Rethinking Performance Management

Executives Who Equate Performance Management with Performance Appraisals and  Human Resource Programs Are Missing A Great Opportunity to Motivate and Energize the Entire Organization to Achieve Business Objectives.

Transform a Demotivating Process into One that Energizes and Engages the Entire Workforce.

What do most of us think of when we hear the term “performance management”?  For most people, an unpleasant performance appraisal session, as a giver or receiver, first comes to mind.  The next thing that usually comes to mind is the ineffective, paper-work intensive system that gets in the way of you doing the “real work” in your company. Even if your company has a system that is an improvement over past systems or better than other systems, it is probably still not a system with which you are totally satisfied.

And yet this is an area that has been studied extensively - almost to death. Countless books and articles have been written on the subject of performance management and performance appraisal.  “New improved” systems have been launched in most companies. At the top, executives may express satisfaction with the system. But at lower levels, the same cynicism and dissatisfaction exists. In many organizations, hope for an effective system has been replaced by despair or acceptance of an imperfect system.

Is there hope for an effective performance management system, one that is motivating rather than de-motivating? I believe that there is. Some organizations are trying out approaches that are coming close. But more experimentation is needed. Sharing information about the successes may stimulate more experimentation. That is the purpose of this article.

Before discussing options, it may be helpful to establish a framework.

WHAT IS PERFORMANCE MANAGEMENT?  

Part of the problem is that there is confusion over the term, performance management.

Performance management is much broader than performance appraisal. It is the entire process of improving and sustaining human performance throughout an organization. Collectively, the performance of individuals determine the performance of teams, departments and ultimately the entire enterprise. 

How do organizations today become successful and sustain that success over time?

Many organizations have embraced a series of management fads with limited success, while other organizations have innovated with new approaches tailored to their culture and business needs. They follow some basic common sense principles about the performance of people and organizations. Leaders of these companies know that people cannot be effective unless they know what they are supposed to do, have the capability to do “it”, and receive feedback on how they are doing. These leaders may put it in different language or do it intuitively, often not  putting it down in writing. It may be a part of the culture of their firm. If they do put it in writing, it may look something like this.

Each of us functions like a human performance “system”. We receive inputs, then utilize our competencies to generate outputs. In a business setting, the inputs we receive come from our customers, internal or external. Those inputs, requirements or requests need to be accompanied by clear direction on what is required and access to the required resources.  As a performer, we need the necessary competencies (which include skills, knowledge, attitude and motivation, i.e. the mental and physical capability) to perform. 

There needs to be appropriate consequences for our output or results that we produce. We should receive positive consequences or rewards, e.g. a pat on the back for “doing it right” and negative consequences for not doing it right. The standards or criteria for evaluating performance must be consistent and sound. Is the same “benchmark” or measurement applied to each person? And finally do we receive feedback on how we did?

This same system applies to the performance of a group of individuals who make up a team or an entire organization. Only this time individuals need to work together to produce an output, and issues such as group processes, strategy, information flow and work processes must be managed in order for the team to be productive.  

If you think about it in these terms, you can probably determine the cause of most positive and negative experiences you have had in your personal and professional life. For example, think about the “consequences” component of the model. If the consequence of your being a top performer is that you are given the really critical projects that require extra work hours, you may perceive this as positive reinforcement if you like the recognition, opportunity for additional compensation,  etc., or you may see it as negative if you dislike working more hours. How we perceive the consequences of what we do will affect our performance. We avoid unpleasant consequences and seek out pleasant consequences.

Making Performance Management Work

The basic principles of performance management may seem simple, but translating these concepts into action within an organization isn’t so simple. If it was, we would have a lot more success stories to report. So, how can we make performance management work?

Our work in this area has taught us some lessons that may be helpful to others. First, we should share certain assumptions (again acquired through our experiences) about performance management that have guided us.

Six Assumptions About PERFORMANCE MANAGEMENT 

1• What you measure is what you get. If you want to improve market share, innovation, customer satisfaction, quality and people management, then measure individuals’ specific contributions and reward them based on the contribution.

People need clear direction and goals that are aligned with corporate and department goals. Appropriate consequences for performance or non-performance must happen. Unfortunately, most companies have discarded some sound MBO (that’s Management-By-Objectives for those you not in the business world 15+ years ago) principles when the poorly implemented MBO programs of the past were shelved.

