Here’s the truth, most people don’t wake up confused about whether they’re good at their jobs. What keeps them up at night is not knowing what ‘good’ actually means in their organisation – or how to get better at it.
That’s where competency frameworks come in. And no, we’re not talking about another HR initiative that lives in a dusty folder. We’re talking about giving your people a clear map of what success looks like and how to get there.
Done right, competency frameworks connect what people do every day with what your organisation needs to achieve. The question isn’t whether you need one – it’s whether yours is actually working.
In this article
- What Are Competency Frameworks and Why Do They Matter?
- How Competency Frameworks Drive Organisational Performance
- Boosting Career Growth Through Competencies
- Building an Effective Competency Framework
- Integrating Competency Frameworks into Development Cycles
- LTT’s Approach to Competency Frameworks
- Stop Building Frameworks That Gather Dust
What Are Competency Frameworks and Why Do They Matter?
Think of a competency framework as the rulebook for success in your organisation. It defines the skills, knowledge and behaviours that actually make a difference – not the fluffy stuff that sounds good in job adverts, but the real capabilities that separate great performance from mediocre.
Here’s what a good framework does: it answers the questions your people are already asking. What does leadership actually mean here? How do we define collaboration – is it about being nice in meetings or challenging ideas constructively? What technical skills do I need to progress?
Instead of vague job descriptions that could apply to anyone, anywhere, you get concrete standards. Your people know what ‘good’ looks like at their level, and what they need to demonstrate to reach the next one. That clarity changes everything about how you hire, develop and promote talent.
How Competency Frameworks Drive Organisational Performance
Let’s get specific. 74% of organisations using competency frameworks report higher performance alignment. That’s a measurable business advantage. Why? Because when everyone understands what they need to deliver as well as how they should deliver it, you stop having those frustrating conversations about ‘cultural fit’ or ‘leadership potential’ that no one can actually define.
Performance reviews become less awkward because you’re discussing observable behaviours, not subjective impressions. You can spot your future leaders more easily because you know exactly what behaviours they need to demonstrate. And when you invest in training, you can measure whether it’s actually building the capabilities you need – not just whether people enjoyed the biscuits.
The real win? Consistency. Whether someone works in your London office or your Manchester one, whether they report to Sarah or to James, they’re being assessed against the same clear standards. That’s not just fairer – it’s how you build a culture that travels as you grow.
Boosting Career Growth Through Competencies
Here’s what your people want: a straight answer about what it takes to get promoted. Not corporate waffle about ‘demonstrating strategic thinking’ or ‘being more visible’. Actual, concrete guidance on what they need to do differently to progress. A competency framework gives them that.
Instead of playing guessing games or hoping their manager notices them, employees can take charge of their own development. They know which competencies matter for their next role. They can seek out projects that build those capabilities. And they can have meaningful conversations with their manager about strengthening specific skills.
This transparency is powerful. People stop feeling like promotion decisions are mysterious or political. They see a clear path and they can walk it. And when people feel in control of their careers they stick around. They engage. They push themselves because they can see where it leads.
It’s also brilliant for managers. Instead of awkward career conversations where you’re making vague promises, you can point to the framework and say: ‘Here’s where you are, here’s where you want to be, and here’s exactly what bridging that gap looks like.’
Building an Effective Competency Framework
Right, let’s talk about how to actually build one of these things without creating a 47-page document that no one reads.
Step 1: Identify core capabilities driving business advantage
Start with what matters. What capabilities will actually make a difference to your business over the next few years?
Don’t just copy what other companies do – think about your specific challenges and opportunities. Talk to your senior leaders, yes, but also talk to your high performers and frontline managers. They’ll tell you what actually drives success, not what the exec team hopes drives success.
Step 2: Define behaviours and indicators for each competency
This is where most frameworks fall apart. ‘Strategic thinking’ isn’t a competency – it’s a label. What does strategic thinking actually look like in action?
Try things like: ‘Spots patterns across different data sources’ or ‘Adjusts plans when market conditions shift’. The more specific you are, the more useful your framework becomes. If someone can’t tell whether they’re demonstrating a competency, you haven’t defined it clearly enough.
