Core Competencies

The Core Competencies of Human Resources are: • Understanding of Our Business • Driving Change and Managing Transformation • The Ability to Create and Manage Culture • Management of HR P

Core Competencies Core Skill Bundles for HR in the New World

The term "core competency" first became popular through an article on the subject which appeared in Harvard Business Review in June 1990, entitled The Core Competency of the Corporation, by Pralahad and Hamel It defined core competencies as "the collective

learnings in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies." The thesis being that core competencies (i.e., harmonizing streams of technology) can become a way of competing via developing new products built around/off of a firm's proven competencies Examples are the logistics system of Federal Express or Honda's engine technology or dealer network; competencies which are hard for the competition to copy

When we discuss this in terms of functions in a company, it centers on the question of how does a function link its know-how to support the company's core competencies to improve operating results For Human Resources it comes down to identification and "bundling" of key skill areas for deployment into business units, and creating the mechanism to keep these fresh and relevant to individuals and the organization

For the organization, year 0-2005 and beyond, Human Resources professionals must develop deep skills and expertise in five areas to ensure that value is added Value is defined as increasing capability, eliminating barriers to speed, and/or increasing focus or alignment for example While all five are equally important, not all five are delivered in the same way; four are deployed to build individual and organizational capacity via resources with leaders and their teams in line business units and one is a bundle of work processes which supports the entire corporation Said another way, HR is organized around two platforms, one of which is delivered by professionals working in the line business, while the

other is delivered in support of those working in line units by off-line resources For more detail on the Competencies and the Role of HR,clickhere

The Core Competencies of Human Resources are:

• Understanding of Our Business

• Driving Change and Managing Transformation

• The Ability to Create and Manage Culture

• Management of HR Practices/Deliver HR

• Personal Credibility and Influence

Understanding of Our Business

HR People must Understand the Business In order to develop and resource

business leaders, their teams, and the organizations they lead, HR practitioners must fully understand the business This means all aspects of the business;

strategies, objectives, measures, competitors, customers, and how all functions contribute This takes development and experience One can't give advice, make recommendations or contribute with competence and credibility without this knowledge and experience Hence, the importance of business assignments in the line before assuming the HR role is critical One learns the business by working in the business and develops the external focus and the skills to help leaders

develop sustainable competitive advantage through these assignments

Understanding of our business involves skills in the following areas:

Strategies

Refers to the choices a business makes to organize around to best position us to "win" with consumers versusour competitors

Metrics

The measures chosen to evaluate progress on strategies Always numbers, and most often shown as a "gap" between two numbers

Core Skills Assessment

Print this page and circle all areas below where you have demonstrated successful results in using the core skills listed You may circle items in different skill levels The skills listed below are stratified to help determine the actual level of

experience a person has so plans can be developed to gain more

experience/proficiency.

Basic

· Basic understanding of the Business Process

· Knowledge of strategies, metrics, customers, competitors and cross-functional

contributions

· Understands and can make assessment of how HR Core Skills "fit" with delivery of the CEO/Business Leaders' agenda

· Can analyze the status/state of the business and see/explain areas of opportunity

· Able to lead discussions about the business

Advanced

· Solid understanding of the business, the key consumers and the positioning and "state" of the competitive set

· Called upon to make suggestions for interventions to improve results based on analysis of the business

· Able to evaluate the cause and effect of our interventions and anticipatively offer counter measures to improve results

· Takes the lead in partnering with BU LT to educate/train the organization on our strategies and interventions

Master

· Called upon to solve strategic business problems and suggest interventions to improve results

· Make effective recommendations on how to make changes in linking culture with strategy

to improve results

· Capable of leading the BULT in the analysis of results and guiding them to clear, focused action plans

· Used as the Master developer of those training to lead the HR role in the business

CLICK HERE to open the assessment file that lists all core skills on one page

Customers

The individuals or organizations that services are provided for

Competition

Other companies in our business we vie with to gain volume and market share HR

professionals must bring their skills and business competencies to bear so that competitive advantage is achieved

Functional Excellence/ Contribution

The unique skills/knowledge that functions add to the business

PS = Manufacturing, Engineering, Purchasing

R&D = Science and Technology

HR = Improving the capability of individuals and organizations

The CEO's Agenda

The direction, focus and priorities of the top leadership of the company and working to understand how things fit together (the contributions you and your organization make) to achieve it

Human Resources 2005 Core Skills/Competencies Assessment Form

HR Core Skills:

