Skills-based organization (SBO): towards an agile and competency-centered model

One organization based on skills, or Skills-based organization (SBO), represents a major transformation in human resources management. Unlike traditional models that focus on roles or positions, SBO places employee skills at the heart of management strategies. talent management. Employment decisions are based on the skills needed, rather than qualifications or degrees.

In a context of constant evolution of needs and work environments, this method offers an effective solution for companies wishing to remain agile in the face of technological, economic and regulatory changes. By valuing skills, they can anticipate challenges while offering their employees opportunities for personalized development. It is a genuine competitive advantage to be set up.

In this article, we'll explore the key principles of SBO, the steps to adopt this model, and the role ofartificial intelligence in its optimization.

Introduction: why rethink the organization of work around skills

The limitations of the traditional job-based model

The model oftraditional organization of work, often resulting from the Taylorist approach, is based on clearly defined positions and roles. Although it has dominated the industrial landscape for decades, it has several significant limitations.

This model tends to reduce employees to strictly defined functions, thus limiting their autonomy and their ability to take initiatives. The repetitive and alienating missions, typical of this method, cause a high rate of absenteeism, a high turnover of employees and tensions between the performers and the managers.

In addition, this rigidity hampers businesses in their ability to adapt to rapid changes in the economic and technological environment. Traditional positions do not allow for a flexible response to new market requirements, which can hinder innovation and competitiveness.

The emergence of skills as a new unit of measurement of work

Faced with changing economic and technological needs, skills have emerged as the new unit of measurement of work. This strategy highlights the fact that employees have a range of skills that can be mobilized in a flexible way to meet the various challenges of the company.

A competency framework, which structures and groups professional skills, offers companies a more effective talent management. This tool makes it possible to empower employees in managing their own skills, gives them visibility on their areas of progress and facilitates updating continues to their level of mastery.

By focusing on skills, businesses can better meet the needs of emerging professions, which are often created by technological advances, new regulations and changes in consumer patterns. This strategic solution allows skills to thus become the foundation on which organizations build their strategy of talent management to guarantee their long-term competitiveness.

A rapidly expanding model: adoption by large companies, future perspectives

Many businesses, especially large organizations, are now adopting the competency-based organizational model. This model offers essential adaptability in a constantly changing economic environment.

With this strategy, businesses can more effectively identify and develop the key competencies needed to achieve their strategic goals. The future prospects for this model are very promising.

With the integration ofartificial intelligence and technologies of talent management, businesses will be in a position to further optimize their skills management. This innovative solution will make it easier to build teams that are more agile, more innovative and better prepared to meet future challenges.

In short, theorganization based on skills is becoming an essential lever for ensuring the success and sustainability of businesses in a constantly changing world.

Understanding skills-based organization

Definition and fundamental principles

One Skills-based organization (SBO) is an innovative approach to work and human resources management. Unlike traditional job-centric models, an SBO is structured around the skills and abilities of employees, rather than rigid job titles or hierarchies.

What is a skills-based organization? Fundamentally, an SBO is reinventing the way work is organized. Instead of relying on fixed job titles and hierarchies, these organizations focus on skills, abilities, and results.

In practice, this means moving from a fixed organization chart to a fluid talent ecosystem. In an SBO, skills become the real currency of exchange, and no longer positions. These organizations ask the question, “What abilities can this person offer?” rather than “What position does this person occupy?”

Difference between job-based and skills-based: granular approach to work

In traditional organizations, work is defined by specific tasks and responsibilities. In contrast, SBOs define work by the results to be achieved and the skills needed to achieve them.

This method involves moving from “Who is responsible for this mission?” to “What skills do we need to solve this challenge?” Thanks to this granularity, SBOs offer greater adaptability, making it possible to mobilize skills dynamically to meet the specific needs of the company.

The key benefits of a based approach On skills

Organizational agility and flexibility

SBOs are particularly suited to deal with rapid and unpredictable changes in the economic and technological environment. By focusing on skills, these organizations can quickly deploy the talent needed for each project or initiative, without being constrained by traditional roles.

This agility allows for increased reactivity and better use of resources, because skills are mobilized where they are most needed.

Optimizing talent management and employee development

One based approach on skills allows for more effective talent management and more personalized employee development. Organizations can identify existing skills, identify gaps, and develop targeted training programs to fill these gaps.

This strategy promotes a policy ofcontinuous learning and development, where employees can take charge of their professional development and acquire new skills through various projects and challenges.

Improving engagement and internal mobility

SBOs significantly improve engagement and internal mobility collaborators. By offering competency-based development and mobility opportunities, businesses can better retain talent and encourage dynamic and motivating careers.

Initiatives such as internal talent markets, where employees can explore opportunities within the organization, contribute to increased satisfaction and loyalty.

