How to Build a Competency Model
Having reviewed and created hundreds of competency models, we’ve seen very good and very bad ones. Over the years, we’ve learned how to build a competency model the right (and wrong) way. Below are the top 10 tips to help you do it right.
Before you Build your Competency Model
#1. Involve the Right Stakeholders. Competency Modeling is not an “HR” activity. While HR usually takes the lead, when it’s done right, they involve leaders from across the business to get their input, buy-in, and support. To get them interested and willing to commit time to the project, you need to build a business case for why the project is important. This leads to #2 below.
#2. The reasons for doing it are unclear. Always start with the end in mind. What problem are you trying to solve? Clearly link the work to your organization’s Mission, Vision and Values, and strategic goals. Explain what processes it will support and the anticipated business impact. Include metrics when possible.
While you Build your Model
#3. Use agile. One of the most heartbreaking things that can happen to a project team is spending months creating a “masterpiece”, only to find out that your internal customers don’t like it. Using an iterative approach allows you to get timely feedback and make adjustments along the way so there are no disappointing surprises at the conclusion of the project.
#4. Keep it simple. This isn’t rocket science, so don’t make it more complicated than it needs to be. A holistic view of behavioral competencies can be captured in 4 main buckets: Thinking, Working, Relating, and Leading. You can modify the wording to fit your culture, but keep it simple so people can easily relate to it and remember it.
#5. The number matters. We’ve literally seen models with 32 competencies – come on, really? Too many becomes unmanageable and too few becomes useless. In general, strive for no more than 12 competencies in total, not all of which will be needed for every job or job level.
#6. Measurement matters. This is one of the biggest problems with most competency models. When two or more competencies have a lot of overlapping descriptions, it means that they are not sufficiently differentiated. No double dipping! The definitions also need to be behavioral and observable so that they are measurable. Try this exercise – read the initial definition and cross out any words that are not action-oriented or observable. Be concise. You can go into (somewhat) more detail if you write behavioral indicators by level.
#7. Words matter. Crisp wording, using plain language, yields the best results. Do not include flowery language or hyperbole. The wording should resonate with your employees. If it doesn’t, they won’t buy into it.
#8. Make it memorable. Two problems here. First, it makes the task of updating the model in response to changing business needs arduous and therefore, unlikely to be tackled. Second, most people skim over the details or simply tune out when they see a lot of writing. Write only as much as you think people will read.
After the Model is Defined
#9. Formally and consistently communicate. Assemble a cross-functional team to determine the communication strategy at different levels and any needed training to support the roll out. Find creative ways to get the message out. Be sure to highlight the benefits to your employees (e.g., competencies serve as the basis for career pathing).
#10. Integrate it into all HR processes. Once the project is completed, don’t let it die on the vine! Prior to meeting the final project milestones, prioritize the HR processes for integration. Keep the momentum going by appointing an advocate to lead the first integration project team. Systematically roll out the new competency model, incorporating what you learned from previous roll outs.
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