Translating growth strategy into human capital

Competency management is about strategy

Although competency development may sound like something for the HR department, it should in fact be everybody’s concern.  This is because it is about strategy and growth.  With competency management you are trying to translate the company’s vision of where you want to go as an organisation, into human capital.  It departs from the idea that you can develop certain skills and attitudes among your employees.  

Indeed, the interim results of a study on competency development, which Vlerick carried out for the Flemish government, show that competency development is a key strategic choice for organisations seeking to gain competitive advantage.  Via competency development, companies are trying to equip their employees for a rapidly changing market.  The point is to help employees grow and become more flexible, so that they can be deployed more effectively in a changing organisation and market.

There is, however, plenty of variation in how companies do competency management.  Some do it better than others.  A key success criterion is the extent to which competency management is carried by line managers and staff.  If it is simply something that is imposed on the organisation by HR then it quickly becomes an empty construct.  You need people’s commitment across the board and the way to accomplish that is to make it relevant to people.  The competencies that you are trying to develop must matter to people, to the individual.  Line managers too must be involved: bring them together regularly to exchange ideas and practices.  

Competency management is part and parcel of performance management.  The competency development process is kept alive via the use of personal development plans, which in turn are embedded in the annual performance management cycle.