Increasingly, you can hear from the lips of HR specialists, managers and even ordinary employees: “He has high level necessary competencies", "this is a declining competency", "based on key competencies»…
This suggests that the concept of “competence”, “key competencies”, which were first discussed in Russia 8-9 years ago (at that time articles on the topic “how competence differs from competence” were popular - which sounds funny today), are quite has become firmly established in our everyday life. At the same time, a well-developed and effectively working competency model is present at several enterprises. We will tell you how to correctly approach the development of key competencies in our article.
The very creation of an effective model of key competencies is a kind of springboard for the company to jump into the future, as it allows you to effectively manage all business processes in the HR field.
Core competency (core competence) is a concept designed to serve as the basis for the development of company strategy - first of all, an attribute of the organization, and only then of employees.
Core competency - represents a set of competitive advantages, features, key knowledge, abilities, skills, qualities of the organization (and, as a result, its employees), required in a certain market situation, ensuring success, competitiveness and individuality.
- Provide value to consumers and the company. A set of skills that brings significant cost benefits not only to the client, but also to the company, can be called a core competency.
- Skills and abilities must be unique. There are differences between essential and distinctive competencies. Necessary - provide the “strength” of the company, distinctive - the “face”, positioning, competitive advantages of the company.
- Core competencies must enable the transition to tomorrow's markets. When defining core competencies, managers must imagine how the competency contained in this product can be used to implement something new.
Building a model of key competencies allows you to:
- link the personnel development system with the strategic goals of the company;
- coordinate various aspects with each other personnel work and ensure their continuity (selection of new specialists, personnel assessment, development programs, career planning, etc.);
- “cascade” through the competencies of the company’s goals and values at all levels of personnel;
- get a basis for building corporate tools assessment, development, staff involvement.
In order for the key competency model to really work in a company, it is not enough that the HR department comes up with key competencies and familiarizes company employees with the results of their work (as often happens). The entire management team must participate in its formation, so it is necessary to use a group work format - for example, a “Management Session”. During the “Management Session”, the management team jointly, through group work using brainstorming, develops the organization’s competencies and, then, the competencies of the hierarchical levels of the company’s personnel.
A “Management Session” presupposes the presence of a moderator who manages the process and ensures that the goals for which it is organized are achieved (otherwise the “Management Session” risks turning into a production meeting or an even less formal event with an uncertain result).
The moderator sets the sequence of actions, summarizes the results, and directs the team’s activities in a constructive direction.
General diagram of the “Management session” process as follows:
1. Determining the company's strategic priorities.
2. Determination of key competencies (KC) of the company.
3. Allocation of hierarchical levels of personnel to determine QC.
4. Determination of QC (knowledge, skills and personal characteristics required to successfully complete tasks) for each level of personnel.
5. Assigning significance (“weight”) to each competency for each level of employees (“success profile”)
The diagram shows that the basis for the key competency model is the company’s strategic priorities - it is on the basis of them that the organization’s competencies are set. Further, the organization's competencies are reflected in key competencies at various hierarchical levels - and, ultimately, at the level of specific positions and specialties.
In addition to defining the key competencies themselves, you need to determine their level required for each of the positions (the personnel department can take on the details at this stage). The required level of the same competence for different employees will be different - where a top manager will need a high level of competence, a line manager/specialist may need a basic one.
The competency level scale might look like this:
High level of competence |
Skill level |
The manager/specialist has reached a high level of competence development and is able to apply it in situations of increased complexity. |
Transferable competence |
|
Average level of competence |
Experience Level |
The manager/specialist has mastered this competency and is able to apply it in basic work situations. |
High competence |
|
Basic level of competence |
State of the art |
The manager/specialist understands the importance of the competency, but does not always apply it effectively in his work. It is necessary to develop this competence. |
Competence in development |
|
Unsatisfactory level of competence |
Non-compliance level |
The manager/specialist does not understand the importance of the competency. Competence development is significantly below the required level. The behavior shows negative manifestations and is destructive in the work of others. |
Absent/underdeveloped competence |
Here is an example of a Core Competency model:
For company N strategic priorities are:
- development of a group of companies;
- client business development;
- development of business analysis strategies;
- strategic human resource management;
- strategic risk management;
- quality control;
- development of a legal support strategy;
- brand creation and company promotion;
- creating a marketing and sales strategy;
- financial management in a group of companies from the point of view of maximizing the use of synergies;
- information support of the company.
