Competency Models:
a key for Sustaining Performance
Targeting performance Improvement
HP Sales Readiness Initiative
Session Objectives
Participants will be able to: Recognize the challenges of competency modeling in dynamic business environments Identify critical components of dynamic modeling methodology Identify components of dynamic performance-based competency modeling, including:
Competency
scaffolding Role excellence item development criteria Responsive learning solution alignment Preliminary career path alignment
Transfer
and apply methods to other contexts
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Competency Models: a key for Sustaining Performance
Presentation Flow/Agenda
Introduction Setting Business context Dynamic Competency Modeling Methodology Deliverables … what we have learned … Workshop, Q&A
Targeting performance Improvement
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Hewlett-Packard in Brief 2003 …
• • • •
a 140.000 employees Global Company Operating in 178 countries Revenues Oct. 31st 2002 was $72 Billions CEO Carly Fiorina, HQ in Palo Alto, California
Four Core Business Groups: Imaging & Printing Group (IPG)
Leading provider of printing and imaging solutions for both business and consumer use
HP Services (HPS)
A premier, global IT services team, offering guidance, know-how and a comprehensive portfolio of services.
Enterprise Systems Group (ESG)
Provides the key technology components of enterprise IT infrastructure (enterprise storage, servers, management software and solutions)
Personal Systems Group (PSG)
Focuses on personal-computing solutions and devices for home and business use (desktop PCs, notebooks, workstations, thin clients, smart handhelds and personal devices)
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HP‟s go-to-market strategy & operating model
IPG
Example:
HPS
ESG
PSG
Commercial Printing
Example:
Enterprise Services
Example:
Direct
CrossCompany Councils
Examples:
Model
• Employment policy, structures, benefits • Infrastructure efficiencies
Technology Dev Cost structure Margins TCE Growth Rates
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Core businesses must be: • Competitive in : • Among top 2 or 3 in their industry
HP company confidential
HP Workforce Development Organization
Susan Burnett WD Vice President
mission • develop the most competitive and committed workforce in the world key objectives • accelerate the integration • build a high performance workplace • develop leadership capacity and capability • develop the skills needed for business success
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HP‟s state at program start
•
A dynamic, newly merged business environment
– HP/Compaq merger launched spring 2002 – 2x (+) different corporate cultures and values – Multiple complementary and overlapping products & services
•
Global and Regional variation • Urgent time-to-market drivers • Post-merger deployments
– Operational realignment, multiple sets of legacy systems – Changing business models – Rationalization, creation of standard models across Business units and geographies
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Case for Competency Development
Culture change drives business performance … Research shows that committed employees increase customer satisfaction resulting in superior financial performance others things being equal. Employee commitment occurs when employees “can-do” the job, “want-to” do the job, and are “able-to” to the job.
Employee Competency Levers Organization Transformation Levers
Can-Do
+
Competency Building
+
Want-To
+
Individual “Fit”
+
Able-To
Appropriate Culture
Highly Committed and Involved Employees
Systemic and Integrated Human Capital Systems
Sources: The Human Equation, Pfeffer, 1998.
Customer Satisfaction and Loyalty
Corporate Culture and Performance, John P. Kotter, 1992. Symmetrics Corporation Research, D&T alliance partner, 1997.
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Superior Financial Performance
HP Global Sales Competency & Skills Assessment initiative
Objectives: Increase the effectiveness of sales professionals across HP to ensure they have competitive and current skills by implementing one Sales Competency „System‟ for sales professionals across the company. which will allow them to:
Achieve HP business and sales objectives Achieve individual sales objectives Provide World Class sales and consulting experience to our customers
Major System Deliverables:
Competency-Models, Assessment, & Reporting Learning Roadmaps Career Paths for all major sales families and roles across the corporate and enterprise segments.
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CLOSING THE PERFORMANCE GAP...
Organizational Defining Desired Behavioral Change Competencies Change
Effectiveness
Feedback is the Key to Insight that Drives Behavioral Change
Time
Effectiveness
CLOSING THE GAP…
Time
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Feedback for building a high performance Workplace
Salesperson - led
On Line
On-Line
Entry & Info
Assessment
Feedback
Developmental
On-Line Linkage
Action Planning
to Resources
Performance Improvement
Self Assessment
Mgr. Assessment
Sales Manager-led
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Proven Return on Investment?
