchmarking 3.1 Consolidate findings: concept formation 3.2 Consolidate findings: articulate new model and applications 28 VOLUME 10 NUMBER 4 2003 COMPETENCY I be future-oriented, rather than retrospective; I be equally credible, relevant and meaningful to all those across the organisation; I provide the foundation for multiple applications; I incorporate a degree of “stretch”, contingent on benchmarked world class performance; and I draw upon the “flavour” that allowed the previous competencies to deliver business benefits. In general, there are three options for completing a review of an existing competency framework. First, the organisation can embark on a full-blown programme of diagnosis and research, starting afresh from first principles to deliver a brand-new model. Second, it can “tweak” the existing competency model, without additional research or data analysis. Third, the organisation can re-examine and revise the existing model in the light of more recent data, some of which would need to be amassed specifically for that purpose. While different options will suit different organisations, our experi- ence of working with a wide range of clients suggests that the third option is often the favourite on the grounds that, as shown below (and in contrast to options one and two above), the associated pros far outweigh the cons. Advantages of undertaking limited additional research to build on an existing model: I maintains and draws on what remains valid from the previous model; I recognises the extent of change and captures the essence of new organisational priorities; I resource-effective; I generates a model that remains statistically predictive for future applications; I reflects new cultural norms relevant and credible across the executive population; and I the data-driven approach enables faulty assumptions to be reflected. The disadvantages of this approach: I some investment required both in terms of cost and executives time. THE PROCESS In light of the above, our experience suggests that the following activities need undertaking to deliver a refreshed competency model. The essential process is one that involves three stages. In stage one, a hypothesis, or set of assumptions, is developed about the types of behaviours that will be required to deliver the new corporate strategy (or whatever change is taking place). In stage two, the hypothesis, or assumptions, should be tested in order to confirm that the expected behaviours do, indeed, predict superior performance among leaders under the changed business conditions. In stage three, the findings from the research should be brought together, the themes drawn out and the most important issues incorporated into the new competency model. Many of the elements of the work required to deliver a refreshed model are the same as those that would be employed if the process of defining competencies had been started from scratch. However, the volume of work, particularly that associated with detailed research, is often less. This is because the best of what exists in the current model will form an important element of the new model. The primary focus in our simplified approach is typically on cross-business consultation and involvement, rather than on research purism. The purpose and outputs of each of the three stages is explained in more detail in box 1. The detailed process shown in the box is intended to be illustrative of the broad range of activities that can help to refresh competency models to ensure they realign with evolv- ing business strategy. The “re” in refresh and realign is what is important it is the root of many words to do with change and growth. As a prefix, it signi- fies looking back, or looking at something again. When successful, it also means looking again with a fresh perspective. There is an 29 COMPETENCY & EMOTIONAL INTELLIGENCE 2003 VOLUME 10 NUMBER 4 Appraisals element of revival to it, the breathing of fresh life into something. In essence, this is what such a process is aiming to achieve. In thinking through which parts of such a process might be useful to your organisation, there are a few key questions to ask yourself. Are your existing competencies explicitly linked to an evolving strategy, or do they remain anchored to a moment in time? Have they become stale? Do employees only pay lip service to them? Do they still predict future success, or are they accidentally describing, and being used to select, mediocrity? If you hesitate in your answers, per- haps now is the time to take a fresh look. G CHRIS
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