Based on these priorities, a list of skills, abilities, abilities, knowledge, and technologies was compiled, which was transformed into a model of the company’s key competencies.
Key competencies, characteristic employees companies N:
Competence |
Short description |
|
Systematic thinking, systematic approach to problem solving |
integrity of vision of the situation, the ability to see priorities, the ability to build a sequence of actions and tasks |
|
Making decisions |
risk analysis, decision-making method, willingness to take responsibility |
|
Result oriented |
goal orientation, perseverance |
|
Creativity |
innovative abilities |
|
Flexibility |
ability to quickly and adequately respond to situations with high degree uncertainty |
|
Learning ability |
speed and efficiency in mastering new knowledge |
|
Personnel Management |
delegation, task setting, control, motivation |
|
Time management |
goal setting, planning, deadlines, priorities |
|
Skill to work in team |
effective interaction and mutual assistance |
|
Persuasive Communication |
ability to persuade, defend an opinion, give feedback; ability to listen to others and accept feedback |
|
Presentation and negotiation skills |
influence on the audience, building an effective speech/negotiation, mastery of manipulation techniques |
|
Mentoring |
ability to transfer knowledge and skills |
|
Customer focus |
ability to take into account the interests of the client when making decisions and building processes |
|
Crisis management |
effectiveness of actions in crisis situations |
You in assessing personnel and developing a model of key competencies.
Root competence companies− is a special combination of three
factors:
1) competitive(ideally − unique)
technological skills, which - as a special technology of activity
− applied on the scale of a given company when creating it
specific products;
2) competitive(ideally − unique)
non-technological skills, which are used on a given scale
companies, first of all, for the implementation of created specific
products;
3) collective learning, which on the scale of a given company
turns into learning effective knowledge, skills and abilities.
We supplement Definition 1 with quotes from modern gurus
strategies.
“Root competence is what corresponds to its
name - abilities, skills and abilities."
The root competence is rather a node of skills and “technologies”,
not a single discrete skill or a single discrete
"technology".
“The root competence is the individual collective
training in this organization; especially learning how
coordinate skills that provide diversified
product manufacturing, and how to integrate such skills with
numerous progressive trends in development
relevant “technologies”.
« Core competencies− these are specific accessible paths
to future opportunities."
“It is clear that the most valuable specific root competencies are
these are the competencies that represent accessible paths to broad
diversity of potential food markets."
“Root competencies always consist of a combination of the following
components:
Complex, multi-component “technologies”
(hard and soft);
Collective learning (multi-level,
multifunctional);
Ability to spread (across borders)
traditional businesses, beyond geographical boundaries)"6.
Even a simple primary analysis of the material already presented on
competencies, and even more so deep dive to this
problems, show: to identify, correctly identify and
accurately determine specific root competencies of this company
− It is not simple .
widely known, so-called three-element Hamel test −
Prahalada .
First test(element) − checking a specific population
skills of a given company - according to the criterion “Value for the consumer”.
According to this criterion - the specific root competence of a given
company in this particular situation - must contribute most
huge contribution− into consumer-perceived value. For example, G. Hamel and K. Prahalad note that know-how
Honda companies in the area creation and production of engines- yes,
it is her root competence. And Honda's business skills that it
uses in the system of its relations with dealers, - no.
Second test− testing a specific set of skills for a given
companies - according to the criterion “Difficulty of reproduction for competitors.”
The key question for this test is how difficult is it competitors,
in this particular situation, play specific root
competence this company?
Practice of working with competencies has shown that all are real
root competencies were very difficult to imitate from the outside
competitors. At the same time, the “spectrum” practical answers on
the question posed varied from “difficult, but quite possible” (min)
− to “almost impossible to reproduce” (max).
