Technical ReportPDF Available

Capability Frameworks: From Authoring to Buy-In

June 2023

DOI:10.13140/RG.2.2.25672.08961

Report number: No. 4, Next Normal Series, The Institute for Working Futures

Authors:

Institute for Working Futures

Building or revising a capability framework? Trying to predict the shape of the future workforce or talent requirements? Struggling to get buy-in and answer questions relating to workforce capacity and capability that involve too many complex variables? If so, you should consider this paper immediately. This is the fourth paper in the Next Normal series of white papers. It shows that, though research confirms capability frameworks are based on a core range of building blocks, the unique DNA of each organisation should be deeply embedded within each capability. This can only be achieved when each capability has the requisite skills and mindsets required to fulfil the organisation’s purpose, strategy and cultural values.

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JUNE 2023

The Next Normal

White Paper No. 4

Capability Frameworks:

From Authoring to Buy-In

The Next Normal no. 4 DRAFT 3.0 13 June 2023

Author

Dr Marcus S. Bowles, Director & chair at the Institute for Working Futures pty ltd & adjunct professor at Torrens University Australia

Kate Britt, Client success director at Capability.Co

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process

without prior written permission from Capability.Co.

This subject material is issued by Capability.Co on the understanding that:

1) Capability.Co., its officials, author(s) or any other persons involved in the preparation of this publication expressly

disclaim all or any contractual, tortious or other forms of liability to any person (purchaser of this publication or not)

with respect to publication and any consequences arising from its use, including any omission made by any person in

reliance upon the whole or any part of the contents of this publication.

2) Capability.Co. expressly disclaims all and any liability to any person with respect to anything and the consequences of

anything done or omitted to be done by any such person in reliance, whether whole or partial, upon the whole or any

part of the contents of this subject material.

The Next Normal no. 4 DRAFT 3.0 13 June 2023

iii

Contents

Contents .................................................................................................................................................................................................. iii

Abstract ................................................................................................................................................................................................... iv

1. Introduction .................................................................................................................................................................................. 1

2. What Are Capability Frameworks? ............................................................................................................................ 2

3. Strategic Maturity and Workforce Readiness .................................................................................................... 4

4. Authoring a Capability Framework ........................................................................................................................... 6

4.1 Align to Purpose and Values .................................................................................................................................................... 7

4.2 Capability is Currency ................................................................................................................................................................ 9

4.3 Confirm Domains ........................................................................................................................................................................... 9

4.4 Anchor Levels .................................................................................................................................................................................. 10

4.5 Prioritise Investment .................................................................................................................................................................... 11

4.6 Align Learning .................................................................................................................................................................................. 12

4.7 Recognise Attainment ............................................................................................................................................................... 13

5. Why Use the Human Capability Standards Reference Framework? .................................................. 14

6. Achieving Buy-In ......................................................................................................................................................................... 17

6.1 Strategic Maturity .......................................................................................................................................................................... 19

6.1.1. Gaining Buy-In: Strategy ....................................................................................................................................................................................... 19

6.1.2 Gaining Buy-in: Culture and Engagement ............................................................................................................................................. 20

6.1.3 Gaining Buy-In: Structure .................................................................................................................................................................................... 20

6.1.4 Gaining Buy-In: Innovation ................................................................................................................................................................................. 21

6.2 Workforce Readiness .................................................................................................................................................................. 21

6.2.1 Gaining Buy-In: Capabilities .............................................................................................................................................................................. 21

6.2.2 Gaining Buy-In: Leadership .............................................................................................................................................................................. 22

6.2.3 Gaining Buy-In: Talent .......................................................................................................................................................................................... 23

6.3 Gaining Buy-In: Learning ........................................................................................................................................................ 24

7. Conclusion ...................................................................................................................................................................................... 25

8. Glossary ............................................................................................................................................................................................ 26

Endnotes ................................................................................................................................................................................................ 27

The Next Normal no. 4 DRAFT 3.0 13 June 2023

Abstract

Building or revising a capability framework? Trying to predict the shape of the future

workforce or talent requirements? Struggling to get buy-in and answer questions relating

to workforce capacity and capability that involve too many complex variables? If so, you

should consider this paper immediately.

This is the fourth paper in the Next Normal series of white papers. It shows that, though

research confirms capability frameworks are based on a core range of building blocks,

the unique DNA of each organisation should be deeply embedded within each capability.

This can only be achieved when each capability has the requisite skills and mindsets

required to fulfil the organisation’s purpose, strategy and cultural values.