2• Performance appraisal is basically a human process, no matter how hard we try to make it rational.

The process requires trust and caring plus the courage to be honest and suffer unpleasant consequences. Managers who are honest may have to deal with an upset, angry or demoralized employee. An honest employee may upset a boss or learn something he or she did not necessarily want to learn . The rational side of us wants to focus on the precision of the rating, the quality of written appraisal and goals and the fact that the feedback session was conducted in the right environment ending on a positive note. The fact remains that no one wants to sit in judgment of another human being or be judged by another. Consequently, the performance appraisal part of the performance management process remains the most difficult part of everyone’s job and is avoided whenever possible. The only time we want to know where we stand is when we believe we are performing well.

3• Appraisals cannot be made totally objective. 

As an influencer of an employee’s behavior, it is difficult for a supervisor to be an independent observer of it.  A supervisor has a great deal of influence over an employee’s goals , the support, resources consequences and feedback provided. Plus as human beings, supervisors bring their views, biases and internal standards with them to the workplace. 

4• End of the year appraisal discussions should contain no surprises.

Everyone agrees with this statement and yet surprises frequently occur. Avoiding surprises requires on-going coaching and periodic progress reviews where employees and supervisors discuss and agree on an assessment of performance for the past quarter, month or week. Posting of performance measures and results for departments, teams and individuals opens up the system and provides real-time feedback that can stimulate performance. 

5• A good system hinges on trust in the workplace.  If it is lacking, corrective action must be taken in conjunction with, or prior to, a PM effort. 

If people do not trust their supervisors or senior management, the performance management system will be viewed as not being in the best interests of employees. An analysis through interviews, focus groups or surveys can help uncover the source of distrust and possible solutions. Always remember that embracing performance management is as unnatural as embracing any form of change. Listen to concerns and respond honestly.

6• A competency-based system provides a framework that integrates development,  selection, succession planning and compensation processes.

Developing job competency models for key positions tends to cast performance management in a positive, forward looking, developmental light.  Each person knows the 7 to 12 key competencies required for superior performance in their current job and desired job, and receives coaching and guidance from others on improving one to three competencies each year. The focus is on improvement, i.e. how can I become more competent in order to reach my goals. Competencies provide a common language to discuss performance and help integrate other key human resource processes.

These assumptions have led us to try out and apply some basic principles when helping an organization evaluate and improve its performance management system.

Steps to Making PERFORMANCE MANAGEMENT Effective and Motivating

1• The system is designed by the users (managers and employees).  Technical correctness is compromised on the behalf of ownership and buy-in by the users and fit with the company’s culture and ways of doing business.

The more people involved in the design of the system the better. One option is to use a “whole systems” approach and get all users in a room at the same time to design the system.  The next best approach is a task force made up of representatives of all major employee groups with each person being responsible for getting input of the group represented. All line and staff functions should be represented. 

2• The system is flexible and dynamic, yet simple, i.e. user friendly. Goals can be easily modified. Concentrate on building a good foundation before considering incorporating enhancements such as open-book management, 360 degree feedback, and computer software. 

Many organizations have a tendency to want to design a “perfect” system with perfect forms that spell out everything that needs to be done. While the design of forms is important, it should be remembered that the forms are merely “tools” to help the process be more effective. For example, the number of rating categories are not as important as the quality of feedback provided. Some organizations have eliminated numerical ratings to prevent the focus from being shifted from coaching to rating.  Starting with job competency models help to keep the focus on improvement of specific skills and knowledge related to superior performance.

3• Emphasis is placed on coaching to help others develop new competencies and improve performance.  Opportunities to acquire the competencies needed to coach and be coached are provided.  Coaching discussions become a daily habit, done without having to plan for it or think about it.

