The article discusses the efforts employed by organizations to increase their competency. The organizations are investing large sums in devising the models of competency for their employees. But the returns are not up to the expectations as there is no comparable improvement in performance. While competency models should be agile, flexible and easily updated, it is not always possible. One of the reasons is that sometimes the process becomes so expensive and time consuming that it is difficult to keep those models up-to-date. There are some organizational mistakes at the developmental level of competency plans and at their implementation also. The time and resources invested are in excess which makes it difficult to keep the models update. The methodologies adopted for competency development should be appropriate. The number of items contained in competency model should not be too much. At implementation level attention should be paid to quantifiable measurements. The competency tools have their own limitations, so the expectations should not be kept very high. It also mentions the factors required in an employee to respond the competency model.