In recent years, we’ve witnessed an increasing trend for companies to re-think how they organize and define jobs, roles and responsibilities, and adopt the skills-based organization (SBO) operating model. This is no accident. Companies have realized that the old-fashioned job-centric hierarchical structures are no longer the most viable for overcoming the main problems of the ‘new world’ workplace. This short blog examines the shift in the organizational setting, introduces the new operating model, looks into pros and cons, and highlights the fundamental role of using a solution architecture to implement a successful SBO strategy.
With a person-centric perspective, the emphasis turns instead to identifying which skills (soft, functional, operational, technical, and industry-specific) and abilities each employee has, and how best to utilize them in light of the changing market demands. SBOs are, by the nature of their operating philosophy, better placed to respond to the changing demands and opportunities in the market, with the right employees deployed at the right time and in the right places. Required skills can be matched to work requirements more accurately; different skills can be combined into ad hoc teams to tackle specific problems; and workforce planning can recognize which positions would benefit most from the development of particular skills. Skills can be directed towards the specific requirements for the day and into the future; thus, the organization encourages itself to learn – both its individual employees and the organization itself.
But it’s not going to be all smooth sailing; there will be obstacles, and not everyone will be happy with these distractions, so to speak. Introducing a skills-based model will take time and might encounter resistance from both leaders and employees who are used to the old-fashioned hierarchical structures. Evaluating, quantifying, and verifying skills will present a difficult task in order to match up with the skills-based approach, necessitating the adoption of new assessment methods. Transitioning to a SBO will impact organizational design and likely expose shortcomings in the workforce’s abilities. Addressing these changes and gaps will mean investing in training and recruitment so skills are acquired and utilized with greater flexibility.
You may ask yourself whether the shift to a SBO really that important? The short answer is yes. In the present-day ever-changing business landscape, adhering to a conventional job-centric approach can prove to be inflexible and sluggish in accommodating the organization’s evolving demands. On the contrary, organizations that prioritize skills with up-to-date data are better equipped to navigate through uncertainties and cultivate an environment conducive to innovation and opportunity. From an employee’s standpoint, this approach places emphasis on personal and career growth, which naturally increases their likelihood of staying with a company. After all, who wouldn’t be enticed by opportunities for skill enhancement, engaging projects, professional advancement, and continuous learning?
To successfully implement a strategy that focuses on skills, solid backing from cross-function management, thorough execution planning, and the right tools are crucial. This entails utilizing modern software for talent management that can effectively map, survey, assess, enhance, and apply skills. Making use of the appropriate technology is an essential component in the process of transitioning into an SBO. It aids in overcoming obstacles and maximizing the advantages brought forth by this strategy.
As businesses continue to evolve, seeking improvements in organizational effectiveness, the popularity of a skills-based operating model is on the rise. While the transition may pose challenges, the associated benefits in terms of adaptability, creativity, satisfaction, and workforce loyalty make it an important strategy for achieving success.
At OpusView, we understand building and sustaining a formidable workforce isn’t easy but it’s crucial, which is why we’ve introduced our cutting-edge full-cycle talent technology.
Bal Mattu, CEO
