We often misprint skills and competencies. Competencies are value-based hence are not measurable. Competencies cannot be standardized. For example, decision making is a competency.  It refers to the ability of making better decisions among various available choices. This process cannot be standardized. It is deciding an action based on review of information. Business awareness, problem solving, teamwork, self-confidence, intuition, and resilience are competencies. I give here an example which will explain competency; in past fifteen years India saw rise of some surprising and budding young politicians. One of them is Smriti Irani. The former model – actress has literally broken stereotypes, she has shut down cynics and proved her mettle. When she got appointed as HRD Minister, people criticized her educational qualifications, they side-lined her victory over Rahul Gandhi in Amethi. Bur few saw her prudence, her resilience, her leadership style. Leadership is closely related to emotional and social intelligence.

She is currently serving as the Union Minister for Women and Child Development and Minister for Minority Affairs. She is competently handling her portfolio. Smriti proves that leaders can work efficiently only when get fully engaged with their colleagues, whether they are at the same level or as juniors; leaders must acknowledge the context in which everyone works and to understand and attend the system. She also proves that emotional intelligence is a competency. Educational qualifications do not make a leader excel in their job. I appreciate Smriti Irani’s confidence, passion and dedication towards her work which are her competencies.  

Successful organizations while hiring managers choose decision-making skills in employees so they can contribute more effectively to the company. Employees face many decisions and options throughout the workday, so an employee needs to make effective decisions. Competencies have long been used as a framework by focusing on employees’ behaviour competency which matters most to an organization.  Behaviour provides a common way to harmonize, select and develop talent. The benefits are clear for employees and managers, and ultimately, the organization. Competencies offer a description of the standards of excellence for the roles and responsibilities of the employees. Competencies can often depend on values and culture of an individual, they may be difficult to assess and standardise for example integrity is a competency it cannot be taught.

Sills are measurable. Skills can also be standardised positions wise; communication, language proficiency, computer skills, customer service, interpersonal skills are some common skills. For HR managers, they provide resources to help them select and develop employees.

Though competency and skill may seem similar, they have evident differences. HR managers must understand the difference between skills and competencies.

Adeptness

Skills are often agile; one can develop them with education and skill enhancement programmes. While competencies are developed over long period of time. A person may require months or even years to gain a specific competency. For example, a chef can be taught culinary skills in kitchen but after years of experience, he becomes competent to develop his signature dish.  A signature dish is a recipe that identifies an individual chef or restaurant. Ideally it is unique and difficult to copy. A signature dish allows an informed gastronome to name the chef in a blind tasting. It can be thought of as the culinary competency. Competency comes with adeptness.

Transferability

A set of skills help one to change organisations or roles, across jobs, projects, and tasks. Whereas competencies cannot be transferred across professions or collaborative projects. This is because characteristics, such as performance expectations, attitudes, and behaviours, make up competencies, which may differ from organisation to organisation, depending on their priorities and goals and culture. For example, you may learn a programming language and add it to your list of skills. These can be helpful when you change jobs in a similar field or role. The competency required for the role can vary based on the organisation and the responsibilities involved. For example, Sachin Tendulkar’s batting technique is clean and crisp, his movements as batsman are measured and precise. This is his competency. It has come to him with lot of detailing, regular practice, and observation. Sachin cannot transfer his batting technique. 

Detailing

Competencies are more detailed than skills. A person’s depth of knowledge, and his abilities determine his competencies. Skills can be adopted easily competencies cannot. Competencies help in connecting with right people, with the right role. Competencies help in preparing roadmap for personal and professional development. Empathy, integrity, loyalty, cannot be taught one needs to have them in their character. These are key components of customer service. Therefore, sincere, and good customer service employees are rare.  

Some most important competencies are self-awareness (it helps us to remain happy, to be better version of ourselves), social consciousness (helps in becoming more empathetic for others mindful of how our actions impact others) good emotional quotient (helps to identify and regulate our own emotions and understand the emotions the others), managing responsibilities (helps in becoming more accountable and what to expect from others) and last but the least decision making (helps in planning and implementing strategies).

