12,199 words dr. lindsay redpath - dtpr...
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Best Practices Implementing Sales Competency in a Matrix Organization
Evelyn Brisibe
Applied Project (APRJ-699)
Best Practices Implementing Sales Competency in a Matrix Organization
12,199 Words
Dr. Lindsay Redpath
April 10, 2010
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Best Practices Implementing Sales Competency in a Matrix Organization
Abstract
Companies around the world are cutting back their financial-incentive programs, but
few have used other ways of inspiring talent. One such ways is creating a
competency framework that can suite the business environment that individual
companies operate in.
Competency modeling is critical to the successful performance in targeted job
classifications and can serve as the foundation for gap-closing strategies of any
organization. To excel in a competitive market, sales and human resource functions
must look for new ways of developing and implementing sales competency models.
Implementing competencies in a matrix organization poses series of challenges to
Human Resources and Management as each structure or division within the
organization has a replication of functions in areas such as sales and finance.
This study reviews and discusses best practices in developing competency models/
framework and design that are adaptable to downstream sales effectiveness drivers
and align to the key business drivers of any organization operating in today’s
economic climate. It discusses best practices that help establish a high performance
culture that align talent management efforts in a matrix organization with a focus on
Halliburton.
Based on these findings, recommendations to successful implementation of
competencies for the sales job roles in a matrix organization were presented.
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Best Practices Implementing Sales Competency in a Matrix Organization
Table of contents
Abstract ................................................................................................. 2
Introduction ........................................................................................... 5
Organization’s Market Strategy & Sales Personnel ................................................. 5
Importance and Value of this Research .................................................................. 8
Literature Review ................................................................................ 11
Competency Model Development ......................................................................... 11
Selling based competencies .................................................................................. 14
Implementation approaches .................................................................................. 18
Research Design ................................................................................. 21
Statement of Results ........................................................................... 22
Analysis ............................................................................................... 23
Competency Model Development ......................................................................... 23
Competency Model ............................................................................................ 23
The Competency Modeling Approach ................................................................ 24
Developing a Competency ................................................................................. 27
Selling Based Competency ................................................................................... 32
Redesigning the competency model to support value based selling .................. 37
The four-point capability continuum ................................................................... 38
Leveraging the Competency Model to Drive Value- Based Selling Capability ... 38
Matrix Organization ............................................................................................... 39
Implementation Approaches .................................................................................. 40
Method 1 – Implementing Competency Mapping Process ................................. 40
Method 2 – Sales Skill and Sales Management Skill Competency Progress ..... 42
Method 3 – The University Approach ................................................................. 44
Method 4 - Leveraging the Competency Model ................................................. 46
Pitfalls of Implementation ...................................................................................... 47
Recommendations .............................................................................. 51
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Best Practices Implementing Sales Competency in a Matrix Organization
State Goal & Link to Business Results .................................................................. 52
Don’t Underestimate Change Management .......................................................... 52
The Model and the Sales Professional .................................................................. 53
The organization and the business impact ............................................................ 53
The Project, Project Team and Project Manager ................................................... 54
Conclusions ........................................................................................ 57
Appendices .......................................................................................... 59
1.0 Value Based Development & Communication ................................................. 59
2.0 Working down from the middle ........................................................................ 60
3.0 Integrated Solution .......................................................................................... 61
References ........................................................................................... 62
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Best Practices Implementing Sales Competency in a Matrix Organization
Introduction
Success begins with great people, enhanced through developing a simple, but
powerful strategic direction that gets results upon execution. The ability to drive
success in any organization requires competent human capital that can execute all
known strategic goals.
The major reason why customers patronize companies like Halliburton is because of
its key competitive differentiator – its people. The company’s ability to plan, make and
sell solutions is defined by the people who sell the solutions. Competency models
are a means of ensuring that a company’s investment in its human capital (people)
supports the achievement of its strategic goals. The popularity of competency models
to make wise decisions about selection and placement, as well as training and
development and performance management. (Lepsinger & Lucia, 1999).
Organization’s Market Strategy & Sales Personnel
Every day, companies think, and re-think, their plans for remaining competitive. In the
oil and gas industry, the market strategy of companies like Halliburton is to gain and
retain market share using technology as leverage, with the help of the qualified sales
teams that have localized experience in the market in which they operate. The
strategy and objective
1
for Halliburton is to consistently create a distinct competitive
advantage by achieving its key business results:
1. Creating sustainable value for our clients
2. Increasing revenues, market share and profitability
1
Halliburton BD Competency Implementation Project Feasibility Study Report dated January 6 2010.
Internal prepared by Tammaro, T. & Brisibe, E. (2010).
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3. Being recognized as having the best industry talent
Sales personnel are crucial to attaining these business results by increasing revenue
and profitability, whilst achieving individual career goals. The role, albeit the core job
description of the average sales personnel requires modeling the following behaviors
and skills:
A comprehensive understanding of Halliburton global sales processes and
sales skills, along with the product and services knowledge required for
success in the role
Clearly understands customer needs before presenting Halliburton solutions
Can clearly articulate Halliburton’s value/solution proposition
Leverages need-satisfaction selling to build mutually valued business
partnerships
Ability to tailor behavioral style to the needs of the customer
Develops financial terms that are mutually attractive for Halliburton and the
Customer
A competency model describes the particular combination of knowledge, skills, and
characteristics needed to effectively perform a role in an organization and is used as
a human resource tool for selection, training and development, appraisal and
succession planning.
Competency models can be an effective means of communicating organizations such
as Halliburton, business results and strategy to the sales workforce; including the
skills on which to focus their own performance. The model provides a tool for
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determining gaps in the skills of the workforce and developing industry recognized
training solutions.
Lepsinger & Lucia (1999) states that the implementation of a competency model into
the company’s selection system ensures that everyone involved in the hiring decision
is working from the same criteria shown to be related to effective performance; in
addition, when integrated into the performance system, would ensure that sales
personnel would receive the necessary coaching and feedback on the behaviors and
skills that have the strongest correlation to the success of the job, thereby achieving
the overall business results and market strategy. As a result, newly hired sales
associates are then able to get up to speed and reduce overall turnover (p. 2).
A well integrated competency based system provides sales personnel with the
necessary skills to create and maintain Halliburton overall competitive advantage in
each market segment.
Developing a sales superstar is not done overnight. It takes knowledge resulting from
proper training, motivation, practice and sales mentoring.
2
Implementing a competency model that aligns with both the overall Human Resource
(HR) objectives and Halliburton strategy is a herculean undertaking. The Human
Resource Management (HRM) team, the sales organization and the related HRM
system are crucial to the successful implementation of the competency based
2
Why Traditional Sales Training Doesn't Work http://www.achievexcorp.com/index.php?topic=ment
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processes, skills, tools and knowledge to exceed customer expectations and
differentiate Halliburton in the marketplace.
Importance and Value of this Research
The topic of this research is borne out of a need to answer the following questions
Why are competencies necessary for the sales workforce?
What are the best practices (if any) for implementing sales competencies?
What are the challenges or pitfalls of each of these practices?
What are the advantages of implementing in a matrix organization that has
locations in over 70 countries?
This project will attempt to answer the above questions whilst defining - on a high
level - widely applicable sales competency models with a well defined specific set of
requirements necessary to deliver world-class selling capability and increase an
organizations’ competitive advantage; one that is easily replicated throughout the
organization supporting easy visibility of success as well as lack of success.