This test helps identify
individual competencies - as simple or only competitive ,
and others - like unique .
Wherein the weakest competencies turned out to be −
not very difficult to imitate competitive root competencies;
A the strongest − practically non-reproducible unique
root competencies.
Third test− testing a specific set of skills
of a given company - according to the “Market Realization Potential” criterion.
Checking against this criterion is a study, for each
competencies, opportunities expanded production and
extended implementation maximum product line, based
which lies within the specific core competence of a given company.
Such testing should end not only with one of
alternative conclusions such as “Yes” or “No”. But, in case
conclusion “Yes”, − preliminary assessment real opportunities
expanded production and successful expanded sales at
old and new markets corresponding root And final
products - for each specific root competence given
company, both from a tactical and strategic perspective.
“Competence is truly the root competence
only when it defines a specific real basis for
portfolio of core competencies, especially high competencies
level, can't be big. Even large companies, which
are considered universally recognized world leaders, the dimension of such
portfolio does not exceed 4 − 6 positions.
For example, in his book Competing for the Future G. Hamel
and K. Prahalad present in detail the portfolio of root competencies
Canon company. In their opinion, the basis of the entire huge nomenclature
Canon products, by 1994, amounted to only four root
competencies: 1) precision mechanics; 2) high quality
optics; 3) microelectronics; 4) electronic transmission Images .
In their works G. Hamel and K. Prahalad, as well as their followers
give many examples of specific root competencies
specific companies. In order to ensure that when presenting specific
examples, as they say, “don’t let your thoughts run wild.”
Today we can give several examples
identified root competencies and according to Russian
companies.
So, the Irkut company (UAC) has creation and production
unique amphibious aircraft .
The core competence of the Sistema-Hals company is land allotment ,
those. ability to receive and quickly register for construction
promising land within the boundaries of the city of Moscow.
Unique root competence of the Izhevsk Mechanical
plant" − creating a new gun model, i.e. quick deep
integrated process of development and production of a new model
guns (from project to series).
As our teaching and consulting practice has shown,
for detection, identification and, most importantly, for deep and detailed
comprehension the entire content of each specific competency
given company - you should use the so-called formula
root competence .
Study on this formula all specific “candidates” for
We recommend completing the title “Root Competence of the Company”
full original description each specific competency given
company and its portfolio of core competencies generally.
The corresponding working document may be called, for example,
“Description (initial formalization) of the portfolio of root competencies
"Gamma" company.
Competencies as roots of competitiveness
In his most famous article, “Root Competencies,”
Corporations"1 G. Hamel and K. Prahalad through the original
beautiful image (Diagram 5.3.3) is represented by two main
moment of its concept.
First, Figure 5.3.3 shows a comparison of modern
tree companies. And therefore the products of this company ( root
And final) “grow” from specific root competencies of a given
companies.
That is, Diagram 5.3.3 clearly demonstrates the connection between root
the company's competencies with its specific products, and why
some of the company's special competencies were named specifically
root .
Secondly, since these are real products,
which are successfully sold in certain markets, then
competitiveness of specific company products
determined special properties relevant specific
root competencies of this specific company .
Root competence (Core Competence) specific company −
This is a complex nonlinear system that includes the following elements:
1) a certain set (subsystem) specific competitive
(Ideally − unique) technological business skills this company;
2) the corresponding set (subsystem) specific
competitive (Ideally − unique) non-technological business skills
this company;
3) the corresponding set (subsystem) specific
competitive (Ideally − unique) business skills learning
this particular company .
Analysis of later works by G. Hamel and K. Prahalad and, most importantly,
implementation practices models Strategy of root competencies ,
allowed us to identify two main types of root competencies.
The first type is root competencies that provide
only situationally necessary
competitive level , without clearly highlighting such products among
similar competing products.
The second type is root competencies that provide
for these specific products - situationally sufficient
competitive level– due to the special properties of such products,
allowing them to be clearly distinguished from analogues - as unique .