Companies that link employee skill development to business strategy have 40% higher total shareholder return (TSR). Characteristics of competency-based programs:
Competency-Based Characteristics
Corporate competencies promote corporate flexibility and competitiveness Employees understand the core skills needed to be productive Competencies are linked to career development Competencies are linked to pay/reward system
High Performing 51% 47% 50% 58%
Others 37% 34% 38% 48%
Watson Wyatt Worldwide, 1998.
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Ensuring highest performance at all steps of the Human Capital Lifecycle
High Performance Workplace
Recruit
Select
Deploy
Develop
Evaluate
Reward
Promote
Business Objectives
Enterprise Skills
Business Results
HP’s suite of HR Management Systems
Enterprise Peoplesoft
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Competency Models: a key for Sustaining Performance
Presentation Flow/Agenda
Introduction Setting Business context Dynamic Competency Modeling Methodology Deliverables … what we have learned … Workshop, Q&A
Targeting performance Improvement
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Current State Context
Corporate Strategies Regions
Commo n Ground
Roles
Business Organizations
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Strategic Approach to Common Ground
What
How
Why
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HP Approach to Workforce Development
Corporate Philosophy: High Performance Workplace Operationalization of the Philosophy: Competency-based Workforce Development Tactical Implementation: Focal Point Review -> Individual Development Plan Individual Work: Engaging in Learning Opportunities
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HP Global Sales Competency & Skills Assessment Project – Business Requirements
Increase the effectiveness of sales professionals across HP to ensure they have competitive and current skills by implementing one Sales Competency „System‟ for sales professionals across HP. This System will include the assessment, framework, tools and roadmaps necessary for the development of the individuals in the sales organizations, which will allow them to: Achieve HP business and sales objectives Achieve individual sales objectives Provide World Class sales and consulting experience to our customers
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Sales Performance Management:
Performance Assessment
HOW
Assessment Data is one of four inputs to Performance Management
OUTCOMES
Base Pay Assessment DATA
Customer, WHAT Manager & WHAT 360 feedback
RATING & SALES RESULTS
Development Plan
Promotion
Career Path
Business Performance vs. Metrics
Performance Overachievement/ Breakthroughs
Commission Pay
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Competency Models: a key for Sustaining Performance
Presentation Flow/Agenda
Introduction Setting Business context Dynamic Competency Modeling Methodology Deliverables … what we have learned … Workshop, Q&A
Targeting performance Improvement
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Definitions
Skills refer to the knowledge and behavior, the expertise, that a person can demonstrate
Competency modeling is the activity of determining specific competencies related to organizational goals or the capabilities characteristic of high performance and success in a given job.
Competency model is a document that identifies and defines: key tasks, competency areas, key knowledge, skills and attributes for successful performance
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Definition of Competency
Competencies are grouping of behaviors that encompass . . .
–
Knowledge – Skills – Abilities – Personal Characteristics
. . . that together determine superior performance from average performance in a particular work setting. Competencies are enduring qualities rather than temporal; technical skill is one competency while there are thousands of technical skills. Competencies that are aligned with key business objectives and values help foster an organization’s success.
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The Solutions Lifecycle
HPT
Intervention Implementation (ISD if intervention is training) evaluate design design the solution(s), selecting methods & content develop build, buy, or customize the solution(s) implement deliver the solution(s) using standard methods support ongoing analysis & support for access and use
level
business & performance requirements
intervention selections
determine the cost effective, best match solution(s)
1 satisfaction 2 meet objectives 3 performance improvement 4 business results
level
performance analysis
level
level
gaps, causes & metrics
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The Challenge: Robust Models
Competitive Edge
WW Applicability
“to-be”
Role-Specific Detail
“as-is” 0 Cross Geography Cross Business Cross Function km Futurists Business Models Competitive Practices m
0 Task Specific Engagement Specific Technology Specific
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Competency Modeling Landscape
INPUT WD PROCESSES OUTPUT
Competencies Compose Straw Models Additional Skills
Schoonover
IMPLEMENTATION PROCESSES CONSEQUENCES
Individual Desired Skills Definition
Job Role Description
PDI Skills
Individual Learning Plans
Validate Straw Models
Additional Skills Libraries
Development Activities/ Learning Roadmaps
WD-Driven Capability Planning
People Capable of Doing the Right Work at the Right Time
WD Plans
Define Learning Plans
Career Alternatives
Business-Driven Capacity Planning
Learning Opportunities Libraries
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Sisakhti Competency Modeling Methodology
Collateral Analysis
HR Collateral Strategy Documents Legacy Skill Inventories & Competency Models
Practitioner Interviews
Business Planners Practitioner Managers Expert Performers
Expert Validation
Prior Interviewees Business Stakeholders Emergent Inputs
Competency Assessment
Repository Loaded with Skill Models Individual Assessment Competency Assessment Rollup
Competency Analysis Report
Development of Skill Models -> Individual & Org Capabilities
Method Leverages: Legacy wisdom Current-state business planning On-the-ground expertise & experience Assessment & Repository Systems
Method Requires: Access to experts Stakeholder / Individuals buy-in & participation Assessment & Reporting
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Competency Models: a key for Sustaining Performance
Presentation Flow/Agenda
Introduction Setting Business context Dynamic Competency Modeling Methodology Deliverables … what we have learned … Workshop, Q&A