The research would also identify and evaluate best practices for implementing sales
competencies in a matrix organization with emphasis on the services sector of the oil
and gas industry. To implement competencies successfully in any organization
requires certain criteria (AchieveGlobal, 2009):
A Clear Vision by Management
Compelling reason(s) for change presented to the whole organization
Leaders must demonstrate commitment
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WIIFM - What's In It for Me, employees should be able to see their individual
gains in the implementation
Knowledge Skills – required to implement and sustain the program
Processes – defined and in place to support and sustain the implementation
Accountability by everyone in the organization starting from the top
In addition, this study will highlight the common pitfalls in competency
implementation, how to align the implementation of strategic, mission critical sales
competencies
3
to ensure effective talent management in the business development
(sales) organization.
The project in its analysis will refer to Halliburton, an oil and gas services’ company
that has been in business for over ninety years in some 80 countries with 56,000
personnel (July 2009 estimate). “Halliburton is a startup company with a ninety year
old history” (Tania Tammaro
4
, December 2009); in regards to implementing
competencies for the business development (sales) organization.
In the Halliburton, implementation of sales competencies has been a major challenge
as plan for implementation has been in the works for over ten years, this project will
help understand the reasons why, and how these bottlenecks can be resolved with
reference to other similar organizations that have implemented competencies
recently within the last ten years.
3
Competency Definition from JSA Solutions (www.jsasolutions.com )
• “A measurable characteristic of a person that is related to success at work. This includes behavioral
skills, technical skills, attributes and attitudes”
•“The science of describing what differentiates an average performer from a superior performer”
– “Not to describe the performance (WHAT). Rather the HOW superior performance is achieved”
4
Tania Tammaro, Manager, Global Sales Development, Halliburton.
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Like most companies that operate in the oil and gas sector, Halliburton, is a matrix
organization
5
, borne out of necessity more than requirements, in addition, it is a
melting pot of cultures resulting from different mergers and corporate acquisitions
over the years.
The intention of this project is to provide an awareness of recent best practices in
competency development and implementation, as well as examine its specific
implementation in Halliburton. This project falls between two fields: human resources
training & development and project management.
5
A matrix organization is an organizational structure in which the project manager shares
responsibilities with functional managers for assigning priorities and for directing the work of persons
assigned to a project.
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Literature Review
The literature review will include three areas; (a) competency model development, (b)
implementation approaches, and (c) selling based competencies. The review is
limited to investigations of best practices that span the last ten years, with major
focus on sale competencies in matrix organizations.
Competency Model Development
Lucia & Lepsinger (1999) state that competency modeling is designed to help find
answers to questions such as “What skills and knowledge are necessary for strategic
success? Are we selecting people with these competencies in mind? Do our people
have the appropriate skills and knowledge, or is some kind training necessary? Are
these jobs aligned with culture and strategy of the organization?
By focusing primarily on cost-effectiveness (the norm for most organizations),
management may be taking a very narrow, short-run approach to organizational
effectiveness, in the long run, such a focus can also be cost-ineffective. For example,
an HR executive colleague claims that a major cause of turnover in one of their
branches is due to hassles over expense claims for managers and sales people.
Though the organization may save some money in the short run, the cost in terms of
loss of commitment and the resulting loss of competence due to the turnover is likely
to outweigh any short-term monetary gains. (HRMT, 2007)
Strategy and human resource planning linkage is affected by a number of influences,
including environmental factors such as intense competition, which often requires
productivity enhancements and workforce downsizing; and technological change,
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which requires different employee skills and changes in the workforce composition.
(Greer, 2001)
Employees require the necessary skills and behavioral abilities to impact the
company’s goals and bottom line. This requires the right competency model for each
level of the workforce to measure current and new within any given organization.
Competency as defined by HR Council (December 22 2009, http://hrcouncil.ca/hr-
toolkit/HRToolkitGlossary.cfm) is a set of knowledge, skills and abilities obtained
through formal or non-formal education, work experience, or other means, required to
perform a job.
Competencies are probably most closely related to abilities, however, in our craft, the
term ability normally means either the ability to do or a special talent; while
competencies relate more to expertise and experience. Competencies can be
thought of as the state or quality of being well qualified to perform a task, a person
gains a competency through education, training, experience, or natural abilities
(McClelland, D.C. 1973 and Northouse, Peter. 2004).
Competencies are context bound, they answer the question “What does a superior
performer look like in a specific setting?” In other words, effective competencies are
linked to a particular organizational target or goal. (Schooner, 2002)
On their website, a company called Cornerstones (2009) defines competencies as:
‘the knowledge, skills, behaviors, personal attributes and other characteristics that
are associated with or predictive of superior job performance’. Examples of
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competencies include Decision Making, Influence, Stress Tolerance and Teamwork.
The ability to pinpoint the characteristics that differentiate an average worker
from an exemplary worker is fundamental to a competency-based system.
The ability to rate the workforce of any organization is very crucial to its economic
welfare and future strategic success.
Dugin (2006) states that many organizations have struggled with implementing and
effectively using a competency based system. Understanding why this happened,
learning from the challenges and failures of others, is an important part of ensuring
future success.
In its research paper, the National Strategy to Secure Cyberspace (2003) states that
competency improves performance, manage organizational transformation and
accelerate employee development. These are key objectives to an organization’s
ability to stay competitive in a constantly changing business environment. Over the
past ten years, many companies and government agencies have addressed these
needs in part, by implementing competency modeling programs, strategic initiatives
aimed at aligning employee performance with job requirements. (p. 38.)
Human competence is the most important element, which leads to the success of any
business, the organization has to make a “buy or make choice.” It is not possible to
buy all talent externally; rather, organizations need to develop talent internally by
ensuring that an employee holding a particular job position is equipped with the right
kind of skills at a right time and cost. It is due to this reason that competency
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mapping has gained so much relevance in the present scenario. (Sonam Bhatia,
2009)
In a competency-based system there are difficult decisions that need to be made
(explicitly and transparently) during selection and training, the relationship between
skill acquisition and aptitude is important to consider in developing competency
based training. In other contexts, aptitudes have been defined as any learner
characteristic, which might have relevance to a learning outcome. (Tobias, 1987)
Selling based competencies
ZS Associates states that Customer access to high quality decision-making
information, commoditization of products, and numerous sources of supply have
combined to empower customers. Today customers are no longer willing to listen to
the salesperson’s description of how the marketing department defines value, actual
sales competency is the ‘Act of communicating the Business Reason to Meet’ once
you are given the opportunity to have a face-to-face or telephone conversation with
your intended target prospect. (Jeff Hardesty, 2009).
With “make and sell” marketing becoming obsolete, successful sales and marketing
now relies on learning and responding to customer needs. The role of sales has
evolved from communicating a predefined value proposition, to working with the
customer to create their own unique value proposition, yet most sales forces have not
made this transition. To survive and prosper in this new environment, sales force
management and personnel must recognize and accept that the customer — not the
marketing department — defines the value proposition.
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Sales is no longer about doing a good job of communicating features and benefits,
It’s about working with each customer to create value as defined by that same
customer. In the current economic environment, clients are putting expenditures
under the microscope. They want to know what they are getting for their money.
For organizations to succeed in today's competitive and complex environment,
employees at all levels need to develop and demonstrate "the personal capabilities,
underlying characteristics and behaviors that drive superior performance at work."
