Competencies are also called: behaviors, skills, values, performance dimensions or performance standards. Where goals or objectives describe “what” you want an employee to accomplish, competencies describe “how” you want them accomplished. As such, cultivating and managing competencies is an important way to foster employee and organizational high performance. Competencies are also a key way to define and strengthen the organizational culture and to strengthen the competitive differentiators.
Organizations that start with competence management often want to improve the focus of their investment in the future of the organization and in the development of its employees. Competence management seeks to find a balance between the development of people and their competences and the management of these competences in light of the organization’s objectives.