Abstract: This article explores how organizations can transition to a skills-based approach through examining the research foundation and providing practical recommendations based on work with companies that have successfully made this shift. It discusses how skills-based approaches are rooted in research showing the growing importance of digital skills and need for employee reskilling. The article then recommends that organizations first change internal mindsets from focusing on roles to leveraging skills. Additional steps include developing a granular skills framework, aligning HR systems like recruiting and performance reviews to the framework, implementing upskilling programs for current employees, and instituting metrics to measure progress and identify areas for improvement. Case studies and examples from various industries are used to illustrate how a holistic transformation to skills-based thinking can unlock potential across an organization and position it for success in a constantly changing environment.

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