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Best Practices Implementing Sales Competency in a Matrix Organization

Evelyn Brisibe

Applied Project (APRJ-699)


12,199 Words

Dr. Lindsay Redpath

April 10, 2010



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.



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



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



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).



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



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



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



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.



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.



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,



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



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



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.



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)



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



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:



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



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)



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.



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



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.



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.



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



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.



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



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.



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



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?



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)



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



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?”



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



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.



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.



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.



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



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



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).



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.



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.



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.



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.



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.



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



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.



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



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?



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.



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.



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.



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.



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



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



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



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



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.



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”.



Appendices

1.0 Value Based Development & Communication



2.0 Working down from the middle



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)

12,199 words dr. lindsay redpath - dtpr...

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