Since their introduction two decades ago, competency models and competency-
based HRM and HRD processes have become the 'best practice' foundation of high-
quality business focused HR for thousands of international business and public
sector organizations.
Competencies have stood the test of time - and are now the required approach for
organizations seeking to integrate their HR practice with the strategic and operational
needs of the organization. (Global Competency Development, 2009)
To defend prices, salespeople must be able to show customers how a company’s
products and services are going to deliver measurable dollars-and-cents benefit, in
other words, salespeople must learn to speak the language of money. The good
news is that calculating and communicating dollars-and-cents benefit is a learnable
skill. (Channel Focus, Issue 29)
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Success in business today evolves around understanding and addressing customer
needs. Market-driven philosophies suggest that companies implement strategies
focusing on customer value and satisfaction in order to develop the ongoing
relationships needed to facilitate their long-term competitiveness. Value-added selling
has materialized as a key response to increased customer focus (Manning and
Reece 2006).
Value Based selling
6
is a key strategy for addressing increased competition, more
sophisticated buyers, and more value-propositions that additionally, are complex. The
heightened importance of this capability is leading to an ongoing renaissance in sales
that continues to elevate the status of the profession while simultaneously
demanding new competencies. (Moorman & Tousi, 2009).
Changing the way a large, dispersed sales team operates is difficult, quick
implementation of a sales program like competency and assessment, and making it
stick, is even harder.
Rather than relying on a central team of change leaders and rolling out a program in
sequence, from area to area, the company adopted a phased “university approach,”
which enabled it to launch the program in all areas simultaneously. (Leibowitz &
Vonwiller, 2008).
6
Value based selling is not another trendy sales tip, trick or negotiating technique. But rather, value
based selling is a proven set of skills and methods for calculating and communicating the dollars-and-
cents benefit you can deliver to your customers. http://www.indusperfgrp.com/value.htm
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There are different approaches to implementing sales competency, each of these will
be analyzed in the course of this research, namely the university approach by
McKinsey which enables a launch of the program in all areas simultaneously; ZS
Associates proffers an overall plan of drivers that was launched simultaneously with
the process of evaluation by sales leaders of their direct reports. As already
mentioned in this section, however, in a full matrix organization, most sales are
replicated in silos and reported to the operations head. Hence, evaluation in this case
would prove very challenging since operation leaders typically do not sell to
customers.
Durgin (2006), of Human Capital Institute, mentions phase implementation by groups
using two options – who needs it the most? And where is management the most
supportive?
Schoonover (2002), studies of competency initiatives indicate that successful
programs use more integrated approaches to competency implementation, provide
tools and job aids to managers and team members and apply change management
principles during rolling out (Schoonover, 1986, 1988, 1996). Others, such as Dubois
(1993), also advocate for more systemic, comprehensive approaches to competency
implementation.
In summary as commented by (Hay Resources Direct, 2009), there are certain sales
factors that would be considered during this research that impact the need for
Competencies, these key factors differentiate sales environments from each other:
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The complexity of the products and services sold by the sales force. The more
complex the sales offerings, the more information sales personnel need in
order for them to serve as educators and trusted advisors to their customers.
They may also need to network internally to ensure organizational alignment in
meeting customer needs.
The complexity of the target-customer organizations and the length of the
sales cycle. The more complex the customer, the greater the difficulty in
identifying the decision-making network and exerting influence effectively
within that organization. The longer the sales cycle, the greater the need to
nurture, nudge, and influence the process and people over time.
Implementation approaches
Before we begin discussing the methodology that would be employed in
implementing competencies, Jim Kasper (p 129, 2005) mentions four success
makers or breakers, including establishment of quantifiable expectations, current
sales culture and process, top sales management undying support, and sales
management skills competency progression.
Most organizations have developed unique and describable cultures, these cultures
are reflected in numerous factors, including, but not limited to: shared values, norms,
beliefs and expectations; policies and procedures; view of authority relationships; and
work ethic and work hours. In a classic functional organization, employees are
grouped according to functions such as marketing and engineering. However, in a
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matrix organization it is a blend of functional and projectized
7
characteristics.
(PMBOK Guide, 2004, p. 27-29)
As these groups operated autonomously, it was not unusual to find functions
replicated in each silo. (Owens, 2007).
In such organizations, sales personnel are collocated within the product lines that
they represent to customers, with a solid line reporting to the head, which in this case
is the operations lead. Account managers are collocated outside this reporting line
with dotted lines to the sales personnel, accountability for their performance
management mandated by their respective product line operations lead.
Implementing a far reaching “change management-type” project in matrix
organization will require several pieces to be in place, as mentioned in the
introduction section of this paper (page 3). On his web site, Jim Owens (2007)
mentioned the old saying, “power corrupts, and absolute power corrupts absolutely”.
This is very prevalent in matrix organizations.
In each type of matrix organization there is a struggle for power, requiring some
means of bringing this into balance, otherwise one group will dominate the other, to
the detriment of the project; ultimately, this would also be harmful to the organization
as a whole, although individual projects or functional areas may blossom for a time.
An example of this would be a very dominant project manager that bullies the
functional managers into always giving him the best team members for his projects.
7
In a projectized, team members are collocated. (PMBOK Guide, 2004)
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In order to make a sweeping change in current competency model and assessment
criteria, key stakeholders need to be highly involved with intense collaborative work
between the “internal customers”, suppliers and stakeholders. (DeCarlo, 2009) The
concurrent model of development and implementation of the competency model
works well, with different teams within each “silo” working in parallel on components
of the deliverable, and closely coordinating their efforts so the varied pieces integrate.
Schoonover (2002) comments that indeed, one of the most common problems with
implementing competency based systems is the lack of a plan and commitment to
large scale change.
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Research Design
This is a conceptual paper with comprehensive literature reviewed on the topic of
consideration. Schnoonover
8
has found variation in the implementation practices
between organizations. Due to this variation, he analyzed six characteristics analyzed
across the identified practices.
This paper examines human resources training and development literature using
Keyword Analysis, a technique developed in the field of Corpus Linguistics, a branch
of Applied Linguistics focusing on the computational analysis of corpora.
In this study, four subject corpora are used to create keyword lists, each one
representing a five year portion of either PMJ, Human Resources Council website or
other human resource training and development websites and whitepapers.
Key phrases proposed for this study: Sales Competency, Competency
Implementation, Best Practices Competency Implementation and Project
Implementation in a Matrix Organization.
In addition, the content analysis design is preferred for identifying specific
characteristics of a body or material. A tabulation of frequency is provided on the best
practices under each identified category – phased, university and simultaneous
implementations based on the type of organization under review.
8
Dr. Stephen Schoonover, President, Schoonover Associates, Inc. www.schoonover.com
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Statement of Results
The current tumultuous global economy demands that organizations examine how
sales team performance can be accelerated to increase revenue. Hence, the results
of this study are vital.
The anticipated results will be a concise analysis of the secondary database from
identified subject matter experts in the field of human resource development with
particular emphasis on best practices in the implementation of sales competency.
This result would reflect best practices and rationale behind each one, their
application to a sales workforce dispersed in silos in a variety of countries in a matrix
environment.
The result will also show which would be a best fit for Halliburton’s proposed
program, the implementation of sales competency in 76 countries within the next
three years.