Circle all areas below where you have demonstrated successful results in using the core skills listed You may circle items in different skill levels The skills listed below are stratified to help determine the actual level of experience a person has so plans can be developed to gain more

experience/proficiency

Key Activity/

Core Skill

1

Underst

anding of

Our

Business

Basic understanding of the Business Process

Knowledge of strategies, metrics, customers, competitors and cross-functional contributions

Understands and can make assessment of how HR Core Skills

“fit” with delivery of the CEO/Business Leaders’ agenda

Can analyze the status/state of the business and see/explain areas of opportunity

Able to lead discussions about the business

Solid understanding of the business, the key consumers and the positioning and “state” of the competitive set

Called upon to make suggestions for interventions to improve results based on analysis of the business

Able to evaluate the cause and effect of our interventions and anticipatively offer counter measures to improve results

Takes the lead in partnering with

BU LT to educate/train the organization on our strategies and interventions

Called upon to solve strategic business problems and suggest interventions to improve

results

Make effective recommendations on how to make changes in linking culture with strategy to improve results

Capable of leading the BULT in the analysis of results and guiding them to clear, focused action plans

Used as the Master developer

of those training to lead the

HR role in the business

2 Driving

Change and

Managing

Transfor-mation

Understands models and tools and can apply them to basic situations

in the business

Understands and can train others in the theory of change and the

change process, and how they apply to improve operating results

Capable of developing success measures for business change efforts, and on how to evaluate progress/modify plans to achieve results

Can lead discussions on how change plans are built around PVP

to ensure constancy of purpose and continuity

Able to build good/effective working relationships as the lever for

change, and understands the fundamentals of managing conflict and differences to drive progress

Clear on the leadership role in change and on techniques for coaching/developing leaders

Can lead the change process and select the models and tools appropriate to achieve successful results in the business

Sought out by BULT and others as

a resource and developer of others in change management

Creates comprehensive change efforts with clear measures and can rapidly develop counter measures/plans as issues arise requiring course correction

Models the behaviors of PVP in interactions and in leading the process

Recognized as a builder of solid relationships with leaders and those impacted by change to ensure successful outcomes

Has successfully developed of leaders for change efforts

Sought out as the

“sage”/advisor on complex change processes Has deep command of all change models/tools and successful experiences from using them Key resource and advisor to top managers in the company May also be recognized outside

of P&G

“Change Master” status has led

to being the resource/developer of leaders and in leading the

development of aspiring change agents

Has led change successfully at almost every level in the organization and in most every type of organization

3 Ability to

Create and

Manage

Culture

Understands the concepts of culture and strategy as two critical

components for successful business improvement

Has worked on projects to assess and define culture and practiced the mechanics of designing a culture to

“fit”/support delivery of business strategies

Has worked to define the sub-system/sub-processes of the culture which drive change with some success (rewards,

communications, leadership development, linking customers, performance management, etc.) and can do the gap analysis and make recommendations for cultural development

Can define the cultural linkages/levers which support business improvement and define the steps for making change

Called on to lead the design and change of culture in support of business improvements

Capable “troubleshooter” to identify the “fixes” needed to realign/mobilize the change effort

if it stalls

Experienced in line and staff designs to improve alignment and operating results

Experienced in the complexity of cross-functional/cross-unit/global design issues and has had

success in these designs

Capable of coaching and developing leadership competence

The master of cultural design and development sought out

by business leaders to assist in the most complex change efforts

The master sought out by practitioners to coach/resource them on their efforts

Mentor of people who are learning the concepts and technology – master teacher Veteran of many complex change efforts – often recognized outside of P&G

Manage

ment of HR

Practices/

Deliver HR

Capable of providing organizational support in most all of the core HR technologies Has achieved more advanced skills in at least one technology

Participates, with more experienced practitioners in analyzing the

gaps/outages in delivery to individuals and organizations, and

in improving the delivery

Able to contribute/participate in the development of others and their understanding of HR core

technologies

Experienced in all the core HR technologies and has achieved Mastery level in at least one area

Serves as the leader in delivery of

HR core technologies to an organization, and manages others

in the delivery of services

Advanced problem solving/issue resolution skills ensuring speed of delivery Also experienced

enough to have created new and innovative approaches to the delivery of technologies, or in creating new technologies

Expert trainer/coach developer of others

Mastery level in at least three

of the HR core technologies Resource to the practitioners and the organization at large Creator of new and better programs and delivery systems

Master used by leaders of the organization as

coach/confidant and problem solver when needed

Perpetrator of excellence in the system The master teacher and developer of practitioners and leaders

