Competency management in support of organisational change

Competitive advantage depends largely on the ability to activate and use organisational resources. As a result, the focus in the strategic management, organisational behaviour and human resource management literature has turned to the internal capabilities of organisations including a particular focus on employees' competencies. This paper seeks to analyse and discuss a forward‐looking, dynamic and proactive approach to competency modelling explicitly aligned with strategic business needs and oriented to long‐term future success.

This paper is based on a longitudinal research project sponsored by a leading Greek bank, currently undergoing fundamental corporate restructuring. This paper describes how the competency model was developed and how it facilitated strategy implementation and change by supporting communication, employee understanding of business goals, and the incorporation of new behaviours, roles and competencies in operations.

A forward‐looking and proactive approach to competency modelling is presented and discussed in the context of a large‐scale organisational change. The organisational core competencies required for a business to compete successfully in the banking sector are defined and discussed. The right mix of skills and behaviours that the individuals would need to possess in order to produce and support those core competencies is also analysed and discussed.

Traditional approach to competency management, which is analogous to job analysis, focuses on competencies of successful individuals, rather than on competencies that are needed to support an organisation to meet its short‐ or long‐term objectives. It is important to realise that there is a need to shift toward a forward‐looking and proactive approach to competency modelling and present a competency methodology that supports this need.