Competency Framework in GE

Theme: Designing a Competency

Framework
Linking competencies to business
strategy
Getting prepared and making it
happen
Various approaches
Characteristics of a good
competency framework
Challenges of design &
development

Competency Framework in GE
Global 1000
Business Week, July 2004
Billions US Dollars

Market Value
1 GE
2 Microsoft
3 Exxon Mobil
4 Pfizer
5 Wal- Mart
6 CitiGroup
7 BP
8 AIG
9 Intel
10 Royal Dutch/ Shell

Sales
328 Wal- Mart
284 BP
283 Exxon Mobil
270 Royal Dutch/ Shell
241 General Motors
239 Daimler Chrysler
193 Ford Motor
191 Toyoto Motor
184 Mitsubishi
174 GE

Profits
259 Exxon Mobil
232 CitiGroup
222 GE
202 HSBC Holdings
183 Royal Dutch/ Shell
167 Vodafone
164 Bank of America
156 Toyoto Motor
137 Microsoft
134 BP

The way world sees GE

20.96
17.85
15
11.65
11.41
11.36
10.81
10.51
9.99
9.54

Competency Framework in GE
Market Value Vs Sales

Sales
GE
Exxon Mobil
Toyoto Motor
Royal Dutch/ Shell
BP
Wal- Mart
General Motors
Mitsubishi
Ford Motor
Daimler Chrysler

Market Value
134
222
156
202
232
259
183
137
164
167

Market
Value as
multiple
of Sales

328.11
283.61
130.65
174.83
193.05
241.19
25.62
15.24
27.18
45.34

The way world values GE

2.45
1.28
0.84
0.87
0.83
0.93
0.14
0.11
0.17
0.27

Competency Framework in GE
Global 1000 Sales Vs Profits
Sales
GE
Exxon Mobil
Toyoto Motor
Royal Dutch/ Shell
BP
Wal- Mart
General Motors
Mitsubishi
Ford Motor
Daimler Chrysler

Profits as
% of
Sales

Profits
134
222
156
202
232
259
183
137
164
167

15
20.96
10.51
11.41
9.54
8.87
2.86
1.04
0.92
-0.5

11.19%
9.44%
6.74%
5.65%
4.11%
3.42%
1.56%
0.76%
0.56%
-0.30%

Why the world sees us that way

Competency Framework in GE

Competition

Sales

Profits as
% of
Sales

Profits
90.65
35.46
32.63
34.89
40.73
18.8
50.48

2.94
0.87
1.74
-0.2
1.11
0.09
0.27

3.24%
2.45%
5.33%
-0.57%
2.73%
0.48%
0.53%

in comparison to our competition

Competency Framework in GE

The way we see ourselves ..at the Core

Consistent superior financial and
Business performance
Portfolio of Diverse Businesses
Organization embracing Change..
at an increasingly faster pace

GE
Growth Engines
Energy

Commercial
Finance

NBC Universal

Healthcare

Advanced
Materials

Consumer &
Industrial

Cash Generators

Transportation

Infrastructure

Consumer
Finance

Insurance

Equipment
Services

Competency Framework in GE

GE in India
21,000

Employees + 8000 in GDCs, 30 Busin

More than 70 % on Global Services

Wide Spectrum of Competencies
Application Processing to Aircraft Engine
> 500 mm Cost Savings

Competency Framework in GE
PhDs / Scientists
Engineering Design Experts

Financial Analysts

Accountants

Software Engineers

I.T .Helpdesk Agents

Customer Service Agents

Hourly Workers
Wide Spectrum of Competencies

Competency Framework in GE
Strategic Intent : what are we trying to accomplish?
Organizational Capabilities we require
Competence Consequenc Governance
Pillar
e Pillar
Pillar

What are the

Competencies
we require to
accomplish our
Strategy?

What are the

standards and
consequences
requires to
accomplish our
strategy?

What is the
Organization
we need to
accomplish our
strategy?

Ulrichs Organizational

WorkProcess/
Capacity for
Change
Pillar

How able are

we to manage
the work
processes and
change in
order to
accomplish our
Diagnostic
Model
Strategy?