The pillars of a successful skills-based organization

A clear taxonomy of skills

Building a skills map is a key element for the success of a skills-based organization (SBO). It consists in categorizing and precisely defining the different types of skills necessary for the organization. There are generally four categories of skills: technical, behavioral, cognitive, and sectoral.

Technical skills: These skills are specific to a profession and often validated by certifications or diplomas. They are acquired through learning and practice, and they are essential for completing the specific tasks associated with a position.

Behavioral skills : These skills concern attitude, interpersonal relationships and interpersonal skills. They develop over life experiences and can be difficult to detect in the workplace. Managers should pay particular attention to them.

Use of scientific standards: Organizations often use scientific frameworks to identify strategic competencies. These tools make it possible to structure and visualize the versatility of teams, to identify critical know-how and to identify business experts. For example, at LVMH Fragrance Brands, skills mapping has made it possible to reduce assignment errors and to anticipate training needs.

A scientific and data-driven approach to talent management

The use ofartificial intelligence (AI) and data analysis play an essential role in managing talent within an SBO. This approach makes it possible to anticipate future skills needs and to make informed decisions.

AI and skills analysis: The tools ofartificial intelligence harmonize skill data from a variety of sources, creating a single source of truth about workforce capabilities. This helps leaders understand how to reallocate and redeploy human resources by function of skills required for each project.

Use case: skills mapping : Businesses can use digital tools to map the skills and abilities of their employees. This makes it possible to identify existing skills, identify differences and anticipate training needs. For example, by deploying targeted development programs, a company ensures that its employees have the skills they need to meet present and future challenges.

A redesign of HR processes

Adopting an SBO involves a significant transformation of human resources (HR) processes, going from a based approach on positions with a competency-based approach.

Recruiting and internal mobility based on skills: Recruiting and internal mobility should rely on competencies rather than job titles. This means identifying the skills needed for each project and assigning collaborators based on these skills. This approach promotes greater flexibility and optimizes the use of available talent.

Continuing education and talent development: Training programs should be aligned with the company's strategy and customized to address identified skill gaps. They allow employees to acquire new skills while promoting a policy ofcontinuous learning. In this way, each employee can take charge of their own professional development.

How to become a skills-based organization: 5-step action plan

Step 1: map existing skills and identify gaps

The first step in becoming a skills-based organization is theidentification of competencies existing within the organization (Skills mapping) and to identify the gaps between the skills available and those needed. This approach is based on a thorough internal diagnosis.

Internal diagnosis: It is essential to identify and assess the current skills of each employee. This can be done through self-diagnoses, co-diagnoses between employees and their hierarchical superiors, or through tests and real situations.

Use of AI platforms: The platforms ofartificial intelligence (AI) are particularly useful for mapping skills accurately and objectively. These tools make it possible to measure competencies at various taxonomic levels, overcoming cognitive biases and offering a multidimensional vision of a company's human capital.

Step 2: deconstruct positions into tasks and skills

The second step is to deconstruct traditional positions into specific tasks and skills. This flexible and granular approach offers numerous benefits.

Project approach: By adopting a project-based approach, businesses can identify the skills needed for each specific project. This promotes flexibility and makes it possible to mobilize employees based on their real skills, rather than their job title.

Flexible roles: Deconstructing positions into tasks and skills makes roles more flexible. Employees can thus be deployed on various projects where their skills are most useful, thus improving efficiency and job satisfaction.

Step 3: Align HR tools and corporate culture

The third step is to set up a skills administration system and adopt a policy ofcontinuous learning.

Implementation of a skills management system: It is essential to define a competency framework describing all the skills required for each position and project. This framework must be dynamic and regularly updated to reflect changes in business needs.

Adoption of a lifelong learning policy: A culture ofcontinuous learning must be integrated into the company's strategy. That includes the installation continuing education, mentoring and coaching programs to enable employees to develop new skills while keeping existing ones up to date.

Step 4: test the approach with pilot projects

Before generalizing the model, it is essential to test the approach with pilot projects.

Identification of a key department: Identify a key department where competency-based organization can be experimented with. This makes it possible to measure the impacts and to adjust the approach before generalizing it to the entire organization.

Impact measurement and adjustment: Evaluate the results of pilot projects and adjust the approach based on lessons learned. This includes evaluating employee engagement, project effectiveness, and overall satisfaction.

Step 5: Generalize and adapt the model continuously

The final step is to generalize the model while constantly adapting it.

Key success factors and areas for vigilance
Make sure you clearly identify the key success factors and take into account the areas for vigilance. This includes:

• Close collaboration between stakeholders.
• Flexibility in adapting processes.
• Continuity in training and skills development.

Integration into a global HR strategy
To succeed, integrate the skills-based organization model into a global HR strategy. That means:

• Align skills management objectives with the strategic goals of the company.
• Ensure that corporate culture supports and reinforces this approach.