To survive the completion and to expand organizations need to restructure people, structure, culture, knowledge, policies, legalities, processes, technologies, product designs, marketing practices, pricing etc. A CEO may see change in terms of organizational structure and strategy, a manager in operations may see change in terms of processes, a manager in technology may see change in terms of systems & tools, a manager in HR may see in terms of training and development or recruitment of new staff, clerical staff may find it difficult to change the paper work format, peons and helpers may find it absurd to see each one stressed in the organization or find new bosses with new thinking.  In some cases a change is so complex that no one person has a true end-to-end assessment of it. The McKinsey 7-S model is based on the theory that, for an organization to perform well, to change from time to time, it need to look at the 7 Ss:  Strategy, Structure, Systems, Shared Values, Skills, Style and Staff.  These seven elements need to be aligned and reciprocally reinforced. The model helps in realigning and identifying problems that need to be worked on to improve performance of the organization. While some models of organizational effectiveness have been outdated, one that has persevered its continuity is the McKinsey 7-S Model framework. It was developed in the early 1980s by Tom Peters and Robert Waterman, two consultants working at the McKinsey & Company consulting firm, the basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful.

Whatever the type of change may be: restructuring, new processes, organizational merger, new systems, change of leadership, new market, recruitment so on – the model can be used to understand how the organizational elements are interconnected. It helps to ensure the wider impact of changes made in one area and how it affects other areas.

McKinsey 7-S Model elements

Strategy

It is a scientific plan devised to maintain and build competitive advantage over the competition. The task involves gaining appropriate budgets and demonstrating, delivering value and ROI from budgets, who is to take charge, who would assist, time frame, what end results expected etc. It helps in annual planning approach. Business strategy is generally created at the upper levels of an organization. Grand corporate strategies can be broken down into objectives and tactics to ensure that the strategy is relevant all the way down the organizational hierarchy. Organizational structure is put into place relatively early in the life of a business, but it can be changed over time as the company evolves. The organizational structure matters in making strategies.

Structure

It clarifies the way the organization is structured and who reports to whom and span of control each person enjoys. The modification of organizational structure is made when it is very essential.  A company’s organizational structure must support its strategy. Employees at all levels of the company must be empowered to effectively complete the tasks necessary to achieve organizational objectives, and company structure can aid or hinder employees in their roles. Especially when reporting relations are not clear, and good employees are made to work under incompetent people, organizational goals and objectives become hazy. Structure can also dictate the means by which strategies are formed. Bureaucratic companies tend to generate a majority of strategic ideas at the top levels of management. Companies with flatter structures, on the other hand, often involve a range of employees in strategy sessions.

Systems

The daily activities and procedures that staff members engage in to get the job done. For example, the HR team is one component, the finance and accounts is a component, the service delivery staff another component. The gate keepers another one, so on. Standard Operating Procedures (SOP) help in running the system smoothly. And, making them easier yet scientifically designed helps a lot.  Whether documentation is important or not – remember it is the first set of deliverables within an organization process. Considering them unimportant is a lackluster attitude.

Shared Values

These are the organization’s stated values and rules of behavior. It is how the members represent the organization both in terms of their behavior and the shared values. Their interpersonal behaviors and their behaviors with outsiders speak volumes. This is expressed in mission, vision, philosophies and values of the organization. It serves as a guide for all of the company’s decision-making. Shareholders, leaders and employees and customers are generally the target of the mission. It projects the future, of what the organizations hopes to become.

Why shared value is placed in the middle of the model? The reason is shared values emphasizes that these values are central to the development of all the other critical elements. The company’s structure, strategy, systems, style, staff and skills all stem from why the organization was originally created, and what it stands for. The original vision of the company was formed from the values of the creators. As the values change, so do all the other elements.

Style

It represents the style of leadership adopted. The style implies a leader’s style of providing direction, implementing plans, and motivating people. There are many different leadership styles proposed by various authors. Organizations flourish with good leadership and they disappear because of leadership. The culture and goals of an organization determine which leadership style fits the firm best. Some companies offer several leadership styles within the organization, dependent upon the necessary tasks to complete and departmental needs. Includes both the way in which key managers behave in achieving the organization’s goals and the cultural style of the organization as a whole.

