Conor Gilligan speaks with Ravin Jesuthasan about why job-based models are failing, how skills-powered organisations unlock AI and productivity gains, and the practical steps HR and L&D leaders can take to redesign work, reskill talent and deploy skills faster for stronger business performance in volatile markets today and tomorrow alike.
Ravin Jesuthasan, a recognised futurist and authority on the future of work, human capital, and automation is a Senior Partner and Global Leader for Transformation Services at Mercer, an Executive Fellow and Adjunct Lecturer of Executive Education at Kellogg School of Management and a member of the World Economic Forum’s steering committee on work and employment. He is also the author of Wall Street Journal bestseller Work Without Jobs and many more.
Training Journal: Please tell me a bit about yourself and what drew you to write a book about skills-powered organisations?
Ravin Jesuthasan: This book builds on my previous five and extends the idea that the traditional work operating system, built on jobs and processes, is increasingly no longer fit for purpose. It is the primary obstacle to organisations realising the full potential of AI and being able to respond in an environment of elevated volatility.
What is called for instead is a new work operating system built on the foundational tasks and skills that underpin current and future work. I wanted to write this book with Tanuj because she was not just of the same opinion that we needed a new work operating system but was starting to apply these ideas at Standard Chartered.
This book is really written for the practitioner. We have plenty of theory in the book, but I believe it distinguishes itself by delving into the practical considerations of what is truly involved with building a skills-powered organisation (SPO).
TJ: What tangible business outcomes (e.g., productivity, cost) prove skills-powered impact, and how can HR/L&D measure them?
Ravin: The impact of becoming a SPO are truly significant. Yes, it is not an insignificant lift to become one as we challenge over 150 years of orthodoxy, infrastructure and learned behaviour, but, as we show in the book, the gains are extraordinary. These include:
- An insurance company increasing the productivity of its data scientist by 600% over an 18-month period
- An oil and gas company improving profitability per rig by 45% without headcount reductions
- A financial services company saving $60,000 per employee by reskilling talent from their “sunset” roles to their “sunrise” roles
TJ: What are the first three practical steps for talent/L&D leaders to treat skills as work’s “currency” in 12 months?
Ravin: In the book we detail the below critical steps for powering this journey:
- Establish a north-star that will anchor your journey over a multiple year period. It should quantify the benefits, define what foundations are required to power the journey (AI, a skills taxonomy, etc.) and clearly describe what an SPO will look like and feel like to leaders, managers and employees
- Prototype “narrow” and “shallow”. Narrow being where we tackle vexing business problems that require a radically different solution and shallow being where we radically reinvent a particular HR process like talent acquisition or internal mobility with skills as the currency (versus jobs). It is pivotal that these prototypes are visible across the organisation
- Address all eight change enablers:
- The role of leaders
- The expectation of employees
- Technology and AI
- The role of the HR Function
- Governance
- Culture reset and change management
- Functional processes (e.g., budgeting)
- Foundational enablers (e.g., skills taxonomy)
TJ: Which HR/L&D capabilities for skills-based work design and AI matching should teams build first, starting small?
Ravin: In the book we define three capabilities of the SPO:
- Work design: An understanding of the changing demand for work and the skills implications, a clear sense of human skill and machine capability available and the optimal design of work to combine the two
- Skills development: The ability to develop skills to close the gaps identified in the work design phase at scale and speed
- Skills deployment: The organisational capability to rapidly deploy the developed skills to deliver productive work
TJ: How can HR/L&D pitch skills-powered concepts to line leaders as faster work-filling and commercial wins?
Ravin: It is essential that the SPO journey be denominated in economic terms and not workforce engagement. Per the three steps above, it is critical that prototypes be used to demonstrate the impact possible.
TJ: What quick steps create internal gigs and learning to boost skills, engagement, and retention in 6–18 months?
Ravin: The introduction of internal talent marketplaces has proved to be a quick way to engage talent in discovering their skills and expressing them outside of their day jobs. However, it is important that you execute this against the three steps we define for successful implementation and not just view this as a technology exercise
TJ: Which legacy systems (e.g., pay, performance) should CHROs fix first for skills-powered value, and how?
Ravin: We have seen many organisations start with talent acquisition and career mobility. These processes are logical starting points and lend themselves to quick wins by shifting to make skills the currency (instead of jobs). Performance management is often a quick follower while any direct links between compensation and skills should be the last change made as the consequences of getting pay wrong can be quite significant.
Interview by Conor Gilligan, Senior Director at Degreed
Ravin Jesuthasan is Senior Partner and Global Leader for Transformation Services at Mercer
