We hear it all the time in HR circles: “We hire for skills, but we promote for competency.” But what does that really mean?

Competency vs Skill: Clearing the Air

A lot of people mix up skills and competencies. Here’s the quick clarity:

• Skill = “Can do” → A task you know how to perform. Example: Coding in Python, making a budget, giving a presentation.
• Competency = “Can do + Knows how + Shows attitude” → It’s a combo of skills, behaviours and mindset that make someone effective. Example: Problem-solving under pressure, influencing others, thinking strategically.
  
  

So, competencies aren’t just what you can do, they’re also about how you do it and why you do it that way. Think of it this way: Skills get tasks done; competencies get leaders to drive impact.

If you’re shaping a leadership programs, these competency frameworks are gold:

1. Entrepreneurial Competency Framework (Man, Lau & Chan, 2002) Its focus is: Opportunity, relationships, conceptual thinking, organising, strategy, commitment & learning. Ideal for startup and growth-driven leaders who need both business acumen and personal drive.
2. Korn Ferry Leadership Architect The focus here is: Thought, results, people, and self. Widely used globally for leadership development, succession planning and performance calibration.
   
   

Why Competency Matters for Leadership

Leaders need more than skills, they need strategic vision, influence, execution capability and adaptability. Competency frameworks provide a structured way to identify, develop and measure these traits, which makes leadership development systematic rather than guesswork.

How Competency Frameworks Translate into Leadership Training

HRs or L&D teams can turn these frameworks into actionable training programs using the following prioritised competencies:

Opportunity & Thought (Entrepreneurial & Korn Ferry)

• Teach leaders to scan market trends, spot opportunities and evaluate scenarios.
• Training idea: Assign a mini-case where leaders analyse a market trend and propose actionable steps.
  
  

Relationship & People

• Focus on building networks, influencing stakeholders and coaching teams.
• Training idea: Stakeholder mapping exercises and mentorship simulations.
  
  

Conceptual Competencies

• Develop analytical thinking, problem-solving and process redesign skills.
• Training idea: Scenario-based problem-solving exercises where leaders redesign processes or optimise workflows.
  
  

Strategic Competencies

• Build vision-setting and competitive positioning skills.
• Training idea: Vision statement workshops and competitor analysis exercises.
  
  

Learning & Self

• Encourage reflection, resilience and continuous improvement.
• Training idea: Post-project reflection sessions, self-assessment exercises and lessons-learned presentations.
  
  

Results Competencies

• Teach leaders to deliver outcomes, track KPIs and manage performance under constraints.
• Training idea: Project delivery simulations with time/resource constraints, including accountability checkpoints.

Competency frameworks are more than HR jargon. They provide a road-map for leadership training. They help to:

• Identify what effective leaders need to think, do and be
• Build structured exercises around these traits
• Measure growth over time
  
  

When applied right, competencies transform managers into leaders who can spot opportunities, inspire teams, execute effectively and grow continuously.

So, the next time you’re planning a leadership training, don’t just ask: “What skills do they need?” Ask instead: “What competencies will future-proof them?”

That’s where the real growth begins.