COMPETENCY - FAQ

Frequently Asked Questions

What is a Competency?

A competency is defined as a behavior or set of behaviors that describes excellent performance in a particular
work context (e.g., job, role or group of jobs, function, or whole organization). These characteristics are
applied more and more by organizations because they provide significant help with key problems such as:

• clarifying workforce standards and expectations

• aligning individuals, teams, and managers with the organization's business strategies
• creating empowerment, accountability, and alignment of coach, team member, and employer in
performance development

• developing equitable, focused appraisal and compensation decisions

What is a competency model?

A competency model is a set of success factors, often called competencies that include the key behaviors
required for excellent performance in a particular role. Excellent performers on-the-job demonstrate these
behaviors much more consistently than average or poor performers. These characteristics generally follow the
80-20 rule in that they include the key behaviors that primarily drive excellent performance. They are
generally presented with a definition and key behavioral indicators. (See example below):

Competency Title: Customer Service Orientation

Definition: Responds to customer's needs in a manner that provides added value and generates significant
customer satisfaction.
Behavioral Indicators:

• Demonstrates a deep understanding of internal and external customers and their needs
• Mobilizes the appropriate resources to respond to customer's needs
• Takes personal responsibility for customer satisfaction (e.g., focuses value-added interactions)
• Builds credibility and trust with the customer through open and direct communication (e.g., uses
effective listening skills, provides timely. feedback, etc.)

• Ensures that customers believe their issues and concerns are given highest priority
In contrast, competencies do not include "baseline" skills and knowledge (i.e., commonly expected
performance characteristics such as finishing assigned work, answering the telephone, writing follow-up
letters, etc.), job tasks, or unusual or idiosyncratic behaviors that may contribute to a single individual's
success.

How do competencies differ from skills and knowledge?

Competencies only include behaviors that demonstrate excellent performance. Therefore, they do not include
knowledge, but do include "applied" knowledge or the behavioral application of knowledge that produces
success. In addition, competencies do include skills, but only the manifestation of skills that produce success.
Finally, competencies are not work motives, but do include observable behaviors related to motives. (See
figure below for an illustration of these key points.)
Why is a competency model important?

The model is important because it provides a "road map" for the range of behaviors that produce excellent
performance. It helps:

• Companies "raise the bar" of performance expectations;

• Teams and individuals align their behavior with key organizational strategies; and

• Each employee understands how to achieve expected performance standards

How are competency models developed?

Competency models are developed through a process of clarifying the business strategy and determining how
the models would be used (e.g., hiring and selection, assessment, performance management, training and
development, and career development). Then, data is gathered in structured interviews. Next, data is
analyzed and used to develop straw man models of success criteria. Then validation surveys are administered
and models refined based on feedback. Finally, models are finalized and translated into appropriate, end-user
tools and applications.

What competency models are available to Schoonover clients?

Schoonover Associates, Inc. database of competencies is divided into three components and provides a unique
advantage for helping our clients "jump-start" competency development processes in their own organization:

• A Rapid Model Prototyping Tool comprised of tested and validated competencies divided into core,
leadership (by career band), and functional groupings
• A Competency Dictionary comprised of key topics, definitions, and appropriate supporting behavioral
indicators
• A Competency Model Database comprised of a range of models organized by level, industry, function,
etc

This database of models is based on 20 years of competency studies from the following sources:
 • Discrete studies with more than 60 organizations resulting in approximately 200 competency models
• More than 2400 1.5-2.0 hour behavioral event or other in-depth interviews (e.g., executives,
benchmarking, etc.)
• More than 400 group interviews, focus groups, and stakeholder meetings for model-testing and
refinement
• More than 5,000 feedback surveys for model testing and refinement

Some of the larger studies included "control" groups (accounting for approximately 250 of the interviewees).
In addition, the study sample included approximately 150 global (non US) interviews

Each competency in the database stems from an actual study and has undergone extensive revision and
testing. In fact, no competency or behavioral indicator is included in the database unless it represents:

• An item tested interactively in a formal study process

• A success factor "common" to a particular model type (i.e., idiosyncratic or singular behaviors are not
included)

• An item subjected to review and editing by more than one experienced consultant

List of Available Models -

Core

• Personal Attributes

• Management Skills
Career Level-Specific Leadership

• Executive Leader
• General Manager
• CFO
• CIO
• COO
• Middle Manager

• Team Leader
Topic-Related

• Change Leadership
• Team Leadership
• High Involvement Work teams
• Influence Skills
• Interpersonal Skills
• Facilitation Skills
• Team Leader
• Culture Assessment

•
Functional
 • Human Resources
• Finance
• Marketing
• Product Management
• Customer Service
• Sales
• Information Systems
• Engineering
• Manufacturing
• Environmental, Health, and Safety
• Sourcing
• Consulting

• Administrative Support
Global

• United States
• Europe
• Mexico
• Far East

While core, leadership levels, or function generally organizes the database’s models; there is significant data
available on competency models and behaviors linked to specific industry-segments.