Staff

It represents the employees and their general capabilities. The success of any organization depends on the employee’s learning spirit. The organizations that continually seek to expand their capacity to create. In today’s highly competitive labor market, the hiring talent is not a joke, organizations have realized that capacities of workers matter a lot. The breakdown of staff in terms of their background, age and sex and characteristics such as IT, finance, marketing needs scientific thinking. Depending on the competitiveness of staff, organizations decide use of contractors and consultants. Many organizations depend on outsourcing. Staff recruitment and retention, and virtual working makes the difference and compels organizations to think about staff development and training.

Skills

The actual skills and competencies of the employees working for the company. It’s critically important that companies develop strategies to manage their people through the crisis if they are to survive and prosper in the long term. Companies need workers who can stay organized and focus on the projects at hand. However, company managers must also organize the work of their employees. Organizational skills in the workplace can include general organizing, planning, and time management, scheduling, coordinating resources and meeting deadlines. Distinctive capabilities of key staff can be interpreted as specific skill-sets of team members.

The above seven elements are divided into Hard and Soft elements:

Hard Elements: are tangible elements. They are Strategy, Structure and Systems.

Soft Elements: are intangible elements. They are Shared Values, Skills, Staff and Style.

One important point to note is that, in the first version of this model which was published in 1982, “systems” was classified as “soft” element. Since 1982, many processes in very many organizations have been meticulously documented or automated, making them relatively easy to analyze and change. They are therefore shown above as “hard”.

Soft skills are personal attributes that enable someone to interact effectively and harmoniously with other people. It is a term associated with a person’s emotional quotient (EQ). Soft skills are collective traits of personality such as social graces, communication, language proficiency, expressiveness, personal habits, friendliness, and buoyancy that characterize relationships with other people.

Whereas Hard Skills are specific, technical abilities those can be defined and measured. Examples of hard skills include accounting skills, mathematical ability, software, hardware, written ability, typing, project management etc. Hard skills are essentially, any skills that can be measured in a test. Most aspects of administrative, technical, and accounting knowledge involve hard skills. Career choices are based on hard skills.

When it comes to choosing professional services of a doctor, an accountant, a lawyer, an architect or a copywriter whom do we prefer choosing? Think about it. If you are looking for a doctor, you will certainly want the most competent doctor, but if you have quite a few of them with equal competence, then you would most likely pick the one who listens to your concerns patiently; am I right? You would prefer a doctor who obviously shares information with you and offers suggestions, and above all the one who is most considerate. Likewise, among lawyers, accountants, you would look out for somebody who is the most ethical, professional and easy to work with. None of us would knowingly pick someone who is arrogant, self-centered or miserable to deal with. It’s a ‘No-No’ for someone who has poor work ethic, someone who constantly interrupts or demeans us.

Like us, business organizations also are cautious and over concerned while hiring employees. Of course technical skills are very important, knowledge is very important but, if a candidate is accompanied with soft skills besides the knowledge and technical background he/she will surely get picked up. In today’s highly competitive world, it is often the softer skills that differentiate applicants, and determine who will get hired, who will be successful and who will move up in the organization.  One survey conducted by American Express found that more than 60 percent of project managers and leaders in organizations agreed that soft skills are the most important factor when evaluating an employee’s performance.

So which are the most important soft skills a person should have?

Communication Skills: Its one of the most importantskill to succeed in life. Being able to communicate effectively helps one stand out in crowd. Whether it is spoken, written, visual or non-verbal communication one needs to constantly learn and improve the art. You don’t have to be a great orator or writer, but certainly you need to express yourself clearly in your communication. Whether it is a personal or official letter, a memo, a presentation, or a casual note the message needs to be coherent and logically presented. While speaking the tone, pitch and selection of words do matter. And in non-verbal communication body language says it all. So many times we communicate many a things which we haven’t spoken or written.

Be a good team player: Know a little bit about your coworkers; this will keep your going with them, make an effort of familiarizing others about you. Isolation from other does not help you or others and certainly not the organization. You cannot always be leader in the team; learn to sometimes be a follower. Pitch in that small information which you are aware, share it if it’s going to make a positive change. Be reliable. Offer constructive help to others. Don’t be afraid to speak up and give your thoughts during group sessions or meetings. Offering your thoughts will keep you an active helper in the decision-making process and prove you have an interest in the team. It’s very important to respect others. Don’t gossip or ridicule about your coworkers behind their backs. By gossiping you only spoil the work atmosphere.

