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Center for Effective Organizations

Working Paper

Do Competencies Drive Organizational Performance? Can they? Evidence and Implications for Professional and HR Competencies

A. Levenson, March, 2005

This article examines the link between competencies and organizational performance. It reviews and critiques the existing evidence, arguing that demonstrating a direct link between competencies and organizational performance is too high a hurdle to ever resolve the debate over the appropriate use of competencies. It provides new evidence from a case study on the mechanisms through which rewarding competencies can influence executives' behavior in ways that ultimately may impact organizational performance. It concludes with some implications for the design of professional competency models in general and HR competency models in particular.

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