Excellence through Implicit Competencies

Excellence through Implicit Competencies Robert J. Zaugg and Norbert Thom

Institut für Organisation und Personal der Universität Bern

Excellence through Implicit Competencies Robert J. Zaugg ; Norbert Thom.Berne : IOP-Press, 2001 ISBN 3-906471-50-0 All rights reserved. Copyright © 2001 by Institut für Organisation und Personal (IOP), University of Berne No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from the publisher. Printed in Switzerland. www.iop.unibe.ch

Excellence through Implicit Competencies Human Resource Management – Organization – Knowledge Robert J. Zaugg and Norbert Thom*

*

Prof. Dr. Norbert Thom is a full professor of management and the Director of the Institute for Organization and Human Resource Management at the University of Berne. Dr. Robert J. Zaugg is a lecturer, chief assistant, and post-doctoral candidate at the Institute for Organization and Human Resource Management. The article has been translated from the original German by Marcia Glenn and Dr. Doris Glenn Wagner.

Executive Summary

The indiscriminate application of the Olympian motto “higher — faster — further” to companies and public institutions leads to an acceleration trap of organizational change and to an overtaxing of systems and people. Deceleration is necessary. We assume that the required deceleration can be attained only through the establishment of internal competencies in the areas of human resource management (HRM), organization, and knowledge or innovation. The respective competencies (implicit competencies) help to promote a configurational company development and further result in the excellence of a company. If implicit competencies are successfully developed into success potentials, and, in addition, into core competencies, then competitive advantages can be attained in the sales and job markets. Building upon a conceptual model of excellence, this article provides starting points for implementation from a personnel, institutional, and instrumental perspective. Keywords

acceleration trap, change management, core competency, corporate development, deceleration, excellence, HRM competency, implicit competencies, innovation competency, instruments for innovation, knowledge competency, knowledge management, organizational change, organizational competency, organizational learning, organization of human resource management, stakeholder perspective, transformation.

Contents Executive Summary______________________________________II Keywords______________________________________________II Contents _____________________________________________ III List of Figures _________________________________________ IV 1

Dynamic Environment as a Starting Point _________________ 1

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Excellence – A Holistic View ___________________________ 4

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Are Implicit Competencies Core Competencies? ____________ 6 3.1 Preliminary Remarks______________________________ 6 3.2 Human Resource Management as a Potential for Success ________________________________________ 6 3.3 Human Resource Management as Core Competency ____ 9

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Model of Excellence through Implicit Competencies ________ 12 4.1 Overview of the Model of Excellence ________________ 12 4.2 Personnel Aspects: Profile of the Organizers __________ 14 4.3 Institutional Aspects: Organizing Human Resource Management___________________________________ 15 4.4 Instrumental Aspects: Instruments for Innovation _____ 17

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Conclusions _______________________________________ 19

Bibliography___________________________________________ 20

List of Figures Figure 1: Organizational Change and Transformation (cf. Zaugg 2001) __________ 2 Figure 2: Personnel Competency as a Means for Creating Competitive Advantages (Figure with reference to Wenger 1999: 60) _____________ 8 Figure 3: Conceptual Model of Excellence through Implicit Competencies ______________________________________________ 13

Excellence through Implicit Competencies

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Dynamic Environment as a Starting Point

The Olympian motto “faster — higher — further” also appears to be entirely valid today for companies and public institutions. They must adapt ever more rapidly to the disjunctively changing basic conditions. They are constantly required to optimize their processes, and they are continually searching for innovative solutions that can provide them with a competitive advantage. Since, however, the innovation and change cycles have been considerably shortened, and since companies are forced to act faster and faster, many companies fall into a so-called “acceleration trap”. They conceive change as being an exception and are overtaxed, since one reorganization follows on the heels of another. Employees no longer find the time to cope with a new situation before they are confronted with new demands. Consequences of this development are manifested, among other things, in the increase of health problems, absenteeism, and early retirements; in the worsening of the work environment; and in the increase of failure rates. Due to these factors, market performance suffers, customer satisfaction diminishes, and sales decrease. This results in downward cost pressure, which, once again, makes reorganization necessary—a vicious cycle that must be broken. A primarily reactive understanding of company development, which optimizes the actual condition in the sense of a “single-loop-learning” (cf. Argyris and Schön 1978: 16 ff.), can no longer withstand the extreme pressure to change. For this reason, types of company development are needed that proceed from the assumption that change is an ongoing evolutionary process occurring on all levels of the company. Since, however, evolutionary change is frequently completely misunderstood—that everything always changes — one proceeds here from the assumption of a configurational change in which phases of continuity and discontinuity alternate with one another. Perich (1992: 217) calls this type of change the “punctuated equilibrium model”. This understanding differs from the understanding of change as “continuous modification” in that the—entirely desirable — continuous and long-term development of a company is comprised of a chain of “transformational episodes”, which include conscious phases of consolidation (“islands of tranquillity”) (cf. Zaugg 2001).


