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									Competency Framework in GE

           Theme: Designing a Competency
           •· Linking competencies to business
           •· Getting prepared and making it happen
           •· Various approaches
           •· Characteristics of a good competency
           •· Challenges of design & development
Competency Framework in GE

         Global 1000
         Business Week, July 2004
        Billions US Dollars
                   Market Value                 Sales                         Profits
       1 GE                       328 Wal- Mart            259 Exxon Mobil              20.96
       2 Microsoft                284 BP                   232 CitiGroup                17.85
       3 Exxon Mobil              283 Exxon Mobil          222 GE                          15
       4 Pfizer                   270 Royal Dutch/ Shell   202 HSBC Holdings            11.65
       5 Wal- Mart                241 General Motors       183 Royal Dutch/ Shell       11.41
       6 CitiGroup                239 Daimler Chrysler     167 Vodafone                 11.36
       7 BP                       193 Ford Motor           164 Bank of America          10.81
       8 AIG                      191 Toyoto Motor         156 Toyoto Motor             10.51
       9 Intel                    184 Mitsubishi           137 Microsoft                 9.99
      10 Royal Dutch/ Shell       174 GE                   134 BP                        9.54

                The way world sees GE
Competency Framework in GE

    Market Value Vs Sales
                                                        Value as
                         Sales         Market Value     of Sales
    GE                           134           328.11         2.45
    Exxon Mobil                  222           283.61         1.28
    Toyoto Motor                 156           130.65         0.84
    Royal Dutch/ Shell           202           174.83         0.87
    BP                           232           193.05         0.83
    Wal- Mart                    259           241.19         0.93
    General Motors               183            25.62         0.14
    Mitsubishi                   137            15.24         0.11
    Ford Motor                   164            27.18         0.17
    Daimler Chrysler             167            45.34         0.27

              The way world values GE
Competency Framework in GE

   Global 1000 Sales Vs Profits
                                                        Profits as
                                                        % of
                        Sales         Profits           Sales
   GE                           134                15        11.19%
   Exxon Mobil                  222             20.96         9.44%
   Toyoto Motor                 156             10.51         6.74%
   Royal Dutch/ Shell           202             11.41         5.65%
   BP                           232              9.54         4.11%
   Wal- Mart                    259              8.87         3.42%
   General Motors               183              2.86         1.56%
   Mitsubishi                   137              1.04         0.76%
   Ford Motor                   164              0.92         0.56%
   Daimler Chrysler             167              -0.5        -0.30%

        Why the world sees us that way…
Competency Framework in GE

                                                  Profits as
                                                  % of
   Competition   Sales           Profits          Sales
                         90.65             2.94         3.24%
                         35.46             0.87         2.45%
                         32.63             1.74         5.33%
                         34.89             -0.2        -0.57%
                         40.73             1.11         2.73%
                          18.8             0.09         0.48%
                         50.48             0.27         0.53%

     …in comparison to our competition
Competency Framework in GE
 The way we see ourselves ..at the Core

    Consistent superior financial and
           Business performance

    Portfolio of Diverse Businesses

    Organization „embracing ‟Change..
         at an increasingly faster pace
Growth Engines
   Energy                      Transportation   Infrastructure

 NBC Universal   Healthcare

  Advanced       Consumer &      Insurance       Equipment
  Materials       Industrial                      Services

Cash Generators
Competency Framework in GE

                     GE in India
    21,000   Employees + 8000 in GDCs, 30 Businesses

     More than 70 % on Global Services

    Wide Spectrum of Competencies
         Application Processing to Aircraft Engine Design

    > 500 mm Cost Savings
Competency Framework in GE
                                         PhD’s / Scientists

                      Engineering Design Experts

            Financial Analysts         Software Engineers

                            I.T .Helpdesk Agents

                Customer Service Agents

     Hourly Workers
               Wide Spectrum of Competencies
Competency Framework in GE

   Strategic Intent : what are we trying to accomplish?

