Future belongs to skill-based organisations

The future belongs to skills and not only talent.? According to the latest survey conducted by McKinsey, 87% of the firms will face a shortage of skilled workforce in five years.? Therefore, it is unsurprising that corporations are expected to invest more than $380 billion in learning and development programs globally.?

?What does it mean to have skilled labor?? Does it mean organisations will have to conduct more training programs?? Does it mean we have to open up more on-the-job training avenues?? Or does it mean to employ skilled labor through a detailed headhunting exercise?? To be precise, some of these strategies are the answer to having a skilled-based organisation.? The Harvard Business Review analysis suggests that organisations must follow a coherent skill-based strategy flowing from queries such as which specific skill is to be targeted; who has to learn these skills, and what mix of exposure and education will be required to meet the future challenges.?

To achieve a skill-based organisation, according to Anders Ericsson, a globally acclaimed researcher, companies will have to create a culture of “deliberate learning” where skills are practiced continuously, areas of improvement are identified as a matter of routine, and coaching is made a constant to keep the employees as top performers.?

This learning pattern is best achieved with the 70/20/10 learning model, a mix of education, exposure, and experience.?

This is what the model looks like.

Formal instruction receives a 10% place in the overall training and skill acquisition program.? It involves receiving instructions, reading materials on processes, and other tools.? It may also include attending webinars or taking in-person courses on a particular skill.?

Social Learning, or Exposure as we may call it, carries 20% weightage in the model.? Social learning is about learning from others.? It includes monitoring, storytelling, coaching, or peer-to-peer interactions.? Mentors help juniors learn from more experienced workers.?

Learning in the Flow of Work is about 70% of the learning model.? It is not enough to receive instructions, get mentoring, and get the most out of experienced colleagues through books or other literature.? Real growth occurs on the job from assimilating real-life experience and tasks, whereas feedback plays a vital role in allowing the employees to reflect on their performance and identify the loopholes.? Basically, at this stage of learning, mentoring, on-the-job training, and the relevant instructions and materials all come into play to make the acquired skill sustainable and profitable for the company and the individual.

The success of the 70/20/10 learning model entirely depends on the active role played by the managers as coaches.? They are no more typical MBA-styled taskmasters; instead, they develop a personalised learning environment with the help of industrial leaders.

The manager's role is being transitioned from mere performance evaluators to upskilling coaches.? Instead of following a preexisting learning planner, they sit with the industrial leaders to identify task performance improvements.? The tasks are then broken down into skills that individual employees need to learn.?

The future belongs to organisations tuned to a skill-based mindset.? We cannot just rely on technology—the mix of education, exposure, and experience in the correct quantity are equally essential to building a productive workplace and economy.?