CEB HR Leadership CouncilTM
For Midsized Companies
PERFORMANCE M ANAGEMENT IMPLEMENTATION TOOLKIT
www.HRMidsized.executiveboard.com
Sample Competency Definitions
FOOD COMPANY A COMPETENCY DEFINITIONS
Food Company A developed the competencies documented on the following
page to manage and evaluate employee job performance. Members should use
this template to develop or fine-tune their own employee performance metrics.
Notable items:
 The selection of specific competencies to focus on prevents the diffusion of
employee effort and development activities.

The notation of specific exhibited behaviors related to competencies
enforces performance evaluation rigor and improves transparency in
management and development.
Food Company A Competency Definitions
Leadership Skills
Sharing Responsibility: Allocates decision-making authority and/or task responsibility in
appropriate areas to appropriate individuals.
Coaching: Provides timely guidance and feedback to help others strengthen specific
knowledge/skill areas needed to accomplish a task or solve a problem.
Team Development: Uses appropriate methods and a flexible interpersonal style to help build
a cohesive team. Supports the development of skills and abilities of individual teams.
Facilitating Change: Encourages others to seek opportunities for different and innovative
approaches to addressing problems and opportunities.
Business Skills
Establish Strategic Direction: Obtains information and identifies key issues relevant to
achieving a long-range goal or vision. Develops and commits to a course of action to
achieve a long-range vision or goal.
Decision Making: Commits to action, but may not always be in control of resources –
considers alternatives.
Business Acumen: Understands the competitive, customer-focused business environment.
Analysis: Evaluates situations to identify and understand the root cause of the problem.
Planning & Organization: Manages resources and tasks in a timely and economical fashion.
Monitors the results of assignments and projects for successful completion.
Personal Attributes
Results Orientation: Drives to meet goals, and understands the importance of exceeding.
Learning Orientation: Is motivated to achieve standards of excellence and improve
personal performance. Demonstrates desire to learn and develop. Regularly creates and
takes advantage of learning opportunities.
Resilience: Maintains optimism despite setbacks. Accepts and encourages change.
Valuing & Managing Differences: Appreciates and leverages capabilities, insights and
idea of all individuals.
Technical Skills
Achieving a satisfactory level of technical and professional knowledge and skill in
position-related areas. Staying on top of new developments and trends in your area of
expertise. (Supervisor and employee should set measurements for this job-specific
competency at the beginning of the fiscal year.)
RATING
5
4
Interpersonal Skills
Influencing Others: Uses appropriate methods to gain acceptance of an idea, project, product
or service.
Building Trust: Interacts with others in a way that gives them confidence in one’s intentions
and those of the organization. Operates with integrity and supports others.
Developing Partnerships: Develops and uses collaborative relationships to facilitate the
accomplishment of goals.
Effective Communication: Clearly conveys information and ideas to individuals or groups in
a manner that helps them understand and retain the message.
3
2
1
DEFINITION
Far Exceeds
Displays exceptional proficiency in this element.
Exceeds
Very proficient in this element.
Fully Meets
Proficient in this element.
Needs Improvement
Somewhat proficient in this element.
Does Not Meet
Not proficient in this element.
Sample Competency Evaluation
Competency Evaluation
Competency
Results Orientation
Learning Orientation
Resilience
Valuing and Managing
Manager
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Domain
Personal Attributes
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Goals Agreed upon by Manager and Employee (six maximum)
Description
Weight
Reduce/eliminate overnight shipping charges in next
fiscal period without increased phone charges (FAX) and
10%
without adverse impact on the department’s activities
Rated by Manager
Behaviors Exhibited Related to Competencies
The employee sets then pursues goals without costly delay and often achieves
better than expected results. When target goals are threatened, appropriate
adjustments are made.
Performance Measurement
Fully Meets (3)
Exceeds (4)
25% reduction in use 50% reduction using
of overnight shipping U.S. mail, Email, other
by using U.S. mail
electronic methods
Far Exceeds (5)
80% or more reduction by
using any and all
legitimate methods
Rated by Manager
End of Year Rating
ELI LILLY COMPETENCY DEFINITIONS
Eli Lilly developed the functional competencies documented on the following
pages to manage and evaluate employee job performance. Members should use
this template to develop or fine-tune their own employee performance metrics.
Notable items:
 Division of the “Business Knowledge” competency into three core but
distinct components: knowledge of product, knowledge of strategy and
knowledge of the organization.