              Organizational Capabilities we require

  Competence       Consequence       Governance        Work-
  Pillar           Pillar            Pillar            Process/
                                                       Capacity for
                                                       Change Pillar
  What are the     What are the      What is the       How able are we
  Competencies     standards and     Organization we   to manage the
  we require to    consequences      need to           work processes
  accomplish our   requires to       accomplish our    and change in
  Strategy?        accomplish our    strategy?         order to
                   strategy?                           accomplish our
       Ulrich‟s Organizational Diagnostic Model
                           GE’s Operating Mechanism

Business Processes                                                     Session I
                                                                       Strategy                                               SII/CII
                           Session D            Session C                                                                    Operating
                          Compliance           Org./Staffing/                              Session C                           Plan
                            (Qtrly)             Succession                                   Video
               February                                         June                             August                October                 December

   January                   March                   May                           July                   September                 November

Leadership Meetings
 Operating                                                                                                             Corporate
  Managers                                                                                                              Officers
 Mtg. (Boca)                                                                                                          Mtg. (COM)
                           Executive                             CEC                                         CEC                                  CEC
Competency Framework in GE


Behaviors , functional skills and knowledge employees must have
or must acquire to input into a situation in order to achieve high levels of
Competency Framework in GE

    Types of Framework:

     •Core Framework

     •Role specific competencies

     •Functional Competencies
Competency Framework in GE

          •Core Framework
GE Values
Competencies to demonstrate GE Values
CURIOUS                                                                     TEAMWORK
• Generates new and creative ideas.                                         •   Builds trust by respecting the ideas and contributions of everyone.
• Fosters an environment where questions and ideas                          •   Works well with others.
  are valued.                                                               •   Coaches and encourages others on a regular basis.
• Seeks feedback, continuously learns, and develops            self.        •   Contributes to positive morale and spirit within the team.
• Learns as much or more from failures as successes.                        •   Embraces diverse and global cultures.

PASSIONATE                                                                  COMMITTED
•   Demonstrates enthusiasm for what he/she does.                           • Sets clear and measurable goals.
•   Willing to take risks.                                                  • Stays focused on business priorities.
•   Empowers others to question the status quo.                             • Willing to make tough decisions and live with the           consequences.
•   Creates excitement and inspires others to                  deliver.     • Displays persistence and tenacity; is not deterred by       obstacles.

RESOURCEFUL                                                                 OPEN
•   Seeks simple solutions to complex problems.                             • Attentive and respectful when listening and responding to others.
•   Considers varied alternatives before selecting a           solution.    • Willing to change based on the inputs of others.
•   Effectively uses internal/external network.                             • Communicates in an open, candid, and consistent manner.
•   Consistently gets tasks accomplished with available        resources.   • Accessible and approachable.

ACCOUNTABLE                                                                 ENERGIZING
•   Takes responsibility for decisions, actions and results.                • Displays an engaging, can-do, optimistic attitude.
•   Delivers on commitments to stakeholders.                                • Makes work fun.
•   Does what is best for the team and the customer.                        • Inspires others to achieve more than they imagined.
•   Places success of the organization ahead of personal       gain.        • Recognizes and rewards the contributions of others.
Growth Generation Leadership Traits

  Creates an external focus that defines success in market

  Is a clear thinker who can simplify strategy into specific
   actions, makes decisions and communicates priorities

  Has imagination and courage to take risks on both people
   and ideas

  Can energize teams through inclusiveness and connection
   with people … builds loyalty and commitment

  Develops expertise in a function or domain, using depth as a
   source of confidence to drive change
External Focus
   Creates an external focus that defines success in market
         Considers the external impact of business activities and
          decisions on customers, market/industry, investors, media,
          government and communities

         Anticipates customer needs and ensures that they are met …
          measures processes and performance through the customer‟s

         Takes an active role in shaping their industry and/or function
          using market intelligence such as benchmarking

         Takes action to enhance GE‟s reputation among all stakeholders
Clear Thinker
   Is a clear thinker who can simplify strategy into specific
    actions, makes decisions and communicates priorities

         Has strategic capacity to sift through complex information and
          focus the organization on the critical few priorities

         Communicates messages clearly and concisely

         Able to translate strategy into business objectives with clear

         Decisive … able to make decisions with speed and accuracy …
          based on best available information

         Drives accountability for organic growth and frees up resources
          to fund innovation
Imagination + Courage
   Has imagination and courage to take risks on both people
    and ideas

         Generates new and unique ideas … makes fresh connections;
          an original thinker

         Courage to take action on ideas … fights for growth

         Creates an environment in which people can take risks and

         Brings the creative ideas of others to market; good instincts
          about which ideas will work … keen sense of timing

         Viewed as an innovation zealot ... pushes for “big bets” to
          accelerate our competitive advantage
Inclusive Leader
   Can energize teams through inclusiveness and connection
    with people … builds loyalty and commitment