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Consolidation

Phases of the Transformation

Implementation

Development Level

Sensibilization

Initialization

Mobilization

Condition tn

Conceptualization

z ani org

nge cha l a n atio

Condition t2 Condition t1

Transformation

Condition t0

Time

Figure 1:

Organizational Change and Transformation (cf. Zaugg 2001)

The model of configurational change requires the capability of structuring changes in a way that is harmonious with long-term company development and that ensures the company’s prosperity (organizational and knowledge competencies). This, is possible only when the company can simultaneously enlist, develop and retain personnel potentials that are oriented toward the future (HRM competency). The necessity of so called implicit competencies can be demonstrated, for example, in two aspects: In order to counteract the shortening of the time span between fundamental transformations (i.e., reorganizations) and thereby the acceleration, employees at all levels should be capable of recognizing at an early stage the need for change in their immediate spheres of activity and of undertaking appropriate measures for improvement. KAIZEN, which has already been introduced as a good method of continuous improvement, can serve here as an example (cf. Imai 1993). If a more profound change is required, employees should be in the position—and will-


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ing—to actively support such change. This necessitates a high measure of ability and willingness to change (cf. Zaugg 2001). This article has a double goal: First, it presents the basic premise of a model that assists companies in establishing the prerequisites for attaining excellence; and, second, it shows individual development trends in the areas of HRM, organization, innovation, and knowledge. The remarks are based on the authors’ conceptual reflections and are supplemented with empirical findings. The definition of central concepts follows these introductory remarks. Then, the question of whether internal skills or capabilities represent core competencies is discussed. This analysis is performed in an exemplary manner by using human resource management. Thereafter, a conceptual model of excellence is presented. The discussion includes institutional, personnel, and instrumental aspects. Since this article cannot discuss all three perspectives for all three types of competencies in the depth necessary, the personnel perspective focuses on the job description of the organizers; the institutional perspective examines the organization of HRM; and the instrumental perspective deals with the mix of instruments for innovation (cf. Thom 1980). Several conclusions round out the article.


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Excellence – A Holistic View

The concept of excellence is frequently linked to the bestseller by Peters and Waterman (1982), In Search of Excellence. These authors define excellence, in a very imprecise way, which is, in addition, extremely finance-oriented (cf. Peters and Waterman 1982: 22 f.). Innovative power was the only supplementary qualitative criterion taken into account. Recently, business excellence has been used primarily in connection with the model of the European Foundation for Quality Management (EFQM) (cf. Zink 1998: 89 ff.; Wilmes and Radtke 2000: 15 ff.). This model provides guidelines for the introduction or implementation of Total Quality Management (TQM) and defines excellence as follows: “Outstanding practice in managing the organisation and achieving results based on fundamental concepts which will include: results orientation, customer focus, leadership and constancy of purpose, processes and facts, involvement of people, continuous improvement and innovation, mutually beneficial partnerships, public responsibility” (EFQM 2001). While the Peters and Waterman concept of excellence falls short due to its basic limitation to financial indicators, the EFQM model is better suited to the discussion of questions dealing with HRM, organizational, and knowledge competencies, since it proceeds from a stakeholder perspective and takes all important concerned groups into consideration. Excellent companies can be characterized by the fact that they target results in many areas of company development that are considered to be trendsetting and exemplary. Since each company also exhibits weaknesses, a partial, area- or topic-specific excellence, in the sense of “best practice”, probably better corresponds to reality. In contrast to the EFQM, we understand excellence less as a measurable and assessable variable than as an underlying position and process. It appears to be indisputable that human resource management, as well as organizational and knowledge management, represent key functions on the path to excellence. The EFQM speaks of potential factors or enablers. Before we can address the question of whether these functions are core competencies of a company, we must define the concepts:


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•

HRM competency comprises the ability of a company to enlist, develop, retain, and utilize future-oriented personnel capacities in such a way that they comply with the long-term goals of all concerned groups.

•

The term organizational competency conceptualises the ability to structure short-term transformations, as well as long-term organizational change, in a way that permits a sustainable company development.

•

The knowledge or innovative competency includes the ability of a company to convert the knowledge and ideas of its employees into products and services tailored to meet the needs of the marketplace, as well as into innovations in the creative production of goods and improvements in the human sphere.

Since all three competency types mentioned are often qualitative, difficult to measure, and (sometimes) difficult to manage, we speak of implicit competencies.


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Are Implicit Competencies Core Competencies?

3.1 Preliminary Remarks In this section it is necessary to examine whether the implicit competencies of a company constitute success potentials and core competencies. This is to be done in exemplary fashion by using human resource management. Thom and Wenger have already examined whether organizational management fulfills the requirements of a core competency (cf. Thom and Wenger 1996).

3.2 Human Resource Management as a Potential for Success Success potentials are specific resources and capabilities of a company that can permanently influence its success (cf. Haedrich and Jenner 1996: 16). In order for these potentials to be developed into competitive advantages, they must be scarce, valuable, and permanent; additionally their ability to be imitated, transferred, or substituted must be limited (cf. Wenger 1999: 53 ff.). In a first step, one must now examine whether human resource management satisfies these characteristics:

Scarcity: The HRM competency of a company is scarce because it can be provided only to a limited degree by external partners. While the enlistment, training, and continued education of personnel can be more or less entirely outsourced, fundamental decisions on HR-policy or cultureenhancing measures of human resource management must be provided internally. An integrated human resource management is furthermore a scarce commodity because it cannot be quickly established, but must rather be developed over a longer period of time. Valuable: If the human resource management contributes to an increase in the qualifications and motivation of a company’s employees, it is valuable financially and non-financially. By using an appropriate incentive system that addresses the needs of the employees, one can positively influence them in their decisions to remain in the company. The


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costs resulting from a high turnover rate can thereby be saved. A higher level of employee qualification is furthermore reflected in a higher quality of products and services, something that subsequently contributes to the company’s success (cf. Thom 1999). In this article, the non-economic use of human resource management consists of forming and developing a corporate culture that in turn constitutes a prerequisite for the company’s success.