Be adaptable: it is one of very important qualities to survive in today’s hyper-competitive and fast-paced work place atmosphere. New technologies, changing corporate structures, downsizing, outsourcing, ever changing business priorities require one to be adaptable. With such rapid, unpredictable and disruptive change all around us, it calls for patience and a spirit to react coolly in the troubled situations. It is again not important whether you emerge as a winner or loser; it simply counts on whether you can take change in your stride or not. Responding positively to change not only enables you to deal with the new and untried, but paves the way for career success, growth and satisfaction too. By being flexible and adaptable, you can move up the ladder, build new skills, increase productivity and achieve your goals. What’s more, it makes the work appealing and gratifying too. In the ever-changing workplace, this basic skill even becomes the key to survival.

Problem Solving: Problem solving is again a key skill, and it’s one that can make a huge difference to your career. At work, problems are at the center of what many people do every day. You’re either solving an internal problem or external problem, by supporting those who are solving problems, or discovering new problems to solve. The problems you face can be large or small, simple or complex, and easy or difficult, stuck or unstuck to solve. Please understand this, our brain cannot find solutions if we only focus on the problem. This is because when we focus on the problem, we in fact feed ‘negativity’ which in turn activates negative emotions in the brain. These emotions block potential solutions. Don’t ignore the problem but, find workable solutions by remaining calm. It helps to first acknowledge the problem and then move focus on creating a mindset to think practically. Stop lingering on what went wrong, who created the problem, what intentions the problem maker has, whose fault is it etc.etc. Instead think what approach to assume, view the problem neutrally, think laterally, stop using negative self talk, and simplify the course of action.

Creative thinking:It’s not enough to be able to collect data and manipulate it. You must also be able to analyze and interpret it. It’s important to make yourself creative and evolving as a better person at each juncture in life. It’s in your best interests to help improve the creative performance of your team. Creative meetings are a great opportunity to spot gaps and close them. There are many creative ideas which might not have struck you, but when confronted with others who are passionately arguing for highly creative yet hardly strategic concepts, some idea might strike. Creativity is not only your domain; learn to spot the creativity in others around you. It’s perfectly alright to accept other’s ideas and shape them. Don’t forget to give credit to the person whose idea you are utilizing.

Negotiation skill:Negotiation is a method by which people settle differences. It is a process by which conciliation or agreement is reached while avoiding argument and dispute. Negotiation is inevitable in life. It has to be adopted from time to time. Conflict and disagreement will arise as the differing needs, wants, aims and beliefs of people change. Without negotiation, such conflicts may lead to disputes and resentments resulting in one or all of the parties feeling disappointed. The point of negotiation is to try to reach agreements without causing future barriers to communications. In any disagreement, individuals understandably aim to achieve the best possible outcome for their position, or an organization they represent. However, the principles of fairness, seeking reciprocated benefit and maintaining a healthy relationship are the keys to a success. Therefore the negotiation skill is vital.

Leadership: The ability to lead effectively is one of the most important skills. This skill can boost your career in effect. It involves dealing with diverse people with diverse cultures, diverse ideas, and diverse personalities. The leader has to be people’s man/woman. The leader should create a motivated and enthused team of people to archive organizational goals and objectives. A leader is the one knows the way, goes the way and shows the way. Leaders establish the behavioral realities at the workplace. They establish and embody the real values of the organization and, by extension, its rela­tionships with customers, suppliers, competitors, policy makers, government, and to environmentalists – to all out there. A leader’s canvass has to be large enough to support the details, objectives, methodology, scope and the goals to be achieved. He is required to provide true perspective. He should create a picture of future with lots of colors in it – making it striking for his followers.  Because if the picture of future is absurd no matter how he convinces his subordinates, they will start searching for the truth. Each one believes what is seen. There is no other powerful shaper of behavior in the organization than the leader of it. In an organization the leader is considered an archetype. Therefore, practice what you preach.