Two relevant terms appear: competitive
root competencies this company and unique root
competencies of this company.
to another key point of the concept of G. Hamel and
K. Prahalada. Its essence is that difficult-to-reproduce
for competitors (by definition), unique core competencies
- This one of the most important foundations – strategically sustainable
competitiveness– this particular company.
That's why modern companies– during development and implementation
their general strategies - should be given priority
navigate – to identify, strengthen and develop – their
root competencies; and first of all - unique
root competencies .
“The core competencies of this company are its
individual source for future product development. They
are the “roots” of competitiveness, and specific products
and services - “fruits”...Team of top managers of any specific
a company that is unable to take responsibility for
creation and development of its root competencies - spontaneously
risks the future of this company.”
“Root competencies are a life-giving source of new
opportunities for business development. They must constitute a special
corporate-wide focus of the corporation’s strategy.”
Specific corporation (company) − like a tree − grows from its special roots.
Root products nurtured by root competencies give rise to
business units, the fruits of which are final products .
Term "core competencies" became widely known after the publication of the works of G. Hamel and K. Prahalad. They give it two definitions.
The first is “the skills and abilities that enable a company to provide fundamental benefits to customers.”
The second is a set of skills and technologies, knowledge and experience accumulated by the organization, which become the basis for successful competition.
The company's competence arises as a result long work, careful selection of personnel, accumulation necessary knowledge and skills, organizing collective work to achieve high productivity.
When all these indicators reach a sufficiently high level, we can say that the company has moved to a higher level of quality, because at the same costs, knowledge and experience were transformed into genuine competence, turned into a competitive opportunity that consumers noticed.
Features of key competencies
A specific key competency is always individual, because is present only within one business system with its own individual set of resources and abilities.
Key competencies for a company can be:
Knowledge of market needs and the ability to regularly obtain this knowledge;
Ability to put into practice proposals needed by the market;
The ability to constantly increase and develop your core competencies.
Core competencies are created through quality management labor resources, knowledge bases and intellectual capital, as well as by coordinating and combining the efforts of working groups, departments and external partners. At the same time, the company's competencies must be flexible to ensure compliance with any market requirements.
Competitive advantage
Today, most companies have standard competencies, so they cannot become the key to successful activities.
To compete successfully, it is necessary to formulate a key unique competency that will allow the company, firstly, to solve problems that are inaccessible to most other market players, and secondly, to establish a new standard of activity in the industry and thereby ensure competitive advantage.
Competitive advantage is understood as a set of characteristics of a company that allows it to produce goods that are of greater value to consumers at lower costs than competitors. There are many ways to achieve a competitive advantage, including offering quality products or services at low prices, high quality goods at high prices, goods with optimal combination prices, quality, consumer properties, level of service, etc.
Factors that shape competitive advantage
Factors that can provide a competitive advantage are divided into internal and external.
Internal ones include:
Economies of scale;
- experience effect;
- concentration effect;
- effect of resource-saving technologies;
- synergy effect;
- effect of vertical integration.
External ones include:
Improving the components of the Porter value chain;
- improving market segmentation;
- improvement of the components of the expanded product concept.
Benefits of Core Competencies
The core competency has the following benefits:
Significant for consumers who are willing to pay for competence as a major part of the acquired value;
- able to change and adapt to new market requirements;
- unique, it is unlikely that competitors will be able to repeat it;
- based on knowledge, not on coincidence;
- is associated with several activities or products;
- relevant, because corresponds to the strategic aspirations of the market and the company;
- provides an opportunity for partnership to create new core competencies;
- clarity and accessibility of the competency formulation allows for an unambiguous interpretation.
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Core competencies provide the company with a strong competitive position and a profitability level above the industry average. Key competencies are determined based on the company's competitive capabilities and resources and allow the formation of competitive advantages. The pyramid of formation of competitive advantage is presented in Fig. 7.1.
The process logic includes the following steps:
1) the organization, having a certain level of resources, develops the ability to operate, which will create an opportunity;
2) as experience is gained, the opportunity is transformed into competence - a set of skills, knowledge, know-how, resources and technologies of individual functional areas;
3) unique competence creates the basis for competitive advantage when consumers notice it.
