The use of behavioral competencies in appraising the skills and potential of leaders is a norm in organizations large and small. The competency models are omnipresent owing to several reasons—a shared vocabulary to convey the expectations from people, a basis for Performance Management planning, and a means to express the parameters for career advancement. However, problems surface when competencies are considered the only factor in evaluating the leaders’ potential.
There are few limitations that bring criticism for the utilization of competency models in assessing leaders’ potential. These include their extensive reliance on past behaviors rather than future potential - where relevant experience is deemed a critical element in establishing a leader’s competence - complexity of execution, and clash of behavioral traits required under various competencies with one another. These shortcomings and complexities warrant a different approach to assess the leadership potential of executives.
The Leadership Competency Model is a newer, more robust competency assessment framework that not only evaluates the skills and abilities of leaders, but also examines their potential based on psychometric data of global leaders, neuro-psychological research, and past studies on successful managers.
The Leadership Competency Model is comprised of 2 distinct elements:
First, let's take a look at the Leadership Competencies.
The Leadership Competencies are learned factors which are attained, developed, change over time, and indicate what a leader is capable of doing. The leadership competency model encompasses 4 leadership competencies (each of which is further comprised of 2 Core Competencies):
The People Leadership competency involves 2 core competencies:
Relationship leaders develop knowledge and skills to inspire people and develop strategic relationships. The Relationship Leadership competency involves 2 core competencies:
At the top maturity level of Business Leadership, leaders develop competencies to set future vision and make decisions that deliver shareholder value. The Business Leadership competency involves 2 core competencies:
At the top maturity level for entrepreneurial leadership, leaders champion innovation and build and sustain enterprise capabilities. The Entrepreneurial Leadership competency involves 2 core competencies:
The second part of the Leadership Competency Model framework provides the dimensions of Leadership Potential.
These are hardwired or inherent factors which are hard to develop, stable over time and indicate how the person is. The Leadership Potential has 4 major components:
Are you interested in understanding more about the 4 Leadership Potentials? To learn more about developing the Leadership Potential as well as Leadership Competencies, you can download a detailed editable PowerPoint on the Leadership Competency Model here on the Flevy documents marketplace.