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Competence Based Management Training

Strebler M T, Bevan S
Report 302, Institute for Employment Studies, March 1996

research for the IES Research Networks

Investing in the development of managerial capability is an essential ingredient for business success, and Competence-Based Management Training is one route that organisations are taking. This report examines what CBMT is, how organisations are using it and why. What impact has it had on their business and on their traditional approaches to management development? We draw on evidence from a survey and case studies conducted among large employers, to contribute to the continuing debate.

Study objectives

• To establish the extent to which organisations have converted from ‘conventional’ training programmes to competence-based management training (CBMT).
• To explore organisations’ practices for linking management competences to training programmes.
• To examine the mechanisms used by organisations to assess competence requirements and shortfalls.
• To gain some measure of the perceived effectiveness of adopting a competence-based management training approach.

The research has drawn on several sources of data, including a survey of employing organisations on the use of competences, interviews with line managers and employees, and secondary sources. IES experience working with organisations to develop, implement and evaluate competence-based approaches, add to this.

Users of CBMT

The use of competences is increasing. Half of the 377 organisations who responded use them (mostly large organisations of over 5,000 staff, in the service sector), and non-users reported considering using competences in the future. CBMT users amount to half of competence users. (For the purpose of this study, these were defined as user respondents which have linked their competences to ‘all’ or a ‘majority’ of their management training courses.)

The background of CBMT users is no different from that of other competence users, except that they have seen an increased demand for their products over the last two years and operate in a more unionised environment. Compared to other competence users, CBMT users have a higher proportion of semi-standardised training programmes, more managers (in a slightly flatter management structure) and offer graduate development programmes.

Two-thirds of CBMT users spend over £1,000 per manager and one-third spend over £2,000. They train for longer and have increased their training for senior and middle managers. The most favoured methods of delivering CBMT include the use of coaching, and modular courses.

Targeting for business success

We explored the business rationale for introducing CBMT and practical approaches for linking competences to management training courses, and found that competence-based approaches to management training and development are predominantly introduced with the espoused aim of improving the link between skills supply and business needs. CBMT users also find competences assist them in identifying training needs and designing training programmes. Their use of competences is, however, skewed towards internally generated competence frameworks rather than those which exist nationally (eg MCI).

Approaches adopted to link competences to management training depend largely upon organisational priorities. Whilst approaches varied, the overall trends were for CBMT to be business driven, targeted to immediate job needs with a focus on development and, where possible, externally validated.

Three models emerged: a ‘top down’ approach where existing training courses are regrouped under competence headings expressed as business objectives; a ‘functional’ approach which integrates training courses under generic and functional competences, and a ‘modular’ approach which matches each competence heading with a specific training module.

Assessing and developing

As organisations increasingly link their competence frameworks to their management training, they are doing so on the premise that they are able to assess and develop the competences required by the business. However, the study found that most competence users still rely on traditional assessment methods such as performance appraisal. More recent developments such as the use of personal development plans also place ownership on the individual for development.

Increasingly, therefore, individuals are key to the success of assessing and developing competences. However, feedback from CBMT users indicated that whilst they are positive overall about the use of competences, they are less confident about assessing them.

Equipping line managers to assess competences should help them to translate competence headings to departmental requirements, use more effective assessment methods and value diversity. The increased contribution of line managers in the development of competences should be supported by providing them with adequate training in coaching skills. Similarly, encouraging individual ownership calls for provision of tools for self assessment, training on the evidence to be collected, and adaptation of materials to individual learning styles.

Benefits and tensions

The perceived usefulness of competences in management training appears high. Linking them to training courses improves the relevance of training and facilitates a modular approach. CBMT users were seen to deliver a larger proportion of semi-standardised programmes, so this must be an advantage.

CBMT users tend to evaluate the effectiveness of their approach more readily than other competence users. Based on this internal data, they report that CBMT brings ‘added value’ to the business by improving the performance of managers and employee motivation. Whilst linking competences to management training requires investment and effort, this appears to be justified. CBMT users reported the use of competences to be more cost effective, to contribute to changing the culture of the organisation and, to some extent, to customer satisfaction and business profitability.

Some real tensions emerge, linked to clarifying the business agenda for delivering CBMT, attending to the implementation stage, and providing training and time for individuals to familiarise themselves with the approach. Also, the growing use of competences for performance management and reward is perceived to conflict with using them for development. Organisations should give clear messages about the purpose of introducing CBMT and be aware of the potential difficulties.

It is perhaps too early for organisations to prove the business case for introducing CBMT. The findings look promising. However, whether organisations will decide to embark upon developing CBMT will depend upon many factors, not the least the time and effort they are prepared to invest in making CBMT succeed.

Methods and further research

This study was commissioned by the IES Research Club to examine practical issues in linking management training to organisational competences. It has drawn on three sources of data includinga workshop of 12 organisations, survey data of 187 competence users including 89 CBMT users and telephone interviews and visits with employing organisations.

This study forms part of the Institute’s programme of research on competences, under the auspices of the CRP programme. This includes the use of competences, linking competences to pay, and assessing and measuring competences.

Competence Based Management Training, Strebler M T, Bevan S. Report 302, Institute for Employment Studies, 1996.
ISBN: 978-1-85184-228-5. £25.00. [PDF price: £10.00]

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