The objective of any performance management process should be to get supervisors and subordinates talking on a routine basis about performance issues. During or after a small or large project or task, supervisors/coaches should tell employees what was done well and what could have been done better. Start by asking an employee for their own self assessment. Teach managers how to use a step-by-step coaching process. A good analogy is the kind of coaching provided to athletic teams. Athletes receive immediate feedback, both positive and negative. Can you imagine players on a basketball team only receiving feedback in writing at the end of a season? Athletes expect frequent feedback just as high performance and winning are expected. Why can’t we achieve the same kind of culture in our business? One reason is that our measures of performance in business are often vague and open to interpretation, whereas athletes are evaluated on concrete observable statistical measures - which leads to our next principle.

4• Job goals are measurable or qualifiable and competency development goals are specific and observable.

Although this principle is widely accepted, it is resisted or ignored in many organizations, especially in staff functions. Jointly establishing job and competency development goals is tough work. It is far easier to just go “do the work” assuming that the supervisor and subordinate know what is expected. 

5• Top management expresses its commitment by using the same system - in a way that is a model for others. It is viewed as a key management process, not a human resource program. 

One of the first things we look at when helping an organization with its performance management system is the process used by the senior management team. Often it is completely different than that required of the rest of the employee population. Excuses include: “Our bonus program functions as an appraisal, i.e. the amount of bonus, incentive comp, etc. tells people how well they did.” “I work closely with my people - they all know where they stand”, etc. etc. . When we interview subordinates at the senior level, we often hear a different story. “Yes, my business goals are clear, but I am unclear about how my individual performance and career potential is viewed.” “My performance review is typed and given to me with no discussion”, etc. etc.  Basically, all of the reasons for performance management not working at the middle and lower levels in an organization exist at the senior levels. Executives are uncomfortable sitting down with subordinates and providing feedback. Too often the process is seen by executives as a human resource driven program rather than as a key management process.  When executives see that performance management is the lever to implement the business strategy and business objectives, to set and review budgets and to ensure that the necessary talent will be available to meet future needs, then it will be practiced at the senior levels in a way that is a model for everyone else in the organization.

6• The functions of feedback and coaching, performance rating, performance appraisal, potential rating, succession planning, and pay determination are treated as separate, but related processes.

Yes, performance ratings may be used to help determine pay distribution. And yes, pay should be based on performance. However, discussions about pay should be not be done in the same meeting in which performance or career plans are discussed. Otherwise, the employee’s interest is centered on “how much money am I going to get”. It is a natural tendency.  Combining discussions about career plans, succession planning and potential ratings is appropriate. 

7• All employees thoroughly understand the system, their role and importance to the organization and themselves. The “what’s in it for me” question must be answered for everyone. Employees are empowered to ask for feedback and help.

The so-called “new contract” with employees places more accountability and responsibility for performance and career progress with the employee, with the organization and supervisor providing support, resources, honest feedback and coaching. This means that for performance management to be effective requires more than just training and involvement of managers. Employees must be empowered and given training on how to ask for help and feedback, to write goal statements and to understand their role in the big picture, i.e. the alignment of their goals with the organization’s goals. The “learning organization” that is espoused by so many companies requires that all employees thoroughly understand, and are committed to, improving current performance and their potential to make additional contributions.

SUMMARY

Performance management can be improved in most organizations by following some basic, common sense, principles. These same principles can also help make performance management more motivating for most employees. However, since performance management is basically a human process, following a prescribed formula will not satisfy all employees in all situations at all times. We can’t expect managers to be clinical psychologists. People do not like to give or receive bad news about performance. We can’t anticipate every ones reaction to a coaching discussion, even one done perfectly. 

Therefore, when implementing performance management, plan and implement well, but do not expect perfection. In customer service language, remember to “manage the expectations” of everyone in the organization. Position performance management as an on-going change process, one that requires routine adjustments and modifications.  Experiment by trying out new approaches in selected departments or teams. For example, if your organization is using team based structures, you need to integrate team performance measures and feedback into your process. But there are a lot of ways to do this effectively. So, innovate, experiment. You might just come up with a system that works for your organization and its culture.

COMPETENCY SYSTEMS:

ADDING VALUE THAT LINE EXECUTIVES CAN SEE

                        Things To Consider Before Implementing

Job competency models describe what superior performers actually do on a job that produces superior results. Armed with this information, selection, retention, training, succession planning and performance management systems can be integrated and designed that will attract, develop and retain top performers.

