Case Background: This case is designed to provide some clarification on the role of competencies, and provide the opportunity to share learning and insights with each other. Following are: A short case Exercise instructions/Questions Case: You are the Organizational and Employee Development Manager for Southern, a well known furniture retailer. Starting as a one store, small town based operation in the late 1800s, Southern evolved into a 200 store chain in the early 90s, with stores located throughout the Mid to Upper South. The key to Southerns success occurred as a result of key marketing strategies that: 1) put stores in areas of high growth; and 2) employed certain core business competencies. In Southerns case, it was the combination of the ability to combine an expertise in interior decorating with sale of high end furniture. This clearly distinguished Southern from its competition, which relied mostly on walk in customer trade and retail sales without regard to real customer need. Southern, on the other hand, was quick to send someone to your house to help with your selection of furniture that fit with your interior decorating needs. Southern relied heavily on their Store Managers to ensure a consistency of application of the core competencies in each of the locations. For the Store Manager, the traditional way of distinguishing good performance was someone who ran the store according to policy, made sure it was well stocked, that competent retail sales people and interior decorating reps were hired and trained, and that the weekly store advertising was correct and placed in the appropriate newspapers. In the mid 90s, however, things are changing rapidly. There has been a marked slowdown in housing construction in many of Southerns major markets. Whats more, customer tastes and preferences seemed to have changed. Faced with new opportunities for buyingcatalogues, TV, Electronic Shopping Malls, etc.and new economic pressures and uncertainty, the customers just dont seem to be the same. Sales volume and margins have slipped significantly as of late. Knowing this, Southerns CEO senses the need for significant change. "Weve got to become more competitive, more strategic," he maintains. "We need to rediscover our customers, and meet their needs in todays market". Recently, the CEO and the Director of Human Resources attended a conference on positioning the organization for change. One of the topics that got them the most excited, and at the same time the most confused, was on employee competencies. Coming back from the conference, the Director of Human Resources calls you in and says, "I need to understand the implication of all this employee competency stuff, and how it can help us become more competitive. Take a stab at it and let me know what you come up with by the end of the week." Exercise: Using the above as background, and learnings about competencies, come up with a plan for how to deal with this problem. Consider such issues as: o Are competencies relevant? o What value could they add in helping position Southerns employees for success? o What is the link with the principal business challenges? Consider the Store Managers position and the challenges they face. What are some general competencies that might apply in the new environment? How do they contrast with the traditional competencies needed for superior performance? What key learnings can you see that can be used in most organizations, and the changes they face? Prepare a short report back to share what youve done, and insights youve gleaned with the larger group.

Format of the Case Analysis Report:

1. Case Title

2. Point of View

3. Problem Statement

4. Areas of Consideration

5. Solution/Options/Evaluation

6. Recommendation

Definition of Competencies: How superior performers use their skills and knowledge to achieve their superior performance.

Some Sample Competencies:

Strategic Planning

Planning and Organizing

Problem Solving

Communications

Leadership

Teamwork

Customer Focus

Analytical Thinking

Project Management

Listening

Developing Others

Task Implementation

Negotiation Employee Motivation