| Check out any organisational textbooks and you will | | | | Measuring people against core competency models |
| always find that one of the core definitions of | | | | aligned to the specific role is a key performance |
| management is that of ‘organisational control’. | | | | measure that should come first. This will enable |
| This process ensures an organisation pursues its | | | | managers to answer questions 2 through 4 detailed |
| strategies and actions to enable it to achieve its goals. | | | | above. Get these right and the financial and |
| Management control is centred on four basic | | | | competitive measures will naturally fall into place |
| questions: | | | | How To Measure Non –Financial Performance |
| What has happened? | | | | The first port of call is to determine what core |
| Why has it happened? | | | | competencies (performance factors) are required for |
| Is it going to continue? | | | | a specific role. Usually these number about 8 to 12. At |
| What are we going to do about it? | | | | AssessSystems we have a competency library of 38 |
| The first question is always answered by | | | | and a highly validated process that asks people who |
| performance measures. Once we understand what | | | | are doing the job to develop their job competency |
| has happened in the organisation we have a base to | | | | model. If you already have a model we can align this |
| address questions 2, 3, and 4. | | | | to our system so you can start using this for selection, |
| The performance measures used to determine what | | | | development and performance management. |
| has happened internally and externally with the | | | | From here, the competency model(s) becomes the |
| organisation are usually always based on two | | | | HR base for selecting new employees; identifying |
| dimensions; competitive advantage and financial | | | | strengths and weaknesses of current employees to |
| performance. | | | | better target training, mentoring and coaching need for |
| Unfortunately, this is where the ‘buck stops’ in | | | | development purposes and finally measuring |
| most organisations. The reason is that the “bottom | | | | performance through 360 feedback and setting up |
| line school” usually controls this process (apologies | | | | ongoing monitoring. |
| to the financial controllers!). Measurement of | | | | Financial and competitive information is important. It tells |
| performance is stuck in the money groove. | | | | about the outcome of what was done. The measuring |
| Organisational performance is based on the | | | | of people based on the competencies required to |
| pre-eminence of money measurement in the | | | | perform the job will tell us why and how it was done. |
| commercial world - things like state of annual accounts, | | | | Using the ASSESS profiling platform, we take two |
| budget forecasting, cost variances etc. Whilst I agree | | | | measures first up – an individual development |
| that these are very important measures, they only | | | | report. This assessment measures the innate |
| present a one-dimensional view of the | | | | personality and mental abilities of the person as they |
| organisation’s activity and are usually always | | | | relate to the customised competencies required for |
| historic. | | | | the job. The development report is only done once; it |
| Professor R.S. Kaplan at the Harvard Business School | | | | tells us the why and how (a person does it). |
| states: “…if senior managers place too much | | | | We then conduct a 360-feedback survey using the |
| emphasis on managing by financial numbers, the | | | | same competency model. Each competency is |
| organisation’s long term viability becomes | | | | represented by about 5 behaviours. We ask the |
| threatened.” | | | | employee and their boss, direct reports and peers to |
| Understanding the core competencies required by the | | | | rate them on those work behaviours. This tells us how |
| job functions within the organisation and selecting, | | | | they do it. |
| developing, training and measuring people against these | | | | Taking these two pieces of information and sitting |
| competencies will naturally lead to better financial | | | | down with the employee and management will give a |
| performance and competitiveness. | | | | clear picture on were we need to concentrate |
| Unfortunately, non-financial indicators are usually never | | | | development and where overlooked strengths can be |
| measured. Sales Management is a classic example. | | | | utilised. A development plan is then put into place. This |
| Managers are fixated on measuring financial | | | | intervention is then measured, say, in 6, 9 or 12 months |
| performance – did we meet this week’s target? | | | | time via the ASSESS 360 Focus (using only the |
| Competitive performance – what is our market | | | | competencies we want to develop) for improvement. |
| share? Once again this is the “what has | | | | The ASSESS system also has a performance |
| happened?” mentality. The Sales Manager also | | | | management tracking platform that can monitor the |
| needs to understand the “how and why” and | | | | agreed interventions along with the ‘hard’ KPIs. |
| this is centred on the actual sales person ability to | | | | In closing, financial and competitive measures are |
| deliver on their core sales competencies. For example, | | | | important, but this is a bit like putting the cart before the |
| how does each person’s behaviour on a daily, | | | | horse. Get the right people in the right roles by aligning |
| weekly, monthly basis rate in respect of these sales | | | | their abilities to the required job competencies |
| competencies? | | | | (ASSESS Selection Report), then developing them |
| Customer Focus | | | | around these competencies (ASSESS Development |
| Resilience | | | | Report) and finally monitoring their ongoing |
| Persuading to Buy | | | | performance (ASSESS 360 and ASSESS Review) |
| Planning and Organising | | | | and the end result will come naturally. |
| Relationship Management etc | | | | |