Superior performance that produces superior results means higher sales, productivity and profits. And everything can be measured. Which explains why many organizations have embraced competency technology. It has provided HR departments with a golden opportunity to demonstrate to line management that HR is able to “add value” that drops to the bottom-line.

However, there are several factors to consider before embarking on the competency journey - factors that can make or break your best efforts.

1. Accept or modify the terminology - then educate the users (usually all employees)

The language that consultants use to describe competency technology is often confusing, misleading and filled with jargon- not unlike everything else we do. It starts with the definition of competencies.

Most consultants define a competency as “ a skill, knowledge, motive, attitude or characteristic that causes or predicts outstanding performance” (or some similar variation).  Most dictionaries, however, define competence and competency as “sufficient” or average performance as in “competent to stand trial”.  Several HR directors have told me that, with the flip side of “competent” being “incompetent”, they are concerned that the image that competency systems raises for some people is that of incompetence, an implication that people are incompetent until, of course, receiving the benefit of competency technology. 

How unfortunate.  Because one of the purposes of competency technology is to help competent people become more competent - in areas where increased competence will produce superior performance.  Each of us has strengths and areas where we can improve. Competency technology just does a better job of identifying the specific competencies that drive superior performance and assessing the degree to which individuals have demonstrated those competencies.  Our experience has been that once employees understand the concept and purpose of competency modeling , they accept it.  If it were to continue to be a problem, then change the name.

A competency model does a better job of conveying the idea of superior performance because the word model means “something to be copied or imitated”.  A job competency model, therefore, is a “blueprint” for all current and prospective job holders to copy, that includes a list of competencies that are required for superior performance. Competencies required for average performance, those required to just survive in a job, can also be spelled out in a job model.

The point here is: don’t expect everyone to immediately understand and appreciate the significance of competency modeling. Some may feel threatened by it. So, go slow and educate people up-front and as you progress.

2. Think in terms of measurable payoffs.

The key question to ask yourself and others in your organization is: “what is superior performance worth?”  This is easier to answer for some jobs than others, but there is an answer for every job.  It first requires clarity about performance measures.

Since sales jobs have fairly clear measures, let’s look at sales jobs to illustrate the point.  In one organization, the average annual sales for all sales people were $3.0 million. The top sales people averaged $6.7 million in annual sales. Superior performance was worth $3.7 million in sales per sales person. Now translate this into the bell-shaped curve that depicts the distribution of performance ratings in many organizations. If you can, in fact, increase the percentage of superior performers and move the curve to the right, you will add economic value. (Exhibit A)  Each sales position that is filled by a superior performer, in the case above, will add $3.7 million of sales per year.

Line executives understand this kind of thinking, where they often do not understand other HR approaches that are seen as having little impact on the bottom line.

3. Consider alternative approaches, including “doing-it-yourself”.

There are many ways to do competency models. Some are complex, time-consuming and expensive. Others are not. The tradeoffs have to do with validation and thoroughness, although the less complex approaches can include a validation step. 

If you are doing more than one model, you should consider using an integrated approach that utilizes a common set of building block competencies, customizable for each job.  Each model requires four to eight days of an internal or external consultant’s time, including facilitation of a focus group of high performers, interviews and model development.   

Pick an external consultant to get you started who is willing to transfer their methodology to you and train your staff to carry on the work, and/or have them attend Workitect’s three-day Building Competency Models workshop.

For a large retail organization, we did the first two models while certifying an internal HR manager to do additional models.  She also designed and implemented selection and performance review applications based on the models. Structured interview questions were developed for each key position to help hiring managers assess and select candidates with the required competencies. Performance goals and results forms were also developed.

4. Start small, don’t oversell, but start with a critical job

The best way to demonstrate the payoffs of a competency approach is to start with a high impact job or one that is requiring attention, i.e. high turnover, impact on company’s sales, etc. Define the measurable outcomes of doing the model and specify applications.

For example, if you want to do a model of a software developer position, include an application of a selection system and interview guide that will allow you to expand the candidate pool and select superior performing software developers. Other applications can be added, but you should start with at least one visible and measurable outcome for the model. If outcomes and applications are not built in, competency modeling may be perceived as a HR exercise without payoffs.