Targeting performance Improvement
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Competency Model, Assessment, & Reporting Framework
Competency Model -- Architecture
Role Excellence
represents role-critical competencies that amplify and combine with other competencies to achieve role excellence
Function Excellence
represents function-specific (e.g. sales) competencies that all members (e.g., pursuit team performers) should master
Foundation
represents professional, technical and solution competencies that inform execution of critical role tasks
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Competency Model -- Content Anatomy
Skill Title
targets skill cluster (definition/ type) hyper-linked to front-end table for ease of navigation
Skill Statement
succinctly describes skill-oriented action and rationale
Behavioral Indicators
provides detailed, observable behaviors that “flesh out” skill in observable action
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Competency Model’s Contribution to Operational/Business Success
Models provide the content and framework for:
systematic self-assessment tools & performance improvement planning between managers & employees job descriptions that accurately differentiate between roles and facilitate well-targeted hiring and/or promotion performance criteria to guide reward & recognition programs meaningful and innovative skill development opportunities -- planned curricula, certification programs, and individualized training plans
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Quote slide
“This format would be used for a quote. This slide will need to be copied to incorporate it into the presentation.”
Name company
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Opening Screen
Clicking on the web site address in the email will take the participant to this screen.
This is the opening screen for the OLIM system. Participants click on the first choice line to indicate that they are first time users.
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Sample of Survey Format
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Sample of Target Setting
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Skills Report – Strengths and Opportunities
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Skills Report – Competency Results
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Skills Report – Developmental Recommendations
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Deliverables of an cognitive testing approach competency development
Competency Model
Competency 1 Task 1 Task 2 Competency 2 Task 3 Task 4 Competency 3 Task 5 Task 6 Competency 4 Task 7 Task 8 Exam 1
40 ____ %
1.
2.
15 ____ %
3.
Exam 2
4.
25 ____ %
5. 6. 7. 8.
20 ____ %
review and refine definitions for identified certification levels brainstorm the tasks for the targeted certification level and categorize into competencies write clarifying subtasks and identify the related knowledge and skill level the competency model rank the competencies and objectives construct an exam blueprint weight the exam blueprint distribute competency model to selective ww audience for validation
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Exam 3
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Learning Plan & Curricular Framework Strategies
Building capability in the pipeline
architecting the learning experience
business imperative
Key Learning Event
business results
A
B
pre-event activities and linkages
post-event activities and linkages
assessments virtual orientation readings virtual communities simulations other learning events linkage to values & core skills
follow through tools & coaching assessments (progress) learning communities communities of practice simulations other learning events linkage to values & core skills
self discovery small groups/learning communities rich peer dialogue business relevance
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Development Roadmaps
Identifiers
map to skill type and individual clusters
Learning Citations
for available internal, external events/training for self-study (web-based CBT, publications, etc.) as well as group training for innovative suggestions of to-be-developed opportunities well suited to developing or enriching targeted skills
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simulated website screenshots (1)
One roadmap per sales role
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Simulated website screenshots (2)
Limited number of high level competency categories
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Simulated website screenshots (3): split over two slides for clarity
This is the second level of the roadmap that details the development activities, next slide shows a scroll-down of this page
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The Focal Point Review: Development Planning
• •
•
Review the results from the assessments Identify areas of strength and opportunities for development Create a plan for developing skills that supports the business objectives
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Learning Roadmap’s Contribution to Operational/Business Success
Roadmaps provide the content & ideas for:
guiding individual performance improvement planning -- by identifying the range of opportunities available (internal, external, online/self-paced, etc.) to address personal skill gaps stimulating development of a organizational learning strategy & curriculum -- sanctioned & elective offers (e.g., annual academies, certification programs, web-casts, mentoring, etc.) that address organizational needs and aggregate workforce S/K/A gaps creating explicit career advancement programs -- linked to career paths to facilitate individual growth and corporate retention of intellectual capital
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Skill Assessment & GAP Analysis Strategy
Assessment System
Function
provides objective data that informs the performance assessment conversation every manager & employee should have
Job-Aid
High Usability
directions are simple & easy to implement rating key is applicable to any job items map to skill models & developmental roadmaps for ease of GAP remediation
360° or Benchmark Standards
can solicit peer as well as management input to ensure comprehensive GAP analysis can build-in targeted “expert” ratings to establish competency benchmarks
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Competency Analysis Reporting at the organization level
Rating Means 5.0 4.0 3.0 2.0 1.0 .00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Required Avg. Current Avg.