5 Personal

Credibility

and

Influence

Has moved into the role as a result

of establishing a record of trust and credibility in working interactions with customers and peers

Learning rapidly the skill of leadership through position and performance Able to impact the outcome of issues favorably within his/her sphere of influence

Clearly a person whose performance embodies the PVPs

Seen by others as one who embodies this, even in the most difficult pressure situations

Willing to stand up on issues even if it’s unpopular Takes risks

Able to work well with cross functional peers/organizations to resolve difficult issues effectively

Sought out by others to provide coaching, perspective and support

in dealing with business, cultural

or change issues

Admired and respected as a trusted and credible person who can influence issues and people to achieve good results

Able to lead through influence based on his/her role and demeanor

Willing to take unpopular stand

on political or high pressure/unpopular issues Risk taker

The person business leaders, organizational peers, and others seek out for coaching and support Highly trusted and credible “weather vane” for the organization

Viewed by most people as a role model and living example

of operating by PVP

Carries great influence with leadership and the business organization The person leaders seek out before taking actions

Disturber of the peace/status quo

Overall Skill/Competency Level Assessment – To develop an overall rating/assessment, review each of the areas and determine at what practical level the level of competency lies To be a Mastery Level practitioner a person normally has longer service, deep experience, and a reputation for being sought out by others for support/resourcing Additionally, the Mastery level individual is usually classed as Mastery level in at least three of the five competencies

To be practicing at the Advanced Level, a practitioner is often sought out for resourcing and support, is generally deeply experienced in most all the Core technologies listed, and is

generally classed as a master in at least two of the five competencies

The person operating at the Basic Level is newer in the practice, experienced in many of the core technologies, is rapidly learning and contributing, and normally has advanced level skills and proficiency in at least one technology area

Overall (check one): q Basic

q Advanced

q Master Please add any comments important for amplifying this assessment Be sure to use this assessment and work plans to develop the person’s W&DP/Work Plan for the period ahead skill assess/cab

Driving Change and Managing Transformation

Change in business and in life is a constant, and it creates issues and problems that impact the ability to compete HR professionals must have a deep and broad

understanding of change as an aspect of business and understand and be facile in the tools and technologies for managing change successfully to help ensure

improved business results This means becoming a change agent, capable of

sensing, leading and managing people and organizations through anticipated and unanticipated change

Driving change and managing transformation involves skills in the following areas:

Change Theory

Understanding change as a concept and a constant and that it is a separate "state" in time that can and must be managed to ensure individual and organizational success

Change Tools

The tools, graphics or narrative descriptions explaining change and how it can be managed Examples of change tools include the Galbraith Model, the OP Model, the Beckhard and Harris Transition Model, and various team development techniques (See the OE web site for more details)

Success Measures

Translating means for managing change into defined metrics or initiatives with timing to evaluate progress and success

Change Process

The knowledge that there is a systemic approach to manage change made up of defined processes to ensure success

Values/PVP

The core beliefs which drive the organization's behavior, help provide a context for decisions,

and become attributes of its culture

Relationships

The interaction and interdependencies in and between organizations and people which must be understood in planning, organizing and effectively managing change

Management of Conflict

Understanding that change is often resisted, causing pressure and conflict which impede progress and impact results Seeing conflict as a positive force and learning how to manage it iscritical to success

Leadership Role

The leadership role is the critical catalyst for making the change successful Developing and supporting leaders in their work is a critical role for HR professionals

Core Skills Assessment

Print this page and circle all areas below where you have demonstrated successful results in using the core skills listed You may circle items in different skill levels The skills listed below are stratified to help determine the actual level of experience

a person has so plans can be developed to gain more experience/proficiency.

Basic

· Understands models and tools and can apply them to basic situations in the business

· Understands and can train others in the theory of change and the change process, and how they apply to improve operating results

· Capable of developing success measures for business change efforts, and on how to evaluate progress/modify plans to achieve results

· Can lead discussions on how change plans are built around PVP to ensure constancy of

purpose and continuity

· Able to build good/effective working relationships as the lever for change, and understands the fundamentals of managing conflict and differences to drive progress

· Clear on the leadership role in change and on techniques for coaching/developing leaders

Advanced

· Can lead the change process and select the models and tools appropriate to achieve

successful results in the business

· Sought out by BULT and others as a resource and developer of others in change

management

· Creates comprehensive change efforts with clear measures and can rapidly develop counter measures/plans as issues arise requiring course correction

