Home' MHD Supply Chain Solutions : MHD Mar-Apl 2015 Contents In Figure 4. above, we start to build the
model from a bottom-up approach. This
approach will give a more accurate dimension
of the competencies already available in the
organisation and the ones that will need to be
developed or to be acquired.
This model illustrates the importance
and relevance of defining and structuring a
competency model with a visual clarity. This
is fundamental to building the capabilities to
deliver the desired and expected performance.
The next step is to analysis of the key
competencies groups and categorise them into
task competencies and personal competencies.
The task competencies will cluster all the
job- and technical-related skills and experience,
and will subdivide them into subgroups such as
‘knowledge base’ and ‘skill sets’.
The personal competencies will cluster all the
personal skills and related personal attributes,
and will be divided into sub-group such as
‘attribute bundles’ and ‘performance drivers’.
In Figure 5. (next page), the full competency
model is illustrated using a bottom-up approach.
The core part of the model is capturing the
competencies. It is a very important process that
will need a degree of time and effort to design
and deploy within the organisation. The starting
point should be the second and third levels of
the organisation from the CEO, and work down
the organisational structure.
Expanding the task and personal competencies
is not included in this article as it involves some
deep analytical processes. However, we can share
some of the key elements that form the character-
istics of these competencies for reference.
a) Knowledge-based competencies are based
on the industry sector specifics, experience,
exposure and industry technical know-how.
b) Skills sets are based on personal core skills
and management skills and the application to
a specific role.
c) Attribute bundles are competencies that
are acquired through work exposure,
experience, technical knowledge or special
training, examples of leadership, value
creation, adaptive working styles and
d) Performance drivers are competencies that
make the difference between achieving
mediocre & excellent results. In addition,
these competencies are also essential to
enabling sustainable performance and
The competency matrix is a fundamental
blueprint of the human capital in an
organisation. The matrix needs to be refreshed
and kept relevant, at least every two years,
to ensure that the capabilities to deliver high
performance are deployed effectively.
“All the people involved in the supply chain must
understand their position in the overall structure and
the impact of their contribution...”
Figure 4. illustrates the core composition of business competencies.
The engagement factor
There are numerous papers, surveys and
books written about people engagement. This
is a very important subject to understand,
both in terms of employment relations as
well as the impact to the supply chain. It is a
common complaint that company executives
do not allocate enough time and resources
to understand and sustain the people
engagement factor in the organisation.
It would not be an exaggeration to state that
many companies actually have an engagement
score between 60 and 68%, based on an
engagement survey conducted by one of the
authors in the Asia-Pacific region in 2012/13.
Does this surprise you? While less than 70%
are actually fully engaged to deploy their capa-
bilities, the remaining population maybe par-
tially engaged, or not engage at all, with a low
or zero deployment of their capabilities.
Let me give an example of a racing car with
an 8-piston engine. If two pistons are delivering
100% of their power, two pistons delivering
75% of their power, two delivering 50% of their
power and two delivering 0% of their power,
then the whole engine can only deliver 56.25%
of its rated power.
If we compared such a scenario to people
in an organisation, can one be content to pay
100% for a resource and yet only enjoy just
over half of its capability and contributions to
the company’s goals? An engagement factor of
70% or below from the human capital does not
reflect a high-performing organisation capable
of growing. This also gives a strong signal that
management has a problem in managing people
and business performance.
Figure 5. The competency model illustrated from a bottom-up approach.
MHD SUPPLY CHAIN SOLUTIONS — MARCH / APRIL 2015
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