The Future of Organizational Success: Embracing Skills Velocity Over Depth
The Future of Organizational Success
In a recent study led by The Josh Bersin Company, significant revelations have come forth that could redefine how organizations perceive workforce skills. After four years of comprehensive research across six major sectors, analyzing millions of employee skills profiles, the emphasis on 'skills velocity' has emerged as a critical driver of competitive advantage, overshadowing the once-prevalent focus on skills depth. This insight is particularly important as businesses grapple with rapid changes in technology and market demands.
Understanding Skills Velocity
The concept of skills velocity refers to the ability of organizations to swiftly develop and implement new skills among their workforce. This agility enables companies to adapt more effectively to industry changes and technological advancements. In stark contrast to traditional approaches that prioritized accumulating numerous skills, the latest findings highlight that the speed at which organizations can build, apply, and evolve their skill sets is pivotal for innovation and growth.
Key Research Findings
1. Pacesetters vs. Peers: The analysis classified organizations into 'pacesetters'—those that model innovative practices—and their peers. Pacesetters consistently leverage AI not just for efficiency but as a catalyst for organizational transformation. Their focused efforts on skills velocity allow them to outperform counterparts in various industries, which include healthcare, consumer banking, consumer packaged goods, automotive manufacturing, and insurance.
2. Continuous Innovation: A critical takeaway is the realization that constant innovation must be a standard practice within organizations. For example, a leading beverage company now utilizes AI-driven learning pathways to assemble tailored development journeys for employees, focusing on leadership and essential skills pertinent to their industry.
3. Redesigning Work Towards Productivity: Organizations are finding that simply deploying AI is not enough; the way work is structured must also change. The One Agile Way of Working approach adopted by a Dutch bank emphasizes teamwork and agility, allowing for a more responsive skill development process.
4. The Importance of Talent Density: Success now favors teams with a diverse range of complementary skills rather than sheer numbers of skills. The emphasis on building internal pathways allows employees to ascend from entry-level positions to more skilled roles, contributing to a richer talent pool.
5. Agility Over Traditional Change Management: Traditional approaches to managing change often fall short in today’s fast-paced environment. The necessity for ongoing skill development and the capacity to shift strategies rapidly are more crucial than maintaining static skill sets.
6. AI-Powered Systems in HR: The integration of AI into HR practices is vital for fostering dynamic skill development and assisting in career mobility. Companies like a prominent biotech firm are incorporating training academies focused on AI, extending learning opportunities beyond traditional tech roles.
Expert Insights
Kathi Enderes, a global industry analyst at The Josh Bersin Company, succinctly summarized the crux of these findings: organizations enriched with skills velocity not only attain expertise but also maintain relevance amidst shifting market dynamics and opportunities. Similarly, Josh Bersin emphasized that while a skills-based organization is significant, the possession of numerous skills matters less than the speed at which these skills can be developed and adapted.
Conclusion
The implications of these findings extend far beyond mere academic interest; they offer actionable insights for businesses aiming to thrive in a continually evolving landscape. Organizations that prioritize skills velocity are not merely keeping pace with change; they are actively steering their evolution, ensuring long-term viability and success. The urgent call to action lies in fostering a workplace culture that emphasizes rapid learning, innovation, and collaborative skill development as foundational elements for achieving sustained growth in the future.
To gain a deeper understanding and explore the practices that can position organizations as pacesetters, download the full report from The Josh Bersin Company’s Global Workforce Intelligence program.