World-class organizations use competencies to articulate
and leverage exceptional organizational performance. From a value-added
perspective, competency-based management systems enable the realization
of business strategy and provide a distinctive, enduring advantage
for the organization.
Lawson International Ltd. provides clients with
a six-phase, custom approach for developing and implementing competency-based
management systems that strengthen organizational and financial
The Elements of a Competency-Based Management
Unleashing the power of human and intellectual capital
in the workplace through the creation of an involving, motivating,
and competence-upgrading organizational environment has been acclaimed
as a key source of competitive advantage for business organizations.
Competency-Based Management Linked Firmly With
Our collaborative approach in developing and implementing
competency-based management systems ensures an integral link with
your companys business strategy, competitive environment,
and goals. In fact, the initial step of our implementation process
involves thoughtfully determining how to leverage the competencies
to drive organizational performance using tools that are closely
matched with business imperatives. As such, we initially stress
the importance of looking forward relative to accomplishing projected
results and addressing current and emerging business issues rather
than being preoccupied with the competency model derivation and
validation process which occurs at a later step in our consulting
In essence, our approach initially places emphasis
downstream where implementation and business
needs are most paramount relative to the anticipated success of
your project initiative.
A Value-Adding and Collaborative, Six-Phase
In crafting a competency-based management system
and model with your organization, we use a custom, six-phase implementation
process that ensures expedient, valid, and high-commitment results:
1. Determine, initially, how to leverage the competency
model to drive organizational performance through competency-based
tools and applications linked with business goals and strategy.
2. Evaluate, on a pro forma basis, the return-on-investment
associated with the competency-based management initiative.
3. Formulate a competency modeling approach associated
with the business goals and strategy.
4. Build and empirically-validate the model using
an efficient data generation and commitment-building process.
5. Design and implement the value-creating, competency-based
tools and applications, including the overall architecture of the
6. Measure the financial and non-economic impact
of the competency-based management system relative to targeted results
More importantly, each of these phases are custom-designed
and implemented consistent with the unique project requirements
and cultural nuances of your organization.
Key Applications for Driving Organizational
Client project requirements for specific competency-based
management system applications, that we have helped develop, include:
competencies into training and development programs.
and building team competencies.
performance management processes with competencies that account
for the highest performance variance.
the return-on-investment or economic value of competency initiatives.
competency-based organizational transformation and change strategies.
and developing leadership competencies.
and selecting top performers.
succession planning and executive development processes.
functional or technical competencies.
competency-based, multi-source (360-degree) assessment and development
individual or team-based competencies with core competencies and
and implementing an overall competency-based system architecture
The Economic Value of Competency-Based Management
Valuing exemplary performance, using financial metrics,
consists of employing an investment measurement process rather than
a resource- or activity-based process. We use an investment process
that entails three, key steps:
1. Pinpointing the required resources associated
with the competency-based management system.
2. Implementing the resulting model, tools, and
3. Identifying and measuring the valued outcomes
produced by the human resource management applications and tools
that are linked with the model.
Valuing exemplary performance is usually based upon
performance improvement at one standard deviation above
average or mean performance. Next, appropriate financial and capital
budgeting tools such as break-even analysis or
net present value analysis are used to measure the financial
impact of change or performance improvement associated with the
targeted, financially-based valued outcomes. Financial measures
or valued outcomes consist of various measures such as Economic
Value Added (EVA), ROI, ROE, and shareholder value creation as a
result of cost savings, given a companys price/earnings ratio,
and so on.
Advantages in Working With Lawson International
By working with Lawson International Ltd., organizations
are able to:
their business by attracting and retaining the right customers and
value by tracking competencies of customers, suppliers, employees,
and teams and quantifying their economic consequences.
distinctive competitive advantage by designing business systems
on the principles of competencies organizational, process,
team, and individual.
productivity by recruiting, hiring, and placing the right employees
and implementing value-adding, competency-based management systems.
intellectual capital by building a stable and high performance base
of human assets employee competence that can be leveraged
to drive organizational performance.
shareholder value and economic profit with an enduring and inimitable
base of human assets that creates productivity and profit growth.