In essence, a capability framework must ‘meet’ the organisation where it is at today. This

includes knowing the maturity level of strategies and the overall readiness of the

workforce. Together, strategic maturity and workforce readiness determine not only the

availability of skills supporting a priority capability but also if an employee has the innate

disposition to perform, behave and adapt in the way the employer requires to achieve

their future ambitions.

Ironically, due to the increased complexity, disruption and importance of technology as an

essential business tool, future success is dependent on employees fully engaging their

skills and mindsets to achieve personal and collective success.

The Next Normal #4 DRAFT 3.0 13 June 2023

1. Introduction

One cannot see the way up a mountain, it can only be climbed by trial and error. The

intellectual mountaineer makes false starts, gets stuck, gets into blind alleys and

cul-de-sacs, finds himself in untenable positions, has to backtrack, has to descend

and to start again. Slowly and painfully with innumerable errors and corrections, he

makes his zigzag way up the mountain. It is only when he reaches the summit, or the

height he desires that he will see that there was a royal road to it.

– Hermann von Helmholtz, 18661

The journey to revise or design corporate capability frameworks begins within a complex

ecosystem of competing interests, disparate technical approaches and a confusing array

of components. It’s no wonder successful initiatives to execute capability frameworks that

deliver valuable strategic outcomes are all too rare. This is mainly because many

initiatives encounter blind alleys, technology or resource restrictions and general

mistakes. Such efforts serve to heighten the sponsor’s personal risk, raise costs before

benefits are realised and attract criticism from line managers, who are very quick to tell

everyone they are too busy with operational matters and change initiatives to spend any

time on distractions from the human resource or learning functions.

At a systems level, understanding capability frameworks and how they help organisations

succeed is complex. Many of the internal experts promoting the solutions and seeking

executive sponsorship simply lack the requisite cognitive understanding to unravel this

complexity, and, as such, they fail to find a solid anchor point upon which they can climb

the sheer face to the summit of success.

As suggested in the above quote from Hermann von Helmholtz, an early investigative

scientist, the road towards effective systems-level solutions can be tortuous. This is

especially true for building capability frameworks. However, when it comes to summiting

the capability framework mountain, a ‘royal road’ does exist.

This white paper outlines the royal road to the summit of capability framework success. It

is based on decades of experience and over 250 engagements by the Institute for

Working Futures with global organisations, professional bodies and industries seeking to

build capability frameworks. This paper highlights that the journey to success cannot only

be shaped to match an organisation’s maturity but can also be anchored to points where

buy-in occurs at the individual, leader, executive and board levels.

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2. What Are Capability Frameworks?

A capability framework is an integrated model used by organisations to discover,

develop and recognise the capabilities and capacities required by each individual and

the workforce to deliver their shared purpose.

At the heart of the capability framework is the definition of priority capability standards. A

capability is the specification of skills, knowledge and personal attributes that can be

applied to a standard expected in work at a given level of proficiency. A capability is

concerned with the holistic view of an individual’s ability to perform in a range of contexts

and their future potential to adapt and improve.

Figure 1 The components in a capability

The contemporary approach to capability framework construction goes beyond past

mental models about the nature of work and archaic perceptions that human resources

are valued through the economic transaction expressed by paying a person to be

productive within a defined job. Fundamentally, capability frameworks challenge the

belief that future organisational success can be achieved through transactional talent

and human resource (HR) processes.

Capability frameworks require organisations to challenge and extend their thinking

beyond obsolete first industrial age mental models. Now, as we move through the fourth

industrial age, organisations can no longer ignore the fact that current approaches to

talent management and workforce development are suboptimal. They are unable to

deliver the generative adaptive capacity required to match the strategic and cultural

ambitions of organisations and societies seeking to compete in volatile markets.

From a systems perspective, the failure of traditional HR functions to evolve to develop

critical capabilities has reduced the viability of many organisations. This is evident in the

disjointed efforts to make HR more strategic, such as improving flexibility through remote

and hybrid work, moving talent towards skills-based hiring or raising recruitment by

assuring employees they can access learning and development that will open future-

proof careers. However next-generation recruits entering the workforce are concerned

with more than just being paid. Rather, they are increasingly interested in working for

organisations that have an emotionally engaging purpose or a positive brand reputation

and cultural values that show concern for people in general and society at large.2

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Table 1 Extending traditional approaches to capability building

Industrial Age

Digital Age

Strategic goals Cultural values

Job Work

Skills Mindset

Explicit (tangible) Tacit (intangible)

Profit Brand reputation

Productivity Engagement

Performance Potential

Efficiency Agility

Table 1 outlines the extended thinking required by those executives who understand that

capability frameworks are a systems-level response to complex and often overlooked

aspects to building both capability and capacity. Those responsible for authoring or

sponsoring a capability framework must extend their thinking before they can be

expected to convince senior decision-makers who are being uncooperative. Thinking that

must embrace the less tangible social and cultural aspects of the human experience at

work. This is a precondition for understanding the relationship between capability building

and capacity.

