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CHANGING CORPORATE CULTURE BY HIRING WITH COMPETENCIES

While consulting to a large, integrated energy company in the late seventies, I was confronted with some major corporate culture issues. When I correlated the competencies of the various professionals and managers with their performance, I found some interesting relationships that did not surprise me, but was nevertheless disturbing to the company's executive committee. The performance ratings were significantly negatively correlated with measures of listening, trusting and empathy. In other words, employees at high job levels were seen as better performers the less empathetic and trusting they were and the less they listened. The executive committee felt that this state of affairs was not acceptable and believed a change of culture was in order. It was their feeling that a change would result in greater productivity and profitability. 

This was the ideal opportunity to demonstrate how selecting on competencies could impact on corporate culture. As I was in charge of assessing the competencies of mature external candidates for jobs in one large staff department--candidates for senior positions, I was in a position to influence the culture through who would be hired. Aside from including other core competencies, an emphasis was put on on certain competencies which would, no doubt, result in more empathic and people friendly hires, thereby, changing corporate culture. 

In 1985 I calculated the correlations again between employees' scores on empathy and listening skills on the one hand, and their performance ratings on the other. There had been a change: the correlation was now neutral--essentially zero. By 1993 many employees had been replaced through attrition, promotion, etc. and the original culture was diluted to a major extent. I took another look and calculated the correlations for the third time. I now found that the correlations had become quite positive. This meant that more-listening, more-trusting and more-empathic employees were now seen as the better performers. It was of possible of course that this change was not due to my competency intervention but simply a function of time, fashions in management or some other process. To determine which it was, a control group was scrutinized--these were employees who had competency assessment data and performance ratings but whom I had no input into their selection. The result was negative, proving that my efforts had paid off.     

In retrospect it was not surprising that hiring based on specific competencies resulted in, or at least, contributed to, organizational culture change, but it was certainly gratifying to see that a relatively minor, cheap and unobtrusive intervention contributed to, if not created, a desired, improved culture.     

Michael Godkewitsch PhD, C. Psych
Consulting Psychologist & Partner