Competency Framework

Introduction

Credit unions are knowledge-based organisations like no other, and rely heavily on the expertise of their people. Excellent customer service representatives, managers and directors performing in a superior manner all contribute to a superior service, member retention and sustainability.

Competencies are what are paid for in salary. So it makes sense to know  what competencies are needed and which presently reside within the credit union. Too  often employers do not “get what they pay for.” The costs, in lost business, mistakes  and poor service can be directly attributable to poor selection practices.

A well-developed competency framework also provides tangible, up-to-date  information to help credit unions assess their true capability to deliver strategic plans.

By matching the staff competencies to what is required behavior will identify the gaps in competencies. Then a strategy can be implemented to focus on the competencies  essential to delivering on the strategic plan.

A good competency model or framework will encompass a mixture of “can do,” “will do,” and “fit,” characteristics. To catch the essence of the whole job it is necessary to use a mixture of attitude, skills, and knowledge, behavior and output  competencies to produce an integrated competency framework.

Definition of competencies

Competencies are a combination of knowledge, skills, attitude and personality of an individual as applied to a role or job in the context of the present and future environment that accounts for sustained success within the framework of organisational values.

Competencies include the collection of success factors necessary for achieving important results in a specific job or work role in the credit union.

Success factors are combinations of knowledge, skills, and attributes that are described in terms of specific behaviors, and are demonstrated by superior performers in those roles.

Attributes include personal characteristics, traits, motives, values or ways of thinking that impact an individual’s behavior.

Knowledge refers to the information a person possesses about specific areas, knowledge comprises many factors like memory, numerical ability, linguistic ability. In the credit union it is likely to be technical or job knowledge

Skill represents intelligent application of knowledge, experience, and tools. This is the procedural “know how” knowledge (what one can do), either covert (e.g., deductive or inductive reasoning) or observable e.g. “active listening” skill in an interview. They are demonstrated abilities or proficiencies, which are developed and learned from past work and life experience.

Attitudes are predispositions to other individuals, groups, objects, situations, events, issues, etc. For example attitude to a particular occupation or a particular technology all influence our behavior. If a person does not have a positive attitude to computers or IT, they are not likely to use a computer well. Attitudes determine the kind of things we choose and whether we are likely to approach a particular situation or not or whether we are open to try out the technology or meet the customer or sell a particular product with high motivation, etc.

Attitudes decide our approach or avoidance behaviour. They are normally conceptualised as positive or negative. A positive attitude makes us to treat that object, technology, method, situation, and person or group more positively and therefore we appreciate it and promote the same.

Knowledge and skills tend to be visible and relatively surface, characteristics of people. But attitude, trait and motive competencies are more hidden “deeper” and central to personality. Surface knowledge and skills are relatively easy to develop. But core motive and trait competencies are at the base of the personality and are more difficult to assess and develop.

Describing competencies

A Competency is described in terms of key behaviours that enables recognition of that competency at the work place.

These behaviors are demonstrated by excellent performers on-the-job much more consistently than average or poor performers. These characteristics generally follow the 80-20 rule in that they include the key behaviors that primarily drive excellent performance.

Basic competencies are inherent in all individuals.  Only their degree of existence differs.  For example, decision making is a competency that exists in every individual but in varying degrees.

An example of basic competencies would be:

• Personal Impact: having sensitivity to the impact behavior has on others and the ability to develop an understanding of other people’s feelings, needs and concerns.
• Flexibility: a willingness to adapt thinking and behavior to suit different situations.
• Team work: the ability to be a good team player, developing effective supporting relationships with fellow team members.
• Developing others: recognizing the capability of others within the credit union and being able to create an open environment in which to learn and develop
• Leadership: the ability to take responsibility for accomplishing the desired objectives.
• Communication: the ability to speak confidently, clearly, concisely and in a way that holds others attention.
• Tolerance to non-compliance, non-congruence, non-conformance: the ability to remain unfazed when encountered with unfamiliar and unacceptable situations.
• Decision making:  the ability to decide the course of action under any situation
• Strategic thinking: the ability to visualise near and distant future conditions and develop appropriate organisational response.

Professional competencies are over and above the basic competencies, and are job related.  For example, customer focus is required when dealing with a complaint effectively. The professional competencies encompass the knowledge, experience and expertise gained by an individual employee. These are the competencies that would form the basis of the job role description or specification for the role.

These might be:

• Customer focus: an understanding of the needs of both internal customers (colleagues in other teams) and external customers (members and stakeholders) to create and provide excellent customer service.
• Organising skills: the ability to establish, nurture and troubleshoot organisational processes and relationships for effective delivery of objectives.
• Planning skills: the ability to understand inter relationships and requirements of different activities to be performed to achieve the desired objectives.
• Execution skills: the ability required to carry out the assigned activities to the satisfaction of the customer cost effectively.
• Analytical skills:  understanding and interpreting data and information.
• Business skills: the ability to effectively perform the functional business processes.
• Technical skills: the ability to effectively perform the technical responsibilities of the job position.

Organisational competencies

These are competencies which are considered essential for all staff, regardless of their function or level,. These competencies include broad success factors not tied to a specific work.

They can be represented as:

• Commitment to credit union values: a willingness to ensure that behavior reflects the culture and values of the credit union.
• Cross functional perspective: attributes required to understand one’s own job in relation with other functions within the organisation

Each role within the credit union will have some or all of these competencies within a framework and in conjunction with role descriptions, will aim to improve the business performance and value system of the credit union.