Methodology for Competence Model
Development
Methodology for defining competences and
developing a competence model
at company, sector and regional level
Abstract
Sofia, December 2010
Проект „Разработване и внедряване на информационна система за оценка на компетенциите на работната сила по браншове и региони”
Проектът се осъществява от Българска стопанска камара – съюз на българския бизнес с финансовата подкрепа на Оперативна програма „Развитие на
човешките ресурси”2007-2013, съфинансирана от Европейския социален фонд и Република България, по договор № BG051PO001-2.1.06
ABSTRACT
This document was written as part of a national project “Development of Workforce
Competence Assessment System by Sectors and Regions” (hereafter National Project)
within Human Resources Development Operational Programme.
The analysis objective is to structure the process of developing, implementing and
applying a competence model at company level, as well as to produce practical
recommendations for its adaptation at sector and regional level within the whole project.
As a result, the document proposes two topical and attainable methodologies – a
Methodology for Developing, Implementing and Applying a Competence Model at
Company Level and a Methodology for Developing, Implementing and Applying a
Competence Model at Sector/Regional Level.
Both methodologies rely on the use of a competence model for managing
organizational processes efficiently. The analysis, inferences and recommendations rest
upon the thesis that developing a competence model lies at the heart of good
organizational practices and its right application is a key factor in the efficient
management and development of individual and group potential.
The basic principles in the methodologies adhere to the world leading theories and
practices and could be applied to local context as well. The methodologies are also drawn
so that an objective appraisal of the local Bulgarian enterprises idiosyncrasies and
demands can be carried out. The conclusions reached in extensive interviews with leading
Bulgarian enterprises, which apply competence models have been used to further classify
and pose practical recommendations. The team’s experience is employed in producing
draft definitions, structuring the body and issuing particular recommendations.
1. Methodology for Developing, Implementing and Applying a Competence Model at
Company Level
2
Проект „Разработване и внедряване на информационна система за оценка на компетенциите на работната сила по браншове и региони”
Проектът се осъществява от Българска стопанска камара – съюз на българския бизнес с финансовата подкрепа на Оперативна програма „Развитие на
човешките ресурси”2007-2013, съфинансирана от Европейския социален фонд и Република България, по договор № BG051PO001-2.1.06
The document draws an overview of a general methodology for competence model
development, its implementation in a company policy line and application in view of the
efficient human resource management in the organization.
The general methodology combines the latest theory in competence-based management
with the leading world and local practice. Thus the basic methodology benchmarks –
definitions, development stages and application principles have been deducted by leading
analyzers and adapted to the project objectives.
First and foremost, draft definitions of competence and competence models are
introduced.
A combination of skills, knowledge, attitudes and behaviour modes employees possess
for achieving results (presentation levels) in a particular occupation or organization
A combination of competences grouped in such a way as to meet the organization needs
in the best possible way
Leading competence typologies have been researched and a draft competence typology is
proposed.
3
Проект „Разработване и внедряване на информационна система за оценка на компетенциите на работната сила по браншове и региони”
Проектът се осъществява от Българска стопанска камара – съюз на българския бизнес с финансовата подкрепа на Оперативна програма „Развитие на
човешките ресурси”2007-2013, съфинансирана от Европейския социален фонд и Република България, по договор № BG051PO001-2.1.06
Competence Typology
General competences – refer to all people in the company and all job positions,
contribute to the establishment and maintenance of an organizational culture. Having
included them, the company focuses on a particular policy line and devotes special
attention to its outlook and attitudes.

Transformational competences are included here

Examples: teamwork, feedback
Specific competences – encompass only a set number of employees; they are certain
competences required for the smooth run of the work (such as special assignments) and
allow for higher personal efficiency or interpersonal situations management.

Technical, managing and leadership competences falls here

Examples: employee’s improvement, strategic planning, relationship building,
active listening, open-mindedness, budgeting, work with specific web applications
etc.
Second, there is an overview of the basic steps in the competence model development –
preparation, information gathering, defining competences, transforming competences in a
unified competence model, verifying the competence model, implementing the competence
model in the company’s policy line and applying the competence model in HRM at the
organization.
4
Проект „Разработване и внедряване на информационна система за оценка на компетенциите на работната сила по браншове и региони”
Проектът се осъществява от Българска стопанска камара – съюз на българския бизнес с финансовата подкрепа на Оперативна програма „Развитие на
човешките ресурси”2007-2013, съфинансирана от Европейския социален фонд и Република България, по договор № BG051PO001-2.1.06
1. Preparation
2. Building
3. Verification
4. Implementation
1.1 .Selecting a Project
Manager
2.1. Initial
communication
3.1. Competence
verification
4.1. Process change
1.2. Selecting a Project
Sponsor
2.2. Information
gathering
3.2. Implementation
process verification
4.2. Management style
and company culture
change
1.3. Setting
competence model
objectives
2.3. Modelling
3.3. Communication
verification
1.4. Defining the target
group
(ready-made
competences and
assessment scale)
3.4.Testing (pilot
implementation)
The Competence
Model is ready
1.5. Selecting a team
2.4. Issuing
implementation
guidelines
1.6. Selecting a
competence model
type
1.7. Defining key
competence model
principles
The analysis pays special attention to the stumble blocks in every stage and proposes
specific recommendations for a successful implementation. Leading principles for
competence efficiency are introduced, some of which are:

