SCHEDULE-A BANK
Competency Assessment--Selection of Senior Executives

The Systems Division of a large Schedule-A bank experienced the need to 'upgrade' the selection process of senior managers, consultants and directors (all over 650 Hay points) in response to changing business requirements. We designed a new competency assessment program in which internal and external job candidates would be involved in an in-depth focused interview. Following this they completed a series of self-administered questionnaires scanning their competencies in a number of areas including conceptual, verbal, and numerical skills, problem solving style, career interests and self-confidence, people management judgment, energy and achievement motivation, assertiveness and maturity, strategic and social skills, stress coping, autonomy and some more.

We followed up three years after the start of the program in which about 300 candidates were assessed and found the following:

• We correlated job performance ratings with performance on the selection questionnaires and found significant predictive validity of our selection program. Employees hired (or promoted) with the benefit of our program turned out to be meaningfully better performers according to their performance ratings than were their colleagues. Specifically, they possessed slightly stronger verbal skills, and more patience, listening skills, empathy and the capacity to trust. They also had stronger competencies of assertiveness, competitiveness and more achievement motivation. They had better coaching skills, more creativity and capacity to deal with ambiguity and uncertainty, slightly broader interest patterns, and a higher level of entrepreneurial capability, resilience, optimism and initiative.

• When asked to identify candidates for VP positions our program identified the exact same individuals (no more nor fewer) who were independently identified by the team of senior executives in the division, after careful and lengthy scrutiny of their career history and performance. These individuals were appointed as VPs and performed well. Conversely, when asked to identify employees who could profit from coaching we suggested a number of individuals needing career support in the form of specific coaching to remedy specific competency shortfalls.  

In sum, we regard our competency assessment program, 'at arm's length' as we do not know what or how individuals actually do on the job and succeed at significantly predicting performance on the job at senior levels. The program consistently identifies executive potential, confirms (and fleshes out) senior management's development and assignment plans, provides support for individuals to optimize their careers, and identifies problem situations and individuals requiring quick follow-up action. Our competency assessment program forges a fair and concrete reality around the notion of people development and executive coaching.