Permanence: Given the condition that the knowledge base acquired within the framework of human resource management is constantly being maintained and expanded, the corresponding competency can also be characterized as permanent. By means of organizational learning and knowledge management, the experience and knowledge of the human resource management can be preserved, examined, and further used. A professional human resource management is thus not permanent per se, but rather exhibits a dynamic permanence that is based on development. Limited imitatibility: The core (strategic) tasks of human resource management (e.g., preparation of a HR-strategy or the implementation of culture-altering measures) are so closely linked to the specific context of the respective company that they cannot — or can only to a very limited degree — be transferred to other companies. Many personnel management procedures and instruments are admittedly used in different contexts and in different companies; however, they develop their true value only when they are used in a specific situation and company. The value of a procedure therefore increases proportionately to its adaptation to a concrete and individual business situation. Difficult transferability to external parties: This criterion is closely related to the criterion of imitatibility. By adapting to a specific situation or context, the HR competency is also partially separated from the decision-makers in HR, who, as individuals, have great mobility and, thereby, transferability. Since they must initially adapt their knowledge to the specific conditions in a new company, the advantage of a lack of transferability continues to be at least partially preserved for the source company. In the case of company mergers, it is, for example, frequently demonstrated that it is easier to establish a new HR policy or corporate culture than it is to combine existing cultures or transfer them without negative consequences.


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HR Competence as A Means of Creating Competitive Advantage

Core Competence Requirements: Increase of customer value, potential for differentiation, internal transferability to new markets and products, integration, and bundling

Success Potential Requirements: Scarcity, value, permanence, limited imitatibility, marginal transferability to external parties, reduced substitutability

Figure 2:

Personnel Competency as a Means for Creating Competitive Advantages (Figure with reference to Wenger 1999: 60)

Reduced substitutability: Human resource management is not — or is only to a very limited degree — substitutable as a function that ensures the establishment, development, and preservation of the personnel potentials necessary for the success of the company. By means of rigid cost management or organizational measures, problem areas of HRM, such as, for example, an unfair compensation system or a lack of leadership ability, can be mastered in the short term. Expert knowledge in HRM, however, is absolutely necessary for a permanent solution. The stipulation that human resource management have reduced substitutability should not lead to the interpretation that tasks of this type can be mastered only by a personnel department provided for this purpose (human resource authorities). The distribution of the HRM competency within the entire company, as is recommended, for example, in the concept of the virtual personnel department (cf. Thom and Zaugg 2000:21 ff., Scholz 1996), will increasingly become more prevalent.


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3.3 Human Resource Management as Core Competency Since human resource management constitutes a resource that is scarce, valuable (when properly maintained), and permanent, as well as one that has limited possibilities for being imitated, transferred, or substituted, it can be deemed a success potential. Examination of the introductory questions as formulated makes a second analytical step necessary. Starting with the definition of core competencies, one must now discuss whether human resource management also satisfies the claims of this concept. Hamel and Prahalad (1990: 83 f.; 1994: 224 ff.) speak of three “tests” that an ability must pass in order to be deemed a core competency: customer value, competitor differentiation, und extendibility. Hamel and Prahalad also conceive of core competency in the sense of an “integration of skills”, as a “[...] bundle of skills and technologies rather than a single discrete skill or technology”. Krüger and Homp (1997: 25 ff.) assume that a core competency has the following three features: cause of competitive advantages, permanence of the achieved advantages, and transferability of the competency to diverse products, services, regions, and customer groups. In order to be deemed a core competency, human resource management must accordingly comply with the following four features:

Customer value: This effect can refer either to the benefit directly perceived by the customer or to the end product. It is therefore entirely possible that the benefit targeted by the corresponding core competency is only indirectly perceived by the customer. •

The potential contribution of human resource management to the success of the company has already been discussed in conjunction with the value of this function. Since the benefit perceived by the customer always emanates directly or indirectly from the company’s employees, it is permissible to ascribe a very large share of the promotion of customer value to HRM.


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Differentiation: This criterion summarizes the criteria of permanence, limited imitatibility and substitutability, and the marginal transferability to external parties—criteria that were already mentioned in connection to the characterization of human resource management. While the first (and most important) feature focuses on the customer, the second feature is aimed at the competitors. •

By means of its distinctive cultural and strategic anchoring, human resource management also permits an effective differentiation with regard to competition. As company takeovers (including mergers) frequently demonstrate, the transferal of personnel competency constitutes a very difficult task. For this reason, quite often, existing personnel management concepts are applied in parallel fashion for a certain period of time and are then supplanted by a new concept.

Transferability: The transferability to other products, services, and markets that is described here must be distinguished from the previously required avoidance of transfer to rival companies. Whereas the first criterion is limited to the use of core competency within one’s own company, the second criterion refers to a copying of the core competency by competitors. This characteristic of transferability suitably focuses on products (incl. services) and markets. •

The indisputable advantage of human resource management lies in the fact that its “output”, namely, the qualification and motivation of employees, can be easily transferred to various products, services, and markets. Apart from expert knowledge that is closely tied to a certain product or market, the “soft” skills and motivation of employees can be utilized in various ways.