There is a natural tendency to want to start with a low risk, low visibility position, in order to evaluate the process and the consultant. You are better off doing your homework and thoroughly checking references before selecting a consultant than to waste an opportunity to make an impact that can multiply through out the organization.

The ideal place to start is with the top executive group. Getting that group to develop a model for their position assures total buy-in. They have probably already gone through some strategic planning exercises that included thinking about their organization’s “core competencies”.  Developing a model helps them understand the job competency process and align it to the company’s strategy.  For example, if innovation is a desired core competency, then a “fostering innovation” competency may be included in most models in order to drive the kind of change needed.  An executive model is also needed for a good succession planning system. 

This is the way a large manufacturing division launched its effort to improve performance and alter its culture.  A model was done for and with the executive team and then cascaded down to other key positions.

5. “One size fits all” model or multiple models for multiple jobs

Some organizations use a generic model for all management positions. The model may have been one developed externally to cover all management jobs in all industries. Or it may have been developed internally by surveying senior executives asking them what they thought were the key characteristics required for success in their organization. Both approaches are inexpensive to adopt.

The prime disadvantage is lack of validity in a specific organization. The externally developed model may miss several key competencies that may really make the difference between superior and average performance in your unique culture.  The internally developed list is often based on opinion and false assumptions and not on hard data. There can also be a communications gap.  One CEO insisted that his organization hire and develop people “with a fire in their belly”.  He didn’t mean finding people with ulcers, but it did take a competency model to validate his opinion and to clearly and concisely describe the qualities of people who were actually successful in that organization.

The opposite end of the spectrum is to do models for every job in an organization, which is costly and unnecessary. Job models are not necessary for every single job in an organization. Jobs can be grouped into like categories or levels.  For example, ten different positions in an information systems department may grouped into three levels.

For another manufacturing company, this is the process that was followed. Thirteen key management and professional positions at the plant and headquarters facilities were completed within a relatively short period of time.

6. Maximize the uses and benefits.

There are many possible applications and uses of competency models. Unfortunately, alot of organizations go to the trouble of developing models, use them for one purpose and put them on the shelf.  Here are some ways in which you can take full advantage of competency models. Use them to:

• Integrate all HR processes using a common framework to select, train and reward people.

• Assess internal and external candidates using assessment exercises, interviewing and instruments.

• Develop a model for high performing teams. Select and train team members, use for team building.

• Expand hiring and succession pool.  Models may challenge assumptions about required competencies and identify alternative sources of talent

• Retain key employees. Target retention of top performers.  Employees who see expanded opportunities for growth are more likely to stay (also impacts morale).

• Redesign jobs. Analysis of a job during model building can reveal ineffective job design plus suggested improvements from focus group.

• Certify competence levels.  Design certification programs to develop and reward competency development.

• Design 360° feedback instruments and other developmental tools.

• Determine staffing of merged organization. Keep the top performers in the key positions.

• Create the learning organization. Use the models as templates to guide development.

7.  High tech or low tech?

Competency technology has evolved to the point where you can now buy software programs to help construct competency models. These programs contain competency dictionaries, i.e. lists of competencies that can be used to analyze jobs. Some companies have designed their own customized programs for the same use. As we move closer to computerizing all paper transactions and making greater use of the intranet, this seems to make sense. The more we can use technology to simplify our lives, the better.

However, the process of developing competency models remains basically a human process.  It requires interviewing, collecting and analyzing data, observing behavior, skillful facilitation of a focus group and drafting a model document.  Judgment, ability to react and adapt to situations, to deal with conflict and resistance and uncover unexpected opportunities to improve an organization’s performance are required. 

Using automated tools to assist in the application of competency technology is a good idea. Employees who can access competency models and developmental opportunities through a computer terminal feel more empowered and more in control of their destiny. Just be careful to not put the cart before the horse. Remember GIGO (garbage in, garbage out)?  Develop good models and good systems before computerizing. Concentrate first on practicality and fit, not on technical sophistication.

Conclusion

The downside of outlining all the things one should consider before doing something is that it will have the unintended effect of discouraging the reader from doing the “something”.  Hopefully, that will not be the case here because the payoffs for your organization and for you personally of undertaking a competency approach far outweigh the pain you may incur.  Thoughtful consideration of the seven tips described above should minimize the pain and maximize the gain.