Can a competency model be tailored to a specific need?

Competency models can be organized as flexible tools that can be used for:

• Employee orientation
• Employee development
• Performance management and coaching
• Career strategies
• Candidate interviews
• Team assessment

• Succession planning
What is meant by "Integrated Human Resource Practices"?

Organizations are using competencies in virtually every human resource domain. They provide criteria that
can be applied to each of the human resource practices shown below:

Integrated Human Resource Practices

Competencies are used as the "key criteria" for implementing each application. In other words, competencies
are framed into a specific tool and accompanied by guidelines defining how managers and employees use the
tool to produce results in each of the above areas.
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How can performance management work in a competency-based system?

Ideally performance management is positioned as a process comprised of steps that include planning,
managing, evaluating and rewarding performance. Often, the competencies used in performance management
are either a subset of the total competency model, or the definition. In addition, the performance appraisal
process includes goals, expected results, and competencies. It is an ongoing process that aligns and
integrates the objectives of the organization, business units, teams and individuals. Competencies specify
precisely how individuals can align their activities to the key strategies of the organization.

What are the benefits of implementing a competency-based approach to developing professionals?

For The Company, competency-based practices:

• Reinforce corporate strategy, culture, and vision.

• Establish expectations for performance excellence, resulting in a systematic approach to professional
development, improved job satisfaction, and better employee retention.
• Increase the effectiveness of training and professional development programs by linking them to the
success criteria (i.e., behavioral standards of excellence).
• Provide data on development needs that emerge from group and/or organizational composites that
are an outcome of multi-rater assessments.
• Provide a common framework and language for discussing how to implement and communicate key
strategies.
• Provide a common understanding of the scope and requirements of a specific role

• Provide common, organization-wide standards for career levels that enable employees to move across
business boundaries.
For Managers, competency-based practices:

• Identify performance criteria to improve the accuracy and ease of the hiring and selection process.
• Provide more objective performance standards.
• Clarify standards of excellence for easier communication of performance expectations to direct
reports.

• Provide a clear foundation for dialogue to occur between the manager and employee about
performance, development, and career-related issues.
For Employees, competency-based practices:

• Identify the success criteria (i.e., behavioral standards of performance excellence) required to be
successful in their role.
• Provide a more specific and objective assessment of their strengths and specify targeted areas for
professional development.
• Provide development tools and methods for enhancing their skills.

• Provide the basis for a more objective dialogue with their manager or team about performance,
development, and career related issues.
What is the business impact of competency-based systems?

Often leadership programs or performance development interventions are seen as important, but focused on
"soft skills" that may not affect business results. One of the most important developments in human resources
is the clarification of the "business value" of key programs. Some of the measurable benefits of competency-
based performance development are listed below. These kinds of impacts improve talent levels, save money,
and improve business performance.
Specific Improvements Related to Using Competency-Based Systems
 • 5-10% in rate of hiring successful candidates.
• 15-20% in retention of desired employees.
• 15-25% in morale as measured in employee surveys.

• 20% in goal completion by individuals and teams.

How do you gain management commitment to support a competency-based system?

On-going management sponsorship is one of the most important factors predicting success in competency-
based practices. Some of the most important methods for ensuring support include: early involvement in the
profile-building process, maintaining focus on the business payoff (i.e., cost/rework savings, improved
efficiencies, better alignment between individual and team behavior and strategies), involving managers in
early pilots (e.g., 360° assessments), and enlisting managers to support the integration of competencies into
development plans and performance management tools.
How can competencies be used in a coaching/self-assessment process and tool?

Competencies can be formatted into a coaching/self-assessment tool that allows employees and/or managers
to rate competencies for performance level and degree of importance, and to provide evidence (e.g., noting
specific accomplishments or evidence of potential performance problems) to support their ratings.
What are the advantages of using this coaching and self-assessment tool?

