Using competency to source future leaders

Using competency to source future leaders

By Fitri Dianasari & Yodhia Antariksa

JAKARTA (JP): Rudy, a CEO at a leading company, is facing a
dilemma as one of his marketing executives will retire soon, and
he has to find someone to replace the aging executive.

While going through a list of his managers, Rudy realizes
something else: Many of the executives in top and middle-level
management are over 50 years of age and close to their
retirement.

Yet his company does not have any system in place to identify
people as potential successors. Rudy's problem could have been
resolved easier had he utilized a competency model as a basis for
human resources decisions.

What is a competency model?

To answer that question, we must first understand the
definition of competency. In its narrowest sense, competency can
be defined as the abilities a person must possess to be effective
on the job. It takes the form of skills, knowledge and even the
values that will distinguish a performer from a nonperformer, and
this is demonstrated in terms of tangible and observable
behaviors.

On a broader scale, it can also refer to the extent of a
person's mastery of the skills required for a job. A competency
model can therefore be defined as the combined set of knowledge,
skills and attributes that are needed to perform tasks
successfully.

There are some useful benefits of using a competency model for
the company and employees as well. For example, by adopting
competency modeling, a company is able to establish expectations
for performance excellence. It will also increase the
effectiveness of training and professional development programs
by linking them to the success criteria (i.e., behavioral
standards of excellence). Lastly, a competency model can also
provide a common framework and language for discussing how to
implement and communicate key strategies.

For employees, a competency model will also provide meaningful
benefits. It can help them identify the success criteria required
to be successful in their role. In addition, a competency model
will also provide them with development tools and methods for
enhancing their skills.

Considering such significant benefits, many companies have
been implementing competency models over the past decade. For
example, a study conducted during the U.S. Leadership Development
Conference in June 2000 found that competency modeling was used
by almost 75 percent of all companies as a tool for leadership
development. The same study also showed that 69 percent of the
development initiatives of mid-level managers were using
competency models as a basis for developing training programs.

Furthermore, a study conducted by Arthur Andersen Worldwide
found the majority of companies had applied competency models in
the area of training and development. In particular, they
responded that competency models were extremely beneficial in the
process of creating development programs. By linking development
programs to the success criteria that competency models require,
these companies have been able to create effective programs to
prepare and create capable leaders.

Had Rudy known about the competency model, he would not have
had the problems he did whenever one of his executives was
retiring. He can use the competency model as a benchmark to find
a suitable person to fill the position of a marketing executive.
With this model, he also can create and develop effective
programs to prepare potential marketing leaders. That way, he can
ensure that the company would not lose its executives, and he can
develop his middle managers to their utmost potential.

The writers are consultants at Arthur Andersen Business
Consulting Jakarta.

(logo of Arthus Andersen to be placed here - bsr)