Skills-scepticism Unpacked

Last week Sandra Loughlin, PhD from EPAM Systems posed the question below on LinkedIn, and I thought it and the subsequent flood of over 100 comments are worthy of focus in my September skills newsletter.?

“What do you think is driving skepticism of the skills-based organisation concept? What about it seems far-fetched or not worthy of pursuit?”?

There was a lot of diverse opinion in the comments and below I have tried to summarise where people think skills-skepticism originates.

Below each of these items is a quote from a published comment but note that the quote used doesn’t necessarily represent the views of the commentator, it was just part of their response to the question.? I also share my perspectives and opinions on each of these items to round out the discussion.?

1. Past Failures and Complexity

Many organisations have tried similar approaches before e.g. competencies, which were abandoned due to excessive effort with little tangible return. The shift to a SBO model is equally seen as risky, complex, and offering uncertain rewards.

There's concern about the heavy reliance on technology, which often over promises and under delivers, making it a high-cost initiative with uncertain outcomes.

"The underlying concern is that 'becoming a 'SBO' is nebulous, uncertain, complex, and risky. With a destination so far out of reach, a path so obscure, a reward so uncertain, why bother?"?

Brian Richardson USA

My thoughts and comments:

• Only point skills to acute business problems where skills can help to solve them.?
• Be very clear about the business benefits in your commercially focused business case.?
• This is not a technology play, it’s a way of working and cultural transformation. Do not under-invest in change and communications.?

2. Cultural Resistance

Organisations' culture may resist a SBO approach due to the substantial change required. SBOs could be another HR or Learning and Development (L&D) trend that will fade, reminiscent of the removal of performance ratings.

A lack of business-led use cases, along with confusion about the approach, makes it difficult to secure buy-in from managers and employees.

"Lack of buy-in and WIIFM (What's In It For Me) for managers and employees."

Teresa R. UK

My thoughts and comments:?

• Skills is not an ‘HR Thing’ it has to align to core business strategy.?
• Change has to be systemic and not programmatic for it to endure in the DNA of the organisation.??
• Clarity and communication of WIIFM is critical as is the selection of the initial use-cases and pilots.?

3. Misunderstanding and Oversimplification

SBOs are sometimes considered as a rebrand of competency-based organisations, or purely having a focus on gig work. Critics argue that the SBO concept oversimplifies human capabilities, neglecting crucial attributes like adaptability and emotional intelligence.

The reduction of roles to fragmented skills risks losing sight of how work contributes to organisational strategy, making implementation overly complex.

"A skills-first approach also fragments how we think about work. Instead of seeing integrated tasks, often SBO reduces roles to disconnected skills…..?

I do feel that SBO’s simplicity is appealing, but it can oversimplify the complex realities of human work. "

Jon Fletcher UK

My thoughts and comments:?

• It’s always 'Skills-and', and not 'Skills-or'.? They will only be part of the picture, a critical component but not the be-all and end-all.?
• Competencies, capabilities and skills: the words are not thoroughly understood and are used interchangeably and often mistakenly. This in itself is not helpful.?
• We have never had such sophisticated skills taxonomies and ontologies as we do today, courtesy of advanced technology, large language models and Ai. This is significantly different from talent management practices of the past.?

4. Operational and Data Challenges

Some believe that organisations are not ready for the data frameworks and transformation required to implement a SBO. Skills data in many organisations is disorganised, making the collection and interpretation of valid, reliable information at scale a significant challenge.

Critics argue that SBO models rely on incorrect assumptions, with many jobs and skills remaining stable over long periods, reducing the urgency for constant skills updates.

"It is practical and useful to track the skills that are needed most frequently and/or have the greatest impact on results. It’s not practical or useful to track every possible skill needed for a role."

"Most organizations aren’t ready for this. Implementing a skills-based approach creates a lot of complexity - tracking skills inventories, aligning them to outcomes, and managing the transformation."

Andrew Kable Australia

My thoughts and comments:?