Rice. 7.1. Formation of a company's competitive advantage
Let's look at the individual components of the pyramid.
1. Resource creates a competitive advantage if:
Difficult to reproduce
Has the possibility of long-term use,
Possesses superiority
It is resistant to neutralization.
2. Key competencies have the following features:
Competence is broader than technology or one component of a key characteristic;
Competencies are rarely based on the experience or activities of one area (more often they arise as a result of synergy);
Formation and improvement of competencies is the task of senior management;
To turn core competencies into advantages, you need to invest more in their creation than competitors;
Competencies must be sufficiently broad and flexible;
A core competency provides a competitive advantage only if it is unique compared to similar competencies of competitors.
Disused ones – adopted by the main competitors and turned into industry standards (they are a prerequisite for survival in the market);
Unpromising – currently remain valid, but may become widely available in the near future;
Sustainable – can serve as the basis for the formation of a company’s strategy.
The existing terms “competence” and “competence” somewhat repeat each other. Let's try to figure it out.
Company competence– a set of characteristics of a company that makes it professional at the level of its competitors. Competence consists of individual competencies and is generally based on competitive and leading technologies. Each of the competencies is an element of general competence.
The term “competence” was coined by V. Makelville in 1982. According to Mackelville, competence is a range of problems, an area of activity in which a given person has knowledge and experience; set of powers, rights and obligations official, a public organization.
Company competence (business competence)– a set of interrelated skills, abilities and technologies that provide companies effective solution certain tasks and situations.
Standard competencies of the company– a set of advantages, technologies, abilities, knowledge and skills that allows the company to solve problems typical for a given market segment, implement operational processes at the level accepted as standard.
Since most competitors have standard competencies, the lack of standard competencies leads to the company’s rapid disappearance from the market.
Many standard competencies are confirmed by licenses and certificates.
Competencies are sometimes mistakenly called company resources.
To compete successfully, it is necessary to formulate all the company’s competencies and highlight the key ones.
Key(distinctive, basic, exceptional, basic, unique, business competence) company competence(the term “critical success factor of the company”, KFU) is also used - such a competency, the presence of which allows the company to solve problems that are beyond the capabilities of most other market players, sets a new standard of activity in the industry and thereby provides the owner with competitive advantage.
According to G. Hamel and S. K. Prohalad, a company should be perceived not as a collection of its constituent business units, but as combination of key competencies– skills, abilities, technologies that allow the company to provide its consumers with certain values.
Key competency is the strategic potential of the company. Operational management company (the ability to effectively conduct business) - a way to benefit from potential.
Signs of key competence:
· importance for consumers, their willingness to pay for competence as for the majority of the acquired value;
· ability to change and adapt to new market requirements;
· uniqueness, low probability of repetition by competitors;
· based on knowledge, not on coincidence
· connection with several types of activities or products;
· relevance, compliance with the strategic aspirations of the market and the company;
· the possibility of partnership to create a new core competency;
· clarity, accessibility of the formulation of competence for unambiguous interpretation.
Key competencies could be:
Knowledge of market needs and the ability to regularly obtain this knowledge;
- the ability to put into practice the proposals needed by the market;
- the ability to constantly increase and develop your key competencies.
The creation of exceptional customer value, which is the resulting element of the enterprise's market orientation, requires effective cooperation between all functional departments of the enterprise. Market orientation is designed to remove traditional barriers between different functional units to create customer value.
Customer value is the benefits received from a product minus the costs of acquiring it. The benefits include: the product itself, the accompanying service, the experience gained in the process of receiving the product, and personal impressions of the product. Costs are the money spent on the purchase, the time and effort spent, and moral costs (the risk associated with the product). Exceptional customer value is characterized by a high degree of superiority of favorable impressions associated with the experience of consuming a product over initial consumer expectations and the customer value offered by competitors. The most effective ways to create customer value are determined based on the competencies of the enterprise. Measures to increase consumer value contribute to the establishment of a market orientation of the enterprise and strengthening of its key competencies
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