1. NHRDN’s Learning Center – 9th April, 2010 “Competencies : Concept and Framework” by:P. Dwarakanath Director – Group Human Capital Max India Ltd.

2. 2 What will we cover …….. Understanding Competencies? Why Competencies? Developing a Competency Model Linking Competency Model to HR Systems A look at HR Competencies – HR Compass The Max Story !! The GSK Story !!

3. 3 Understanding Competencies

4. 4 What Are Competencies? Competency is an underlying characteristic of an employee (i.e., a motive, trait, skill, aspects of one’s self-image, social role, or a body of knowledge) which results in effective and/or superior performance. (Prof. Boyatzis, 1982) A Competency is a set of skills, related knowledge and attributes that allow an individual to successfully perform a task or an activity within a specific function or job. (UNIDO, 2002) Competencies are coachable, observable, measurable, and critical to successful individual or corporation performance. The pieces of the puzzle….. ……that form a common language about success …that reflect the values and culture of the organization

5. 5 Related KNOWLEDGE relates to information, cognitive Domain ATTRIBUTE (or ATTITUDE) relates to qualitative aspects, personal characteristics or traits Set of SKILLS relates to the ability to do, physical domain COMPETENCY Outstanding Performance on tasks or activities JOB Competencies: The KSA Framework Source: UNIDO

6. 6 Exhibition of Competencies? Outputs Products + Services Behaviors Results Actions + Thoughts + Feelings Capabilities Knowledge + Skill + Attitude Competencies are a person’s capabilities in the form of knowledge + skill + attitude, which gets reflected thorough a persons behavior in the form of actions + thoughts + feelings and finally manifests itself in outputs which are products and services

7. 7 Let’s Have Few Examples of Competencies ……

8. 8 Examples of Competency Innovation Team Work Coaching and Developing Others Customer Focus Strategic Thinking Result Orientation

9. 9 Classifying Competencies Universal Reflections of the company’s values, culture, and business imperatives that should be exhibited by all employees For example, guiding behaviors such as cost effective service delivery, customer focus, teamwork, communication skills, initiative Transferable Skills and abilities needed within several roles in varying degrees of importance and mastery For example, managerial and leadership skills Unique Specialized know-how or abilities required within a specific role or job For example, technical/ functional skills (Marketing Strategy, Drug Discovery)

10. 10 Why Competencies? Does it pay to integrate management systems around competencies?

11. FROM What business are we in? What capabilities do we bring to the businesses we are in now that can serve as foundation upon which future businesses can be built? TO Paradigm Shift

12. 12 Managing Talent: Three Compelling Questions Align Do you have the right people, doing the right things to reach your business goals? Are you creating an environment where the right people want to be? How do you know ? Engage Measure ?

14. Very effective for communicating about performance because they help people frame expectations and goals in clear behavioral terms - help companies ‘raise the Bar’ of performance expectations

16. Reward the person, not the job

17. Enable greater flexibility to move people laterally and encourages development

18. Help to identify gaps between current capabilities and future requirements

19. Help in focusing training and development efforts on areas with greatest need and/or impact

21. 16 What is a Competency Model? A group of competencies that describe successful performance for a particular organisation, function, level, role or job A competency model consists of: Competencies Proficiency Levels and Behavioural Indicators Measurement approach Rating scale

22. 17 Guidelines for Creating a Competency Model To Be Effective, a Competency Model Must: Be aligned with business & organization goals & needs Support the business strategy Be future focused Be established through a process that maximizes buy-in and validity Translate abstract concepts into observable behaviors and activities Be suitable for multiple applications (if necessary) Be selective, focused on a few competencies that are actually key for company or individuals performance Do not make so specific that it cannot be used elsewhere in the organization Source: Hewitt Associates

23. 18 Staffing Rewarding Organizing Learning Performing Alignment of the Competency Model with Business Business Results Clearly defined competencies integrate HR systems and business strategy Needed Capabilities People Requirements The Organizational Competency Model (Identifying, Defining & Scaling the required competencies) Competency profile Individual proficiency profile Integrated HR Strategy - Competency based People Systems Source: Hewitt Associates

