Custom vs. standard competency models and when to use them
We use “competency model” and “capability framework” interchangeably. They both mean the same thing, but yet may be embraced differently within different organizations.
When to use a standard competency model
Use a standard competency model when you have a role that is fairly consistent across organizations. For example: information technology roles, healthcare roles, retail roles, banking roles, general corporate roles (accounting, supply chain, legal, etc.). This is because while these functions have nuances and best practices related to an organization, they tend to be fairly consistent. Think about the role of an Accounts Payable Specialist. The skills and tasks are probably roughly the same from company to company.
A standard model is really valuable when speed of implementation is essential.
For example, when you need to quickly perform a competency assessments so you can quantify the size of your organization’s skill gaps. Standard competency models are typically designed so they can be easily loaded into a competency assessment system where capability analytics can drive business decisions.
If you are in the midst of getting ISO 9001 certification, use a standard competency model to quickly meet the competency assessment requirements.
You have a new role in the organization brought about by the future of work that you haven’t well defined.
Keep in mind that you may still want to customize your standard model, however, out of the box it provides you with the competencies, tasks, behavioral examples, and target proficiency level. That minimizes the effort of getting these models completed and in use. And this customization may be performed over time – minimal customization initially, and then gradually tailoring the model as your strategy changes, just as you would a custom model.
For large organizations, there are probably many, many roles for which a standard competency model is the best way to go. That’s because large organizations have many general corporate functions, and many people within each. But that holds true for smaller organizations too, where there may not be enough people in a given role to justify creating a custom model.
When to create a custom capability framework
When you have a role that is pretty unique to your organization, or the nature of how your organization executes a function is what drives your competitive advantage, a standard capability framework may not suffice.
Take a Supply Chain Specialist at a company like Zappos or Amazon. Their supply chain differentiates them, and therefore, a custom model that is designed around those differences makes more sense to capture and communicate the roadmap to greatness for people in those roles.
Sales, Marketing, and Professional Services are unique areas. For some organizations, a standard model may work well for people in these roles. In other cases, there are so many unique behavioral examples of how something is done at your organization, that it is more efficient to build a custom model than it is to customize a standard model.
Lastly, the pace at which many new jobs are being created in the Fourth Industrial Revolution is so rapid that there simply may not be a standard model available, meaning that a custom model is the only way to go.
