This is another one of those articles that starts by saying the world is changing faster than ever, cue dramatic movie-trailer voice. Don’t worry, I’ll try not to overdo it! That said, context really does matter when answering these key questions:

Do I really need to do anything about this skills transformation thing?
Isn’t it just another hassle?
Will it benefit our company and our people?
And, let’s be honest, will I get promoted for sorting it out?

Let’s talk basic economics (because this is what gets me by…). Across industries, supply and demand mismatches overall and by job and skill are common. People want higher pay. The political and economic environment is unstable. Gig work is rising. AI promises to boost productivity (but only if you have the right skills!).

Meanwhile, top leadership expects functional leaders and HR teams to fix it all:
✅ Ensure we have the right people and skills
✅ Implement new technologies to boost productivity
✅ Do it with less budget than last year

If you’re a business or HR leader, the real question isn’t whether skills transformation is worth the effort: it’s whether you can afford to ignore it and how to get started driving business value.

Why invest in skills transformation?

This newsletter is all about how skills, capabilities and business strategy join up.

Skills transformation isn’t just theoretical, it’s about staying relevant in a rapidly evolving world. These pressures are becoming more acute. My favourite question for Chief People Officers and Business Leaders is: What happens if you do nothing?

Skills can unlock new perspectives and value. One of our customers put it perfectly:
👉 “I didn’t realise my business problems were skill problems.” (1)

Boom, that’s a powerful reframe. Skills aren’t just an HR initiative, they’re a strategic lever to solve business challenges, drive growth, and align your people strategy with your business goals. In other words, putting your money and people where your business strategy is!

Why care about capabilities and talent?

Apart from me telling you it’s a good idea (which, let’s be honest, isn’t always enough to convince a boardroom), let’s look at some data.

The folks at Bain (2) suggests how closely talent and transformation are linked. Companies that achieve or exceed transformation goals are far more likely to:
✅ Have clarity on mission-critical roles (76%)
✅ Use data-driven talent decisions (71%)
✅ Define future capability needs (68%)

Of course, there’s no silver bullet given 40% of companies still fail to meet expectations even when doing this but investing in talent and skills stacks the odds in your favour.

If you’re leading a business transformation (including AI adoption), and you’re not re-evaluating your workforce strategy, you’re already falling behind. The next few years will bring ‘Kodak-style’ casualties.

So, what should you do?

Let’s put the change management and leadership mindset to one side, because that is a given and well commented on (See RedThread Research’s excellent The Six Elements of a Good Skills Strategy (3), for example).

Instead we’ll talk content of skill strategy. Practically, we see companies that succeed focus on three things:

1. Prioritising critical capabilities: Whether it’s AI, data analytics, or cloud modernisation, the key is identifying and developing future-ready skills. Business leaders and HR must drive this: it’s about staying relevant and competitive.

2. Aligning roles, skills and work with business goals: Capability-building must deliver real value. That means focusing on areas tied to revenue, growth, and strategic priorities. No budget? No problem. Make the case for impact.

3. Using data to act with intent: Workforce analytics and labour market insights cut through the noise. But data only works if it’s linked to real business problems. Don't just track trends, you need to connect them to actions.

For those already converted, this is essentially Strategic Workforce Planning (SWP), powered by skills intelligence. Insight222’s People Analytics Trend Report confirms that 67% of organisations consider SWP critical to navigating uncertainty, reflecting the demands being placed on HR to bring the right data together to successfully navigate change. (4)

How to get started?

At Simply Get Results, we’re not just consultants—we’re practitioners. Having worked in-house, as consultants, and now as data transformation partners, we know the real-world challenges of implementing change within budgets, resourcing constraints, and company culture.

That’s why we’ve built a practical, skills-powered framework. It’s not some overhyped vision of a ‘skills-based organisation’: That model may work for some, but for most, a pragmatic approach is best. Ask yourself how can you get 80% of the value for 20% of the effort?

Part of the answer to that question is to run one or more pilots/projects. We love pilots. Your goal should be to increase the breadth of business problems solved, scope and business value over time. Here’s how to get going:

Start small but meaningful: Run a pilot project in a specific function or geography. Pick a clear business problem and tie it to a skills gap hypothesis.
Leverage data for precision: identify the most critical skills and prioritise interventions. No need to boil the ocean—focus on high-impact areas.
Prove the value, then scale: Design your pilot to demonstrate measurable impact. Use it to build momentum for broader transformation. Design this upfront!

You don’t need fancy tech to start. In fact, early tech adoption can be a distraction. Start with what you have—HR system data, market insights, and common sense. The key is answering:

What skills do we need?
What skills do we have?
What’s the gap?
How do we close it?

The questions pare this back to what skills transformation really is: a structured way of getting the workforce and skills you need. You don’t need 100% clarity on future demand or current skills to make better decisions today.

Future-ready starts today

Skills transformation doesn’t have to be overwhelming. A practical, data-driven approach makes it achievable. Start small, act with intent, and position your workforce for future success.

Learn how Finastra are becoming a more skills-powered organisation. — Click to read about global fintech Finastra's skills journey.

Ready to dive deeper? Download our whitepaper, The truth about skills-based organisations, and discover how Finastra transformed their workforce with purpose and precision.

(Re)sources:

(1) Simply Get Results & Finastra, The truth about skills based organisations (2024)

(2) Bain, Three common transformation talent mistakes (2024)

(3) RedThread Research, The Six Elements of a Good Skills Strategy (2024)

(4) Insight222, People Analytics Trends (2024)

Originally published on LinkedIn: https://www.linkedin.com/pulse/skills-transformation-why-do-now-john-guy-25nhe/?trackingId=YIjM0M5lQ76TnbNusUYyew%3D%3D