The emphasis on accountability, learning and confronting fear of failure
reflect key pillars of overall leadership competency.
Eli Lilly Competencies
Competency:
Market Knowledge
Definition:
Understanding of suppliers, pricing practices, and market trends. Development of market knowledge most often occurs over an extended period of time. It is the
result of in-depth reading, attending seminars, data accumulation, and establishment of external networks and key expert contacts.
Knowledge
and Skills:
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Skill Levels:
Indicators of
the
Competency:
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Market technology: Technology used to produce the product or deliver the service.
Market Dynamics: Knowledge of market structure and components, such as pricing, operating margins, raw materials, distribution networks
Contacts: Knowledge of supplier personnel and organizational structure. An effective relationship with the sales, customer service and
distribution staffs in the supplier organization. Insure supplier relationships are current and productive.
Senior Sourcing Associate
Follows relevant ethical considerations
Brings market expertise to customer's needs
Maintains credible and trusting relationships with suppliers
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Associate Sourcing Consultant
Looks for innovative methods
Effectively involves internal
customers in supplier evaluation and
assessment
Develops credible and trusting
working relationships with suppliers
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Competency:
Business Knowledge
Definition:
Understands Lilly's business needs at and across multiple levels: site, regional, affiliate, functional area, or company.
Knowledge
and Skills:
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Skill Levels:
Indicators of
the
Competency:
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Sourcing Consultant
Serves as mentor to others by sharing
market and other pertinent experience
Partners with customer on analyzing
emerging internal needs and influences
the ability of the market to meet them
Leader in developing credible and
trusting working relationships with
suppliers
Product Knowledge: Detailed understanding of how Lilly products and services are made, delivered and used
Strategy: Understand all of Lilly’s business goals and deliver leadership behaviors such as Model the Values, Create External Focus, and Share Ideas
Organization: Must deeply integrate sourcing with client's business. Develop and maintain appropriate relationships from the associate to senior management
Senior Sourcing Associate
Understands departmental business strategy
Maintains credible and trusting working relationships with
Lilly customers
Understands and complies with Procurement, Financial and
general corporate policies
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Associate Sourcing Consultant
Helps to develop area business
strategy
Demonstrates independent thinking
in conducting analyses and
developing conclusions
Consistently interprets and translates
numbers into meaningful words
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Sourcing Consultant
Company/industry expert in market,
supply chain or procurement technology
Leads development of divisional business
strategies
Utilizes and influences broad network of
key decision makers in multiple
organizations
Eli Lilly Competencies Cont’d
Competency:
Procurement Business Processes
Definition:
Using administrative skills in the leadership and coordination of business processes in core business areas.
Knowledge
and Skills:
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Skill Levels:
Indicators of
the
Competency:
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Purchasing/eProcurement: Thorough understanding of processes tools and system from requisition stage to implementation and of how the process works
Supplier Management: Establishes supplier relationships. Evaluates the need for supplier management, defining appropriate measures and managing
supplier meetings
Sourcing: Defines sourcing groups (historic spend, specifications and future demand), develops sourcing strategies, leads sourcing teams and negotiations
Benchmarking: Identifies best practices and implements them in the client's organization. Uses data and data analysis to influence business decisions
Senior Sourcing Associate
Proficient in executing business processes
Encourages / supports customers in the use of
Procurement technology
Understands basic financial concepts such as COPS, ROI,
ROE, margins, EVA
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Associate Sourcing Consultant
Influences development of sourcing
strategies
Understands and can apply higher financial
concepts such as NPV/EVA analyses,
option theory, foreign currency markets,
analysis of payment terms, statistical
analyses and forecasting techniques
Sourcing Consultant
Deep expertise in procurement and
material management processes.
Develops and / or leads development of
sourcing
strategies
Should hold C.P.M. and may hold M.B.A
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Competency:
Leadership - Focusing on Results
Definition:
Use transferable skills in the leadership, coordination and tracking of corporate initiatives in order to achieve key objectives and top-tier results
Knowledge
and Skills:
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Skill Levels:
Indicators of
the
Competency:
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Model the Values: Embraces the Lilly values. Exercise self-awareness, monitor impact on others, be receptive to feedback, use self-discipline to adjust to
feedback
Create External Focus - Study and try to comprehend the forces shaping the global economy our industry, and ultimately our company
Implement With Integrity, Energy and Speed: Set clear priorities, make realistic assessments of what can be accomplished with the resources available
Get Results Through People: Set clear and fair assignments and expectations and allow people room to act on their own
Check Results and Exercise Accountability: Use metrics to measure performance. Be accountable for what went right, what did not, and why
Harvest Learning and Share Ideas: Create and preserve a climate where ideas and learning flow steady
Confront the fear of failure. Gather and disseminate lessons learned
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Senior Sourcing Associate
Understand key future issues for local area
Ability to use data to analyze sourcing in defined areas
Commits to and meets timelines for procurement actions
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Associate Sourcing Consultant
Has broad influence in specific area
Familiar with general negotiation methods
and techniques. Utilizes most effective
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Sourcing Consultant
Effective at helping clients understand
sourcing issues
Takes the lead in employing best
and projects
negotiation and communication with supplier
for the situation (e.g. considers BATNA,
SRM ,etc.)
business practices; widely known as
expert resource on business issues, both
strategic and tactical
ANTHEM FUNCTIONAL COMPETENCY DEFINITIONS
Anthem developed the functional competencies documented on the following
page to manage and evaluate employee job performance. Members should use
this template to develop or fine-tune their own employee performance metrics.
Notable items:
 The “Behaviors” column lays out indicators of strategic versus tactical
approaches to each of the seven categories of competency.
Anthem Functional Competencies
Definition
Planning - The thought process and
documentation developed to
demonstrate how to move from current
state to future state.
Knowledge
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An understanding of the vision
Knowledge of risk management
and contingency planning
Knowledge of strategic planning
and development
Skills
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Research & Analysis – Investigate
future and current technologies,
processes, practices, and
business/market trends. Develop
strategies and solutions using research
data and business needs.