Edward J. Cripe is president of Workitect, Inc., a Fort Lauderdale, Florida based consulting firm specializing in competency systems, competency-based training and performance management.

Job Descriptions and Job Competency Models Compared 

Job descriptions are often equated with job competency models. While similar in content, there are important differences. They serve different purposes and are developed in different ways. Here is a comparison of the two documents.

Job Descriptions
• Title of position
• Department
• Reports to (to whom the person directly reports)
• Overall responsibility
• Key areas of responsibility
• Qualifications (skills and experience required)

Applicatons: recruitment, compensation structure, performance management (establishing job standards and goals), training.

Example: Project Manager

Job Competency Models (Workitect method)
• Title of Position
• Major responsibilities
• Performance criteria for each responsibility
• Qualifications (competencies: skills, knowledge, and underlying characteristics* required)
• Behavioral indicators (specific ways of demonstrating the competency)
• Links between main responsibilities and competencies

Applications: talent management, succession planning, performance management (evaluating characteristics used to meet or not meet job goals), assessment and selection, training and development.

Examples:  Project Manager, Executive, Account Rep, Call Center Manager, Human Resources Profesional

*A job competency is an underlying characteristic of a person that results in effective and/or superior performance in a job. The characteristic may be a motive, trait, skill, self-image, or body of knowledge.   The Competent Manager, Boyatkis, 1982

Some organizations have combined the two documents and have added required competencies to job descriptions. The advantages are that it reduces the number of HR forms that are needed and makes the list of required qualifications more complete. The main disadvantage is that data needed for talent management, development, and succession planning is usually incomplete.

Regardless of where the competencies are listed, the most important determinant of their effectiveness is how they were identified. A description of Workitect's process for creating competency models can be found on pages 5 & 6 of Integrating HR & Talent Management Processes.

FAQ

Can a generic off-the-shelf competency model be used?  Don’t jobs with the same title require pretty much the same competencies in all organizations?

Each organization has its own culture and “way of doing business”. Even for jobs with identical titles, job success in one organization will require some competencies that are different in another organization. Even a small difference could be critical. This is why we only build custom models, or teach internal consultants how to build their own models.

Develop unique talent management system with “workitect”

Human resources are the best assets a company can possess. Managers strive hard to select, recruit and retain best employees that fit suitably in the organizational work roles.  Companies have their human resources departments which are solely responsible for the recruitment, retention and discipline of staff members. But this is not an easy task. Keeping efficient workers and retaining talent requires that employee’s all requirements are met and they work happily at workplace. Apart from only monetary benefits, employees tend to stay in an organization due to various other factors also like working environment, companionship, respect, work pressure etc. If any of such physiological needs are not met, there seem to be an increased turnover which managers need to overcome.

This has created an immense demand for ‘talent management system’ within organizations. Talent Management is known to a set of united organizational HR processes intended to pull in, develop, inspire, and retain productive, engaged employees. The primary goal of talent management is to create a superior, sustainable organization that meets its strategic and operational goals. In simple words, as the name suggests, it is managing the ability, competency and power of employees within the organization.

Talent management process-

·         Understanding the requirement

·         Sourcing the best talent

·         Attracting and pulling in the talenthttp://www.workitect.com/Consulting/hr-and-talent-management-applications.html

·         Recruiting the talent

·         Selecting the talent

·         Training and development

·         Retention

·         Promotion

·         Competency mapping

·         Performance appraisal

·         Career planning

·         Succession planning

Benefits of talent management system-

·         Places right person at right job

·         Retaining the top talent in the organization

·         Better selection and hiring of employees

·         Understanding and maintain good relations with employees

·         Better professional development decisions

·         Identifying those individuals with the highest leadership potential across the organization early in their careers.

·         Accelerating the development of high-potential talent and improving the quality of executive leadership

·         Connection corporate strategy with the quantity and quality of leadership required to execute it.

Want to develop a talent management strategy for your organization too? Contact “workitect”.  We are a leading consulting and training firm offering complete talent management solutions to companies. We have been successfully working in the field with plenty of experience assisting many of our clients and giving them positive and innovative ways to solve all their human resource development queries for efficient workforce that gives productive results. Our team of professional is keen to give most suitable solutions to your project that ensures to help your organization gain competitive advantage.

