Competencies and Roles

Performance management at many companies feels like a game without clear rules. Employees often don’t know what is expected of them or how to position themselves for success. Performance reviews often feels subjective and unfair, with promotions and recognition seemingly based more on favoritism than merit. For employees and managers alike, it’s a frustrating cycle that left unresolved causes employees to disengage.

The answer to the question, "what is expected of me", can vary wildly between different teams at the same company. What it takes to be considered a great senior engineer in one department might look completely different in another. A Product Manager in one group might focus on strategy and stakeholder management, while another is expected to dive deep into project execution. These inconsistencies only add to the confusion.

For a great many employees, the success of their career at the company often depends far too much on their manager's ability to work the system, to "play politics". This makes it difficult for well meaning managers as well, who struggle to articulate clear expectations that will lead employees to succeed.

When expectations are explicit, employees can take ownership of their growth, learning new skills and gathering evidence of their new found mastery.

Defining competencies for each role can help organizations address these issues head-on. Competencies are the behaviors, knowledge and soft skills that employees need to succeed in their roles. By defining competencies, companies can create a shared understanding of what is expected of employees at different levels and in different roles.

Competencies: A Roadmap to Success

For instance, one company may emphasise that Product Managers excel in areas such as project management, stakeholder management and roadmap planning. They recognize that effective communication is paramount, so they look at communication skills very granularly, e.g. verbal vs written communication.

By then setting specific expectations, such as requiring an Associate Product Manager to rate a 2/5 in stakeholder management and a Principal Product Manager to rate a 4/5, growth discussions become clearer and more productive. Managers can engage in meaningful conversations with employees, providing guidance on areas requiring development with concrete examples.

These clearly defined competencies also empower managers during employee calibration sessions, one component of the performance management process at many companies. With standardized criteria, evaluations become less subjective, allowing for a more equitable assessment of employee progress and readiness for promotion. Managers can make the case that, "we all agree that this employee has not yet met the expectations for stakeholder management," rather than relying on personal biases or relationships.

Fostering Professional Development

Establishing competencies not only drives clarity, it makes professional development discussions much easier and more effective. Instead of vague guidance, conversations between managers and employees can focus on how to close the gaps in an employees competencies relative to the expectations for their role.

When expectations are explicit, employees can take ownership of their growth, learning new skills and gathering evidence of their new found mastery. For example, when an aspiring principal PM knows that solid roadmap planning skills are required to get to the next level, they can start looking for opportunities to contribute where they can demonstrate those specific capabilities.

During difficult performance reviews, managers can reference the competencies framework to guide their discussions. "Yes, we all agree that you did great work on this project but we also all agree that you have work to do improving your stakeholder management skills."

This approach creates a constructive environment where both parties can agree on tangible areas needing improvement and genuine dialogues about growth can flourish, ultimately leading to improved employee satisfaction and engagement.

Aligning Leadership and Expectations

Lastly, clearly articulated competencies align the leadership team’s expectations regarding employee performance and development. The process ensures that everyone is on the same page when making critical decisions about rewards, review scores and promotions.

I often see "leaders" avoid this conversation because it is very difficult to achieve consensus. Unfortunately, avoiding it only allows ambiguity to exist that results in frustration for employees and managers.

Defining and articulating competencies is a powerful tool for creating clarity. For organizations working to improve organisational health, to help their managers succeed and to improve overall performance, investing time and energy into establishing clear competencies will yield dividends. By fostering an environment that emphasizes accountability and development, we can empower employees to thrive and contribute meaningfully to their teams and the organization as a whole.

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