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Analysis
Analysis of this research is based on different papers and textbooks written on the
main theme, filtered into different sections - Competency Model Development, Selling
Based Competency, as well as Matrix Organizations and Implementation
Approaches. Each section will highlight the text researched, the analysis and is then
followed by limitations of the study.
Competency Model Development
Competency Model
A competency model describes the particular combination of knowledge; skills and
characteristics needed to effectively perform a role in an organization and is used as
a human resource tool for selection, training development, appraisal and succession
planning. (Lucia & Lepsinger, 2000. pp 5)
Competency Model integrated in a company’s selection system to ensure that
everyone involved in decision making is working from the same assessment criteria
shown to be related to measuring effective performance. Secondly, the model is
incorporated into the performance management system to make certain that
personnel, albeit sales people, would receive coaching and feedback on the
behaviors and skills that have the highest correlation to success on the job. As a
result, for example, a newly hired sales associate gets up to speed faster, with better
and increasing productivity, resulting in reduced turnover.
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Competency modeling has been around for a long time. Though important in the
critical resource management in any organization, it is seldom a key topic at
management meetings, unless HR or another business department highlights the
human capital issues.
As stated by Lucia and Lepsinger
i
, in today’s global and fiercely competitive business
world, state of the art technology, superior products, and a steady source of capital
are entry tickets into the market place. Many organizations find that the key to gaining
competitive edge is the ability of their workforce to maximize these advantages. Put
simply, a company’s technological tools are only as useful as its employees’ ability to
employ them; the perceived value of a product is determined in part by how
effectively its benefits are communicated.
The behaviors necessary for effective performance vary from one business to
another as well as from one role to another. Thus, many companies have begun
using competency models to help them identify the essential skills, knowledge and
personal characteristics needed for successful performance in a job and to ensure
that human resource systems focus on their development.
The Competency Modeling Approach
A brief introduction to Competency Modeling is laid out by Mansfield (2000), having
originated some 30 years ago, it has since become the main stream in human
resource management. Over this period, the methodology has evolved, partly in
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response to organizational and work place changes, but also in response to user
needs.
Today, more than half of the Fortune 500 companies use competency modeling.
Many organizations took a ‘one size fits all’ approach to competency modeling by
developing one version, usually for leaders, then applying it to a large set of jobs,
sometimes even non-managerial ones. Other organizations have moved in the
opposite direction by simultaneously developing multiple competency models for
different jobs within an organization. (pp.3, 6)
For a competency model to be useful as possible, Lucia & Lespinger (1999) stated
that it should be developed with a specific role in mind. For this reason, the best off
the shelf “generic” competency model, based on very high-quality research will be
more effective if it has been customized. By clarifying performance expectations,
competency models also serve individual interests. Specific job requirements provide
a clear understanding of what is expected, after which targeted training can enhance
personal development.
Figure 1 below, from Lucia & Lespinger (1999), depicts the core elements of a
competency model, built on inherent talents incorporating skills, along with
knowledge that can be acquired through learning, effort and experience. At the top of
the pyramid are behaviors that manifest all innate and acquired abilities.
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Skills can range from concrete proficiencies, such as the ability to operate a machine,
to writing a sentence that clearly presents an idea, to a far less tangible capability like
that of strategic thinking or the ability to influence others. Naturally, any job requires a
mixture of skills that may seem more or less measurable depending on their degree
of concreteness.
In addition, knowledge can be highly tangible and measurable: “Do you know the
proper pressure setting during a blending stage of product production?” or a far more
complex matter: “Does an understanding of the workings of the Brazilian financial
market help clarify how it is likely to be affected by various global developments?”
Characteristics can also include personality traits that demonstrate a particular way of
relating to the external environment. Obviously, aptitude and basic personality traits
Figure 1 - Competency Pyramid
Behaviors
Skills
Knowledge
Aptitude
Personal Characteristics
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are to a certain extent innate to each individual. Aptitude cannot be taught for
mechanical things, however, rote skill can be developed.
Developing a Competency
Lucia & Lespinger (1999) explains that when developing a competency model for any
organization, it is crucial to have the key stakeholders involved in the process to yield
holistic, relevant implementable model.
This process consists of interviews, questionnaires, focus groups or a combination of
both, addressing concrete, specific behaviors that can be taught or altered through
training, coaching and other developmental approaches.
Involving key stakeholders in the development of the competency model facilitates
the validation component of a competency model study. When feasible, top
performers should be enlisted to validate that the behaviors contained in the model
accurately describe the way these individuals actually carry out their work.
Determining the Method of Approach
Lucia and Lepsinger (1999) provide two general approaches for developing
competency models (pp. 53): (1) starting from scratch and (2) starting with a
validated model.
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This step would be beneficial to initial considerations on how to build a competency
model, tying into Mansfield’s first question #1 that the HR professional should
consider for planning and implementation.
Starting from scratch is a method that involves developing a competency model from
nothing, using information collected internally, from interviews with incumbents and
informed observers, focus groups and on the job observations. This step is time
consuming but yields results that are role and company specific.
Starting with a validated competency model is developing a competency that is
parallels the first, the primary difference is the use of a validated model as a starting
point instead of extensive interviews and observations of incumbents on the job. This
method is suited for quick turnaround implementation and for certain roles such as
those in management and leadership, where the result is very generic and may not
highlight the technical skills and knowledge required for success.
In addition, “rather than “starting from scratch”, companies today can draw upon
proven competency model frameworks for nearly any family of jobs, they can select
from among well established lists of competencies, choose the competencies that fit
their organizations’ needs and produce sound defensible competency models quickly
and efficiently” (Talent Technology & Deborah K. Smith, Best Practices Series)
Mansfield (2000) gives a high level laundry list to the HR professional responsible for
planning and implementation. There are practical considerations that affect the
design of the project, the format and content of the competency model and the
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success of the project implementation, the following are key seven questions that
may be useful to consider:
1. Application of the initial model
a. Would the competency be built around the selling process and
incorporated into the sales training programme? If this is the case, the
defining sales process for all types of opportunities – small, mid to
large would be crucial.
b. Would the final model be used to assess current job-holders
demonstration of the competencies as part of the performance
appraisal? Then it is immensely important to include behavioral
descriptors of both less effective as well as effective behaviors.
c. Ensure that resources for the initial model building stage will be
available.
2. The requirement of key users of the model
Planning a competency model requires identifying the most important
stakeholders along with consideration of how the model will be used. A matrix
linking competencies within the major jobs tasks of sale professionals would
be very helpful, top executives want competency models to be aligned with
the organization’s strategy and most important values,
3. Key stakeholders involved
Careful consideration should be given on how and when to involve people
most effectively, for a sales competency model, those involved would be both
the sales representatives and their managers. Including them as a focus
group to help define the complex sales process, which significantly help
define the competency model?
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4. Breadth of data collection
The extent of the data collection depends on the significance of the job for
which the model is being constructed, the budget for the project and the
intended uses of the model. Almost every model building project includes a
resource panel or group meeting of subject matter experts. For critical job
functions, it is important to include critical event interviews with superior
performers.
5. Balance research with intuitive approach
The principal advantage of a research approach is the validity if the resulting
model. This method can accurately identify the behaviors currently
demonstrated by superior performers and the beliefs of job holders along with
other subject matter experts about what is currently important to superior
performance.
