Workforce Management
Bridging the Productivity Gap with a Whole-Person Approach
Skills complexity can paralyse decisions instead of enabling them—here’s how leading skills-based organisations are simplifying without losing impact.
October 21, 2025
The Skills Mindset Shift Giving Leading Organisations Their Edge
Disruption, productivity gaps, and AI acceleration are reshaping industries at a speed not seen before. For leaders, the ability to build a future-ready workforce has become an urgent priority.
Australia’s lag in productivity compared to the rest of the world is compounding this challenge. As Cyrus Cavina, Associate Client Partner at Korn Ferry, explains: “Productivity is firmly on the Government’s agenda, so it’s firmly on the CEO’s agenda. Australian organisations are looking at how to get the most out of their resources, including talent. Having visibility of the skills we currently have, versus what we need—now and into the future—is critical.”
The Skills Imperative
With 39% of today’s skills expected to become outdated in the next five years, existing skills gaps are a major barrier to transformation for 63% of employers according to WEF’s Future of Jobs Report 2025.
And with only 32% of organisations planning to prioritise workforce upskilling, those who don’t may be missing an opportunity to optimise the performance of their people—and keep top people in the business. Korn Ferry’s latest workforce survey shows 67% of employees would stay with a company for upskilling opportunities—even if they hated their job.
The Skills Transformation Complexity Trap
In response to these challenges, many employers have rushed to adopt a “skills-first” approach. But too often, this leads to overwhelming taxonomies, endless frameworks, and complex systems that take months to design while delivering little practical value.
“Organisations often spend far too much time thinking about how to define skills, when they should be focusing on operationalising them,” says Emily Szakacs, Senior Client Partner at Korn Ferry.
Australasian beverages company Lion is taking a fresh approach. The organisation has simplified its skills strategy by focusing on three core capabilities everyone needs to achieve the business’s strategic ambition.
“We started by identifying the skills required to deliver on our strategy. That strategic view came first, then we worked backwards to pinpoint the critical gaps we needed to close. Our focus is on transforming our people and our business around these essential capabilities to ensure long-term marketplace success,” says Elisabeth Farley, Head of Leadership and Capability at Lion.
The Challenges of Changing Traditional Mindsets
Simplification isn’t just about frameworks—it’s about fundamentally reframing how organisations think about skills.
Too many employers focus on technical capabilities alone. Korn Ferry’s talent analytics show that high performance is driven by a whole-person view: skills, experience, mindset, drivers, and fit within the organisation’s culture.
"You can have two people with the same technical set of skills, but they might be very different cultural fits for an organisation," explains Szakacs. "You want people to understand what drives success in your context."
She cites the example of a star salesperson who failed to perform at the same level when moving between companies, despite identical technical requirements. In company A, the culture was entrepreneurial and individualistic, which aligned to the person’s key drivers. But company B’s collaborative culture meant success was dependent on working well within a team.
This mindset shift also requires leaders to think beyond traditional vertical careers towards what Szakacs calls "spiral lattice careers"—pathways built around skills rather than linear hierarchical progression. It also means balancing short-term skills needs with longer-term capability building, avoiding the trap of solving only immediate problems.
Getting stakeholders on board requires demonstrating the business case through quick wins and connecting skills initiatives to existing strategic priorities. "Once you have some stats and data showing that by doing this your organisation is better able to adapt and perform, that helps build momentum," notes Szakacs.
Start with Strategy, Not Technology
One of the biggest missteps organisations make is allowing technology platforms to dictate their skills strategy. While tools matter, starting with systems rather than strategy often compounds complexity. “It’s better to work out what you need to do from an organisational perspective first, and use the technology as an enabler,” says Cavina.
Szakacs suggests starting by aligning skills strategy to the overall business strategy. “Skills transformation is most successful where people see it as a strategic and cultural shift, not a technology solution. When skills initiatives are tied to business strategy and competitive advantage, they shift from being HR projects to true business imperatives.”
When it comes to technology, Cavina suggests picking platforms that are going to have the biggest impact, streamlining them to avoid crossover and making it simple for your employees and customers to use.
Tackling the First Step: Start Small
Switching to a skills-based organisation doesn’t require a complete overhaul overnight. Smart leaders start with targeted pilots in areas already undergoing transformation, where change is expected and resistance is lower.
“Is there a business unit where you can pilot it, get some quick wins, learn and test before you do a wider scale rollout?” suggests Szakacs. “Customer-facing functions and sales teams often provide ideal testing grounds as they are frequently evolving their approaches anyway.”
The key is starting with operationalisation in mind. Rather than perfecting your skills framework in isolation, think about how it will show up in daily work—performance reviews, development conversations, and hiring decisions.
“Start with the end in mind,” advises Cavina. “Identify how you want your employees and leaders to experience this at every touchpoint, then work backward from that.”
The path from skills chaos to clarity isn’t about building a framework with the most skills. It’s about building the most useful one. For maximum impact and outcomes, a focused, implementable approach will work better than detailed taxonomies which can overwhelm rather than enable. As the most successful companies are proving, sometimes the most sophisticated solution is also the simplest one.
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