Competences should reflect real behaviour lines – these competences should set
behaviour modes which could be adhered to by the company employee; they should
be logically grouped and giving answer to the question “How should people who
work here do their job?”
 Competences could be monitored and measured – a possibility to monitor and
evaluate competences means a possibility to enhance and manage them
5
Проект „Разработване и внедряване на информационна система за оценка на компетенциите на работната сила по браншове и региони”
Проектът се осъществява от Българска стопанска камара – съюз на българския бизнес с финансовата подкрепа на Оперативна програма „Развитие на
човешките ресурси”2007-2013, съфинансирана от Европейския социален фонд и Република България, по договор № BG051PO001-2.1.06
 Competences should reflect organizational culture – competences should reflect
clearly the way an organization is functioning (or strives to) in order to be
successful
 Competences should set the lines of organizational perspective – competences are
set in order to establish, model and enhance the organization’s desired lines of
sustainable growth
The document goes further by proposing a critical analysis of different types of
competence models and introducing selection criteria and assessment scale. Mo reover, it
highlights those steps in the development process, which are crucial for its success and
sustainability, namely, setting objectives, selecting a project sponsor, enhancing
communication prior, during and after the project, modeling the product in an attractive
way etc.
The methodology underlines the competence model verification and update by going
into depth in their diversity and recommends some solutions to certain issues.
The methodology organizes the process of implementing a competence model into a
company’s policy. Specific recommendations address crucial moments in the process and
point out the importance of organization and suitable HRM systems for the fundamental
change which is the competence model implementation.
A critical analysis of the basic steps in the competence model development and
implementation is carried out in order to assist the methodology practical application. The
methodology elaborates on various insights, experience and inferences about the
Bulgarian market, complemented by a critical analysis and authors’ recommendations.
The recommendations pay special attention to the objective timing for introducing a
competence model, the preparation of systems and processes which shall include the
model, as well as the managers’ involvement in the whole process. The text highlights how
crucial effective communication is.
2. Methodology for Developing, Implementing and Applying a Competence Model at
Sector and Regional Level
6
Проект „Разработване и внедряване на информационна система за оценка на компетенциите на работната сила по браншове и региони”
Проектът се осъществява от Българска стопанска камара – съюз на българския бизнес с финансовата подкрепа на Оперативна програма „Развитие на
човешките ресурси”2007-2013, съфинансирана от Европейския социален фонд и Република България, по договор № BG051PO001-2.1.06
The second part of the document concerns the adaptation of the general methodology
to the needs of the specific sector/regional competence models. The possibility to adapt the
methodology to the national project objectives is further emphasized. Moreover, practical
guidelines and recommendations are given, all related to the selection process, training,
and assignments of the assessors, who will take an active part in the competence
assessment process at a national level. The document introduces the general methodology
practical application in view of the competence model development at sector and regional
level. The basic steps and principles in its development are adapted and adhered to all
idiosyncrasies of the sector and regional model (whenever there are any) and more
specifically, to the objective prerequisites of the project “Development of Workforce
Competence Assessment System by Sectors and Regions”. The paper makes references to
CASSY and recommends potential areas and applications.
The methodology comes up with several important recommendations for the project
successful running.
First, the initiative could only be successful, if the business realizes the importance of
a modern business environment and gathers efforts to achieve it. As for this project, the
development of CASSY is to result from an analysis of the Bulgarian enterprises and their
demand for a unified system to set, enhance and manage competences.
Second, there should be a synchronized coordination among business, state bodies
and education institutions. A transition from traditional management to competencebased one presupposes in its essence the establishment of environment favourable to
business development, and requires multiple alternations which shall affect equally all
parties involved in the process.
Third, suitable infrastructure should be set up, if such an initiative is to be
successfully carried out. The text stresses that all project activities and programmes,
especially the practical implementation of methodologies and competences, should be
closely related to all regulations.
The operation of industrial associations is crucial, for they function as mediators in
the process and foster changes. It is their consistency and eagerness that the development
of all project activities depends on, including the national proliferation of the initiative.
7
Проект „Разработване и внедряване на информационна система за оценка на компетенциите на работната сила по браншове и региони”
Проектът се осъществява от Българска стопанска камара – съюз на българския бизнес с финансовата подкрепа на Оперативна програма „Развитие на
човешките ресурси”2007-2013, съфинансирана от Европейския социален фонд и Република България, по договор № BG051PO001-2.1.06
The methodology repeatedly states that the effective communication is essential for
the project efficiency. The constant and wide popularization of the project is a necessary
prerequisite for its successful implementation in the long run.
In conclusion, the paper recommends that an active cooperation and experience
exchange with other EU countries be continued, especially those which have already
carried out such initiatives. This shall facilitate the project enhancement and shall benefit
not only the Bulgarian enterprises development in the long term but also the Bulgarian
business in general.
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