Future-Proof Your Business: The Journey to a Skills-Based Organization

One question looms large for learning and development professionals, executives, and business leaders alike: Is your organization equipped to build a skills-based workforce that can thrive amidst digital disruption?

Beyond technological investments, success in digital transformation hinges on a strategic approach to upskilling and reskilling. McKinsey research shows that organizations prioritizing skilling are 2.5 times more likely to succeed in their digital transformations. The numbers make it clear: building a comprehensive talent development strategy is crucial.

To do this, organizations should invest in strategic business transformation and embrace a holistic approach to learning that aligns talent development seamlessly with organizational objectives. Skillsoft’s State of Your Skilling Assessment is designed to tackle this challenge head-on, identifying your organization’s skill strengths and gaps while providing insights to refine your skilling strategy.

Businesses face a myriad of challenges when it comes to developing a future-fit workforce. As industries shift and new technologies and markets emerge, organizations need employees with an ever-changing array of skills and competencies.   

Organizations are under significant pressure to not only identify these skills, but also to implement effective training strategies that can adapt to this dynamic environment. And, as every role and department evolves, talent transformation must scale across the enterprise, necessitating a skills-based approach that includes development and accurate skill tracking. 

A major hurdle? Justifying the business case for learning and development.  

Companies must demonstrate the tangible benefits and return on investment (ROI) of skilling initiatives, linking programs directly to business performance metrics and showing how upskilling and reskilling contribute to productivity, innovation, and, ultimately, bottom-line results. Quantifying these impacts is essential for securing the resources and support to sustain them. Because skilling initiatives cannot exist in a vacuum — they must be intricately connected to organizational objectives.  

By embedding skilling into the core business strategy, organizations can create a well-developed learning culture that drives the company forward. 

So, where to begin? We turned to Ciara Harrington, our very own Chief People Officer, for her perspective on leading a successful skilling strategy. 

Evaluating Your Organization’s Approach to Skilling 

Harrington emphasized the importance of evaluation in developing a skills-focused workforce, stating, “Building a skills-based organization requires you to first assess where your organization stands in its skilling journey.” According to her, this evaluation is crucial for identifying actions and next steps to improve your skilling strategy and measure success. “By understanding your current capabilities and deficiencies, you can set a clear path toward a future-fit workforce,” she said. 

What is a Skills-Based Organization and Why Does it Matter?  

A skills-based organization is one that aligns its workforce development strategies with the specific skills needed to achieve its business objectives. “This approach ensures that employees are equipped with the right competencies to drive innovation and sustain growth,” Harrington explained. 

But despite its importance, a recent survey indicated that only 28% of professionals report their organization offers skill and role-based learning paths, highlighting the need for organizations to embrace the shift toward a skills-based framework.  

It’s a strategic imperative for success. 

Harrington shared that “the journey to building a skills-based organization involves a structured approach, with the skilling process broken down into distinct phases, each integral to crafting a robust and responsive strategy. Understanding these phases is crucial for enabling systematic progress and creating a workforce that is not only equipped for today’s demands but also agile enough to adapt to tomorrow's uncertainties.” 

Let’s take a closer look at the three core phases Harrington outlined: 

Assess 

In the Assess phase, your organization evaluates its skilling needs, identifying the right skills to prioritize, securing stakeholder buy-in, and aligning training initiatives with broader business goals. This phase involves gathering insights and data to inform your strategy, ensuring future efforts are well-targeted and effective. Understanding your workforce’s current capabilities and pinpointing areas for development is crucial. 

Index 

During the Index phase, your organization compiles a comprehensive list of areas needing focused training based on preliminary assessments. Cataloging existing skills, identifying gaps, and integrating insights into a structured plan are key. This phase focuses on refining strategies, ensuring alignment with business objectives, and fostering stakeholder engagement to build a robust framework for continuous skilling. 

Develop 

In the Develop phase, your organization implements structured skilling programs, working on upskilling and reskilling your workforce. Executing and refining initiatives ensures they are impactful and aligned with business goals. Enhancing efforts by scaling programs across departments, linking outcomes to tangible results, and maintaining a dynamic approach to evolving needs is essential. 

“These phases,” Harrington concluded, “lay the foundation for a stronger, more agile workforce.”  

But as we know, standing still is not an option.  

While every organization is at a different point in its skilling journey, one thing remains true: there are always steps you can take to enhance your strategy. Whether it’s identifying new skill gaps or refining existing programs, continuous improvement is key to staying competitive.  

The ongoing evolution of skills demands that organizations adopt a mindset of perpetual progress, where proactively identifying new skill gaps becomes a regular practice. By doing so, businesses can stay ahead of the curve, ready to tackle emerging challenges and opportunities.  

Here are a few tips to elevate your skilling strategy: 

• Fine-tune your skilling programs: By tailoring skilling initiatives to meet both the personal and professional growth aspirations of employees, companies can foster a culture of growth that leads to enhanced organizational performance. 
• Integrate cutting-edge technologies and methodologies: Embracing the latest tools and techniques within skilling strategies can prepare your workforce for future demands, drive engagement, and empower employees to excel and innovate in their roles. 
• Adopt a proactive approach: By embedding continuous improvement and innovation into the core of your strategy, your organization can remain agile and forward-thinking, fostering a culture that excels in growth and adaptability. 

Remember, the journey toward a skills-based organization is a marathon, not a sprint. By laying the groundwork today, you are investing in a future where your organization is agile, innovative, and prepared for tomorrow’s challenges. Start by evaluating your current skilling approach with the State of Your Skilling Assessment.