The primary advantage of this assessment tool is that it can be used in the course of day-to-day activities.

• Managers may apply it to assess overall performance (e.g., as an adjunct to an appraisal), conduct a
dialogue comparing ratings with a direct report, or to focus on one or more competencies in a short
coaching session. Individuals can apply it as an observation checklist to evaluate role models, as a
quick method for personal assessment, or as an ad hoc multi-rater tool (by soliciting inputs from
managers, colleagues, etc.).

• Teams can use it as a vehicle to introduce the concept of competency standards and to determine
total team strengths and vulnerabilities.
What are the benefits of the coaching and self-assessment tool?

The most important benefits of the assessment tool are that it:

• Helps the manager focus coaching and development discussions, perform them faster and more
objectively, and involve their direct reports in more self-directed assessment and development;
• Helps individuals take realistic responsibility for their own evaluation and development; and

• Helps teams maintain their focus on critical success factors, and target and confront overall team
vulnerabilities.
What is Schoonover Associates' 360° assessment process and tool?

Schoonover Associates' 360° assessment process and tool enlists a range of individuals with different
perspectives (e.g., colleagues, manager, dotted-line manager, direct reports, and internal and/or external
customers) as well as the participant to rate performance against the competency behaviors in a profile. Data
is collected using our completely self-service, web-based tool -- Voyager managed by our Technologies
Services Group, Human Asset Technologies. The individual's assessment data is then processed and a
feedback report is generated online for that individual at a personalized homepage. There are a series of
reports that outline the individual's strengths and development needs and lead them to on line development
suggestions and planning tools.
When can and should a 360° assessment process and tool be used?

This process can be used by anyone in an organization for whom there is an appropriate competency profile.
However, a 360° assessment process works best when used selectively. The tool can provide very accurate
evaluation data when relatively unbiased information is collected from a range of people who observe an
individual's work. This form of assessment requires data processing, incurs costs, and requires time from
several people to complete ratings. Therefore, it should be used in specific situations, such as:

• A major career transition or job change;

• A reorganization or major realignment of a team or organization (to target new performance criteria);
• Developing objective evidence about and feedback for a problem employee;
• Developing a plan for leveraging the talents of excellent employees (e.g., high potential groups); and
• Developing plans for high-impact groups (e.g., managers, executives, boards of directors)

360° assessment works as well for teams as it does for individuals. Composite reports for whole teams and
business units are excellent vehicles for evaluating group vulnerabilities, strengths and for developing total
team competence.
What are the benefits of a 360° assessment?

The 360° assessment process provides more accurate, objective, and extensive feedback than other forms of
competency evaluation. It is an excellent method for gaining relatively unbiased insights into development
targets and for clarifying differences of perception between an individual and their managers, colleagues,
direct reports, and customers. In addition, individuals can access development advice related to competency
gaps and create development plans at their own unique homepage. Individuals can share their data, reports,
and development plans online with their manager.
Who usually participates in the 360° assessment process?

The 360° assessment process is most effective when an individual receives feedback from a diverse group of
individuals (6-10) who directly observe an individual's work (e.g., manager, dotted-line manager, internal
and/or external customers, colleagues, and direct reports as well as themselves). While a larger and more
diverse data pool provides more valid assessment, the desire for rich data needs to be balanced against the
time and resources required to complete the tool.
How does an individual receive their feedback report?

Usually, individuals receive their feedback report online at their homepage and bring their report to a specific
debriefing session facilitated by a person certified in the process of debriefing 360° assessment feedback.
During the debriefing session, an individual evaluates the results, and creates an action plan that helps them
set goals for leveraging their strengths and developing in areas where they need improvement. They can also
go back to their homepage at the Voyagerä site and explore different options for development. 360°
assessment feedback is most effective when it is:

• Debriefed in a safe context (e.g., separate from performance appraisal);

• Debriefed by trained facilitators;
• Linked to an important human resource process or goal (e.g., a performance management process,
leadership training, etc.);
• Translated into specific development goals and actions that are tracked over time; and
• Dialogued with managers and the individual's team in follow-up discussions.

What are the potential pitfalls of 360° assessments?