Technical Communication – Explain
technical concepts in clear concise
documents and presentations using
language appropriate to the recipient.

Contract Management &
Development – Negotiate contract
terms and conditions and manage
contract deliverables.
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Procurement – Purchase hardware,
software, and services.
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Vendor Relationship Management –
Manage vendor selection, interactions,
compliance and performance.
Financial Modeling – Develop
financial models to illustrate financial
implications of purchase decisions and
contract terms.
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Knowledge of structured analysis
and data modeling techniques and
tools
Knowledge of Object oriented
analysis techniques

Knowledge of writing and
presentation techniques, tools, and
standards
An understanding of the target
audience

Understanding of contract law
Understanding of vendor contract
practices
Understands vendor negotiating
tactics and strategies
Knowledge of Accounts Payable
practices and procedures
Understand Internal Audit
requirements and policies and
compliance issues

Knowledge of vendor analysis
tools and techniques.
Understand vendor contracts
Understands vendors business
drivers and profit margins

Knowledge of GAAP
Knowledge of financial modeling
theory
Knowledge of ROI (Return on
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Behaviors
Ability to communicate
effectively orally and in writing
Ability to conduct effective
research
Ability to develop contingency
plans
Ability to identify and analyze
risks
Ability to make associations and
identify links between pieces of
information.
Ability to synthesize disparate
items into a single thought

The ability to interpret, discuss,
and comprehend technical data
The ability to identify and present
relevant information to the
audience in appropriate term

Ability to negotiate to a mutually
agreeable outcome or decide to
walk away from the deal
Ability to meet business partners
time line
Ability to use corporate financial
systems
Ability to provide consulting on
procurement activities
Ability to conduct labor analysis

Ability to effectively evaluate
vendor performance
Ability to strategically align
vendors for future engagements
Ability to apply financial analysis

Ability to understand vendor
pricing parameters
Ability to decipher business plans
and growth projections as input to
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Balances long and short-term
vision to address business issues
Develops resource forecasts
Translates trends and
requirements into appropriate
plans
Thoroughly considers alternative
scenarios and contingencies
Ensures that proposed solutions
adhere to policies, standards,
procedures, and guidelines
Converts technical concepts into
effective documents and
presentations
Identifies the appropriate media
for the target audience
Identifies risks associated with
contract Terms and Conditions
Creates metrics and risk/reward
incentives for vendor service
delivery
Sets customer expectations for
deliveries
Coaches and mentors associates
and managers on the proper use of
procurement tools.
Selects vendors who deliver the
best service and product value to
the Company
Develops vendor evaluation
criteria and matrices based on
contract provisions
Investigates and understands
vendor recovery rates
Develops resource forecasting
models based on usage and
Investment) development
the financial model
growth projections