INSIGHT 4.0

ORGANIZATION & HR

How to Design Competency Modeling Tailored to Your Organization

Competency modeling is the process of identifying required competencies based on specific behaviors observed in high performers within an organization. It is theoretically grounded in the Spencer family's iceberg model, which encompasses self-concept and motives alongside knowledge and skills. Competencies must be approached through three distinct tiers—company-wide core competencies, leadership competencies by rank, and job-specific competencies—as combining them into a single standard easily leads to a model disconnected from the field. The execution process spans six stages: setting objectives and scope, selecting target groups, data collection via behavioral event interviews or expert panels, developing a provisional model, validation, and finalization into a competency dictionary. This work should be carried out jointly by business unit leaders and management rather than the HR team alone. Rather than directly importing external frameworks, a hybrid approach that starts from and refines the actual behaviors of an organization's high performers is realistic, utilizing public standards such as the National Competency Standards (NCS) as reference frameworks. Once completed, the competency model serves as a common standard across all areas of human resource management—ranging from hiring interviews, competency evaluations, training, and succession planning to placement and compensation linkage—and risks remaining merely a document without regular reviews.