Capabilities are dynamic resources that can be developed and deployed to enhance

organisational productivity and

responsiveness to environmental change and

competition.

Capability-building efforts may initially secure gains by raising the

available capacity of the workforce to perform critical roles or finding and harnessing

latent potential of internal talent, which has been hidden or misaligned.

The capabilities being deployed are unlikely to represent the total capacity of the

workforce. Capacity represents all the capabilities possessed by employees and are thus

accessible to the organisation.4 Capacity includes capabilities associated with priority

skills, knowledge and mindsets required to deliver a range of job outcomes.5 However,

capacity also includes latent potential: capabilities possessed by an employee not

developed or deployed in their current job role. Latent potential includes each employee’s

untapped or undeveloped mindset or intangible abilities that may support the social

relationships, learning, knowledge sharing and cultural values of an organisation.

Developing visible skills for known jobs is a poor substitute for knowing the capacity

available of a workforce to perform today and to adapt to meet future challenges. This

metric will positively affect both the organisational leader’s ability to baseline the

organisation’s readiness to deliver its purpose and expand the total human capital value

reported to shareholders and the market.6

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3. Strategic Maturity and Workforce Readiness

Capability building is a systems-level activity underpinning strategic success. An

organisational capability framework must be framed in terms of its strategic maturity and

workforce readiness. In other words, capabilities must be built to meet the organisation

where it is at today.

Measuring an organisation’s strategic maturity can help identify areas where strategy,

culture or structure require capacity in advance of what the workforce can supply.

Workforce readiness is the capacity of individuals, groups and the organisation to meet

current performance targets while responding to adaptive challenges. For example, future

success is threatened if the workforce readiness is such that it neither holds nor can

develop the capacity to deliver the level of customer service or innovation required to

satisfy strategic goals.

A capability framework must raise the tide to lift performance across all people and roles

at every level of work. This means capabilities must go beyond job or technical

performance.

Investment in capability building is realised through growing workforce readiness and

improving the available capacity of organisations to meet future strategic ambitions. The

quickest way to devalue the effort and investment required to develop a capability

framework is to author capabilities that deliver improved technical outcomes, but the

employees are unready or unwilling to adapt.

The strategic capacity delivered by a capability framework can be assessed using eight

dimensions. Evaluating progress against each dimension individually and collectively will

offer insights concerning how maturity can affect what a capability framework can and

should be able to achieve.

1. Strategy – A sense of direction and purpose

2. Culture & Engagement – A sense of shared values, beliefs and identity

3. Structure – Defining the way organisational components work and interact

4. Innovation – The drive to simplify, improve and experiment

5. Capabilities – The skills and mindset held by individuals and the workforce

6. Leadership – The people responsible for engaging and stretching capacity

7. Talent – The total potential an individual brings to an organisation

8. Customer – A focus on creating value and good experiences

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Figure 2 Strategic maturity, workforce readiness matrix and organisational capability building

Figure 2 shows the Capability.Co Maturity & Readiness Index, which can be used to assess

an organisation’s strategic maturity and workforce readiness. The aim is not to suggest an

ideal ‘type’ of organisation but, rather, to determine where a capability framework can

add the most value. For instance, a future-oriented world-class capability framework can

work well for organisations operating in highly volatile digital markets that use agile

methodology and have very flat structures. However, the same approach would be

inappropriate for organisations with low maturity operating in stable markets utilising

steep hierarchical structures and matching job architecture models.

The aim is to consciously author capability frameworks that transform capacity when

either strategic maturity or workforce readiness lag behind the other. As stated previously,

capability-building must meet the organisation where it is at today.

The Strategic maturity, workforce readiness matrix shows box colours that denote four

‘waves’ of effort, moving from standardised technical-skill models to world-class

capability frameworks (left to right). The scores highlight exactly how a capability

framework can be framed.

1. Wave 1 [Bureaucratic Hierarchy, Machine and Confused] is where analysis for a

capability framework will likely challenge entrenched ideas and legacy systems.