Integration: Core competencies constitute a combination of resources and skills or capabilities. Since they should be valid for the entire company or for a larger part of a company (cf. Krüger and Homp 1997: 44), it is understandable that individual procedures and techniques cannot attain the status of a core competency. A core competency has more to do with the bundling of several mutually-complementary basic competencies and meta-competencies.


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The various tasks of human resource management can be performed only by an integration and bundling of skills and procedures, which simultaneously constitutes a basic competency (mastery of existing business processes) and a meta-competency (mastery of development processes) (cf. Krüger and Homp 1997: 41 ff.).

Human resource management can be established and expanded to become a success potential, as well as a core competency. It fulfills all conditions that are required. A narrow interpretation of the described connections leads to an understanding of human resource management as the foundation for the development of core competencies. The broader interpretation presented here assumes, that the skills and resources bundled together in human resource management can themselves be developed into a core competency. Just as certain technical skills lead to product or process innovations and to a company’s success, HRM-competency enables the emergence of competitive advantages. What has here been clarified in exemplary fashion for human resource management can also be transferred to the two other functions or types of competency. The following chapter is based on all three types of implicit competencies.


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Model of Excellence through Implicit Competencies

4.1 Overview of the Model of Excellence Both opportunities and risks for the creation of implicit competencies emerge from the internal and external underlying conditions. Thus, it is quite conceivable that new technologies promote their development or that a recession hinders it. Highly developed companies can recognize in good time the need for change by means of early warning systems, and introduce appropriate anticipatory measures. In this way, they gain some independence. A model of excellence based on implicit competencies must naturally also be in harmony with the corporate culture, the strategy, and the employees. In this context, high priority should be given to the analysis of cultural values and the qualification of the employees. Key function holders must know the development level of their company, as far as a starting scenario is concerned, in order to determine the course that the “excellence journey” will take or which feasible steps must be introduced. These examples make clear that excellence is, in any case, a contextual concept. Activities which promise to be successful in one company must not necessarily also lead to success in another company. The company’s ability to learn is surely the most important prerequisite for the path to excellence by means of implicit competencies. Only when companies and public administrations are successful in institutionalizing organizational learning and supporting it with effective knowledge management will they be in a position to build up competitive advantage. This connection becomes very clear in the term delimitation by Probst and Büchel (1994: 17). They define organizational learning as the “[...] process of enhancing and changing the organizational value and knowledge base, the improvement of the problem-solving and realization-competency, as well as the modification of the common frame of reference of and for members within the organization [...]”.


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Business Environment Company specific system • culture HRM Competency • strategy • structure • employees e.g. knowledge-oriented incentive systems

Knowledge & Innovation Competency

e.g. readiness and ability to change

Excellence e.g. organizational slack

Organizational Competency

Organizational Learning and Knowledge Management as a Basis

Figure 3:

Conceptual Model of Excellence through Implicit Competencies

The starting points for establishing a learning organization are found on all levels and in all areas. Classical education/training and continuing education can be oriented toward superordinate goals of knowledge by giving more attention to the transfer of learning. By encouraging teamwork in quality circles and/or projects, the exchange of knowledge is promoted. Conventional and electronic communication platforms facilitate inter- and intraorganizational know-how transfer. Although there are practically no limits set on the creativity of those employees eager for knowledge and learning, it is important to orient the various measures toward a superordinate policy of knowledge and to embed them in an overall context. After offering the overview of the model of excellence (see figure 3), we now present the analysis of personnel, institutional, and instrumental aspects, which in each instance is performed by using a competency type. This presentation should, on the one hand, offer implementation aids for the model of excellence and, on the other hand, indicate in which direction human resource management, organizational management, and knowledge management (innovation), should develop in order to become true implicit competencies.


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4.2 Personnel Aspects: Profile of the Organizers In their empirical studies on the profile of organizers in Switzerland, Cantin and Thom determined the following (cf. Cantin and Thom 1996: 161 ff.): •

There is still considerable need for organizational generalists who have a broad knowledge of organizational work. It therefore seems reasonable to speak of a need for organizational competency on all levels of a company, and for all categories of employees.

•

Organizational specialists often focus on information technology and project organization. In this regard, a company must have at its disposal both general skills and specific organizational (expert) knowledge, in order to design or set up organizational competency. The close connection between company processes and information technology as an enabler of the same elucidates this connection.

•

Although questions having to do with organizational design and process organization are at the forefront of activities for many organizers, as a matter of their daily routine, they are often confronted with tasks related to the organization of physical resources (e.g infrastructure). If one succeeds (at least partially) in replacing these tasks with the use of information technology, then the organizers win time for strategic organizational tasks.

•

The great significance organizers already enjoy, as change agents and change catalysts, will continue to increase. They promote and support the entire process of organizational structuring and help those affected to find and implement a solution themselves.

•

The daily routine of the organizers is characterized by project work. Communicative competencies and team skills are therefore important requirements for these persons. They must also be able to work together with internal and external partners from the most diverse areas, and they thereby often become network managers.

•

In addition to solid expert knowledge, which must be continuously updated and expanded, organizers still need a capacity for analytical and conceptual thinking. When these skills are combined with the


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previously mentioned social competency, organizers are also in a position to deal with the affected person’s frequently occurring resistance to change and to escape their negative image as someone who supposedly eliminates jobs. •

A survey of experts (Delphi-technique) by Cantin and Thom (1995: 363 f.) furthermore showed that organizers must increasingly develop their skills in change management, organizational sociology and psychology, and organizational methods and technologies, as well as in management and leadership.

