Purpose The purpose of this paper is to trace the development of a competency model in a medium-scale power utility company located in the Midwest USA. Design/methodology/approach The model is developed based on insights drawn from the literature, company documents, and primary interviews with the key company stakeholders. The research process was carried out according to the guidelines of action research methodology. Findings Competencies required for employees were identified and operationally defined. Existing competencies were inventoried and superimposed on the required competencies. Gaps in competency presence and proficiency levels were noticed. The competencies required for effective performance were distributed across different levels in the hierarchy, according to the competency needs of each hierarchical level. Practical implications Attempts to tie these competencies to employee selection, succession planning, performance appraisal, training need assessment, leadership development, etc., are currently ongoing. The case company has also initiated a competency-driven leadership development process. Possible adaptations of this model for similarly placed companies in other sectors are discussed. Originality/value This is an original case study based on primary data, conducted as action research.

Globalization is the name of the game and, for better or worse, the rules of engagement have been established by an international system that encompasses Western-based principles and practices (Marsh & Dreyer, 2003). China's economic reform program is aimed at sustaining \rapid economic growth in order to compete in the global economy\ (Hamrin, 2003. p. 28). China is accomplishing this endeavor primarily through foreign trade with the United States - but can this growth be sustained or will cultural differences pose obstacles that curtail China's continued integration into the global economy? In order to answer this question it was necessary to explore the cultural aspects of mianzi (losing or saving of face) and guanxi (the building of relationships) and their impact on Sino-U.S. business relations. Therefore, the author conducted a survey completed by Chinese university students (in China) on the eve of their transition to the workplace to uncover those cultural values and beliefs that may negatively impact successful Sino-U.S. business relations. The findings support the hypothesis that the cultural aspects of mianzi and guanxi will pose obstacles in U.S.-Sino business relations.