6. Behavioral descriptors
There are three main options, behavioral indicators,
9
evaluative competency
levels
10
and competency labels describing job requirements
11
.
7. Integrating future competency models
With approval from management, the HR professional must consider the ‘one
size fits all’ method or the multiple model tactics. The one size fits all
approach is used when management wants to drive organizational change by
9
Behavioral indicators are descriptions of behaviors and thought patterns that are hypothesized to
contribute to superior performance. They describe the ways which an ability or trait is demonstrated.
Example the Interpersonal awareness could be described as the ability to notice, interpret and
anticipate others concerns and feelings. (Mansfield, pp 24-25)
10
Evaluative competency levels is a method of evaluation to ascertain the required level of
competence in terms of knowledge, skills and personal characteristics and vice-versa. COMPETENCY
LEVEL EVALUATION (PTK) http://www.um.edu.my/_system/media//staff_benefits/ptk.pdf March 3
2010.
11
Creating levels describing the extent to which a competency is required for a particular job.
(Mansfield, pp 28)
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sending a strong message about the values and skills needed for the future.
This has its short term gains and long term shortfalls. However, the multiple
approaches come from a model of generic competencies, customizing to tailor
definitions and behavioral descriptors so that the language is consistent with
concepts and terminology already used in the organization.
There are four main steps in the competency model or framework development
process. Each step has key actions that will encourage people to accept and use the
final product
1. Preparation
a. Defining the purpose, determining the needs of each role in the
targeted population for success, and then defining the purpose for the
designing the model.
b. Create a competency model team that includes the target audience of
the organization that will use the model. As much as possible the team
should be diverse both in length of service in the organization and
industry.
2. Collect information a key step or phase of designing a model to achieve a
more accurate model. Techniques used in this step vary, observation,
interviewing the incumbents in the targeted roles, survey and analysis of the
work performed by the roles covered by the model currently. As data is
collected, each role must be documented in behavioral statements
3. Building the model, this step involves categorizing attributes, behaviors and
skills into competencies. Group the statements into subgroups, refine them
then identify each specific competency to represent each of the smaller
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subgroups of behaviors. Then key to this step is the validation of the
competencies by key stakeholders and the sponsors of the development and
implementation of the competencies.
4. Implement the finalized and approved model.
Selling Based Competency
As the old saying goes, "you can't manage what you don't measure." According to
Aberdeen’s report, Sales Effectiveness: Pathways to Productivity (2008), “only 45
percent of the Industry Average companies have defined performance metrics in
place designed to measure the effectiveness of the sales department, compared to
76 percent of the Best-in-Class. In order to garner the support of senior management
and receive the proper resources, companies must demonstrate the benefits, or lack
thereof, that defined sales processes and technology implementation have on the
company's bottom line.
Nearly a quarter (24 percent) of the Industry Average companies that do measure
sales performance do so on a monthly basis only, only 16 percent of the industry
average measure sales performance in real-time or on a daily basis, compared to 30
percent of the Best-in-Class that track sales performance over the same time period.
The pathway to sales productivity can only be successfully navigated once
businesses understand where the roadblocks lie.”
Competencies are context bound which enable the sales organization measuring and
performance and enabling development where there are gaps. Schnoover (2002)
answers the question “what does a superior performer look like in a specific setting?”
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In other words, effective competencies are linked to a particular organizational target
or goal. Therefore, depending on the context, models geared toward –
The total organization (e.g. core competencies or values)
An entire function (e.g. finance, sales, human resources)
A career level or band (e.g. individual contributor, team leader, mid level
manager, strategist or executive)
A specific job (compensation analyst)
The sales force typically operates independently, sometimes outside company walls,
with less direct supervision and without the continuous stream of managerial
feedback that other individuals within an organization receive. Clear expectations and
models of success are important and necessary for salespeople. Implementing the
right roles and establishing the right competency models and performance
incentives—while continuously evolving coaching and training programs to support
those goals—are critical to long-term success.
12
Schnoover (2002), state the two critical factors that should be considered in
developing these competencies – the length of the models and the degree of
complexity and detail described in behavioral indicators. Frequently, competency
initiatives fail because models are too long and too detailed or because organizations
spend too much time and resources researching editing behaviors. Consequently,
organizations fail to provide a simple framework to users in a timely manner. Models
12
ZS Associates,
http://www.zsassociates.com/services_solutions/sales/sales_performance_management/ March 3,
2010
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that work best follow the 80-20 rule. They provide 20% of behaviors that drive 80% of
excellent performance. (pp.2)
Moorman & Tousi (2008) reiterates the need of competency approach is required of
today’s sales professional who is selling in a highly competitive with more buyers that
are sophisticated and more complex value-proposition structures are forcing sales
organizations to significantly improve their sales strategies.
As the figure below illustrates, when sales leaders identify and redesign
competencies that specifically support their value-based selling strategy, they are
taking an important step toward maximizing their sales force’s ability to execute.
Expectations-setting, hiring, training, coaching, performance reviews and reward
systems all rely on the right competency model.
Effective competency model design and implementation are the foundation for
downstream sales capability drivers.
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Figure 2 - Sales Force Strategy
Based on the findings by Aberdeen in its report titled Sales Effectiveness: Pathways
to Productivity (2008), it suggests that companies truly impact sales effectiveness;
there must be an organizational focus on sales structure and compensation
management, lead management, and the use of sales automation solutions. By
achieving harmony between these three things, Best-in-Class companies are able to
improve key sales metrics.
For example, nearly two-thirds (65 percent) of Best-in-Class companies experience
year-over-year improvement in sales contribution margin, compared to 11 percent of
Laggards. As a new age of customers becomes increasingly adept at accessing
company information and better understanding the competitive landscape,
businesses are forced to equip their sales forces with the tools that enable them to
work smarter, not harder.
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The business impact of a well designed and well implemented competency model is
significant. Hiring, training, coaching, performance reviews and actions, and reward
systems are powerful drivers of sales force capabilities.
An illuminating exercise is to have each member of the sales leadership team
individually estimate the revenue and impact that likely would result from getting all of
these elements aligned to cumulatively drive the explicit knowledge, behaviors and
skills most importantly to the organization’s sales long and short term strategy.
Moorman & Tousi (2008), the most effective sales force’ competency models, share
two characteristics:
1. They are based on a limited number of dimensions specific to the company’s
value proposition
13
and sales process strategies
2. They present a clear, objective and specific picture of knowledge, behaviors
and skills for each dimension along a continuum.
Moorman & Tousi (2008), designing such sales competency models for value based
sales strategies requires expertise in value-based selling and its specific knowledge,
behavior and skills.
13
Value proposition is the implicit promise a company makes to its customers to deliver a particular
combination of values – price, quality, performance, selection, convenience and so on. Treacy, M &
Wiersma, F. (1997) Discipline of Market Leaders. Basic Books. New York, USA. Page xii.
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Redesigning the competency model to support value based selling
Redesigning the competency model to support value based selling begins with a
determination of the dimensions to be incorporated in into the model. In a sales
competency model, it is critical that these dimensions be specific to the company’s
sales strategy. The figure below shows the differences between the new value-based
selling dimensions and the old generic dimensions
Figure 3 - Value Based Selling Dimensions vs. Old Generic Dimensions
The traditional dimensions incorporated into sales competency are insufficient for
today’s value-based sales strategies. The old model led to superficial descriptions of
required knowledge, behaviors and skills, however failed to depict the connections
required for success.
