At the end of the 1990s competence management was a hype, in 2009 40-45% of all large organisations (+200 employees) apply competency management in one or more fields of HRM: recruitment and selection, annual evaluation, development, career planning and remuneration.

Why does competence management work?

Fundamentally, the success of competence management is based on three pillars:

• Use of clear, transparent terminology to describe human characteristics.
• Top-down approach and logical deductive thinking: from vision to mission, to strategy, to jobs, to desired results, to tasks, to desired competencies, to existing competencies, to competencies to be developed, to evaluation…
• Thinking in terms of separate entities or units: this reasoning is also found in medicine, mechanics, construction, etc. A defective part can be removed and replaced with a better part. Competencies are sometimes handled in that way.

The implementation of this traditional way of thinking and reasoning in competency management is undoubtedly why it is so successful. On the other hand, it also presents its boundaries.

It is preferable to approach human behaviour, social interaction and individual competencies in a somewhat broader, holistic context. The ‘plug and play’ approach does not fully apply to people or to human behaviour or competencies.

Talent management versus competence management

At a certain moment the logical deductive approach reaches the limitations of analytical thinking and thereby also developability and the restrictions of gap thinking. The largest opportunity for development is sought in people’s weakest competencies, which demands a lot of extra effort of them. This conclusion has made many people seek refuge in an entirely different approach. 

This could explain the increasing popularity of talent management, in which the starting point is people’s strengths. Talent management builds on the strong aspects of a person. Or ‘should’ build on strengths because in practice talent management is often just another name for the same top-down approach, resulting in a lot of confusion about the terminology.

In response, we have developed a select number of new models that bring clarity to talent and competency management, based on many years of experience, scientific research and a balanced vision.

The red-blue model

In the red-blue model, depicted as 3D goggles, we provide the essential characteristics of competency management on the one hand and talent management on the other.

The blue approach

In competency management the starting point is an organisation’s mission, vision and strategy, ultimately rendered as a profile of desired competencies. That competency profile is the focal point for various HRM applications. Observed human behaviour is compared against the desired profile. Recruitment and selection, training and development and so on are steered and fleshed out on the basis of the similarities and dissimilarities.

• We start with the M, V, S… and the ‘desired’ profile
• From outside to inside
• More of an organisational perspective
• Characteristics are competencies
• Strengths… in comparison to the competency profile
• Rather ‘cold’ approach, rational, logical
• Objectivity =!
• Focus on job fit, efficiency, ROI
• Problem-solving approach
• Gap analysis
• Advancement through specific training
• Weak competencies constitute the greatest opportunity for growth
• Competencies are developable
• Job design
• Empiricism

The red approach

The red approach is a talent management approach based on people’s strengths, what they really want and what they are good at. Underlying interests and ‘talents’ are identified. The art is to make relevant connections between these interests and competencies and the roles and/or positions in one or more organisational context.

• We start with ‘what is’
• From inside to outside
• More of an employee perspective
• Characteristics are ‘talents’
• Strengths… characteristics that are conspicuously present/easily available
• Rather ‘warm’ approach, interpersonal
• Significant =!
• Oriented towards ‘utilising’, meaningfulness, development
• Appreciative Inquiry
• Focus on strengths and ‘making use of what is available’
• Advancement through personal development
• Qualities and ambitions are future drivers
• Strengths are the basis for excellence
• Job sculpting, job modelling

The purple approach

In day-to-day practice the challenge is to combine these different scientific philosophies, approaches and perspectives. To create a third dimension, which is a logical consequence of the red-blue approach. The metaphor of 3D goggles also applies here: a new reality is created, a third dimension, when you look through the red and blue lens at the same time.

• We start with what is and match it to profiles
• Alternating inside outside inside
• Perspective of employee and organisation
• A common terminology
• Observable characteristics that are useful
• Observation and reflection
• Warm, rational and interpersonal
• Meaningful, partly based on objective observations
• Oriented towards using and fitting
• ROI and/through development
• Appreciative and stimulating
• Developing strengths and neutralising shortcomings
• Job negotiation
• Empiricism and constructivism

In day-to-day practice the main challenge is to combine these different perspectives. To create a third dimension, an In-depth Vision. Clearly, our behaviour (expressed in terms of competencies or talents) is the result of the context in which we work as well as our underlying interests and aptitudes. To be able to transparently speak about the underlying interests and abilities, we have developed an in-depth model that we convey with the image of Russian dolls.