This paper describes the design and development of a competency model for online instructors based on literature reviews, student surveys, and other artifacts. The first development phase included a literature review centered around researched-based competencies for online instructors and existing theories used to evaluate online instructional needs. The theoretical framework used to support the research was the transactional distance theory and the relative proximity theory. The investigators used a qualitative survey-design approach to collect data. An extensive coding of data from student surveys revealed specific competency clusters. This article highlights the essential components necessary to align the model with the stakeholders' needs to implement effective online teaching practices. The recommended implementation model outlines the business needs, goals, and steps to evaluate and validate the return on investments and ensure the competency model's implementation meets the organizations' proposed needs and goals.