Redesigning the competency model around the sales strategy addressed these
problems. It reduced the model to focus on those essentials to success, which
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agrees with one of Schoonover’s critical factors of creating competency models, the
length, this approach allows for succinct and specific about the knowledge required
at each stage in the sales process while also reinforcing the sales process itself.
The four-point capability continuum
Moorman & Tousi (2008), the second critical element to developing the sales
competency model is painting a clear and objective picture of the knowledge,
behaviors and skills for each competency dimension. The objective is to best enable
salespeople and managers to easily and accurately assess their current capabilities,
and to specify the requirements for reaching the next level.
According to Moorman & Tousi (2008), the capability continuum should be defined at
four points: pre-basic, basic, advanced and expert. More than four dimensions lead’s
to difficulty in uniquely describing each level and results in unnecessary complexity in
the model. A four-point model also aligns well with describing the capability
continuum associated with the evolution from basic field-level sales roles, to key
account roles, to strategic account roles. Consequently, the same competency model
can often be used for all sales roles. The figure in Appendix 1.0 defines the four point
competency model.
Leveraging the Competency Model to Drive Value- Based Selling
Capability
Assuming an effective sales competency model has been designed, the next hurdle
is to make it operational. The imperative when implementing the competency model
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is to create a synergistic, reinforcing effect between the competency model and the
downstream drivers. As depicted earlier, this is accomplished by consistently and
explicitly incorporating the competency model into each sales driver. The greater the
alignment between and across drivers, the greater the impact each driver will have
on producing the knowledge, behaviors and skills most critical to the organization’s
sales effectiveness.
Matrix Organization
Until the 1970's, typical, large organizations tended to function in "silos", logical
divisions where essentially isolated groups of workers reported to a line manager or
functional manager. Imagine columns on a page with a line manager at the top of
each column and a group of workers inside each column under the manager. As
these groups operated autonomously, it was not unusual to find functions replicated
in each silo. (Jim Owen, 2007). Most organizations that have a matrix type-
organization have their sales organization located within the divisions and
product/services lines. This type of organizations poses certain challenges to projects
like the implementation of competencies for the sales organizations.
So when a project manager starts a new project, they discuss their staffing
requirement with the functional managers and the functional managers try to make
the resources available (and provide training for them, where necessary). Usually the
functional managers will draw up plans and charts (e.g. Gantt charts) of how “their
people” will fit inside projects, and they might move staff between projects and project
managers as required (after consulting with the project managers).
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Effectively the PM and the functional managers work together, but overall control of
everything project-related is the function of the project manager -- so in a strong
matrix, the project manager is the stronger party. In this case, the resources would be
the managers who will be doing the assessments and the necessary coaching
required.
Implementation Approaches
The following are different methods and approaches to implementing sales
competencies.
Method 1 – Implementing Competency Mapping Process
Bhatia, S. (2009), Competency mapping is the process of finding out the difference
between the desired level of competency required by a particular job position and
actual level of competency possessed by the employee holding that job position. The
process of competency mapping can be used in recruitment and selection, training
and development, performance appraisal, succession planning, coaching and various
other areas of HR.
The following as steps in the competency mapping and implementation process:
Identify the positions to be studied - The first step in competency mapping is to
identify the job positions to be studied and while doing competency mapping we need
to keep in mind that it is done for job positions and not for persons holding job
position.
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Job analysis - The next step is to conduct the job analysis of the selected job
position through observation, questionnaire, interview method, diary method, log
record, critical incident method or with the help of panel of experts.
Prepare job description and job specification to identify the KRA’ s and KPA’s: Based
on the information taken through the job analysis, prepare competency based job
description and job specification and also identify the KRA’s and KPA’s for each job
position.
Identify the required competencies - Based on identifying the KRA’s and the KPA’s
for each job position identify 6-7 most crucial competencies required to do a job.
Preparing a competency dictionary - Once the competencies identified, the next
step is to prepare a competency dictionary. For this, the competency has to be
defined first and then using the behaviorally anchored rating scales the competencies
need to be classified into 3-level or 5-level rating scale.
Preparing a competency matrix - Once the dictionary is prepared and the
classification done for each competency the next step is to prepare competency
matrix clearly showing the level of competency required for each job position against
each competency. The level required for each job position may be decided either by
a brainstorming session with the HR and the management or through 360 degree
feedback depending upon the suitability of the organization.
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Measuring the gaps - Once the matrix is designed the next step is to check the
deviation between the required level of competency and the actual level of
competency possessed by the employee holding a particular job position. The ratings
may be given either by the brainstorming session or through 360 degree feedback
depending upon the suitability of organization.
Method 2 – Sales Skill and Sales Management Skill Competency
Progress
This implementation approach is culled from Jim Kasper in his book titled creating the
#1 sales force: what it takes to transform your sales culture.
The actual physical deliverables of a sales skills competency progression are
numerous. They include: uniform customized sales skills practices; standardized
sales management practices; formalized sales and sales management certification
programs; multi-competency level customized sales and sales management training
curriculum; sales and sales management behavioral benchmarks; individual personal
development tracks; and most importantly, quantitative matrix and measurement
methods for determining skill level matriculation and calculating return-on-investment.
Four criteria will insure successful implementation of a sales skill and sales
management skill competency progression. The first is the establishment of
quantifiable expectations from each competency area. Secondly, the entire program
must be customized to your organization’s current sales culture and process. Thirdly,
the life of this project is predicated upon top sales management’s undying support.
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Finally, successful execution necessitates beginning with sales management skills;
thereby sales management can implement newly enhanced competencies to support
the transition within the sales team. Absence of any one of the aforementioned
factors will severely jeopardize your chances of success.
Time commitment is one facet of the sales skill and sales management skill
competency model that is always of paramount concern to sales executives and
sales management. Due to the very nature of a sales executive’s job responsibilities,
not the least of which is constant travel, the entire development process requires
relatively little time commitment at this level. Once the strategic aspects, goals and
objectives, are derived, most sales executives find that this is a rather painless
approach. The methodology is designed to keep second tier sales management’s
time to a minimum and the field sales and insides sales teams in front of the
customer, not laboring over hours of surveys and assessments.
After the decision-making stage, many organizations hand over the tracking, follow-
up and collaborative development pieces to their HR and training departments. The
timeline for completion of each project varies considerably by the actual physical size
and geographic distribution of a sales team. Obviously, the larger and more
geographically dispersed, the more time is required. The average amount of time
from decision to completion of the model development is between 8 and 9 months.
The entire certification process, from model development to certification, is usually 18
to 20 months. Be aware that there are a number of ways to compress this timeline.
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Another recurrent question is, “How applicable is a sales and sales management
skill competency progression on a global basis?” In today’s global marketplace,
it is understandable why this question is so common. Sales and sales management
skill competency progression models deal with enhancing the skills of establishing
and maintaining personal and business relationships and due to the fact that
relationship building varies dramatically across ethnic cultures, generally speaking,
the models need to be modified to respective ethnicity. This does imply that the
methodology changes, but means that local customs and values affect the
certification requirements and training curriculum.
Finally, the importance of certification cannot be overemphasized. Certification
signifies successful completion of a rigid and quantitatively measured “best practices”
competency progression indigenous to your organization. It becomes the pinnacle of
accomplishment in your firm. It means that your organization has set the ultimate
standard for professional sales and sales management achievement and it may well
become the benchmark for your industry. It means your customers are working with
the best in their field.