24. 19 Staffing Rewarding Organizing Learning Performing Linking Competency Model to HR Systems

25. 20 Staffing – Selection and Recruitment Staffing Rewarding Organizing Learning Performing Why Use Competencies for “Staffing”? Establishes profiles outlining requirements for each job/role “Discovers” qualified candidates who do not fit the “stereotype” Competency based interviews reduce the risk of making a costly hiring mistake and increase the likelihood of identifying and selecting the right person for the right job Decreases unproductive downtime of new employees Decreases turnover among new employees Determines training needs at job entry Monitors performance of new employees Source: Hewitt Associates

26. 21 Organizing Staffing Rewarding Organizing Learning Performing Why Use Competencies for “Organizing”? Competency based profiling of roles within bands shows progression from level to level in the organization Roles can then be clustered into broad-bands where each band has a practical and clearly visible difference from others Helps reduce organizational hierarchy and establish a common framework for career development Using transferable competencies career tracks and the criteria for career transitions can be clearly defined by linking competencies to each career stage Actual role to role movement can be charted out and made available to employees to take career actions Source: Hewitt Associates

27. 22 Learning – Training and Career Development Staffing Rewarding Organizing Learning Performing Why Use Competencies for “Learning”? Captures the gap between current skill set of the workforce and required skill set Provides opportunity to identify/ develop specific training programmes by mapping them to competency gaps - identifies where the company should spend its training budget to achieve the greatest impact Puts career development responsibility and tools in the hands of the employee by making him responsible for his/ her own development - Required and achieved proficiency levels can be tracked by individual Gives the line managers a tool to empower them to develop people Source: Hewitt Associates

28. 23 Performing Staffing Rewarding Organizing Learning Performing Why Use Competencies for “Performing”? Links results, expectations, and behavioral objectives to the business plan Provides managers with guidelines and resources Provides employees with clear understanding of the behaviors and skills to use in accomplishing results - Agree on competencies to focus on as well as their desired proficiency levels during the performanceplanning process Establishes clear high performance standards - Competencies affect overall rating (along with achievement of results) Enables collection and proper analysis of factual data against the set standards Enables conducting of objective feedback meetings Provides direction with regard to specific areas of improvement Source: Hewitt Associates

29. 24 Rewarding Staffing Rewarding Organizing Learning Performing Why Use Competencies for “Rewarding”? Aligns pay systems to the goals/values of the organization Rewards an individual for acquiring valued skills and behaviors Serves as an input to merit pay increase decisions When competency ratings result in a shift in role, there is a pay implication linked to the role Some organizations provide recognition bonus (separate from short term incentives) for exemplary improvement/ demonstration of competencies Specific hot skill areas (especially in IT) are sometimes linked to hot skills bonuses Source: Hewitt Associates

31. Organization Gap Analysis based on Competencies

32. Identifying and Grooming Future Leaders based on Competencies

33. Competency-based Role Profiles

36. Pay increase based on competency development

37. Career Bands and Career Paths (Vertical & Horizontal) based on Competencies Source: Hewitt Associates

38. 26 In Short, The Promise of Competencies…. Provides consistent selection criteria R aises the bar of performance O ffers data to tailor development M easures “how” intellect is deployed I ntegrates all HR systems with business strategy around factors that contribute to organizational success S upports self-directed career planning E mphasizes people (versus job) capabilities Noble & Hewitt

39. 27 A look at HR Competencies – The HR Compass

40. 28 5 Key HR Competencies Strategic Contribution Personal Credibility HR Delivery Business Knowledge HR Technology Investing in HR Professionals through Training and Development for enhancing the HR competencies

41. 29 HR Competency Typology Behavioral Technical Functional Generic Source: NHRDN’s HR Compass Model

42. 30 Classified HR Competencies - Functional Competencies Functional Technical Competencies HR Planning & Staffing Performance Management Talent Management Compensation and Benefit Managing Culture, Design & Change ER and Labor Laws Building HR Strategy International HRM Functional Behavioral Competencies Service Orientation Personal Credibility Execution Excellence

43. 31 Classified HR Competencies - Generic Competencies Generic Behavioral Strategic Thinking & Alignment Change Orientation Networking Generic Technical Business Knowledge Financial Perspective

44. 32 The Max Story!!

