Skills and competency development, and more narrowly, competency-based education, are all the rage these days. But what does demonstrating competency in a particular field really entail? And more importantly, how do we measure and teach business competencies in a classroom environment?

The CBE/Skills Movement

Higher education institutions are experiencing mounting pressure to embed competency language and practical skills directly within programs and courses. Additionally, students want to know that the material they learn in college directly translates into greater employability and earning potential. For more context on this topic and the skills-based hiring movement, see my previous post here. 

How to Incorporate Competency Development into Business Courses

The good news is that you may already be using several of these practices in your introductory business courses. What is important to keep in mind for introductory courses is that the competencies typically converge around a small set of foundational business principles. Being able to demonstrate foundational knowledge of the main business functions of accounting, economics, finance, marketing, etc. represent key competencies within the discipline. In other words, the associated competencies for introductory business would be the application of each specific business function. 

So, for example, can students in the course demonstrate HR acumen, as would be needed for a job/role in human resources? While there is currently no universally agreed-upon set of competencies for business (no one-size-fits-all), asking what capabilities employers value most is almost always an excellent place to start. Many business professionals (employers, industry advisory board members, and alumni) are typically more than willing to share this information with faculty and students because better preparation and employability benefits everyone involved.

Practical Tips for Authentic Assessment

One of the key points with measuring and developing competencies is how to assess them properly. This concept has become known as “authentic assessment”. Continuing with the HR example from above, one useful method to assess this competency might be through a three-part application assignment that requires students to create a LinkedIn profile, build out their network, and then perform a specific recruiting activity to identify people currently performing or hiring for their dream job. Another example, say for a financial competency involving evaluating an organization’s balance sheet, would be to have students look up a publicly traded corporation on Yahoo! Finance and evaluate the company’s current quarterly financials in real time within a group project/presentation or written assignment deliverable. Finally, incorporating guest speakers from real organizations that students desire to work for is always a great idea. Oftentimes, these guest speakers will emphasize durable skills (communication, collaboration, professionalism, etc.) in addition to the specific hard skills needed in their field, elevating students’ awareness. Now combine that guest speaker visit with a “Shark Tank” style pitch or “venture launch” activity, where the guest or guests serve as the potential investors, and you have an application of the material that is likely to advance students’ demonstrable competency in these foundational business areas.

Reflection Questions:

  1. What are some additional competencies you can identify within introductory business courses?

  2. How do you currently demonstrate or assess what a person can “show” rather than just what they “know”?

  3. What additional methods for authentic assessment of business competencies can you come up with?