Competency Analysis

Competency analysis is used to gauge the knowledge, skills and process capabilities required for a company to be able to offer its products or services. While competency analysis is generally used in production environments, this type of analysis can form a basis for various practices within the company and can be completed at a product, project or company level.

In order to perform a competency analysis, begin by listing what actions are required to produce whatever products/services the company offers. This produces a general step-by-step list as to how a product is made, or service is delivered. The items on this list are then broken down into the steps that form each action, creating something of a map. Think of this as what “enables” the competency.

Once the map of how the process functions is completed, begin creating a second map of how the process should run. This step is akin to a need-gap analysis in that it allows the analyst to measure, analyse and predict the future capabilities of the process and to identify how the effectiveness or efficiency of a process can be maintained. This can be seen as identifying “areas for development” and suggestions for how to do that.

The company is now ready to establish the process standards required to reach the prescribed competencies and to implement any changes. Competency performance is tracked and compared to the maps the company has created. This is monitoring actual performance compared to desired performance.

Competency analysis also clarifies employee expectations and works to identify and eliminate waste actions, thereby improving efficiency. It identifies areas for development before major issues arise as well.

 Have you mapped out your competencies with your business model, systems and people?