• Start where you are at. Be pragmatic, understand the current state of your data and technology, and lean on vendors and partners to plug critical gaps e.g. use of Ai inference models.?
• Consider depth and breadth, you do not need to go deep everywhere from day one and you do not need to start with all skills in all functions.?
• Develop a robust skills governance framework to support your on-going skills strategy.?

5. Political and Organisational Realities

Skills alone are often not the foundation of an organisation, as internal dynamics and relationships often take precedence. Implementing a SBO might disrupt the existing power structures and induce resistance from leadership who benefit from the status quo.

"Organisations are political and inevitably include elements of patronage and exploitation. Skills transparency might be a threat to the established system."

Andrew Kable Australia

My thoughts and comments:?

• Top down and bottom up change will be required. For many organisations this will be a fundamental shift in operating model, and the change effort will be significant. Be prepared for this.?
• Assess the readiness of your organisation for skills, pay particular attention to leader (and employee) mindsets. Seek to identify barriers, challenges and blockers early.?
• By focusing on acute business problems first, you will obtain greater leadership buy-in and support.?

6. Vendor Influence and Fad Risks

The SBO model is seen by some as a product of hr tech vendors and consultants pushing an oversimplified, overhyped concept for profit, with little focus on practical operational details.

The rise of SBOs is considered by some as a solution without a clear problem, driven more by marketing and consulting buzzwords than actual business needs.

"I agree with a few here that the SBO approach seems driven by vendors looking to monetize the trend rather than a genuine organizational need.

It risks being another overhyped fad that we in L&D have jumped on."

Jon Fletcher UK

My thoughts and comments:?

• This was my initial position 12 months ago, when I pressed pause and embarked on my skills-odyssey.? I too was fearful of the ‘kool-aid’ emanating from large consulting firms and HR tech providers.?
• However, I have seen plenty of evidence of genuine business benefit and success from many organisations I have spoken to and Epam acts as a ‘north star’ for those on the journey.?
• It is imperative to have your strategy nailed down, with full clarity of your skills scope and purpose, i.e. what business problems are you seeking to solve and how skills can help you with this.?

7. Concerns Around the Human Element and Motivation

There is concern that SBOs reduce people to mere skills, managed by AI algorithms, eroding the human element of work and weakening loyalty or creative input, which often comes from informal interactions or personal commitment to an employer.

"People do not want to be reduced to widgets with careers driven by AI algorithms."

"There’s something lost: the ideas someone on payroll or a retainer thinks of in the middle of the night browsing social media, walking the dog or riding the bike. This 'filler mind time' is powerful for someone who feels loyalty/allegiance to an employer who is committed to them."

Lori Niles-Hofmann Canada

Todd Raphael USA

My thoughts and comments:?

• To reiterate, it will always be ‘Skills-and’ and not ‘Skills-or’. Skills are only part of the solution.
• Human potential is a product of personal skills, capabilities, motivation, ambition; as well as the culture, leadership and context that exists within an organisation. It will never be just about skills.?
• Harnessed appropriately, SBO can empower its people, enhance personal agency and generate growth opportunities vastly improving human potential.?

Concluding comments:?

There is a lot of market hype about skills and SBO and with hype comes scepticism. As mentioned, this was me twelve months ago before I commenced my research study and started to unpack the subject deeply allowing me to firm up my own point of view, rather than relying on the asertions of (insert one of many) large consulting firms and hr tech vendors.?

It is my current opinion, that set up appropriately, and with plenty of critical thinking in the early phases, skills can play a critical role in business strategy. Noting and reiterating, they will play a role, they won’t solve for everything.?(Read newsletter #3 for more information on Scope and Purpose)

We strongly encourage organisations exploring SBO to assess their organisation’s readiness before embarking on their skills journey. This will help you to understand where to start, and importantly, where not to start and will shine a light on change priorities to support your skills transformation.? (Read newsletter #2 for more information on Readiness).?