Organisations are shifting from competency to capability models.
Here is next part of this series of blogs summarising our 2012 findings into the Future of Talent Management.
What is organisational capability? Ulrich and Smallwood (2004) defines it as “the firm’s ability to manage people to gain competitive advantage…” (page 8). According to Ulrich and Smallwood (2004), to establish organisational capability, “the business must adapt to changing customer and strategic needs”. They should do this by “establishing internal structures and processes that influence its members to create organisational specific competencies.” Employees therefore become “a critical resource for competitive advantage” (page 8).
Our research shows that 27% of organisations have changed from competency to capability models in the last three years, and 52% of organisations now use a combination of capability and competency models.
Organisations appear to be moving towards a combination of competency and capability models, however we question whether there is a true distinction in the way organisations use and define them? We propose that a competency model describes the behaviours and skills required to excel and succeed, in other words how an organisation desires their people to interact and behave. Competencies enable mutual understanding of what effective looks like in order to help people understand their strengths and development gaps.
A capability model tends to measure organisational attributes rather than people attributes. Capable people demonstrate the skills and behaviours required in the role, whilst at the same time having high levels of self-efficacy. They know how to learn, they work well with others, they are creative and most importantly, they are capable in novel as well as familiar circumstances. They demonstrate the behavioural competencies whilst being capable in the role.
Look out next week for Part 5: Capability Models are aligned to business objectives, goals and strategies and they describe the high potential behaviours that add the most value for the organisation.
For further information please contact: Dr Amanda Potter 01737 555 862. email@example.com Reference: Talent Management. Copyright © 2012 Zircon Management Consulting Limited. All rights reserved.