The value of investing in a capability framework is much harder to establish unless

the organisation has an opportunity or imperative to move towards Wave 2. This is

where the organisation seeks to build a more responsive strategy, shift away from

steep hierarchies and abandon a sole focus on technical efficiency and

performance.

2. Wave 2 [Technical Competence, Middle of the Road, Conflicted] is where

capability frameworks can have the most substantial transformational impact.

Capabilities become part of the solution, moving mindsets and behaviours to

facilitate a shift in focus to culture and relations between people and customers.

This is where human elements must be included in developing leaders, such as

The Next Normal #4 DRAFT 3.0 13 June 2023

employee engagement, authentic conversations, coaching and team

development.

3. Wave 3 [Into the Storm and Advocates] is where the imperative to change is clear

and the organisation seeks to amplify investment in people and culture to improve

results rapidly. Unfortunately, at the strategic level, the change may be less

enthusiastic. At the workforce level, advocates must convince executive decision-

makers with fixed mindsets to implement changes.

4. Wave 4 [World Class] is a dynamic target. It is where a capability framework

becomes the currency used to measure available capacity in a workforce and its

readiness to deliver the strategic and cultural outcomes that support an

organisation’s purpose. Workforce readiness includes the generative capacity to

perform and adapt to contingencies.

4. Authoring a Capability Framework

Authoring a capability framework involves seven important principles.

1. Align to purpose and values: core capabilities must look beyond the job

architecture to raise the capacity of the workforce to deliver the strategy and

cultural values that underpin the organisation's purpose, brand and

competitiveness.

2. Capability is the currency: all capabilities or competencies in the framework must

be consistently framed so they can form the basis for streamlining activities across

the employee lifecycle and talent management.

3. Confirm domains: capabilities must distinguish priority-enduring organisational-

wide, non-technical human capabilities from those associated with less critical

cross-functional and leadership roles as well as from technical competencies

relating to specific job families and functions.

4. Anchor levels: all capabilities must be scientifically anchored to a consistent set of

levels. These levels must span beyond performance ratings of a person against a

competency at one level of work. Levels need to show the cumulative, lifelong

progress in learning, career and capability. The levels must be able to measure and

report capability uplift of a person and the entire workforce from entry level through

to a C-suite level of work.

5. Prioritise investment: the core or priority human and leadership capabilities must

not be too numerous. Instead, these priority capabilities are the top three to 10

capabilities that affect the most numbers of people and will directly raise overall

capacity to deliver purpose. It is often tempting to dilute the focus on priority

strategic goals and values by ‘bloating’ the capability framework with less critical,

transactional, tactical, discrete and job-level skills or competencies.

6. Align learning: capability levels must be linked to levels of work and learning. This

opens the option to recognise capability attainment with credential’s and

qualifications based on assessable evidence showing the capability standard at the

required level of proficiency obtained as a demonstrated outcome of learning, work

or experience.

7. Recognise attainment: existing in-house or third-party provider courses and

assessment must be credentialled and linked to professional certification and

qualifications, such as university degrees.

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4.1 Align to Purpose and Values

When we build capabilities aligned to purpose and infused with a deep connection to

both skills and mindset, we naturally reinforce organisational DNA. In this sense, the term

DNA is a metaphor for how culture and strategy come together in a mix unique to each

organisation.7

Organisational purpose provides a north star that guides cultural identity and aligns

collective effort during times of change or uncertainty. A capability framework must

always buttress the strategic goals and cultural pillars that deliver the capacity required

to achieve each organisation’s purpose.

An organisation’s DNA must translate into a meaningful purpose embedded within

strategy and culture that ensures WHAT it does and HOW it does it will support WHY it

exists. Fundamentally, an organisation’s purpose cannot be achieved through a

capability-building strategy focused solely on skills and performance. Rather, capabilities

must be developed alongside culturally aligned mindsets.

With permission © Capability.Co, 2023

Figure 3 The purpose-led organisational capability model

For an organisation to optimise its adaptive capacity and achieve its purpose, it must

harness the performance and potential residing within each employee.8

The capacity of a workforce to perform, respond and adapt to meet future contingencies

consists of two components: current productive capacity and potential productive

capacity. Current productive capacity encompasses the skills, knowledge or

competencies that workers, individually and collectively, possess to achieve performance

outcomes.9 Potential productive capacity involves latent potential, that is, employees’

untapped or undeveloped skills and inner abilities that have not been deployed in current

work.

An organisation’s capacity to collectively align and orient each employee’s current and

potential productive capacity resides in how strongly a person engages with the culture

and purpose to achieve performance goals and respond positively to adaptive

challenges.