GEs Operating Mechanism

Business Processes

Sessio
nI
Strate
Session
C
Session D
C
ComplianceOrg./Staffing/ gy Session
Video
Succession
(Qtrly)
Conferences

February
January

June
March

April

May

SII/CII
Operat
ing
Plan

August
July

October
September

December
November

Leadership Meetings
Operating
Managers
Mtg. (Boca)

Corporate
Officers
Mtg. (COM)
Corporate
Executive
Council
(CEC)

CEC

CEC

CEC

Competency Framework in GE

Competency:
Behaviors , functional skills and knowledge employees must have
or must acquire to input into a situation in order to achieve high levels of
performance

Competency Framework in GE
Types of Framework:
Core Framework
Role specific competencies
Functional Competencies

Competency Framework in GE

Core Framework

GE Values

Competencies to demonstrate GE Values

CURIOUS

TEAMWORK

Generates new and creative ideas.

Fosters an environment where questions and ideas
are valued.
Seeks feedback, continuously learns, and develops
self.
Learns as much or more from failures as
successes.

Builds trust by respecting the ideas and contributions of

everyone.
Works well with others.
Coaches and encourages others on a regular basis.
Contributes to positive morale and spirit within the
team.
Embraces diverse and global cultures.

PASSIONATE

COMMITTED

Demonstrates enthusiasm for what

he/she does.
Willing to take risks.
Empowers others to question the status quo.
Creates excitement and inspires others to
deliver.

Sets clear and measurable goals.

Stays focused on business priorities.
Willing to make tough decisions and live with the
consequences.
Displays persistence and tenacity; is not deterred by
obstacles.

RESOURCEFUL

OPEN

Seeks simple solutions to complex

problems.
Considers varied alternatives before selecting a
solution.
Effectively uses internal/external network.
Consistently gets tasks accomplished with
available resources.

Attentive and respectful when listening and responding

to
others.
Willing to change based on the inputs of others.
Communicates in an open, candid, and consistent
manner.
Accessible and approachable.

ACCOUNTABLE

Displays an engaging, can-do, optimistic attitude.

Makes work fun.
Inspires others to achieve more than they imagined.
Recognizes and rewards the contributions of others.

Takes responsibility for decisions,

actions and results.
Delivers on commitments to stakeholders.
Does what is best for the team and the customer.
Places success of the organization ahead of

ENERGIZING

Growth Generation Leadership Traits

Creates an external focus that defines success in market
terms
Is a clear thinker who can simplify strategy into specific
actions, makes decisions and communicates priorities
Has imagination and courage to take risks on both people
and ideas
Can energize teams through inclusiveness and connection
with people builds loyalty and commitment
Develops expertise in a function or domain, using depth as a
source of confidence to drive change

External Focus
Creates an external focus that defines success in market
terms

Considers the external impact of business activities and

decisions on customers, market/industry, investors, media,
government and communities

Anticipates customer needs and ensures that they are met

measures processes and performance through the customers
eyes

Takes an active role in shaping their industry and/or function

using market intelligence such as benchmarking

Takes action to enhance GEs reputation among all stakeholders

Clear Thinker
Is a clear thinker who can simplify strategy into specific
actions, makes decisions and communicates priorities

Has strategic capacity to sift through complex information and

focus the organization on the critical few priorities

Communicates messages clearly and concisely

Able to translate strategy into business objectives with clear

accountability

Decisive able to make decisions with speed and accuracy

based on best available information

Drives accountability for organic growth and frees up resources

to fund innovation

Imagination + Courage
Has imagination and courage to take risks on both people
and ideas

Generates new and unique ideas makes fresh connections;

an original thinker

Courage to take action on ideas fights for growth

Creates an environment in which people can take risks and

experiment

Brings the creative ideas of others to market; good instincts

about which ideas will work keen sense of timing

Viewed as an innovation zealot ... pushes for big bets to

accelerate our competitive advantage

Inclusive Leader
Can energize teams through inclusiveness and connection
with people builds loyalty and commitment

