The DOME variable d2l.Tools.Competencies.Settings.UseStatus controls whether status is enabled for your organization.
Caution Changing the value of this variable has repercussions for all existing competencies and any users working towards their completion. It is strongly advised that this value be set once during installation and not changed.
System administrators can disable the status settings for competencies. If status is disabled, any existing competencies that previously had a status of Draft, In Review, or Archived (before the change) will appear as "Not Ready," indicated by the 
Competency Not Ready icon.
"Not Ready" competencies are hidden from course participants, and cannot be completed (these competencies are not evaluated when users complete associated activities). This enables you to decide how to configure these competencies now that status is disabled.
To clear the "Not Ready" flag, a user must open the Edit Competency page and save the competency. The first time a Not Ready competency is saved, the Not Ready flag is cleared (and the Competency Not Ready icon disappears).
There is no way to manually mark a competency as "Not Ready."