The Shift to Work and Skill-Centric Organizations

Organizations are increasingly transitioning from a job-centric model to one that emphasizes work and skills, necessitating adaptability and customer focus amid rapid industry changes. This transformation is reflected in the importance placed on talent mobility and skill development, as HR efforts are focused on creating more flexible organizational structures that can respond to evolving market demands. Traditional org design methods, which often revolve around hierarchical reporting and celebrity-oriented structures, are giving way to a science-based approach that aligns organizational design with business strategy and required skills. Research indicates that the level of skills and clarity of accountability is crucial in flatter organizations, which, due to increased efficiency, may require fewer personnel as automation advances, particularly with the influence of AI technologies.