Flexible in approach to motivate and retain appeals to the

unique interests of each team member

Builds a connection to the workforce through personal

involvement and trust Engages people to want to perform

Promotes an environment that recognizes and celebrates

individual and cultural differences

Develops others provides feedback, coaching, and

developmental assignments

Expertise
Develops expertise in a function or domain, using depth as a
source of confidence to drive change

Stays in job long enough to see the impact of decisions

Demonstrates leadership throughout different business cycles

Gains perspective through varied experiences and build-up of

skills

Has the depth to impact change giving back as much as

getting

Growth Generation Leaders

The Foundation

The Leader

CURIOUS
PASSIONATE

External Focus
Clear Thinker

ACCOUNTABLE
RESOURCEFUL

COMMMITTED
TEAMWORK

Imagination + Courage
Inclusive Leader
Expertise

OPEN
ENERGIZING

Always Executing with Integrity

Growth
Generation
Leaders

Competency Framework in GE

Functional Competencies

Human Resources Competency Model

An Overview of Clusters

BUSINESS
MASTERY

BUSINESS
PARTNER

knows business
and can be a
business partner
prerequisite to join
business team

PERSONAL ATTRIBUTES
lives the GE
Values, and
demonstrates
CHANGE +
personal
PROCESS
fulfills the HR
MASTERY
roles and is an expert integrity,
in HR technology and credibility,
judgment and
practice; knows and is
applying the tools
courage
able
a GE leader of change adding
to deliver HR best
value
practices
establishes functional
FUNCTIONAL
ADDED
credibility
EXPERTISE
VALUE

HR
MASTER
Y

III-1

Human Resources Competency Model

An Overview of Competencies

BUSINESS
MASTERY

BUSINESS
PARTNER

Business Acumen
Customer
Orientation
External
Relations

PERSONAL ATTRIBUTES
HR
MASTER
Org.
Y Design

GE Leadership
Values

Credibility
Selection &
Staffing
Judgment
Meas. & Reward
Negotn. & Conflict Courage
Res.
Cont. Learning & Dev.
Consulting & Coaching
Employee Relations
Communication

FUNCTIONAL
EXPERTISE

CHANGE +
PROCESS
MASTERY

Quality Focus
Change Advocacy
Process
Orientation
Facilitation

ADDED
VALUE

III-2

Human Resources Competency Model

Behavioral Definitions
Personal Attributes
GE Leadership Values

Judgment

Advocates and models the GE leadership

values.

Identifies and acts upon critical issues from

among competing priorities.

Credibility

Makes correct trade-offs between

legitimately competing interests and
agendas.

Develops and exhibits professional

competencies. Is valued as a resource.

Makes good decisions with data available.

Maintains confidentiality. Absolutely trusted

by others.

Courage

Makes and meets commitments. Does what it

takes to produce results.

Stands up for own beliefs and takes

responsibility for personal actions.
Delivers news good and bad in an upfront and candid manner.

III-3

Business Mastery
Business Acumen

External Relations

Demonstrates knowledge of key business

objectives and measurements (i.e., market,
products/services, suppliers, competition,
financial indicators, performance measures).
Understands the business cycle and is able
to influence key business strategies and
initiatives.
Considers the potential global consequences
of decisions. Proactively seeks global
knowledge.
Ensures HR processes and programs
advance and support key business
objectives, strategies and initiatives.
Ensures factors affecting organization
effectiveness (i.e., values, vision, structures,
process, personnel) are incorporated in
business strategy.

Proactively develops cooperative

relationships with key constituencies (i.e.,
media, community, schools, government
agencies) to produce mutual benefit or
understanding on matters of common
interest.
Maintains awareness on matters of public
policy and their business implications.

Customer Orientation
Demonstrates knowledge of customers
gained by interacting with business partners
and/or customers and understands their
needs and concerns (i.e., is able to
articulate why customers buy our products
and services).
Ensures HR processes and programs

III-4

HR Mastery
Organization Design

Measurement & Reward

Develops and implements a strategy to

optimize structure, processes and people to
support business goals and add value to
customers.
Facilitates the appropriate use of high
performance work teams.
Introduces new ways of thinking, working
together and learning to stimulate
organizational innovation.

