Popularity of Competency Models

Competency models are prevalent within various industries in business. Their popularity is due to the value they add to employee development and organizational capability. The popularity of competency models and specifically competency-based approaches are covered in this chapter. Competence-based approaches and how businesses in the market use them for gaining and maintaining a competitive advantage are also covered. How competency-based approaches have evolved into a new area of performance management that allows businesses to integrate existing organizational systems into a single performance system where they make more use of knowledge and become knowledge management organizations through competency that is modeled in their business is also covered. The chapter sets the tone of the book.

Pillars of Leadership Development

Pillars of leadership are the foundational pieces for building one's leadership and building leadership skills relative to the organizational environment. Pillars, therefore, play a critical role; there are two steams for developing personal and organizational capacity. First, the literature supporting such efforts is thoroughly discussed. Second, the supporting six pillars are provided along with the context for how they apply to an individual and organizational capacity. The discussion in this chapter provides an example of how the pillars could be incorporated into the work environment. Pillars are foundational and support an individual's leadership discipline.

Designing Competency Models for Businesses

Designing competency models can be an arduous process without the correct understanding and support. Therefore, the chapter explicitly discusses what is needed to develop the business sector's competency models—providing the required steps to be taken by designers, consultants, executives, practitioners, and academia to develop models. In addition, reasons for why the steps are applicable based on the literature are provided to the reader. Finally, the discussion supports the reader through various resources, tools, and templates relative to designing competency models in organizations and sustaining competency models once designed.

Competency Integration

The integration of competency and systems and subsystems of performance management is necessary for a business wishing to improve its overall performance. A single system of performance management leads to effectiveness and there is evidence supporting this notion. Competence-based integration vertical and horizontal alignments are covered in this chapter. Vertical and horizontal alignments impacts business outcomes. A newer model of system alignment introduces what is specific for integrating competency within a business; the “V” shape integrative alignment model is thoroughly discussed along with its impact on organizational processes, systems, and subsystems.

Organizational Leader

Organizational leadership is specifically about individuals operating in organizational environments and their role as leaders in those environments. The skills of an organizational leader are slightly different from those of leaders in non-organizations. Organizational leaders are constrained by rules, regulations, and processes. This type of leader's value is that they understand organizational culture and traditions. This type of leader influences employees through their work including coaching, mentoring, and development skills that occur within competency models. The organizational leader is the organizational agent who influences behaviors that lead to organizations being able to achieve their desired outcomes.

The Competent Organization

Competent organizations must be principled about managing knowledge, whether leading corporate efforts, knowledge sharing, or knowledge codification activities to grow their employees and organizational capacity and improve the dynamic business capability. Those organizations that are principled understand their responsibilities. They understand the value of resources; humans are valuable assets, and employee know-how is critical to an organization's outcome. In this chapter, necessary principles for an organization to have are discussed. These principles are the start of building a single system of performance management of integration of knowledge management and competence-based approaches, which leads to practical outcomes for businesses hoping to meet their desired performance.

The Strategic Value of Competency Models

Competency models are popular. They are value-added propositions for the employee and the organization. Competence-based approaches include competency models and performance management within organizations for which evidence supports its usage today in the knowledge age. This chapter provides relevant linkages of strategic competency value in businesses when utilized to improve performance and effectiveness. The chapter identifies those specific ways in which competency creates strategic value through performance management, the development of collaboration between employees and managers, the development of agile teams, and monitoring and evaluating progress.

Competency Models' Return on Investment

When businesses invest in the competency model, they want to know they are putting businesses' financial resources in the right place. The literature and the evidence support the use of competency models. Those best-in-class organizations outperform their competitors when organizational competencies are in place for employees and the business has a valid competency model. The discussion that follows discusses executives' return on investment (ROI)—providing specific formulas relative to competency modeling. Finally, the discussion supports the reader through various resource tools for the executives to use and questions to be answered when examining competence-based ROI.