Competency-Based Performance Improvement and Strategic Alignment

One client of Competency International wished to:

(a) reduce the variation in financial performance of several hundred of its General Managers world-wide who were responsible for running their operating units, and (b) to implement the new direction required for the company as expressed in the CEO's statement of strategic intent for the future.

This program started with the development of a competency model based upon interviews and a model building workshop with a group of superior performing General Managers from different countries. This established the benchmark against which all other General Managers were to be assessed and then developed so as to move their performance further up the curve.

The first phase of the program was to run over a 3 year period.

During this period a series of development programs covering strategy implementation including Balanced Scorecard initiatives, competency development, customer service, organizational climate, motivational style etc. were conducted in several languages so as to cover the entire General Manager population.

Where relevant competency based selection programs were also conducted.

Client personnel, both HR and Line Managers, were involved in various aspects of the program and the client project leader trained to a high standard so as to be able to conduct the bulk of the interviews and to run workshops.

The outcomes of the program were evaluated statistically using control groups where appropriate to determine the realized/measurable benefits. It was determined that the program training had significantly improved bottom line performance with an ROI figure of several hundred percent.

In addition it was found that the key competencies in the model could predict a substantial percentage of the variation in profit growth 2 years ahead, thus proving the validity of the model. A useful point when trying to predict/identify the competencies required in the future. Currently research is under way to see how far ahead the predictive validity of the competency model extends so as to determine what changes/updates may become necessary over time.

Specific performance data gathered from the first 3 year phase has formed the basis for an extension of the program so as to increase innovative/entrepreneurial activity in the future. This continuation of the original program, much of which will be delivered in an e-learning format, is seen as necessary by the client so that people development becomes a permanent part of business operations and not just a one-time initiative in response to a problem.

Related Articles From the Journal of Management Development

Development and validation of a customized competency-based questionnaire: Linking social, emotional, and cognitive competencies to business unit profitability

Distinguishing high-performing European executives: The role of emotional, social and cognitive competencies



About Us

Competency International is a research and consulting group dedicated to the application of scientifically validated techniques to the management of human capital in organizations. Committed to advancing the science of motive and competency assessment, application and development, our consultants adhere to the highest standards of ethics and practice.

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