         Flexible in approach to motivate and retain … appeals to the
          unique interests of each team member

         Builds a connection to the workforce through personal
          involvement and trust … Engages people to want to perform

         Promotes an environment that recognizes and celebrates
          individual and cultural differences

         Develops others … provides feedback, coaching, and
          developmental assignments
   Develops expertise in a function or domain, using depth as a
    source of confidence to drive change

         Stays in job long enough to see the impact of decisions

         Demonstrates leadership throughout different business cycles

         Gains perspective through varied experiences and build-up of

         Has the depth to impact change … giving back as much as
Growth Generation Leaders
  The Foundation            The Leader
        PASSIONATE         External Focus

                           Clear Thinker
                           Imagination + Courage
                      +                            =   Generation
        COMMMITTED         Inclusive Leader


         Always Executing with Integrity
Competency Framework in GE

       •Functional Competencies
Human Resources Competency Model –
An Overview of Clusters

                                                                                         BUSINESS PARTNER
                                                        BUSINESS MASTERY

                                                             knows business
                                                     and can be a business partner …
                                                    prerequisite to join business team

                                                      PERSONAL ATTRIBUTES
                           HR MASTERY                   lives the GE Values, and
                                                     demonstrates personal integrity,
                                                        credibility, judgment and         CHANGE + PROCESS
                              fulfills the HR                   courage …                     MASTERY
                          roles and is an expert               a GE leader
               in HR technology and practice; knows and
                                   is able
                                                                                   applying the tools of change … adding
               to deliver HR best practices … establishes
                         functional credibility

FUNCTIONAL EXPERTISE                                                                                                   ADDED VALUE   III-1
Human Resources Competency Model –
An Overview of Competencies

                                                                                 BUSINESS PARTNER
                                                    BUSINESS MASTERY

                                                • Business Acumen
                                                • Customer Orientation
                                                • External Relations

                                                 PERSONAL ATTRIBUTES
                             HR MASTERY             • GE Leadership Values

                              • Org. Design         • Credibility                 CHANGE + PROCESS
                         • Selection &              • Judgment                        MASTERY
                    • Meas. & Reward                • Courage
                    • Negotn. & Conflict Res.                                •   Quality Focus
                • Cont. Learning & Dev.                                      •   Change Advocacy
                • Consulting & Coaching                                      •   Process Orientation
            • Employee Relations                                             •   Facilitation
            • Communication
FUNCTIONAL EXPERTISE                                                                                   ADDED VALUE   III-2
Human Resources Competency Model –
Behavioral Definitions
Personal Attributes

GE Leadership Values                                                          Judgment
• Advocates and models the GE leadership values.                              • Identifies and acts upon critical issues from among competing priorities.

Credibility                                                                   • Makes correct trade-offs between legitimately competing interests and
• Develops and exhibits professional competencies. Is valued as a resource.
                                                                              • Makes good decisions with data available.
• Maintains confidentiality. Absolutely trusted by others.
• Makes and meets commitments. Does what it takes to produce results.
                                                                              • Stands up for own beliefs and takes responsibility for personal actions.
                                                                              • Delivers news … good and bad … in an up-front and candid manner.

Business Mastery
Business Acumen                                                                  External Relations
• Demonstrates knowledge of key business objectives and measurements (i.e.,      • Proactively develops cooperative relationships with key constituencies (i.e.,
  market, products/services, suppliers, competition, financial indicators,         media, community, schools, government agencies) to produce mutual
  performance measures).                                                           benefit or understanding on matters of common interest.
• Understands the business cycle and is able to influence key business           • Maintains awareness on matters of public policy and their business
  strategies and initiatives.                                                      implications.
• Considers the potential global consequences of decisions. Proactively seeks
  global knowledge.
• Ensures HR processes and programs advance and support key business
  objectives, strategies and initiatives.
• Ensures factors affecting organization effectiveness (i.e., values, vision,
  structures, process, personnel) are incorporated in business strategy.

