Competency Gap Analysis (TNA) - 8 steps (VG)

How do we upgrade our staff capability and capacity to perform.

Firstly, we have to identify the critical performance issues or problems that the company is facing. We select those that has great impact on the goals of the organisation.  In business, it is always the bottom line i.e return on equity.

Please note that not all performance issues are caused by lack of competency.  Many are due to other factors beyond the control of the job holder.

The following steps should be undertaken by the performance or training consultant in identifying and resolving competency issues.

1. Identify the critical performance gaps as against a similar entity in the same industry.
• Use the latest audited financial statements as the basis
• use efficiency and performance ratios for comparison
• Use du pont chart as the framework for comparison
• Use the KPIs to the key business functions as another set of perspectives.
• Use the business model as another set of gap analysis
• Use the pareto principle to identify the critical gaps that has great impact on the ROE/ROA
• Positive gaps are classified as strengths whereas the negative as gaps to be resolved.
2. Reevaluate performance to get to the true performance gaps.
• dynamic ratio analysis
• Input output analysis
• Graphic presentation
• Eliminate impact by sheer volume or other factors
3. Narrow or zero down to the job holders responsible for the gaps. (non-performers)
• performance trend analysis
• competency profiling
• Job Analysis
• Task analysis
• Expert Opinion
4. Identify the performance problems, issues and opportunities through component depth analysis.
• root cause analysis on the critical gaps only
• stop gap measures
• Internal control solutions
• Motivation, empowerment and resources solutions
• Change in strategies
5. Is industry best practices being applied?
• Why not?
• Unique competency identified  
• Use BSC to identify the competency upgrade
• Competency gaps identified through task analysis
6. Identify performance solutions and strategies
• Non-training solutions
• Training solutions and costs
7. Measure the impact on bottom line and compute the ROI justification for training.  With the right analysis most ROI on training could be more than 100% a year.
8. Submit performance and training need report to the CEO and his management team.

copyright  Arriffin Mansor