Step 3: Structure by levels and domains
You’ll want core competencies (everyone needs these), leadership competencies (for managers) and functional competencies (role-specific technical skills). Then define how each competency scales.
‘Influencing’ at junior level might be ‘Presenting ideas clearly to the immediate team’. At director level? ‘Shapes thinking across the organisation and with external stakeholders’. Same competency, different expectations.
Step 4: Pilot, iterate, and measure impact
Don’t roll it out to 3,000 people on day one. Test it with a pilot group. Ask them: Is this clear? Is it useful? Can you actually use it in your one-to-ones?
Then track what matters: Are people getting promoted faster? Do managers feel more confident making talent decisions? Are engagement scores improving?
Adjust based on what you learn, not what you assumed would work. If you’re thinking about how this connects with your wider performance approach, take a look at our work on team performance.
Integrating Competency Frameworks into Development Cycles
A framework sitting in your HR system doing nothing is just expensive wallpaper. The magic happens when you weave it into everything you already do.
When hiring, stop asking generic interview questions and start probing for specific competencies. Instead of ‘Tell me about a time you showed leadership,’ try ‘Talk me through a situation where you had to influence someone more senior than you without formal authority.’ You’ll get a much better signal about whether someone can actually do the job.
In onboarding, new starters should see the framework in their first week. Not in a boring presentation – in a conversation about what success looks like in their role and how they’ll be supported to get there.
Performance reviews become much less painful when you can reference specific competency indicators rather than trading vague impressions. You can say: ‘You’re strong on analytical thinking – I’ve seen you do X and Y. Let’s focus on building your influencing skills because I’ve noticed Z.’
The critical bit? Training your managers to actually use the thing. They need to be comfortable diagnosing competency gaps, having coaching conversations, and giving feedback that references the framework naturally – not reading from a script. This connects naturally with broader people development strategies – it’s not a separate initiative, it’s the thread that ties everything together.
LTT’s Approach to Competency Frameworks
We’ve seen plenty of competency frameworks fail. Usually because they’re either so generic they could describe any company in any sector, or so complicated that managers need a PhD to use them.
Our approach is different. We build frameworks that actually stick – ones that reflect your real culture and strategic goals, not textbook theory.
We start by properly understanding your world: what you’re trying to achieve, what your culture actually is (not what the values poster says it is), and what capabilities will genuinely make a difference. No cookie-cutter solutions.
Then we design collaboratively. We involve people across your organisation – not just the exec team – because they’re the ones who know what great performance actually looks like on the ground. This builds buy-in and ensures your framework reflects reality.
But here’s the crucial bit: we focus obsessively on embedding. A framework in a drawer helps nobody. We help you integrate it into your existing systems, train your managers to use it confidently, and create simple tools that make assessment and development conversations straightforward.
Our STAR model breaks down competencies in a way that makes them easy to understand and apply. It shows your people exactly what they need to succeed, how to do it, and how to grow with your business. Simple, actionable, and designed to drive results.
Take one client who came to us with high turnover among technical specialists. Their people felt stuck – unclear about how to progress without moving into management. We designed a framework that showed both technical and leadership paths across five career levels. The result? Clarity about progression, genuine engagement, and retention improved because people could finally see their futures in the organisation.
This work connects naturally with our coaching and assessment services and our broader approach to careers and performance – it’s all part of creating a talent system that actually develops people.
Stop Building Frameworks That Gather Dust
Here’s the reality: your people want clarity about what success looks like and how to achieve it. Your managers want confidence in making talent decisions. Your business needs capabilities that drive performance.
A competency framework should deliver all three. But only if it’s built right and actually embedded into how you work.
We don’t do generic frameworks that sit in drawers. We design competency models that reflect your culture, speak to your strategy, and get used every single day – in hiring, in performance conversations, in development planning, and in promotion decisions.
Ready to build a framework that actually works? Let’s talk. Book a consultation with our team and we’ll show you how to create a competency framework that drives performance and career growth. Get in touch now – because life’s too short for frameworks that don’t deliver.
