The purpose of this study was to model a reliable and valid framework for building and measuring health system workforce’s competence to lead, manage and govern. A cross-sectional survey was conducted in three zones of Amhara regional state, northwest Ethiopia. Eight-hundred-thirteen participants were recruited from 32 health facilities. The data were collected using a structured self-rated questionnaire that comprised 26, five-point Likert scale, items. Data analysis techniques such as factor analysis, composite reliability and average variance extraction were applied. Factor analysis was unlocked to assemble the relationship among latent factors extracted, items rated and error variances observed. Latent factors were extracted using Eigenvalue greater than 1 as a cut of point. To make latent factors more meaningful, they were labeled considering the contents of the items clustered within them. Meanwhile, a framework for building and measuring competence to lead, manage and govern was modeled by assembling latent factors labeled, items rated and error variances observed. Reliability and validity of the framework were tested using composite reliability and average variance extraction analyses respectively. Four-factor framework for building and measuring the health system workforce’s competence to lead, manage and govern was modeled. The four latent factors extracted were labeled as compliance with principles, strategic sensitivity, system building, and contextual thoughtfulness. These factors explained 68.434% of the total variability. Composite reliability and average variance extraction for all factors were .807 and greater, and .512 and greater, respectively. Compliance with principles, strategic sensitivity, system building, and contextual thoughtfulness are dimensions that affect competence to lead, manage and govern, which, in turn, influence the health system performance and health outcomes. This model has implications for training, evaluation, and research.