More than 50% of organisations report difficulty in defining and prioritising key skills, highlighting the challenges of creating a comprehensive skills framework. The complexity of identifying and aligning business-critical capabilities often results in fragmented strategies and missed opportunities for growth.
The challenge of identifying critical skills
For many organisations, the first hurdle in becoming a skills-based organisation (SBO) is understanding what skills truly matter. This process requires moving beyond generic competencies and identifying the core capabilities that directly impact business objectives. However, lots of businesses find themselves overwhelmed by the volume of skills data and therefore struggle to connect skills to measurable outcomes.
Teams often lack alignment on priorities, with different departments focusing on isolated skillsets rather than a cohesive, organisation-wide framework. This misalignment creates inefficiencies and prevents organisations from building the agile, future-focused workforces they need to thrive.
Building a targeted skills framework
To address this challenge, organisations need to take a focused and strategic approach to defining key skills. The most successful SBOs begin by conducting a thorough skills audit, pinpointing the capabilities that are critical to current operations and future growth. From there, they can align these insights with workforce planning and development initiatives.
It’s equally important to involve all stakeholders in this process. HR, L&D, recruitment, and leadership must collaborate to ensure a unified vision and buy-in across the organisation. By integrating these perspectives, businesses can create a dynamic skills framework that reflects their unique needs and goals.
Harnessing technology to refine skills strategies
Technology is an essential enabler in this process. Tools powered by AI and data analytics can help organisations map their current skills landscape, identify gaps, and predict future needs. Skills-matching platforms, workforce planning software, and talent development solutions empower businesses to make data-driven decisions and prioritise the most impactful areas for investment.
Organisations should also embrace iterative processes, refining their skills strategies as needs evolve. Regularly reviewing and updating frameworks ensures they remain relevant and continue to drive meaningful outcomes.
Strategies for SBO success
To build a strong foundation for skills-based transformation, leaders should look to focus on the following strategies:
- Conduct a skills audit: Assess the current skills landscape to identify strengths, gaps, and areas for growth. Ensure the framework aligns with organisational goals and future workforce needs.
- Foster cross-functional collaboration: Involve stakeholders across departments to create a cohesive and unified skills strategy.
- Leverage technology: Use AI-driven tools to streamline skills mapping, identify gaps, and monitor progress.
- Prioritise agility: Regularly update and refine skills frameworks to adapt to changing business demands.
- Champion skills equity: Ensure equal opportunities for upskilling and development, supporting diversity and inclusion across the organisation.
Join the conversation: Sign up for our Future of Talent event!
Defining key skills is the cornerstone of a successful SBO transformation. By prioritising collaboration, technology, and strategic focus, organisations can overcome barriers and unlock new opportunities for talent development and business success.
Join us on 20 March for the Future of Talent: The Journey to a Skills-Based Organisation (SBO) event. Discover actionable insights, hear from industry experts, and gain practical strategies for creating a targeted and impactful skills framework. Don’t miss this opportunity to position your organisation for success in a skills-first future.
Sign up today to secure your place and receive a copy of our full report; The Definitive Guide to Becoming a Skills-Based Organisation on the day.
