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Purpose – The purpose of this paper is to report data empirically linking competencies of individual leaders to business profitability and demonstrate that competencies are cross-culturally valid. Design/methodology/approach – Participants in the initial competency study were 15 business unit managers identified as high performing. Data were collected using Critical Incident Interviews that were systematically coded using thematic analysis to identify the presence of competencies. Competencies identified were then adapted into a behaviourally-based questionnaire used in a follow-up validation study. Participants in the validation study (n=70) were managers from North America and two European countries who were participants in a management development program. Boss ratings of competencies were then correlated with business unit profitability. Findings – A set of competencies was identified as predictive of unit profit growth in managers in both North America and the European Union. Subsequent regression analysis showed that 17 per cent of the variance in business unit profitability could be accounted for by four competencies, specifically team leadership, developing others, achievement orientation, and impact and influence. Cross-cultural validity was demonstrated to the degree that similar competencies predicted performance in both North America and the European Union as evidenced by the correlation between boss rating of subordinate competencies and profit growth. Research limitations/implications – The initial study using Critical Incident Interviews was conducted with a small sample size and did not employ a comparison group of average performers. Practical implications – Initial competency research using empirical methods should be used to help focus competency models used for selection, feedback, training, and performance management. Originality/value – The study is one of the few published studies that link competencies to business unit profitability. The paper demonstrates that competencies have a degree of cross-cultural validity. [ABSTRACT FROM AUTHOR]

Purpose -- The purpose of this paper is threefold. First, to add to the empirical literature related to the validity and practical utility of emotional, social, and cognitive competencies in the workplace. Second, using data from two different European samples, to demonstrate the methods for validating competency models for applied use. Third, to discuss the impact of role demands and culture on the manifestation of competencies most predictive of performance. Design/methodology/approach -- The basic design used in both studies is to compare data from outstanding performers against data from typical or average performers in order to determine competencies which predict performance. The data presented here are based on operant assessment of competencies using critical incident interviews, which are then systematically coded using thematic analysis to yield behavioural evidence of specific competencies. Findings -- The results indicate that, while some competencies such as achievement orientation and team leadership are consistently linked to performance in both studies, the correlation of other specific competencies with performance varies among the samples. Moreover, the relative importance of specific competencies in terms of the amount of variance in performance explained also varies across the two samples. Research limitations/implications -- The criterion measures available, i.e. client ratings of performance, did not provide the continuous objective performance data that are generally considered preferable so as to provide a clearer picture of the value added by superior performance. A further limitation was that there was no opportunity to evaluate the effectiveness of the various initiatives which were put in place to improve managers' competencies after their initial assessment. Originality/value -- This is one of the few articles that explore the validity of competencies within the European Union across different organizations using a common competency framework and methodology. Both studies were originally initiated as applied consulting projects and the findings of the research applied to human resource practices within each organization. Although competencies are ubiquitous in today's global workplace, the number of published studies with data to support the validity of competency-modelling techniques has been limited. The current research adds to the growing literature in this area and adds to one's confidence in the ability of emotional, social and cognitive competencies to predict performance in a variety of settings and cultures. [ABSTRACT FROM AUTHOR]