A Case for Values-based Core Competencies

In these tough economic times, a company has to stay very competitive in order to survive and hopefully, rising above all challenges in order to ride the next wave of the economic up-cycle. Apart from taking the short-term measures of trimming the fats and reviewing existing business strategies, such a company has to also take actions with a longer-term perspective for future business growth.

One possible measure is to ensure that all remaining employees abide by its stated guiding principles in the course of doing business. These employees also have to strongly demonstrate behavioral actions consistent to stated corporate values at all times. Such desired situation can only come about only if and when a company implements a competency-based management with a bias towards values-based core competencies. Examples of values-based core competencies include among others, competency such as achievement orientation, integrity, ethics and social responsibility, respect for people, valuing diversity, and learning orientation.

A values-based core competency framework provides a competitive edge to the company in the form of a strong values-driven corporate culture. Corporate history has shown that corporations with values-based core competencies outperformed and even outlasted those with strategy-based core competencies. It is obvious that the prerequisite for the determination of a set values-based core competencies is the explicit declaration and subsequent practice of the stated corporate values.

All organizations have corporate values, either implicitly or explicitly stated. These values may include integrity, commitment, team spirit, quality concern, professionalism and accountability. However, more often than not, those espoused corporate values are merely "words-on-the-wall" organization propaganda. This failure of organization failing to live up to its values or what I call the “value practice gap” is mainly caused by the adoption and implementation of a set of corporate values formulated by a team of the senior managers during a facilitated weekend management retreat. I’ve known of a case where the CEO himself presented his preferred set of corporate values for adoption. Such top-down practice may work for formulating corporate strategies but definitely not for corporate values. Many organizational studies have revealed that it is the employees within the organization through their daily behavioral actions and work practices who determined the core values and thus, the corporate culture.

Therefore, it is my belief that the process of determining a values-based core competency framework has to be both participative and culture-specific. An important step is to get the top performing employees from all levels to be involved in identifying the core competencies and the appropriate desired behavioral indicators through a series of focus group discussions or behavioral event interviews.