{BusinessAlignedCompetency}  
Pattern Index

Intention Hierarchy
Problem The company needs to align competency management with business strategy
Context The organisation's situation in the market is characterized by costant change and turbulence. The need for competence in terms of type and volume changes rapidly. The organisation is developing into a knowledge-based organisation.The organisation's way of working with competence should eminate from the business strategy, support the running of the business and ensure access to the right competence in all the links in the value chains where the organisation wants to compete. 
Forces Short term profitability requirements may reduce the achievement of the solution because the solution is of a long term nature. This is more likely to happen if the ESI company is operating in a highly deregulated market. On the other hand, turbulence may force the company to align its business competency with its strategy. The organisational culture has an impact on the willingness of employees to adapt and change according to the solution. The company's form of management affects the degree to which the problem can be tackled. When there is a low degree of following-up of decisions made, together with a high degree of independence for local units, there will be difficulty in communicating plans and carrying out organisational changes. 
Solution Competency and business planning should be integrated in the company's strategic and business plans. These efforts can be grouped into three types.The first group concerns aligning and integration at specific levels of the organisation. Measures here would be: 
  • Improve connection between business objectives and HRM/Competency management objectives. 
  • Improve connection between Strategic and Operational HRM/Competency objectives. 
  • Improve connection between different HR/Competency related activities.
The second group includes efforts aimed at company wide alignment and integration of competency and business planning. These include: 
  • Make competency development customer driven
  • Introduce unified processes for competency management
  • Make competency management visible as a strategic issue
The third is the long-term objective of creating a vision, including communicating it.

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Rationale Competency development, customer demand, strategic planning and business planning all are interrelated and hence need to be integrated at all levels so as to avoid the existance of isolated islands of decision-making and achieve goal fulfillment. The implementation of this solution will ensure that business strategies and competence management will be better aligned with each other. This provides an integrated set of activities relating to all levels of an organisation.
Consequences The organisation will be better equipped to meet the requirements of operating competitively in a deregulated ESI market. 
Authors KTH,  Vattenfall AB, Sweden
Related Patterns Change Process Patterns
This pattern is a subpattern of :ManagingOrganisationalHumanResources
This pattern is related to: AttractESICompetency
This pattern has the subpattern:CustomerDrivenCompetencyDevelopment
This pattern has the subpattern:StructuredCompetencyManagementRoutines
This pattern has the subpattern: CompetencyManagementAsStrategy

Product Patterns
This pattern is related to: CompetencyPlanningLevels
This pattern is related to: BusinessAreaHumanResourcePlanning
This pattern is related to: AvailableCompetency
This pattern is related to: CompetencyManagementProcessIndicators

Related Documents ESPRIT project ELEKTRA deliverable CAROLUS, FREJA
Hyperlinks  
Known Applications Vattenfall AB, Sweden
Annotations This model describes a workable goal structure for the alignment of business strategy and competency management.

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Copyright ELEKTRA Consortium 1998
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