If organizers are successful in distancing themselves from those responsible for physical resources and becoming those who promote change, they will contribute markedly to the establishment of organizational competency.

4.3 Institutional Aspects: Organizing Human Resource Management One must discuss cultural, strategic, and structural questions within the framework of the institutional perspective of HR-competency. From a strategic point of view, for example, one must examine how corporate strategy and HR-strategy are interrelated and to what extent the top human resource management is anchored in the top company management (cf. Thom and Zaugg 2000: 3 ff.). In the area of culture and HRM, one must determine which basic assumptions undergird the personnel management and how a culture of learning and innovation can be created. In connection with the organizational structuring of the HR function, one is concerned with the designation of the tasks to the different HR-function holders, with the processing of detailed structures for the human resource area, with the identification of HRM core processes, and, finally, with the determination of tasks that must be fulfilled (including “make-or-buy” decisions respective outsourcing). In addition to cultural change by means of human resource management, here one is talking about cultural change within human resource management. In principle, it involves the self-awareness of the HRdepartment. This is, to a decisive extent, dependent upon the tasks that


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are brought to this function. Against the backdrop of an increased task intensity and a greater task capacity, cultural orientation variables can be recorded by using the following five concepts (cf. Zaugg 2001): customer orientation, strategy orientation, professionalization, economic efficiency, and flexibility. Of course, these basic values do not replace the principles of business ethics (e.g., equal treatment, fairness, honesty), nor do they affect compliance with legal regulations. The status of the HR-function also partially results from its relationship to corporate strategy. Since the viewpoint that HR-strategy is a functional strategy derived from corporate strategy does not go far enough, a perspective is proposed here which suggests an iterative development of these two strategies (cf. Zaugg 1996: 101 f.). The HRM then participates in strategy development and can also assume its implementation. Surveys performed at the largest Swiss companies verify that the implementation view clearly increased between 1995 and 1999 (cf. Thom and Zaugg 2000: 8). These empirical findings may possibly be connected to the fact that, in large companies, reorganizational processes are frequently adopted at the company’s top level and must merely be implemented by the human resource department. The findings concur with the recognition that the majority of top personnel managers are not yet members of the company management. In 1999, the portion of those large Swiss companies that granted the personnel management a position in the company’s management amounted to only 45 percent. The insufficient integration of the personnel function into the top management body of a company contradicts the increasing significance frequently accorded human resources in a knowledgeable and serviceoriented organization. Human resource management takes place at numerous positions in the company and encompasses the activity of both generalists (e.g., line superiors) and specialists (e.g., those responsible for personnel or external consultants). The HR-competency of a company is thereby not only limited to the know-how of the human resource department, but is rather distributed over the entire company. This fact, coupled with the complexity of HRM assignments, necessitates new, highly flexible types of structural organization of the personnel function. Here, one must especially consider project-oriented and network-type organizational forms,


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as well as improved cooperation between specialists and the line management. With the progressing virtualization of the HR-function and the use of computer-supported HRM-systems, the decision-makers for HRM are increasingly being relieved of administrative tasks; they can devote themselves to strategic tasks and thus contribute considerably to the establishment of personnel competency.

4.4 Instrumental Aspects: Instruments for Innovation The innovativeness of a company is dependent, on the one hand, upon general management instruments and, on the other hand, upon specific innovative instruments (= innovative instrument mix; cf. Thom 1980: 500). The formation of general management instruments that promote learning and innovation is particularly important for the establishment of knowledge or innovation competencies. General and specific instruments must be used in all phases of the innovative process and for all types of innovation. The phase of idea generation is based, for example, on creativity techniques, methods of idea management, and on research and development. In the phase of idea acceptance, one is concerned primarily with the evaluation of ideas and the creation of marketable products/services. Here, benefit analysis, systematic project and risk management, and product planning are applied as procedures. Many companies express difficulty in shortening the innovation cycles or the “time-to-market” enough without being overtaken by their competitors. The phase of idea realization is, as a rule, based on the management of a project and concentrates on the implementation of a new idea. Central to this process are (in the case of a product innovation) primarily the production of market item, its marketing, the training of employees and customers, regular acceptance monitoring, and the analysis of financial parameters. There is a close relationship between a company’s management of innovation and its management of knowledge. The two functions proceed from similar basic values (e.g., the conversion of implicit into explicit knowledge) and utilize similar instruments (e.g., experience groups and quality circles). In our view, one is dealing with the consideration of the same subject area (knowledge in companies) from two different per-


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spectives. Whereas innovation management is more likely to be interpreted instrumentally and concentrates on the realization of projects for product, process, and social innovations, knowledge management is additionally occupied with fundamental questions having to do with the generation and utilization of knowledge. Given a very broad interpretation of the term innovation, these two concepts could even be considered congruent. In order for a company to be able to establish a knowledge or innovative competency, it must have at its disposal corresponding communication instruments. At this point, one thinks of meeting opportunities like employee forums (e.g., open spaces), workshops, and “communities of practice”. Furthermore, electronic media, such as, knowledge databases and internal newsgroups, are required. The establishment of knowledge-oriented incentive systems and management systems also become more important. Thus, on the one hand, knowledge goals can be incorporated into the management process within the framework of a management-by-knowledge-objectives; and, on the other hand, knowledge management offers various opportunities for rewarding above-average achievements with non-material incentives (e.g., participation in development projects that are very important for the future of the company, enabling of special training, etc.). By presenting the instrumental dimension of the knowledge and innovation competency, the attempt has been made to show how companies can concretely begin establishing these competencies. The path to excellence through implicit competencies always begins with a first step, or rather with the implementation of a first, concrete instrument or principle, which must then be expanded upon. These steps must be embedded into an overall concept.