We also specialize to develop various competency systems, competency guides, directories and models. We use customizable tools to simplify implementation of these talent management and competency development methods. You can be assured to avail best services in terms of quality as well as in cost effective manner. So why delay? Contact us today to make use of best services and get superior performance output with best suited talent management solutions for your organization

Develop the competency of "Fostering Diversity"

From Workitect's Competency Development Guide, a 280-page resource guide for developing thirty-five competencies. This competency is also Functional Area Competency #11 in SHRM's Body of Competency and Knowledge.

Importance of Fostering Diversity
Diversity has a serious and direct impact on business results. Successful organizations are able to tap into the brainpower of talented and diverse workforces in order to serve a diversity of customers. Innovative thinking and problem solving is more likely to come from teams comprised of people with different cultural and demographic backgrounds, i.e. people with different points of view. Organizations need to optimize the use of talent at all levels with behaviors that reflect that talent comes in different packages, i.e. color, sex, age, etc.
Fostering Diversity is closely related to three other competencies in Workitect's Competency Dictionary – Global Perspective, Fostering Teamwork and Interpersonal Awareness.

Definition of Fostering Diversity: Working effectively with all races, nationalities, cultures, disabilities, ages and sexes; Promoting equal and fair treatment and opportunity for all.
An employee demonstrating this competency:

1. Proactively seeks information from others who have different personalities, backgrounds, and styles. Includes them in decision-making and problem solving
2. Communicates and cooperates with others who have a diversity of cultural and demographic backgrounds
3. Makes it easy for others to feel valuable regardless of diversity in personality, culture, or background
4. Includes in conversations people with diverse cultural backgrounds, and invites them to be part of informal work-related activities, such as going to lunch or attending company social events
5. For a manager or team leader, hires and develops people with a diversity of cultural and demographic backgrounds.
6. For an employee, helps recruit and orient employees with a diversity of cultural and demographic backgrounds

General Considerations in Developing this Competency
Learning to value the diversity of people requires that you first understand your own values and beliefs. Those beliefs contribute to making you who you are and contribute to your worldview. It is important to recognize that other people may not agree with your beliefs or understand them. One of the best ways to learn about the value of diversity, and to foster it, is to work on a team of members with diverse backgrounds. Push yourself beyond your current environment and interactions to develop sensitivity to issues of diversity, contributing to a less ethnocentric self. Doing so can help you more fully understand, appreciate, and maximize the talents of others.
Both managers and non-managers are able to develop and demonstrate ‘fostering diversity’. Executives and managers, however, have the ability to make a greater impact, by ‘managing diversity’ - through staffing decisions and personal behaviors that motivate others to value and foster diversity.

Practicing this Competency

• Learn more about your own cultural values and background to gain a better appreciation for how they may impact your decision-making style, values, and reactions to different views.
• Actively solicit input from a wide variety of people and functions. Learn about the backgrounds, experiences and education of team members.
• Draw together diverse groups when discussing issues, solving problems, and developing opportunities. Look at issues and opportunities from other people’s viewpoints before making a decision.
• Slow down or use easier vocabulary when communicating with nonnative speakers so they can more easily follow and offer their own thoughts.
• When asking someone to explain a point of view different from your own, be sure to say that your intention is to understand the person’s viewpoint, not to have him or her justify it.
• Seek to understand diversity from a global, not just a national, perspective, if appropriate to your business and location.
• Remember that some people want their national, philosophical, or other differences to be recognized openly, while others do not.
• Partner with an individual whose background and experiences are different from your own and contract to both learn and teach one or two skills that will improve your performance in some way.
• Build a support network with colleagues who are interested in more effectively leveraging diversity. Explore ideas with each other and implement them.
• Learn more about other cultures and their values through travel, books, films, and conversations with those who have experienced other cultures, and by attending local cultural events and celebrations.

Obtaining Feedback
Ask subordinates, colleagues and your coach to describe their perception of the degree to which they see you “fostering diversity”. What are you doing that is positive and what are you doing that is not positive, or may in fact be sending the wrong signal? Ask for ongoing feedback and help. Also, how can you accelerate your fostering of diversity in your workplace? How can you all, as a group, do more to create a more diverse team?

