EXECUTIVE SUMMARY

This report provides an analysis and evaluation of how having a clear capability model effects an
organization and unites all aspects of a company for the benefit of the entire organization. An interview
was performed on October 15, 2013 with one Mr. David Urquhart a Human Resources Advisor at
EnCana, from which it was determined that EnCana has recently introduced a new capability model. The
outcomes of this model reverberate through every layer of the organization, including: individual
employee level, managerial level, and organization-wide level. Within each of the levels clarity is a
central focus. The employee level focuses on accessibility to the model, the managerial level focuses on
communication, and the organizational level focuses on unifying all under the same organizational values.
By critically observing EnCanas capability model, it will become apparent why such models are growing
in popularity among businesses today.

INTRODUCTION
In todays competitive global market there are many key factors that can affect the
success of a corporation. There is simply no one-tool-fits-all solution. Each individual business
is required to adopt and conform to constant changes in the environment and its people.
Therefore businesses have responded by gradually moving towards the use of competency
models in an effort to streamline their human resources management efforts. When interviewed,
Mr. David Urquhart, a Team Lead and Human Resources Advisor at EnCana stated [EnCanas]
Capabilities Model is used from day one when an employee is interviewed to when they are in a
CEO position (personal communication, October 15, 2013). The difficulty faced by most
organizations occurs when attempting to communicate these models and ideas. EnCana, as one
such organization, has recently re-developed their own Capability Model outlining
communication, teamwork, execution excellence, change and innovation as the core

competencies required of all effective leaders within the organization. The purpose of this new
models introduction was to clarify the old model, the Leadership Wheel Model, making it more
simplistic and appealing. The interview with Mr. Urquhart exemplified the importance of clarity
upon the introduction of capability models. The interview also proved to be a prime example of
how the same capability model can hold several different meanings and functions to employees
at varying levels within the organization.

THE CAPABILITY MODEL

What is a Capability Model?

Executive management, Human Resources departments, managers and employees all find
capability models useful in their own way. With so many groups being able to use them, its no
wonder why they have become so popular (Montier, Alai & Kramer, 2006, p. 48). The question
is: why do companies find these models effective? First and foremost, one must never assume
that each individual shares the same perceptions at work. By clearly identifying required
capabilities, it allows an organization to accurately align the perspectives of employees,
managers, and the organization as a whole.
These models typically set the standards of how leaders should go about governing an
organization (Conger & Ready, 2004, p. 42). Most competency models consist of the three Cs:
clarity, consistency and connectivity (Conger & Ready, 2004, p. 43). The benefit of clarity is that
it provides individuals with clear expectations about the type of capabilities, mind-sets,
behaviours, and corporate values that are expected of them. Consistency allows for better
communication and implementation by setting a common framework and language between
management and team members. The third C is connectivity, which is a driving force in

developing a unified organizational culture (Conger & Ready, 2004, p. 43). As with any model
perfection is hard to attain. Competency models generally have a tendency to be over
complicated and often portray leadership ideals rather than realities (Conger & Ready, 2004, p.
47). Furthermore, poor models can focus on the past rather than the present, which can weaken
the model (Conger & Ready, 2004, p. 47). EnCanas former capability model, the Leadership
Wheel, serves as the perfect example of how a model can easily become over complicated and
unpopular with employees.

Encanas Leadership Capability Model

In recent years models have developed and expanded to be more inclusive of different
dimensions such as corporate values, specific learning competences and more targeted leadership
capabilities (Conger et al., 2004, p. 42). These changes are often associated with the mitigation
of the models weaknesses. Encanas Constitution (2003) states:
True leadership requires something that is almost always in short supply: people who
help you sail through the rough waters or tell you when the smooth sailing is making you
vulnerable to the next storm; people you can count on for advice based on straight-goods reality
checks; people who reinforce what you do well, and tell you what you can improve (p. 40).
With such a strong organizational focus on leadership, Encana has developed an
individual Leadership Capabilities model as seen in Exhibit 1. This model is what helps guide
Encana in all aspects of operations by: improving the hiring process by seeking individuals who
possess these specified capabilities; supporting the development of a transformational leadership
program; facilitating the integration of succession planning and for performance assessments for
employees (Appendix 1).
However, the Leadership Capabilities model wasnt Encanas first, but rather a successful

outcome of past trials. The older model, the Leadership Wheel Model, was unsuccessful because
it was unfocused, complex, and outdated. A major issue with the Leadership Wheel model was
made evident during the interview, with Mr. Urquhart stating that [employees] felt that the
wheel was structured in a way that it only applied to leaders. As a result, it failed to reach a wide
group (personal communication, October 15, 2013). That is one of the main reasons why the
model underwent a major overhaul in 2012; it failed to encompass the employees and
organizations perspectives.