· Models the behaviors of PVP in interactions and in leading the process

· Recognized as a builder of solid relationships with leaders and those impacted by change to ensure successful outcomes

· Has successfully developed of leaders for change efforts

Master

· Sought out as the "sage"/advisor on complex change processes Has deep command of all change models/tools and successful experiences from using them

· Key resource and advisor to top managers in the company May also be recognized outside

of P&G

· "Change Master" status has led to being the resource/developer of leaders and in leading the development of aspiring change agents

· Has led change successfully at almost every level in the organization and in most every type

of organization

Ability to Create & Manage Culture

This refers to the ability to fully understand the relationship between strategy and culture as the two major elements in business success Here the practitioner must understand all the human and organizational elements which impact the

organization's ability to successfully deliver its strategies, and be able to manage these holistically to ensure results are achieved These include organization design, direction setting, resource allocation, staffing, development and operation of

rewards and recognition systems, customer linkages and the development of leaders capable of managing the strategy/culture "alloy"

The ability to create and manage culture involves skills in the following areas:

Organization Design

The ability to diagnose the situation, evaluate options, create design principles linked to/or focused on delivering the outcome, and actual re-organization/re-design of organizational units to achieve results The design must link strategy and culture

Communication

Development of the "teachable point of view" for change and all the needed infrastructure and integrated systems to ensure rapid two way communications

Values/Standards

The critical behaviors and beliefs needed in a new culture to support the achievement of results Values define the culture, standards provide the norms for daily

transactions/interaction In P&G the principles, values and purpose (PVP) provide the standard and guidelines for all interactions

Staffing

The ability to help business leaders identify the people with the appropriate mix of skills and experience, and to place them in the right positions in the organization to support the

achievement of results

Development of the Organizations

"Development" in this context speaks to the ability of the professional to understand the variable of change, the desired direction of the business, and to as a result create a culture of the type needed to match/fit with the strategies of the business to achieve results It also includes being able to sustain and improve this culture, thereby "managing" it

Performance/Rewards

Understanding what successful performance means in the culture and being able to create reward mechanisms to support the desired behaviors

Customer Linkages

When the culture is created and operationalized it must include linkage to all customers, internal and external, to ensure results All customers must see their needs being addressed The culture must therefore be designed and guided to follow on this and see the linkages and interdependencies as crucial to each and every role

Leadership Competencies

It is critical that HR focus of developing leaders in a manner which ensures that they have skills, experience and the sensitivity to create and manage culture Outages in this area mean the "alloy" of strategy and culture are not created, and results suffer

Core Skills Assessment

Print this page and circle all areas below where you have demonstrated successful results in using the core skills listed You may circle items in different skill levels The skills listed below are stratified to help determine the actual level of experience

a person has so plans can be developed to gain more experience/proficiency.

Basic

· Understands the concepts of culture and strategy as two critical components for successful business improvement

· Has worked on projects to assess and define culture and practiced the mechanics of

designing a culture to "fit"/support delivery of business strategies

· Has worked to define the sub-system/sub-processes of the culture which drive change with some success (rewards, communications, leadership development, linking customers,

performance management, etc.) and can do the gap analysis and make recommendations for cultural development

· Can define the cultural linkages/levers which support business improvement and define the steps for making change

Advanced

· Called on to lead the design and change of culture in support of business improvements

· Capable "troubleshooter" to identify the "fixes" needed to realign/mobilize the change effort

if it stalls

· Experienced in line and staff designs to improve alignment and operating results

· Experienced in the complexity of cross-functional/cross-unit/global design issues and has had success in these designs

· Capable of coaching and developing leadership competence

Master

· The master of cultural design and development sought out by business leaders to assist in the most complex change efforts

· The master sought out by practitioners to coach/resource them on their efforts

· Mentor of people who are learning the concepts and technology – master teacher

· Veteran of many complex change efforts – often recognized outside of P&G

Management of HR Systems/Practices

This aspect of the skill set is critical to ensure organizational excellence, a spirit of pride and elan in the organization, so that nothing happens to distract or disrupt the business It deals with the systems fundamentals: recruiting; deployment and

development of resources; the building of solid working relationships, the

development of teams and people; and planning for the success of the organization This involves also being an employee champion

Management of HR systems/practices involves skills in the following areas:

Development of People

"Development" in this context refers to the design and operationalization of systems to coach and improve people in all of the "platforms" needed for success

Recruiting/Staffing

The fundamental HR role of attracting, retaining and helping place resources in the

organization