Towards a hybridization between skills-based organization and artificial intelligence

AI as a catalyst for skills management ultra-personalized

THEartificial intelligence (IA) plays a critical role in transforming organizations into skills-based organizations (SBOs) by providing tailored analyses and recommendations for career paths.

Thanks to its advanced algorithms, AI is able to analyze employee skills data, detect differences and propose appropriate development opportunities. For example, platforms like Fuel50 rely on a competency ontology developed by experts in industrial and organizational psychology. They offer clear descriptions of specific skills and development actions, allowing employees and managers to make informed decisions about career paths.

AI tools such as those offered by Workday or Fuel50 also facilitate the transition to an SBO by integrating advanced skills management functionalities. These tools make it possible to map skills, predict future needs, and connect employees to opportunities based on their abilities. For example, Fuel50 uses AI to match employee skills to internal opportunities, which has allowed organizations like UCI to significantly reduce their churn rate.

Can we really automate a organization based about skills?

While AI can greatly simplify the transition to an SBO, it has some limitations and can be subject to biases that deserve particular attention.

AI systems, while effective, can reproduce the biases present in the data used, which can affect the relevance of recommendations and decisions. In addition, a purely algorithmic approach may lack context and fail to grasp human subtleties, sometimes leading to errors in evaluating the skills and potentials of employees.

To overcome these limits, human judgment and the role of managers remain essential. Managers must be actively involved in the decision-making process in order to contribute their expertise and understanding of the organizational context. This collaboration guarantees balanced decisions, taking into account the qualitative and quantitative aspects of the skills and performances of employees.

By integrating AI in a way that complements, not replaces, human judgment, organizations can maximize the benefits of SBO migration while minimizing the risks associated with algorithmic bias.

Conclusion: the skills-based organization, a model for the future

Summary of benefits

Competency-based organizations (SBOs) bring significant benefits that are redefining human resource management and the achievement of business goals. These benefits include their ability to retain high-performing talent through more varied career opportunities and more horizontal organizational structures. This inevitably leads to a reduction in turnover and therefore a cost reduction related to recruitment.

By deconstructing traditional positions and promoting cross-functional collaboration, SBOs optimize the use of skills where they are most needed. This allows businesses to better adapt to rapid change and stimulates innovation. Employees can thus get involved in diversified projects, aligned with their skills and interests.

In addition, SBOs promote diversity and inclusion by focusing on skills rather than qualifications or past experiences. This strategy broadens access to a more varied talent pool, a major asset in a context where finding qualified candidates is becoming more and more complex.

Why and how to start the transition now

The transition to an SBO is a strategic process that requires careful planning and implementing progressive. The first step is to map existing skills and identify gaps, using AI tools to analyze and visualize competency-related data.

It is also essential to create a clear competency framework and to set up a solid infrastructure to manage this data. This makes it possible to develop continuing education programs and talent development initiatives aligned with the company's strategic goals. At the same time, it is important to promote a policy ofcontinuous learning, by encouraging cross-functional collaboration and by offering opportunities to internal mobility based on competencies.

Finally, this transition involves a paradigm shift in how leaders and managers perceive work and careers. It is about moving from a hierarchical approach to one that focuses on skills and contributions.

Potential impact on the future of work

SBOs have the power to transform the future of work by creating more agile, innovative, and competency-based business environments. By promoting the capabilities of employees, these organizations better respond to the challenges of an ever-changing economy and rapid technological advances.

This approach allows employees to be more committed, motivated and loyal, thanks to varied development and mobility opportunities adapted to their aspirations. Businesses, on the other hand, are becoming more competitive and innovative, able to respond quickly to market fluctuations and seize new opportunities.

In short, SBOs embody a model for the future combining flexibility, innovation and continuous skills development. They offer a sustainable and promising path for businesses and their employees in a constantly changing world.

Conclusion

Adopting an organizational model based on skills (SBO) is an essential strategy for businesses that want to remain competitive and innovative in a constantly changing environment. This model offers numerous benefits, including maximizing talent potential, increasing agility, and promoting diversity, equity, and inclusion.

The benefits of an SBO in the face of a classical approach are multiple: better retention of high-performing talents, optimization of skills management, rapid adaptation to market changes, and improved employee engagement and productivity.

The integration ofartificial intelligence in cartography and skills management brings additional precision and efficiency to this approach. To succeed in this transition, it is essential to start with a skills mapping, conduct regular assessments, and rethink HR processes in order to align tools and the corporate culture with this innovative model.

Do not delay in initiating this change. Organizations that adopt this model are 63% more likely to achieve their goals and maintain competitiveness over the long term. Switch to a organization based on skills is not just an option, it's a necessity to thrive in today's economic and technological landscape.

Start today to unleash the full potential of your talents and ensure a sustainable and innovative future for your business.

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