Skill Items
Fundamental Selling
1. Sale Motivation/ Entrepreneurship 2. Prospecting & Qualifying 3. Negotiating/Gaining Commitment 4. Developing/Presenting Proposals 5. Customer Satisfaction 6. Account Planning
Sales Knowledge
7. HP Company/Businesses 8. HP Partner Resources 9. HP Internal Resources 10. HP Sales Productivity Tools/Processes 11. Industries & Markets 12. Competitive Intelligence 13. Account Intelligence 14. HP Sales Initiative/Goals 15. Business Acumen 16. Social Acumen 17. Tech/Solution Acumen
Consultative Selling
23. Client/Customer Relationship Building 24. Business Analysis 25. Solution Selling 26. Strategic Networking
Sales Strategy
18. C-Level Partnering 19. Prioritizing Accounts 20. Extended Sales Cycle Mgt. 21. Competitive Positioning 22. Resource Optimization
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Skill Assessment & Gap Analysis Contribution to Operational/Business Success
Process produces information that enables:
Individual -- to identify personal skill gaps & develop personal development plans
Management Team -- to identify organizational capabilities for strategic business planning & development
Workforce development function -- to identify skill gaps for strategic hiring & training investments
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Career Path Streamlining & Rationalization Strategy
Career Path’s Contribution to Operational/Business Success
Career Paths provide:
a snapshot of current role relationships -- how performers see the relationship and skill proximity of roles in the post-merger corporation a logical framework for determining actual paths -- by identifying how performers themselves characterize their entry into a role and where they believe they can realistically progress a performance context for facilitating growth -- by reporting the skill and work-related challenges that are commensurate with advancement and milestone achievement (and consequently suggesting effective development activities)
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Career Paths
Graphic Depictions
illustrate career entry points, advancement milestones, & alternative career options graphics suggest levels of skill mastery and workrelated complexity that must be mastered to advance
Path Analysis
provides narrative amplification of graphical information communicates rationale governing career path depiction -- as drawn from interview and analysis activities
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… what we have learned …
Business/Operational Benefits
The Skills & Competency Modeling:
Builds a performance language across the enterprise for defining the work and the roles involved in making HP successful Provides information for: assessment criteria leading to a development / talent discussion between employee and manager
well targeted training and development events & design of a systemic development strategy for business organizations
Other organizations who may extend or use the information to direct efforts in other functions (e.g., hiring, vendor screening, position alignment, promotion & advancement)
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Expected Return on Investment
Strategic Viewpoint • Leveraged Sales -- across the product and services groups – (all Organizations/Business Units) • Improved customer satisfaction Operational Excellence • Consistent selling process, vocabulary and collateral material • Enhanced employee satisfaction and development • Enhanced leverage of training programs/resources Yield • Increased net revenue
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Success Measures
•
Increased sales effectiveness
– – –
Positive impact to sales revenues Consistent, global sales approach Customer satisfaction Cost and time savings Improved program planning
•
Targeted training and development resources
– –
•
Retention and recruitment of sales talent
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Initial results … what we learned …
of course catalog and time to performance Competencies have become the common language to link human capital business needs to business objectives The process of Competency Modeling has enabled the discussion framework for changing “silo” thinking Competency Modeling Information is extensible Gap analysis information is basis of YES/NO answers to: “I need XYZ Course”
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Reduction
Competency Models: a key for Sustaining Performance
Presentation Flow/Agenda
Introduction Setting Business context Dynamic Competency Modeling Methodology Deliverables … what we have learned … Workshop, Q&A
Targeting performance Improvement
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Workshop
Aligning learning objectives to competency model behavioral indicators,
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Open Discussion
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