45. 33 Multi-business corporate | Focused on people and service “ IN THE BUSINESS OF LIFE ” Life Insurance Protecting Life Healthcare Caring for Life Clinical ResearchImproving Life Health Insurance Enhances Life Vision: “To be one of India’s most admired corporates for service excellence” Max India: “In the Business of Life” Other Business Corporate Social Responsibility Focus on healthcare, children and the environment Niche high barrier polymer films & Leather Finishing Foils

49. Alignment of Individual Accountability with Business Results

51. 36 The GSK Story!!

52. 37 GSK Mission “Our global quest is to improve the quality of human life by enabling people to do more, feel better and live longer”

53. 38 Our quest is to facilitate a culture that enables the realisation of human potential “As a strategic business partner we strive to attract, retain and develop talent, champion change and manage performance to achieve our goals” GSK’s HR Mission

54. 39 GSK: Living the Spirit Performance with Integrity Organisational and individual trustworthiness People with Passion People are enabled and motivated to do their best work Innovation and Entrepreneurship Competitive advantage through well-executed ingenuity Sense of Urgency A nimble, focused, resilient and fast-learning organisation

55. 40 GSK: Living the Spirit Everyone Committed, Everyone Contributing All employees have opportunity to make a meaningful contribution and to succeed based on merit Accountability for Achievement Clear expectations; focus on the critical few. Performance matters and will be rewarded Alignment with GSK Interests One team, in single-minded pursuit of our mission, reflecting a common spirit and integrated strategies Develop Self and Others A norm of career-long learning agility across the organisation

56. Scores for Leadership Essentials Scores for Leadership Essentials

57. Identifying Competency Gap : Illustration Role: XXX Incumbent : Mr. A Competency Gap Role Requirement V/s Incumbent Profile Competencies A B C D C1 1 2 3 4 C2 1 2 3 4 C3 1 2 3 4 C4 1 2 3 4 C5 1 2 3 4 C6 1 2 3 4 Required Proficiency Levels for the Role Actual Proficiency Levels of the Incumbent Identifying Competency Gaps

58. 43 Leadership Development Clusters “Love ideas” (Innovative thinking) Be a leader (Leading people) Together (Engaging and developing others) Be bloody amazing (Achieving excellence) Source: GSK in collaboration with CHPD

59. 44 12 high performance behaviours Cluster HPB Information search Creating business solutions Flexible thinking Innovative thinking Engaging and developing others Teamwork Building relationships Developing people Influence Building confidence Communication Leading people (Leading and inspiring people) Enable and drive change Continuous improvement Customer focus Achieving excellence Source: GSK in collaboration with CHPD

60. 45 The Rating Scales GSK Competency Assessment Tool

61. 46 Talent Management At GSK “Grooming future Business Leaders & Global Managers in addition to functional expertise” GSK philosophy “Grow your own Timber” Global Talent Pool “Fit for Future” “Build Bench Strength” “Develop Self & others” ‘Career Sans Frontiers’ 5 Key Principles for Recruitment: Street Smart High levels of energy Care for People Team Player Sense of Humor

62. 47 Developing Talent : At GSK Talent Review Leadership Watch Expert Watch Ones to Watch Valued Solid Citizens Succession Planning Robust succession plan for IMT and their Direct Reports Integrated with Talent Review Feedback Key Talent : Mentoring By IMT members Executive Coaching 360 Degree Feedback

63. 48 Developing Talent : At GSK Executive Exchange Program CEO forum Development Programs Leadership Edge Accelerated Change Management Project-Based Assignments Global Assignments Cross-country postings Short term assignments Exchange programs 2 + 2 +2

64. 49 There are 4 kinds of people in this world: People who watch things happen… People who do not know what is happening… People to whom things happen… And a distinguished minority of… Winner Takes All… People who make things happen

65. Thank You