Method 3 – The University Approach
This approach was introduced in the Mckinsey Report by Leibowitz and Vonwiller,
Rapid transformation of a sales force (August 2008). Taking a phased “university
approach” to change helped one company transform its sales force—successfully—in
6 months rather than the usual 12 to 24. This approach was used on a case study on
a large company and details below help to throw more light on the university
approach.
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Situation - Changing the way a large, dispersed sales team operates is hard, and
implementing a sales program quickly and making it stick is even harder, yet that was
the challenge facing a direct-service company’s commercial-business unit, which had
20 area managers, 200 sales managers, and 2,000 sales representatives spread
across North America. The unit was struggling with high staff turnover and poor
performance: each year, for example, a third of the sales leads coming in through the
call center—roughly 100,000 calls—were never followed up on, because of weak
management tools and processes.
Complication - Investors were looking for quick results, so the company’s senior
leaders insisted on a program that would raise sales almost immediately. They
therefore decided to implement it in 6 months rather than the 12 to 24 typical for a
project of this scale. Additionally, in recent years the company had conducted a
number of sales-improvement programs, with mixed success, which suggested that
employees might be reluctant to attempt another complex change program.
Resolution - Rather than relying on a central team of change leaders and rolling out
the program in sequence, from area to area, the company adopted a phased
“university approach,” which enabled it to launch the program in all areas
simultaneously. The 20 area managers, who had a pivotal role in the sales hierarchy,
attended central “academies” along with sales managers. Here they all learned to
use new tools and processes, including standardized performance metrics,
diagnostic reports, and a custom-designed tool to track and promote accountability
for every sales lead. Once the area managers “graduated” from the academy, they
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rolled out the program in phases, starting with high-priority markets in their own
areas. Sales managers and the reps they supervised applied the new tools.
To ensure that these changes endured, the company instituted recurring structured-
coaching sessions where area managers used the performance tools to evaluate
sales managers and to pinpoint and address their weaknesses. The sales managers
in turn coached their reps in the same way. Both the tools and the coaching sessions
played a crucial role in the success of the program, which was implemented in most
markets within the required six months (see Appendix 2.0). By the end of a year, the
unit had increased its lead-conversion rates by 20 percent and the number of self-
generated leads by 25 percent.
Implications - Just having the right tools won’t force quick or lasting change in the
way a large and dispersed sales force operates. However, companies can achieve
that kind of transformation by identifying an appropriate group of managers,
distributed across the organization, to take the lead in promoting change and by
adopting the university approach, in which trainees in turn train the employees who
report to them.
Method 4 - Leveraging the Competency Model
The last method reviewed in this study was the one presented by ZS Associates
(Moorman & Tousi) in their white paper, Leveraging Competency Model (2008), their
steps evolved from a case study by Leadco to implementing model fro sales
personnel applying the value based methodology.
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1. A core team was formed to develop each driver. This team included traditional
owners of that driver, along with a key member of the sales leadership and
consulting team responsible for overseeing successful implementation of the
value-based selling transformation. These same key members of the sales
leadership and consulting team sat on all core teams.
2. Each of the core teams received an extensive briefing on the vision, the value-
based selling strategy, and the value-based selling competency model. They
also received an overview of successful value-based selling transformation
case examples with emphasis on their particular driver.
3. Each core team redesigned its driver and developed an associated
implementation plan. Throughout, significant emphasis was placed on
ensuring tight alignment with the new competency model and vision.
4. The overall rollout plan of the drivers was developed by a sub-team that cut
across all core teams. The goal was to ensure that interdependencies
between the drivers were addressed, and that the rollout plan was aggressive
while not overwhelming the sales organization.
Pitfalls of Implementation
Durgin (2006) in his report highlighted some common pitfalls during and after
implementation, these need to be considered regardless of the methods used by the
organization, which is illustrated
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Organizations want a quick fix, so they try to build the competency all at once.
They fail to have a maintenance strategy after the implementation is completed
They don’t actually use it after the implementation; they only do so as mere formality
to get the implementation completed.
Tricia Duplika, Vice President of Services at Workstream(2006), suggests that to
counter these three pitfalls, organizations should, “Build what is needed, use the right
tools to make changes easy and dynamic, and respond to organizational needs,” so
that the model is both useful and used. Another reason for failed implementation,
says Duplika, is that companies don’t ask some pertinent questions before embarking
on an initiative.
These questions include:
Why are we doing it and what’s the business purpose?
What will it be used for and what human capital processes will it manage?
What will it include and what elements are needed to make it work?
How will it be created and what is the process?
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Durgin and Duplika (2006) further gave in their paper a snapshot of solution for
consideration for each question mentioned above. These solutions are highlighted
below:
Business Purpose
The “why” is the first and most important question, and “organizational performance”
is the answer. A successfully implemented competency model becomes the “ultimate
business model,” It can streamline and simplify operations that drive efficiencies and
operational excellence throughout the organization and demonstrates how
implementing a Successful Competency Model for all job roles can contribute to the
bottom line and set clear expectations thus increasing accountability among all
stakeholders.
Further benefits include freeing HR resources to provide strategic services that
improve the profit and loss posture of the company, improve in-house service and
reduce costs, and manage the human resource base by providing a knowledge of
what transferable skills individuals in the organization have, and the ability to do
individual and organizational analysis using a consistent set of criteria.
Human Capital Processes
The companion question to the one above is, “What human capital processes will it
drive?” Duplika (2006), notes several important processes, including “bringing
people into the organization that have the skills and behaviors that top performers
have,” by providing consistent criteria for hiring.
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Another process that a competency model can improve is performance management,
which can be achieved by setting consistent metrics to measure and reward
individuals based on what they do as well as how they do it.
A competency model also affects employee development by identifying what skills
they need to polish, and can increase the overall “skill health” of the organization by
eliminating skill gaps. This development is also closely linked to career management,
that is, helping employees learn about and develop the competencies needed to let
them. The core of any of these processes is the competency model, a truly integrated
talent management solution is able to deliver across all these processes. Appendix 3
illustrates what processes an integrated solution might address.
Required Elements for Implementation
This question is closely related to the “used for” question, but it requires a more
detailed focus on the elements underlying the macro elements discussed in the
previous section. Specifically, the elements at this level focus on competencies and
closely related issues. For example, performance management might require a look
at the Key Job Requirements (KJRs) of a position, the goals desired of the person
who fills that position, and the behavioral and technical competencies necessary to
be successful in the position. Each major human capital process that a competency
model will affect undergoes the same exercise. The result of this will be the
identification of competencies (and other elements) for each human capital process.
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Recommendations
Implementing a competency model for sales professional in a matrix organization
requires leadership support and commitment for a successful integration into the
downstream business/sales drivers. ZS Associates (2008), the business impact of a
well-designed and well-operationalized competency model is significant. Hiring,
training, coaching, performance reviews and actions, and reward systems are all
powerful drivers of sales force capabilities.
From Aberdeen Group’s report (2010), A Guide to Implementing Talent Management
Assessment, the table below shows the PACE Framework where the
recommendations for consideration are in most part drawn from – the capabilities and
enablers are of particular importance.
Today’s pressures facing businesses cannot be over emphasized, the increasing
competitive landscape brought by globalization is forcing business to rethinking their
management of their human capital to yield desired productivity and performance.