Learning from Experts
Ask people from a variety of backgrounds for help in understanding their experiences, perspectives, and culture. Try to understand the individual as a person, and not just as a representative of a particular group. Looking at the person either as an individual only or as a representative of a group usually leads to wrong assumptions.
Establish relationships with people who are different from you. Although it is a natural tendency for people to surround themselves with others similar to them, connecting with people of different backgrounds will help you learn about the unique perspectives and contributions others have to offer.
Many large organizations have a diversity officer, usually in the human resources department. Meet with that person and ask for their advice. Interview managers and executives who have created diverse, successful teams. Observe what they do and determine how they achieved success.

Coaching Suggestions for Managers
If you are coaching someone who is trying to develop this competency, you can:

• Model the “fostering of diversity” in everything you say and do. Adopt a learner, versus judger, mindset. Utilize the differences in team members to accomplish organizational goals, and challenge assumptions and practices that limit opportunities.
• Encourage the person to push beyond their current environment and interactions to develop their knowledge of, and sensitivity to, issues of diversity. Doing so can help the person more fully understand, appreciate, and maximize the talents of others.
• Encourage participation in company or community programs that focus on learning about and valuing different cultures, races, religions and ethnic backgrounds.
• Observe the assumptions the person appears to make about people and ideas. Such assumptions may be based on both external, easily identifiable differences, as well as on more subtle, invisible differences. Share your observations.

Sample Development Goals
By February 1, I will partner with an individual whose background and experiences are different than my own and contract to both learn and/or teach several skills that will improve my performance in some way.
By October 1, I will interview Dave Murphy about the things he has done to build a successful, diverse team.
By March 1, I will fill at least one of our three openings with an individual who will expand the diversity of our team.
By May 1, I will create a support network with colleagues who are interested in more effectively leveraging diversity. At least two ideas will be explored and implemented by July 1.
At the next staff meeting on October 15, I will ask for everyone’s ideas on increasing and leveraging diversity within our group.
Resources for Developing this Competency are listed in the Fostering Diversity page of the Competency Development Guide.

Let Us Help You
Organizations can provide every employee with the content of the Competency  Development Guide, and customize it to their needs, through the purchase of an intellectual property license.
Workitect is a leading provider of competency-based talent development systems, tools and programs. We use “job competency assessment” to identify the characteristics of superior performers in key jobs in an organization. These characteristics, or competencies, become “blueprints” for outstanding job performance. Competencies include personal characteristics, motives, knowledge, and behavioral skills. Job competency models are the foundation of an integrated talent management system that includes selection, performance management, succession planning, and leadership development. Contact our experienced consultants to learn how we can improve all areas of your talent management processes.

Benefits of a Generic Competency Dictionary

Generic competency dictionaries are essential when developing multiple competency models within the same organization, to ensure that common skills and characteristics are always described with the same competency names. The organization reviews and revises a set of generic competencies, which then serve as building blocks for the construction of the individual competency models. Whenever a competency is used, it has the same general definition, but the behavioral descriptors can vary from one job to the next.

A generic competency dictionary has several uses in model building.

1) It provides a common conceptual framework or starting point for the model building team. The framework is useful in categorizing initial ideas about job requirements, and the model building team can modify or add to the framework.

2) The framework can be used in a resource panel by asking participants to rate the importance of a set of generic competencies selected for relevance to the job.

3) The framework can be used to guide the analysis of critical/behavioral event interviews.

Model builders can use a generic competency framework to note and record each instance of each generic competency. The analyst uses a spreadsheet to record the interviewer’s initials, the page number from the transcript, a paraphrase of the significant behavior, and the names and numbers of relevant generic competencies and behavioral indicators.

The data from each analyst’s spreadsheet is combined to create a database that can be sorted in multiple ways. A list of all instances of a generic competency and its individual behavioral indicators, and the number of instances of each element of the generic dictionary can be quickly tabulated. The final model is not limited to concepts from the generic competency dictionary. A competency can be conceptualized by drawing from more than one of the generic competencies; and some times new competencies unrelated to any of the existing generic ones are identified.

Review Workitect's Competency Dictionary.