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In order for an organization's competency model to support the accomplishment of its desired results the two has to be linked. The most fundamental way to link competencies and results is to begin by defining them in results-linked language. Attributes can be more tightly linked to results by making sure that their very definition employs a "so that" connection to specific desired outcomes. For example, instead of having an attribute labeled "quality orientation" that is defined as "Striving to do work more effectively and efficiently," this attribute could be defined in results-focused terms.
A second key way to strengthen the results-connectedness of an organization's competencies is to ensure that they support the accomplishment of desired results that are balanced across multiple stakeholder groups.
While a focus on satisfying investors by reaching financial bottom-line goals is critical to any organization's success, it is hard to reach those goals consistently and over a long period of time unless attention is also given to achieving employee, customer, and organization results (see Kaplan & Norton, 1993; Ulrich, et al.
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“ She followed all my directions. It was really easy to contact her and respond very fast as well. ”
, 1999).
This concept, popularized by the work of Robert Kaplan and David Norton, professors at Harvard Business School and respected consultants, is termed the "balanced scorecard. " Leaders who excel in only one area are not effective leaders. Achieving high employee results, demonstrated by high levels of employee commitment and skills means little if employees' efforts fail to satisfy customers. In such cases, the leader has failed the balance test. Without balance, companies are generally not able to reach their goals on a consistent basis and will never be able to establish a strong leadership brand.
A good example of a company that has developed a strong leadership brand by delivering consistent strong results and defining a set of key competency behaviors that are expected of its executives is Cleco, a regional utility in Louisiana.
Eppler has continued the tradition of investing in leadership development at Cleco as deregulation rocks the formerly stable utility industry. Cleco is investing in new deregulated businesses while maintaining its traditional regulated business.
Not surprisingly, as Cleco has recast its business strategy and organizational structure to compete more effectively in a deregulated marketplace, it has revised its competency models to better accomplish desired results. Organizations that are interested in strengthening the results-linkage of their competencies need to ensure that there are specific competencies in their models that help support the accomplishment of desired outcomes across each of the key result areas and stakeholder constituencies. For example, to produce "employee results," an organization's competency model might include "coaching and development.
" To produce "organization capability results," the competency model might include "focuses on speed" or "emphasizes quality. " To produce "customer results," the model might include "customer focus"; and to produce "investor results," the model might include "business or financial understanding. " Exhibit 2 provides an example of the kinds of metrics that might be used to assess outcomes in each of the key result areas as well as examples of competencies that could specifically support the accomplishment of such results. Competencies Must Be Aligned with Current Strategy, Organization Capabilities, and Values
Competency models that produce strong leadership brand must be closely aligned with the strategy of the business and with the organization's core capabilities and values. For example, a company that has been successful because of its focus on developing and selling innovative software directly to customers (strategic focus on technical leadership) may decide instead to leverage its understanding of software and customer needs by creating an Internet site that brings customers and software developers together (strategic focus on customers).
In this case, the company's competency model may then need to de-emphasize competencies that support core capabilities in product development (e. g. , technical leadership, innovative product design) and more strongly highlight core capabilities in building and sustaining customer relationships and loyalty (e. g. , marketplace understanding and customer focus). To produce strong leadership brand the organization's competency model must be clearly aligned with its current strategy.
The likelihood that an organization's leadership competency model will help drive the accomplishment of desired business results can be further enhanced to the extent that it identifies and includes specific leader behavior that contributes to strengthening the organization's core capabilities essential for successful strategy execution. For example, if GE decides it needs to focus on building speed and boundarylessness throughout its entire organization, there had better well be competencies in its leadership model that focus on speed and boundarylessness (of course, there are).
Linking leadership competencies to specific organizational core capabilities is yet another way in which organizations can build a leadership brand that is distinct rather than generic and that will increase their chances for achieving the particular business results they have targeted. A final consideration in creating distinctive leadership brand is to ensure that an organization's competencies are clearly aligned with its values. Embedding values into an organization's competencies pays two major dividends.
A second pay-off is that aligning an organization's competencies with its values creates an opportunity for creating more distinctiveness and unique identity. A good example here would be Herb Keller's Southwest Airlines, which would likely have "sense of humor" in its employee competency model because "having fun" is such a key value in the company's culture and is part of its business success. Maintaining the alignment between an organization's leadership competencies and its strategy, core capabilities and values is an ongoing endeavor.
Leadership competency models need to be updated periodically as an organization changes its strategy, or as it successfully develops certain core capabilities and identifies that other capabilities may be needed to move its performance "to the next level. " While many of the fundamental aspects of what leaders do to be effective are constant and may not vary significantly, the particular behaviors that leaders in a specific organization must be focusing on and demonstrating to their people need to adapt along with changes in the marketplace, the industry, and the organization's own development.
Competencies Must Be Connected to and Leveraged within the Organization's Enabling Systems No matter how good a company's leadership competency model may be, it will not build the company's leadership brand unless the leadership competencies are fully leveraged within the organization's enabling systems. The enabling systems of interest here are (1) the HR systems, (2) the information systems, and (3) the financial systems. It will not work for an organization to consider its leadership development as a separate system.
The Organization's Key Result Areas. (2020, Jun 02). Retrieved from https://studymoose.com/organizations-key-result-areas-13457-new-essay
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