Designs and implements performance

measurement and feedback tools that
support business strategies and values.
Designs compensation/reward programs and
benefit plans that support business and HR
initiatives.
Develops and manages processes to ensure
that performance and pay/reward/recognition
programs are appropriately linked.
Coaches others on how to provide candid,
focused, behaviorally based feedback to
subordinates, peers and leaders.

Selection & Staffing

Develops and implements a strategic
staffing and succession plan that supports
the business goals.
Champions the full utilization of people
across the organization regardless of
gender, race, national or cultural origin or
other differences.
Effectively identifies, assesses and assists in
the selection and development of the best
candidates.
Designs and develops strategies and
programs to support successful integration
of new people into the organization.
Designs strategies to retain key talent.

Negotiation & Conflict

Resolution
Leads business partners through stages of
conflict analysis and resolution. Develops
consensus and buy-in for options before
communicating or negotiating with impacted
employees.
Plans and leads negotiation process to resolve
issues between the business and employees
and/or their representatives.
Generates solutions to conflicts between
various constituencies and at all
III-5
organizational levels.
Negotiates effectively with outside vendors
and suppliers.

HR Mastery (continued)
Continuous Learning &
Development
Proactively assesses the development needs
of individuals, teams and the organization.
Is aware of and advocates the use of
available resources.
Designs and delivers programs to meet the
development needs of individuals, teams
and the organization.
Continuously scans the environment (i.e.,
networking, literature, etc.) for new or nontraditional ways to improve personal, team
and organizational effectiveness.
Establishes processes that facilitate career
development for individuals.

Consulting & Coaching

Continually reviews and assesses the
environment to identify important issues.
Provides advice and counsel in a candid and
focused manner. Tailors suggestions to fit
individual, team and organizational needs.
Leverages and manages resources, both
internal and external, to meet workforce
needs.

Employee Relations
Understands, responds to and represents
employee issues within the context of the
business strategy.
Understands and executes HR policies and
practices in an efficient and timely manner
(i.e., employee status changes, benefits
administration, salary actions, etc.) Ensures
HR practices are contemporary.
Understands related legislation and
agreements (i.e., EEO, ADA, Union Contract,
etc.) and how it applies to business issues.
Effectively utilizes expert resources when
needed.

Communication
Promotes communication across all channels,
effectively utilizing multiple media (i.e.,
newsletters, all-employee meetings, video
conferencing, PC mail, etc.).
Utilizes information technology to manage
continually improve HR processes and
services.

III-6

Change & Process Mastery

Quality Focus

Apply Six Sigma approach and tools,

including CTQs, scorecards, and both M-A-IC and DFSS methodologies.
Pursues training in quality appropriate to
role.
Develops Six Sigma initiatives which will
produce significant measurable results.
Supports and champions Six Sigma
initiatives throughout Business and HR
Teams.

Change Advocacy
Mobilizes commitment around the required
organizational and behavioral changes using
the Change Acceleration Process (CAP).
Continually assesses organizational issues
and trends to identify opportunities for
improvement.
Creates an environment that encourages
and supports participation, experimentation
and prudent risk taking at all levels.
Champions Work-Out as a vehicle for
positive change, individual impact, and
continuous process improvement.
Supports the development and sharing of
best practices throughout the organization.
Seeks and encourages new perspectives
and ideas in order to stimulate innovation
and change.

Process Orientation
Identifies and involves key stakeholders to
define and improve critical processes.
Selects and uses appropriate process tools to
diagnose opportunities for productivity
improvements.
Champions boundaryless collaboration among
teams or constituencies in order to ensure the
most effective use of processes and
resources.

Facilitation
Maximizes organizational creativity, decision
making and effectiveness by identifying
conflicts, ensuring wide participation and
reconciling differences to reach consensus.
Adapts approach to fit organization and group
dynamics.

III-7

Competency Framework in GE

Some Lessons

Use of Competency Models more for Career Coaching,

development planning, Learning Structures -not for Hirin
Competency Models are only a meansend has to be
Performance
Trap of HR Fundamentalism

Competency Framework in GE