Talent research firm Bersin & Associates recently released “The Role of Competencies in Driving Financial Performance,” a study on the relationship among performance reviews, competencies and business success.
The firm found a clear correlation between the competencies used in performance reviews and business outcomes such as growth and profitability in four different industries:
While the study consistently found the competencies that drive growth and profitability are different in each industry, some larger trends also were identified. High-performing organizations focus more on organizational capabilities, while their lower-performing counterparts value competencies that build individual skills.
Adapted from the January 2007 issue of Talent Management