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Conclusions

The striving for excellence is comparable to climbing a mountain. For this, one needs to be in good physical condition; and one needs mental strength, equipment suitable to the task, and precise maps. If a company wishes to scale the peak of excellence, appropriate HRM, organizational, and knowledge competencies are required. These implicit competencies do not, however, generate themselves; rather, they must be constantly developed and converted into competitive advantages. For company decision-makers, this means, among other things, high investments in employee qualification, the realization of a company development that combines dynamic phases with conscious phases of consolidation, as well as the creation of meeting and communication opportunities for the exchange of knowledge and ideas. In the long-run, companies that are interested in sustained development of internal competencies will be much more successful in the competition for “faster – higher – further” than those who are oriented toward short-term profits.


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Bibliography Argyris, Chris and Donald A. Schön. Organizational Learning. A Theory of Action Perspective. Reading, MA et al.: Addison Wesley, 1978. Cantin, Françoise and Norbert Thom. “Tendenzen in der Didaktik der Organisationslehre an Schweizer Universitäten und wissenschaftlichen Hochschulen.” Zeitschrift Führung + Organisation (zfo) 64, no. 6 (1995): 360-364. ———. Organisationsarbeit in der Schweiz. 2nd ed. Glattbrugg: SGO, 1996. EFQM (2001): Excellence. The EFQM Excellence Model—Glossary of Terms. URL: http://www.efqm.org, 20th January 2001. Haedrich, Günther and Thomas Jenner. “Strategische Erfolgsfaktoren in Konsumgütermärkten.” Die Unternehmung 50, no. 1 (1996): 13-26. Hamel, Gary and Coimbatore K. Prahalad. Competing for the future. Boston: Harvard Business School Press, 1994. Imai, Masaaki. KAIZEN—Der Schlüssel zum Erfolg der Japaner im Wettbewerb. 8th ed. Munich: Wirtschaftsverlag Langen-Müller, 1993. Krüger, Wilfried and Christian Homp. Kernkompetenz-Management. Steigerung von Flexibilität und Schlagkraft im Wettbewerb. Wiesbaden: Gabler, 1997. Perich, Robert. Unternehmungsdynamik. Zur Entwicklungsfähigkeit von Organisationen aus zeitlich-dynamischer Sicht. Bern et al.: Haupt, 1992. Peters, Thomas J. and Robert H. Waterman. In Search of Excellence. Lessons from America’s Best-Run Companies. New York: Warner Books, 1982. Prahalad, Coimbatore K. and Gary Hamel. “The Core Competenc of the Corporation.” Harvard Business Review 68, no. 3 (1990): 79-91. Probst, Gilbert J. B. and Bettina S. T. Büchel. Organisationales Lernen— Wettbewerbsvorteil der Zukunft. Wiesbaden: Gabler, 1994. Scholz, Christian. “Virtuelle Organisation: Konzeption und Realisation.” Zeitschrift Führung + Organisation (zfo) 65, no. 4 (1996): 204-210. Thom, Norbert. Grundlagen des betrieblichen Innovationsmanagements. 2nd ed. Königstein i. Ts.: Hanstein, 1980. ———. “Beitrag des Personalmanagements zur Steigerung des Unternehmenswertes.” Unternehmensethik und die Transformation des Wettbewerbs,” edited by Brij N. Kumar, Margit Osterloh and Georg Schreyögg, 205-223. Stuttgart: Schäffer-Poeschel, 1999.


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Thom, Norbert and Andreas P. Wenger. Unternehmungsorganisation als Kernkompetenz. Auswirkungen auf organisatorische Strukturen, Prozesse und Gestaltende. Bern: IOP-Press, 1996. Thom, Norbert and Robert J. Zaugg. Organisation des Personalmanagements. Konzeptionelle Grundlagen und empirische Ergebnisse aus der Schweiz. 3rd ed. Bern: IOP-Press, 2000. Wenger, Andreas P. Organisation Multinationaler Konzerne. Grundlagen, Konzeption und Evaluation. Bern et al.: Haupt, 1999. Wilmes, Dirk and Philipp Radtke. “Das Modell für (Business-)Excellence durch TQM.” In Der Weg zur Spitze. Business Excellence durch Total Quality Management. Der Leitfaden, edited by Gerd F. Kamiske, 13-26. 2nd ed. Munich et al.: Hanser, 2000. Zaugg, Robert J. Integrierte Personalbedarfsdeckung. Ausgewählte Gestaltungsempfehlungen zur Gewinnung ganzheitlicher Personalpotentiale. Bern et al.: Haupt, 1996. ———. “Wandlungsorientiertes Personalmanagement” (Habilitationsschrift, University of Bern, in progress). Zink, Klaus J. Total Quality Management as a Holistic Management Concept. The European Model for Business Excellence. Berlin et al.: Springer, 1998.

