We have more than 30 years experience working with competencies.  Defining competency models for organisations and individual roles, in both public & private sector organisations.

The main reason for the performance differences shown in “Individual Value” has been found to be to the capability and personal qualities of the high performers and the approach they take to their work. The term “competency” was coined to describe these attributes.  The definition of a competency is:-
“an underlying characteristic of an individual that has been shown to cause or predict superior job performance …  it is what superior performers do more often, in more situations,  with better results than average performers.”

The Growing Importance of Competencies
Most jobs are more complex than they used to be.  As the environment within which organisations operate has become more diversified and complex, so jobs have also become more diversified and demanding.  New levels of knowledge and skill are required, as is an increased emphasis on initiative, judgement and working effectively with others. As jobs become more complex, the difference between the contribution of the top performers and that of everyone else in key jobs becomes magnified.
This differentiation occurs because, as a job becomes more complex, performance becomes less a result of technical knowledge and skills and more a function of other, less tangible, qualities i.e. competencies.

Competences or Competencies
There has been some confusion around these terms since they first came in to common use in management language.
In recent years, (particularly in financial services) the term “Competence” has been used to define a minimum acceptable standard, whereas “Competencies” are the behaviours which lead to superior performance.

Competences	Competencies
Related to “average”, “basic” or “adequate” performance. Usually focuses on specific knowledge, skills and experience.	Based on research in to superior performance. Includes mainly less tangible characteristics: drive initiative thinking ability influencing skills teamworking self-confidence

In combination, these competencies, or behavioural characteristics, contribute to superior performance. The main difference between these terms, in practice, is the extent by which they can be used to assess, recruit or develop people for “adequate” or “high” performance.

To be effective in a professional role requires the application of technical knowledge, skills and competencies:-

KNOWLEDGE	SKILLS & EXPERIENCE	COMPETENCIES
Knowing what to do.The range of specialist or technical know-how required to perform a particular job.May be indicated by a vocational qualification.	Being able to do it. The ability to perform specific tasks, such as using a spreadsheet or risk analysis. Some skills (e.g. business development) may be best demonstrated through proven experience.	Being able to do it well.  The personal characteristics or attributes which have been shownto predict superior performance in a job. Although often manifested in a job-specific way, some characteristics are found to be common across a wide range of jobs.