Employee Level

Employees within an organization often find that a competency model can provide great
benefits, as it clearly defines and states expectations and proficiencies expected of them.
Accessibility to the model is key to enabling employees to recognize and develop more
efficiently. Furthermore, employees will know what to expect of one another. EnCana exhibits
such accessibility by giving each employee a mouse pad depicting the capability model, as well
as setting the model as screensavers on all screens. Increasing the accessibility of the capability
model within the workplace is paramount to the acceptance and execution by employees on an
individual level.
Enabling each employee to have access to the model can be beneficial, but only if it is
presented within the same framework to each employee. This is why Mr. Urquhart called an
organization-wide meeting during the introduction of the new capability model, so the model
could be understood uniformly by every EnCana employee on an individual level. It is all too
common for individuals to interpret the same model quite differently; this is where clarity
becomes so critical. As researchers Kahn, Wolfe, Quinn, Snoek, & Rosenthal stated in 1964 one
of the major causes of job tension is lack of role clarity; that is, either the non-existence of

information needed to do his job effectively, or the lack of adequate information, leaves the
worker with an ambiguous perception of his role (as cited by Donnelly & Ivancevich, 1975,
p.71). This quote serves to exhibit the fact that without the initial clarity in the competency
model it would diminish the effectiveness and overall employee understanding. Even if each
employees role is different, an effective and clear competency model should be adaptable to all
aspects, no matter the level. Thereby, employees are able to align their own contributions with
the direction and focus of the company.

Managerial Level

Managers and leaders who do not communicate effectively cannot lead well or for long
(Pulce, 2003). That is why the topic of communication is at the heart of EnCanas Capability
Model. Mr. Urquhart stated in the interview that communication is essential to the use of a
capability model. This is because once you have an innovative idea it is crucial to be able to
communicate it effectively to other individuals, teams, and the organization as a whole.
Communication is especially important to the managerial level of the organization. If
management cannot effectively communicate their intentions and goals to their teams, then there
will be a vast decrease in the effectiveness of the teams structure, and correspondingly to the
employees individual work. Clarity throughout the communication process is not to be
understated. As Katz & Khan stated in 1966, there are important differences in role expectations
and demands as one moves vertically in the organizational hierarchy (as cited by Posner &
Butterfield, 1978, p.82). This exemplifies the fact that, as one rises in the organizational
hierarchy to managerial positions, their role inherently places greater importance on clear and
concise communication. Managers cannot focus their employees efforts without clearly
communicating their desires and the organizations goals. Furthermore, a manager must

effectively communicate why the Capability Model is so crucial to the achievement of

organizational goals, or else the employees will not have the proper motivation and will refuse to
accept the model. In the interview Mr. Urquhart stated that the model was accepted more warmly
than anyone had anticipated, demonstrating the power of communication to influence employees.
Without effective communication channels from management, the objective of individuals work
can be grossly misinterpreted.

Organizational Level

In order for an organization to be successful, clarity is absolutely essential, for all

employees must be united under the banner of the organizational goals and beliefs. Corporate
culture is the backbone of an organization and a Capability Model exemplifies this throughout
everything the organization does. Capability models are influenced by and in turn pose influence
on the corporate culture of an organization; reinforced by Bansal in 2003, Organizational values
are shown to influence the interpretation of strategic issues (as cited by Bourne and Jenkins,
2013, p. 495). The organization needs to be on a clear path to ensure that all employees
understand the Capability Model, and use this model in their everyday work lives. Through the
use of this model, corporate culture can be honed, and organizations are able to fully realize the
effectiveness of a Capability Model and how benefits the organization as a whole. A well laid
out company-wide perspective needs to be put in place so that an organization has a clear
strategy. With this, a company can work outwards within the organization to focus on portraying
this in other sections of the company, whether it is management, front line employees, or the
Board of Directors. As stated by Parnell in 2010 Making explicit and uniting the various
perspectives of the global goal goes a long way towards enabling strategic effectiveness(p.
512).

Such models ensure that the organization is united under a single strategy, which results
in greater cooperation between departments and employees. This is why clarity is so crucial
when introducing a new capability model, because if one department interprets the model
differently than the others then their efforts may prove counterproductive. During a study
regarding the effectiveness of capability models, Ritchie-Dunham & Puente stated in 2008 we
observed that people incorrectly assumed they understood the many perspectives in the system
(p. 510); further evidence that clarity is a key concern in the use of such models.

CONCLUSION
After analyzing the interview with Mr. Urquhart it can be concluded that capability
models must be accessible to individual employees, be communicated effectively, and
incorporate organizational values. At the individual level EnCana made their Leadership
Capabilities Model accessible by placing it on mouse pads, and TV screens. Management then
ensured organizational effectiveness by successfully communicating with their team. As an
organization EnCana made sure to incorporate organizational values into the model, thereby
making it relatable to both individual employees and management.
One fundamental challenge was found to be common among all businesses, regardless of
the industry: how to effectively sustain and achieve a competitive advantage. EnCana recently
announced that it is planning on eliminating approximately 1000 jobs by year-end. CEO Doug
Suttles stated, [Encanas] vision is to become the leading North American resource play
company. It can be concluded that Suttles is trying to achieve a competitive advantage by
cutting jobs, and decreasing dividends. Mr. Urquhart explained that EnCanas models undergo
performance assessments every two years, and that the Board of Directors will complete the next
assessment in 2014 (Personal communication, October 15, 2013). After speaking with Mr.

Urquhart and examining the EnCanas Capability Model, we are interested to see how the model
will fit with a reduced workforce. As much as we can speculate about the future use of the
capability model, in the words of Mr. Urquhart nothing is ever written in stone (personal
communication, October 15, 2013).

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