This paper was originally published in German: Thom, Norbert; Zaugg, Robert J. Excellence durch Organisations- und Personalkompetenz. In: Excellence durch Organisations- und Personalkompetenz, hrsg. von Norbert Thom und Robert J. Zaugg, Bern/Stuttgart/Wien, Paul Haupt Verlag, 2001, S. 1-19, ISBN: 3-258-06306-0

List of IOP-Working-Papers Nr. 51:

Zaugg, Robert J.; Blum, Adrian; Thom, Norbert: Nachhaltiges Personalmanagement. Spitzengruppenbefragung in europäischen Unternehmungen und Institutionen. August 2001

Nr. 50:

Zaugg, Robert J.; Thom, Norbert: Excellence through Implicit Competencies. August 2001

Nr. 49:

Friedli, Vera: Betriebliche Karriereplanung. Methodisches Vorgehen – Ergebnisse aus empirischen Studien. Juli 2001

Nr. 48:

Steiner, Reto: Intermunicipal Cooperation and Municipal Mergers in Switzerland. Local Authorities in Search of an Optimum Organizational Size for the Fulfillment of Tasks. Juni 2001

Nr. 47:

Thom, Norbert: Human Resource Management. Development Tendencies and Future Perspectives. April 2001

Nr. 46:

Thom, Norbert; Ritz, Adrian: Die Umsetzung von New Public Management-Projekten in der Schweiz aus der Sicht Personal – Organisation – Innovation. November 2000

Nr. 45:

Ritz, Adrian; Thom, Norbert: Internationale Entwicklungslinien des New Public Managements – Eine vergleichende Analyse von 11 Länderentwicklungen. November 2000

Nr. 44:

Steiner, Reto: New Public Management in the Swiss Municipalities. November 2000

Nr. 43:

Kraft, Thomas: Die effiziente Gestaltung der Berater-Klienten-Beziehung bei der Suche und Auswahl von Fach- und Führungskräften – Konzeptionelle Grundlagen sowie empirische Studien in Deutschland und in der Schweiz. September 2000

Nr. 42:

Brönnimann, Thomas: Corporate Governance und die Gestaltung der Spitzenorganisation grosser schweizerischer Publikumsgesellschaften. August 2000

Nr. 41:

Thom, Norbert: Efficient Innovation Management in Small and Medium-Sized Companies. August 2000

Nr. 40:

Thom, Norbert; Friedli, Vera: Fehlzeiten. Erscheinungen, Ursachen und Ansatzpunkte des Personalmanagements. Juli 2000

Nr. 39:

Thom, Norbert; Wenger, Andreas P.: Bewertung und Auswahl effizienter Organisationsformen. Die effiziente Organisationsstruktur als Kernkompetenz. Juni 2000

Nr. 38:

Thom, Norbert; Blum, Adrian; Zaugg, Robert J.: Arbeitszeitmanagement. Zur Verbreitung und Beschäftigungswirksamkeit von Arbeitszeitsystemen aus personalwirtschaftlicher Sicht. Mai 2000

Nr. 37:

Thom, Norbert/Friedli, Vera/Probst, Claudia: Die betriebliche Karriereplanung. Ergebnisse einer Befragung in schweizerischen Unternehmen. April 2000

Nr. 36:

Thom, Norbert/Kraft, Thomas: Die Zusammenarbeit zwischen Personalberatern und Klienten bei der Suche und Auswahl von Fach- und Führungskräften. Ergebnisse einer empirischen Untersuchung in Deutschland und in der Schweiz. Januar 2000

Nr. 35:

Steiner, Reto: Kooperationen und Fusionen der Gemeinden in der Schweiz. Konzeptionelle Grundlagen und Ergebnisse aus einer empirischen Studie. Dezember 1999

Nr. 34:

Ritz, Adrian: Die Evaluation von New Public Management (NPM). Grundlagen für ein Evaluationsmodell und Ergebnisse aus einer empirischen Studie. Dezember 1999

Nr. 33:

Friedli, Vera: Die integrierte betriebliche Karriereplanung. Ausgangslage in einem Forschungsprojekt. Juli 1999

Nr. 32:

Thom, Norbert/Etienne, Michèle: Innovation und Reorganisation. Organisatorische und personelle Aspekte für ein erfolgreiches Innovationsmanagement – Business Reengineering. Juni 1999

Nr. 31:

Etienne, Michèle: Total Quality Management (TQM) im Spital. Theoretische Grundlagen – Ergebnisse aus empirischen Studien. Mai 1999

Nr. 30:

Chang Delprete, Yanyan: Human Resource Management in Sino-Swiss Joint-Ventures. Cross-case Analysis - Practical Recommendations for Selected Fields of Human Resource Management. Mai 1999

Nr. 29:

Di Renzo, Stefano: Diagnose des Innovationsklimas. Ein Anwendungsbeispiel aus dem öffentlichen Verkehr. Oktober 1998

Nr. 28:

Ladner, Andreas; Steiner, Reto: Gemeindereformen in den Schweizer Kantonen. Konzeptionelle Grundlagen und empirische Ergebnisse einer Kantonsbefragung. September 1998

Nr. 27:

Thom, Norbert; Etienne, Michèle, König, Günther: Management von Spitälern in der Deutschschweiz. Ergebnisse einer empirischen Untersuchung. Juni 1998; 2., durchgesehene Auflage. Juli1998; 3., unveränderte Auflage. Juli 1998; 4., überarbeitete und erweiterte Auflage. Januar 1999; 5., unveränderte Auflage. Juli 1999