360° assessments are a powerful tool, but can have several unintended negative effects. For instance,
sometimes individuals try to manipulate the data by selecting participants whom they think will provide them
with the most positive feedback. In other instances, individuals feel betrayed if leaders try to use numerical
360° assessment data in appraisals or for de-selection decisions (Note that individual numerical data is
provided only to the assessed individual). In addition, 360° assessment requires time and resources to
implement and can be used to avoid rather than promote dialogue. Finally, 360° assessment reports have all
the advantages and disadvantages of numerical data (i.e., they provide a relative assessment about WHAT
might be vulnerable, but do not offer information about WHY there is a problem).
How balanced are 360° assessment tools as they relate to bias, gender, and nationality?

While 360° assessment feedback does not eliminate all forms of rater bias, well-constructed competency
profiles focus on successful behaviors of excellent performers written in neutral language and, therefore,
tends to "level the playing field" and eliminate significant bias.
How are 360° assessments related to performance management?

360° assessments are an excellent early application of competencies since it focuses on required standards of
excellence and provides positive, helpful input. After performing 360° assessments, many organizations imbed
competencies in the coaching and performance appraisal process as a logical next step. This sequencing of
applications helps individuals become aware of and committed to the new standards prior to being evaluated
against them.
How does performance management work in a competency-based system?

Ideally performance management is positioned as a process comprised of steps that include planning,
managing, evaluating and rewarding performance. It is an ongoing process which aligns and integrates the
objectives of the organization, business units, teams and individuals of which competencies are the engine.
Can competencies be tied to compensation (e.g., base pay or incentive pay)?

Most often competencies are not tied to compensation. However, many organizations are beginning to include
competencies in both the appraisal process and pay decisions. Approaches range from informal influence to
specific, calculated approaches.
How does such a competency-based system influence pay?

More often than not, competencies are used with other factors to narrow the range of appropriate pay. Most
companies reward both competencies and results, though the mechanisms for doing this vary from
organization to organization depending on their philosophy and practices around rewards and recognition.
Do companies implement 360° performance appraisals?

Some organizations commit themselves to 360° performance appraisals. This should be done separately from
the 360° assessment process. In other words, 360° assessments should not be used as part of the appraisal
process. 360° appraisals are an excellent method for improving accountability and gaining better insights into
strengths and vulnerabilities from the range of people who observe other's work most directly. However,
these systems require levels of commitment, honesty, and effort that are often difficult to sustain over time.
What is the difference between a 360° appraisal and a 360° development plan?

The 360° appraisal focuses on a multi-source data gathering process for performance evaluation. 360°
assessments limit the purpose of data gathering to development and usually makes the numerical data and
comments, if solicited, the property of the feedback receiver only.
What are best practices related to succession planning?

Schoonover Associates strongly advocates developing a succession planning focus or mission and a set of
"guiding principles" initially. These principles should serve as design criteria for the program. Often succession
planning is reactive, adhoc, and unstructured. As a result, the process has little credibility or sustained
impact.
What criteria are appropriate for succession planning?

At a practical level, we have found that the criteria applied in succession planning should be multi-
dimensional, simple to assess, and linked to "future" success. Frequently, we help companies develop
customized success factors of the following types:

• Critical Competencies. Behavioral criteria linked to successful performance of a key role.

• Key Experiences. Specific work settings, assignments, or accomplishments required for growth and
credibility of leaders across the career span.
• Results. Objective outcomes of negotiated goals and/or specific contributions to the team or
organization.

What's the best method for interviewing?

The best available method for overcoming potential vulnerabilities in the interview process and for identifying
specific behavioral criteria for excellence is a behaviorally-anchored evaluation. In order to perform this type
of interview, a model that describes objective criteria of success for a specific job role (e.g., a success
template) is used. In addition, an excellent hiring intervention should focus on:
 • Traits and leadership skills that are most difficult to develop on the job through training and
development.
• Those skills that are critical for top performance in a specific job category.

This method of hiring and selection helps interviewers perform the most significant part of the screening by
using an objective scoring procedure.
What are best practices for individual development?

It is important for individuals to view their own development as a continuous improvement process. Most
personal change initiatives fail because of a lack of follow through. To succeed, individuals should:

• Keep focused on targeted improvement areas

• Clarify what excellent performance looks like in action (e.g., discuss excellent performance with
manager/coach/team members; identify models to emulate)
• Arrange for frequent behavior practice
• Solicit frequent feedback
• Revise and update improvement strategies
• Track progress by reviewing objective evidence for improvement/continuing development needs