Competency and Capability Management 2015 Report on Trends in Competency Management
Want to know what could make your company outperform its sector average by a factor of 2 or 3 or even more than 4? Then read on ……
The central theme of our business has always been to help companies improve their performance. When we joined a consortium to research the impact of competency management, we thought we would find that doing it well correlates with better corporate performance. We had no idea it would be far more than an incremental factor. The magnitude of what we found bowled us over.
On 21 September 2015 we released our 2015 Report on Trends in Competency Management. The title and writing style may be dry, but for executives of big organizations the content is exciting.
A lot of people are unfamiliar with the term competency management (CM). The concept is simple. CM assesses the skills and qualifications of workers, determines what is needed to successfully fulfil roles in the organisation, and matches up workers with the roles they are best suited to perform.
The term competency and capability management (CCM) discussed at length in the report goes a step farther. It includes capabilities (the ability to succeed). To do that, it folds in soft skills and behavioural characteristics such as trustworthiness, leadership, influence and commercial awareness.
As you can imagine, much of this has historically been hard to quantify, so it has typically been evaluated by gut feel.
In our research, the consortium came up with a proprietary CCM Index. This allowed us to objectively rate and rank companies against each other even when their CCM methods differ considerably. To our surprise, the performance differential in any sector is not modest at all. Top performers outrun the average of their sectors by more than a factor of two, and in one sector by a factor of more than four.
We also found that the sweet spots for making performance gains by improving CCM are not where investment is most prevalent – many companies do not focus at the levels where better CCM can give the best return on investment.
Other consortium partners are:
Online Profiling Limited, experts in competency and capability management, most notably for large organisations
The Project Academy, experts in project management, among the creators of the Association for Project Management’s certification standards for project management
Commercial Catalyst, specialists in helping innovative companies bring their expertise to bear where they can make the best impact