Nr. 26:

Thom, Norbert; Zaugg, Robert J.: Organisation des Personalmanagements. Konzeptionelle Grundlagen und empirische Ergebnisse aus der Schweiz. Mai 1998; 2., erweiterte Auflage. Januar 1999; 3., erweiterte Auflage. Mai 2000

Nr. 25:

Blum, Adrian: Innovatives Management von Arbeitszeitsystemen. Fallstudien. März 1998

Nr. 24:

Bachmann, Christina: Fringe Benefits. Theoretische Grundlagen und Anwendung in der Praxis. März 1998

Nr. 23:

Jörg, Petra: Mitarbeiterzeitschriften analysieren, bewerten und verbessern. Februar 1998

Nr. 22:

Etienne, Michèle: Total Quality Management (TQM) im Spital. Ausgangslage und geplantes Vorgehen in einem Forschungsprojekt. Januar 1998

Nr. 21:

Wenger, Andreas P.: Grundlagen der Analyse und Bewertung organisatorischer Strukturalternativen Multinationaler Konzerne. August 1997

Nr. 20:

Thom, Norbert; Blum, Adrian: Aménagement du temps de travail dans les entreprises en Suisse. Résumé des résultats du questionnaire sur les modèles de temps de travail en Suisse. Mai 1997

Nr. 19:

Thom, Norbert: Change Management. Basic elements for a differentiated and integrated change management. Academic speech. April 1997

Nr. 18:

Blum, Adrian: Arbeitszeitgestaltung in schweizerischen Unternehmungen. Empirische Untersuchung. Dezember 1996

Nr. 17:

Zenhäusern, Jonas: Personalentwicklung in der öffentlichen Verwaltung. Konzeptionelle Bausteine und ausgewählte Ergebnisse der Dokumentenanalyse über die bildungsbezogenen PE-Massnahmen in der allgemeinen Bundesverwaltung. September 1996

Nr. 16:

Etienne, Michèle: Grenzen und Chancen des Vorgesetztenmodells im Betrieblichen Vorschlagswesen. Eine Fallstudie. Mai 1996

Nr. 15:

Thom, Norbert; Wenger, Andreas: Unternehmensorganisation als Kernkompetenz. Auswirkungen auf organisatorische Strukturen, Prozesse und Gestaltende. Mai 1996

Nr. 14:

Thom, Norbert; Blum, Adrian; Zaugg, Robert J.: Ausgewählte Trends des Personalmanagements in der Schweiz. Mai 1996

Nr. 13:

Bayard, Nicole: Unternehmens- und personalpolitische Relevanz der Arbeitszufriedenheit von Mitarbeiterinnen und Mitarbeitern. Ein vierstufiger qualitativer Ansatz. März 1996

Nr. 12:

Thom, Norbert; Zaugg, Robert: Recrutement et sélection du personnel dans les entreprises suisses. März 1996

Nr. 11:

Zaugg, Robert: Personalbeschaffung und -auswahl in schweizerischen Unternehmungen. Ergebnisse einer empirischen Untersuchung. Februar 1996; 2., durchgesehene Auflage. April 1996

Nr. 10:

Thom, Norbert: Interessenvertretungen und Verbände der Führungskräfte. Dezember 1993

Nr. 9:

Zaugg, Robert: Modell einer integrierten Personalbedarfsdeckung. Konzeptionelle Bausteine. Oktober 1993

Nr. 8:

Nadig, Peter: Explorative Spitzengruppenbefragung ausgewählter CIM-Industriebetriebe zu den Themen Organisation und Personal (Kurzfassung). Juni 1993

Nr. 7:

Thom, Norbert; Nadig, Peter; Kolkiewicz, Sophie; Gruber, Véronique: Manuel pour l'introduction du CIM: l'organisation, la gestion du personnel et la gestion du projet. Mai 1993

Nr. 6:

Wagner, Veit: Anforderungen an die Spitzenorganisation der Schweizer AG gemäss neuem Aktienrecht. März 1993

Nr. 5:

Blunck, Thomas: Begriffliche Erfassung und Deskription der internen Beratung und ihrer Institutionalisierung im Unternehmen. August 1992

Nr. 4:

Vonlanthen, Jean-Marc: Innovationsförderliche organisatorische Regelungen und Strukturen. Probleme und mögliche Gestaltungsempfehlungen. Mai 1992

Nr. 3:

Cantin, Françoise; Thom, Norbert: Innerbetriebliche Kommunikation. Konzeptioneller Bezugsrahmen und Ableitung von Effizienzkriterien. März 1992

Nr. 2:

Nadig, Peter: Organisatorische Effizienz und Computer Integrated Manufacturing (CIM). März 1992

Nr. 1:

Thom, Norbert: Personalentwicklung. Ein Überblick aus betriebswirtschaftlicher Sicht. Januar 1992

Ladner, Andreas; Arn, Daniel; Friedrich, Ueli; Steiner, Reto; Wichtermann, Jürg: Gemeindereformen zwischen Handlungsfähigkeit und Legitimation. Nationalfonds-Forschungsbericht. Bern 2000 Zaugg, Robert J.; Blum, Adrian; Thom, Norbert: Sustainability in Human Resource Management. Evaluation Report. Survey in European Companies and Institutions. Bern 2001

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