Customer Orientation
• Demonstrates knowledge of customers gained by interacting with business
  partners and/or customers and understands their needs and concerns (i.e., is
  able to articulate why customers buy our products and services).
• Ensures HR processes and programs enhance and support customer

HR Mastery
Organization Design                                                                  Measurement & Reward
• Develops and implements a strategy to optimize structure, processes and            • Designs and implements performance measurement and feedback tools that
  people to support business goals and add value to customers.                         support business strategies and values.
• Facilitates the appropriate use of high performance work teams.                    • Designs compensation/reward programs and benefit plans that support business
• Introduces new ways of thinking, working together and learning to stimulate          and HR initiatives.
  organizational innovation.                                                         • Develops and manages processes to ensure that performance and
                                                                                       pay/reward/recognition programs are appropriately linked.
Selection & Staffing                                                                 • Coaches others on how to provide candid, focused, behaviorally based feedback
• Develops and implements a strategic staffing and succession plan that                to subordinates, peers and leaders.
  supports the business goals.
• Champions the full utilization of people across the organization regardless of
                                                                                     Negotiation & Conflict Resolution
  gender, race, national or cultural origin or other differences.                    • Leads business partners through stages of conflict analysis and resolution.
• Effectively identifies, assesses and assists in the selection and development of     Develops consensus and buy-in for options before communicating or
  the best candidates.                                                                 negotiating with impacted employees.
• Designs and develops strategies and programs to support successful                 • Plans and leads negotiation process to resolve issues between the business and
  integration of new people into the organization.                                     employees and/or their representatives.
• Designs strategies to retain key talent.                                           • Generates solutions to conflicts between various constituencies and at all
                                                                                       organizational levels.
                                                                                     • Negotiates effectively with outside vendors and suppliers.

HR Mastery (continued)
Continuous Learning & Development                                               Employee Relations
• Proactively assesses the development needs of individuals, teams and the      • Understands, responds to and represents employee issues within the context of
  organization. Is aware of and advocates the use of available resources.         the business strategy.
• Designs and delivers programs to meet the development needs of individuals,   • Understands and executes HR policies and practices in an efficient and timely
  teams and the organization.                                                     manner (i.e., employee status changes, benefits administration, salary actions,
• Continuously scans the environment (i.e., networking, literature, etc.) for     etc.) Ensures HR practices are contemporary.
  new or non-traditional ways to improve personal, team and organizational      • Understands related legislation and agreements (i.e., EEO, ADA, Union
  effectiveness.                                                                  Contract, etc.) and how it applies to business issues. Effectively utilizes expert
• Establishes processes that facilitate career development for individuals.       resources when needed.

Consulting & Coaching                                                           Communication
• Continually reviews and assesses the environment to identify important        • Promotes communication across all channels, effectively utilizing multiple
  issues.                                                                         media (i.e., newsletters, all-employee meetings, video conferencing, PC mail,
• Provides advice and counsel in a candid and focused manner. Tailors
  suggestions to fit individual, team and organizational needs.                 • Utilizes information technology to manage continually improve HR processes
                                                                                  and services.
• Leverages and manages resources, both internal and external, to meet
  workforce needs.

Change & Process Mastery
Quality Focus
• Apply Six Sigma approach and tools, including CTQ’s, scorecards, and both         Process Orientation
  M-A-I-C and DFSS methodologies.                                                   • Identifies and involves key stakeholders to define and improve critical
• Pursues training in quality appropriate to role.                                    processes.
• Develops Six Sigma initiatives which will produce significant measurable          • Selects and uses appropriate process tools to diagnose opportunities for
  results.                                                                            productivity improvements.
• Supports and champions Six Sigma initiatives throughout Business and HR
  Teams.                                                                            • Champions boundaryless collaboration among teams or constituencies in order
                                                                                      to ensure the most effective use of processes and resources.

Change Advocacy
• Mobilizes commitment around the required organizational and behavioral
  changes using the Change Acceleration Process (CAP).                              • Maximizes organizational creativity, decision making and effectiveness by
                                                                                      identifying conflicts, ensuring wide participation and reconciling differences to
• Continually assesses organizational issues and trends to identify opportunities     reach consensus.
  for improvement.
                                                                                    • Adapts approach to fit organization and group dynamics.
• Creates an environment that encourages and supports participation,
  experimentation and prudent risk taking at all levels.
• Champions Work-Out as a vehicle for positive change, individual impact,
  and continuous process improvement.
• Supports the development and sharing of best practices throughout the
• Seeks and encourages new perspectives and ideas in order to stimulate
  innovation and change.

Competency Framework in GE

Some Lessons
 Use of Competency Models more for Career Coaching,
 development planning, Learning Structures -not for Hiring

 Competency Models are only a means…end has to be

 Trap of HR „Fundamentalism‟
Competency Framework in GE

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