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Competent Managers Key to Business Success

Case Study – Business will only succeed if we have competent managers and employees.
The performance management system will fall down if we do not have competent managers and employees. It is essential that the organisation develops the position specification, based on the organisation strategic objectives, before we consider the employees or applicants. If not the organisation could just be reinforcing the past behaviours and practices.
Understanding both the Position first then the Employee
A quantitative performance management system, when integrated into an outcome-based competency approach, is certainly a means of identifying competency shortfalls of employees at all levels including managers, CEO and Board. It is the organisations that are prepared to address these shortfalls that will develop and grow. We have recently been commissioned to undertake the assessment of senior managers in a medium sized organisation one of its subsidiaries.
The commission was to design 17 ideal positions based on the organisations strategic direction for the next 3 years.
Assessing the Competence of the Incumbents against the Ideal Position
The next step was to assess the 19 incumbents against the ideal competency profiles using an outcome based competency approach. The findings were frightening (see the graph below):
1. 17 of the 19 assessments failed to reach the required level i.e. only 2 incumbents were fully competent against the positions they held and were being paid to do.
2. Five (5) incumbents were more than 10% under the required competency level and the most incompetent was 18% under capacity.
3. The average gap was 8.6% i.e. the organisation had managers that were on average 8.6% “under power” but some managers nearly 20% under power/under competent.
4. Performance of the functional areas broadly reflected the competence of [...]

Harvard Business Review LinkedIn Reduction of productivity in organizations

Improving Organisational Productivity

After a lot of comments in LinkedIN on factors that effect productivity, at what we would call micro level relating to specific leadership/supervision and management practices (which is relevant), Maxumise felt it was time to elevate the issue to what we see as initially strategic, organisational and structure issues including defining the ideal contribution – 13th May 2014 Maxumise Consulting Pty Limited responded: At the macro level this is a strategic and organisational issue not an individual or even departmental issue. We find the biggest constraint on productivity is the lack of a well-defined structure including the definition of the “contributing elements” i.e. position descriptions. The definition of the position must include the Outcomes (not a shopping list of poorly defined activities or tasks); quantitative Performance Measures (which empowers the employee when we appoint them) and then we can define the outcome based competency (and attributes) needed to produce the outcome at the standard specified by the performance measures. Now we have a comprehensive specification to recruit against or assess the existing employees. A case study we undertook for a retail group which started with defining the positions in the outcome based competency approach and when we assessed the top 19 managers only 2 were competent but half had been recruited in last 3 years against a “gut feeling” of what they wanted, not a quantitative and definitive system – they put more effort into buying a photocopier than they did designing what they needed before recruiting a departmental manager reporting to the CEO. Yes the right structure and capabilities needed are dependent on a clear strategic direction and understanding of the corporate risk. The bottom-line is, if you do not have the [...]

Human Resources for Retail Sector

The retail sector must have competent human resources to provide results in a highly competitive environment.  Read more in our detailed PDF provided here:

Retail World Article June 2013 Maxumise HCM