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State Goal & Link to Business Results
A competency model can help in the selection, placement and promotion of the
workforce, critical to this model is ensuring that the workforce is aligned with the
business objectives.
A plan of action for implementation must in place in the beginning, reviewed and
verified that it result of the implementation will truly be in alignment with the
organization’s business strategy. Measure the ROI – the cost of doing so is typically
2% to 5% of the project. Do an annual report – at least – in order to communicate the
progress of the model’s implementation. Internally, the latter action can help compare
the effectiveness over time of the model with pre-model performance.
Don’t Underestimate Change Management
Change is difficult for most people; even in dynamic organizations, there are always
more than a few individuals who find change difficult. Getting advance buy-in and
planning the phase in carefully, while essential, isn’t a substitute for the importance of
managing change. Plan it from the beginning. Do a stakeholder analysis – make sure
that buy-in is robust. “It’s important to communicate differently with different groups.”
This doesn’t mean telling one group one thing and another group another – it means
speaking to different business units within a company in terms that they understand –
explaining to them the impact the change might or will have.
Then give each unit a specific role on the implementation team.
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The Model and the Sales Professional
For a competitive market that sales professionals operate in, they require the
necessary tools to give them the skills and knowledge to have an edge over their
rivals in other companies by presenting value based selling to their customers whilst
representing their employers in a professional way. A well-developed model will
serve as a reference for both new and incumbent professionals and expectations
from management.
Durgin (2006) Competency models also improve talent retention in today’s highly
competitive market, and support employee-owned career development by providing
them visibility into activities and requirements in different areas of the organization.
The result is, “organizational transformation” that identifies gaps for future
development plans, and reinforcing behavior that is consistent with the organization’s
culture and business perspective. A sales professional has a lot to gain from this
implementation and engaging them early in the process will not only get their buy-in
but, make the results from the implementation sustainable.
The organization and the business impact
The leaders from executive down to the front line leaders, must decide what is
important to them sustainable revenue growth over a long run or short boost one. A
choice between investing to attracting and retaining a competent workforce that can
stand the tidal waves of any economy and come out on top in the long run.
Companies need to invest time and resources to make the competency relevant,
reliable and adaptable to the downstream business and sales and drivers. A matrix
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organization, should align tactical plans of its various divisions to its over all
objectives to allow for synergies in its sales work force so value based selling can be
front and center. Durgin (2006), “the support of senior management is critical. Get
them involved – create a steering committee and job family sponsors. Show them
how they’ll benefit – ‘What if you could…”
According to ZS Associates report, is to have illuminating exercise to have each
member of the sales leadership team individually estimate the revenue and profit
impact that likely would result from getting all of these elements aligned to
cumulatively drive the explicit knowledge, behaviors and skills most important to the
organization’s sales strategy. In many cases, such estimates assume the top and
bottom 10% to 20% of performers would continue performing the same. The greatest
opportunity is often with the middle 60% to 80% of performers. This group typically
has the potential to perform better, but needs more development. The upside from
improving the capabilities and performance of this group is typically quite large.
In addition, matrix organizations require organizational clarity around its structures
and processes by having common work and business processes; clear charters for
lateral and vertical units; information sharing and information technology; matrix
(multi-cell) planning and goal-setting (organizational and individual level) and multiple
streamlined input into the performance management systems.
The Project, Project Team and Project Manager
The members of the team must be cross-functional from the divisions, sales
professional leaders and top performers and human resources with a mandate from
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the executive leadership to develop a model that is universal and applicable by all
divisions. Joint accountability is necessary between the leadership team and the
project team for a successful implementation. Most teams only get to implement and
it is recommended that for a successful implementation for the project team to be
involved in the development and design of the competency model. Durgin (2006) the
design stage is critical, and it is essential to show stakeholders how it aligns with the
talent lifecycle and business strategy. There will be higher participation when the
consequences of success or failure are known.
Durgin (2006) phase the project in by groups. For a matrix organization, it’s more
effectively to identify a pilot group from the divisions, using one of two options:
1. Who needs it the most?
2. Where is management the most supportive?
Phase it in by process. Use core competencies for performance management and
succession, and build for development over time.
The impact of the competency as mentioned earlier is far reaching, and every
organization wants to implement its business strategies each year to have a good
return for its shareholders, the sales professional is in the frontline and face of the
organization, armed with the right tools, the strategy of the company is attained each
year, hence time devoted to this process is crucial and must not be rushed in order to
have a quick fix but must be managed effectively, hence the project manager for this
project needs to be empowered to make the necessary decisions to implement
successfully. Matrix organizations are fraught with diverse priorities and close
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monitoring of territories is a hallmark of such organizations, a detailed project charter
with the right mandate is very important and cannot be over emphasized.
The model must be centrally stored for access by sales leaders, HR and the sales
professionals in a tool that is user friendly and easily changed to reflect the
downstream sales drivers when required.
The project manger would require the following skills in addition to good project
management knowledge to successfully implement competencies in a matrix
organization
Have social network linkages—Cross functional familiarity
Negotiation skills
“Enlistment” skills
Business model understanding and business case formulation
Collaboration skills
Conflict resolution skills
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Conclusions
ZS Associates (2008), the alignment between the competency model and
downstream drivers is characterized by a number of conditions. Some of the most
important include the following:
1. Expectations. The competency model is used to clearly communicate and
reinforce capability expectations for salespeople. Sales leadership regularly
leverages the competency model to assess the organization’s current
capabilities and development priorities. Salespeople regularly revisit the
competency model to assess their progress and development needs.
2. Hiring. A direct link exists between the competency model and the hiring
strategy based on the behaviors and skills for which the organization has
decided to hire versus train and apprentice.
3. Training. The training model is organized around the sales process and
competency model, and the expectations for each sales role. As a result,
salespeople understand where and how each training module fits in. On-going
competency evaluations help direct training priorities for the sales force and
individual salespeople.
4. Coaching. The coaching process and tools directly reinforce the competency
model. First-line managers regularly reference the knowledge, behaviors and
skills specified in the competency model to assess their direct reports and to
provide necessary feedback and apprenticeship. The organization recognizes
that value-based selling skills are largely achieved through coaching and
apprenticeship. Training is viewed as important but insufficient.
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Durgin (2006), a successful company is one in which a high-performing workforce
demonstrates the competencies necessary to drive business success and meet the
organization’s strategic goals. Half of success is execution. This is particularly true of
key human capital initiatives, such as competency management, the foundation for
organizational performance management.
To triumph over the complexity of all forms of matrix organization, employees and
employers must be well equipped to sell to those companies similar to them and in
structure as well.
There are some many school of thoughts from experienced and well versed subject
matter experts on the development of competency model and its implementation
which was the main thrust of this research, however, the conclusion of the matter is
what the Aberdeen report succinctly puts it and which can be attributable to
implementing such a model in a matrix organization and should be avoided at all
costs – “as important as assessments are to talent decisions, companies must
balance the paradox with enough rigor to ensure alignment while avoiding sinking
into “assessment paralysis”.
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Appendices
1.0 Value Based Development & Communication
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2.0 Working down from the middle
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3.0 Integrated Solution
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i
Anntoinette D. Lucia & Richard Lespinger, authors of the Art and Science of Competency Models -
Pinpointing Critical Success Factors in Organizations (1999)