Strategy typically encompasses the vision and roadmap required to achieve an

organisation’s purpose, that is, the ability to achieve priority outcomes and overcome

future challnges. A typical strategy will be encompassed in a five-year plan. Attaining the

strategic outcomes involves a range of approaches, where goals are translated into

functions, team and individual performance outcomes. The organisation structures

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processes and jobs to achieve its strategy, and, in doing so, skills or competencies will be

allocated to ensure that sufficient talent is available to optimise productive outcomes

from those filling job roles. On the one hand, skills refer to the knowledge and

demonstrable abilities that an individual possesses and applies to a particular task or job.

Performance, on the other hand, refers to the actual output or results achieved by an

individual in their job.

However, having the necessary skills is not enough on its own to secure ongoing job

performance. Moreover, the development of skills does not address how each employee is

empowered to mobilise their latent potential for their employer.

Culture relates to the ability to perform in a specific performance context and to prioritise

activities appropriate to the beliefs, values, mindset and shared identity being reinforced

through collaborative relationships and behaviours. It is the mindset (or more accurately

mental models) that shapes how each person interacts, acts, learns and establishes a

shared identity or purpose with others.10

Mindset is often explored within advanced capability definitions. This is because skills or

competencies alone are insufficient to define the disposition or capacity of an individual,

group or organisation to deploy their skills and competencies. Mindset is an innate quality

that shapes behaviour or how work is to be done.11

Accordingly, the formula for capability is infused with skills (WHAT) and mindsets (HOW)

that deliver outcomes tied to purpose (WHY).12

A capability is the sum of the cultural and strategic factors guiding performance in a

given work context. Capability building within organisations, therefore, requires five focal

points for each capability:

1. A skills criterion that delineates performance outcomes and proficiency at each

level of work or career progress;

2. Inner attributes such as mindsets, dispositions and expressed behaviours that

support the organisational values and identity;

3. Mindsets should have a causal relationship whereby the potential a person may

have to perform capabilities at a higher level of proficiency can be reliably

predicted as well as whether the person’s career path or work role is misaligned

with their innate strengths;

4. Mindsets and skills in each capability must inform future actions and reinforce the

purpose guiding organisational members;

5. While uniquely expressed in each organisation’s context, the mindset and skill

descriptors form a standard that can be consistently assessed and recognised

across organisations, industries and nations.

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4.2 Capability is the Currency

Capability frameworks are not ends but means. Sponsors of a capability-building project

should not focus on selling the detail in the framework but, rather, on simplified

sensemaking models that reflect how capabilities amplify people and culture

management. The details should stay in the shadows; they are ingredients for a range of

different recipes, not the meal. Nevertheless, detail and scientific rigour are necessary to

verify whether capabilities are acting as a systems-level shared currency connecting

initiatives across culture, engagement, talent, leadership, learning and workforce

planning.

Ultimately, capabilities reside and are developed within individuals, and then they are

expressed through an organisation. Capabilities are fundamental to how we measure and

track performance. They are critical when we need to gain a baseline on the latent

potential of each person and the workforce. They facilitate the measurement of less

visible performance factors, such as why individual leaders lack the innate ability to

engage or develop workers or how well activities such as problem solving, innovation,

creativity or customer service are positively enhanced through social relationships and a

culture embedded within the organisation’s context.13

Capabilities are all about ensuring that potential is being cultivated to deliver the

capacity required to sustain performance while accelerating responsiveness to future

opportunities or challenges.

Figure 4 Capabilities form the currency underpinning the full talent lifecycle

4.3 Confirm Domains

Capability domains can vary depending on each organisation’s preferences, and thus

distinguishing between them can be complex. Despite this, four main capability domains

can be highlighted:

Core or human capabilities encompass generic measurable skills and mindsets or

behavioural attributes that deliver the workforce capacity required to optimise

strategic, cultural or customer outcomes, e.g. adaptive mindset, collaboration,

critical thinking.

Common capabilities encompass measurable skills and mindsets as well as

behavioural attributes that can be applied across functions but not to every role,

e.g. risk management, sustainability, project management.

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Technical or professional capabilities cover the measurable skills or

competencies specific to regulatory compliance or the activities, tasks or

behaviours associated with a technical or professional function or related roles,

e.g. accounting, rail operations, cybersecurity.

Specialist covers the skills or competencies that are unique to a specific role,

location or activity, e.g. confined space welding and rail site safety.

Figure 5 Capability domains and alignment to job architecture

4.4 Anchor Levels

It is very common for capability frameworks to be built with capabilities that are

rebranded technical or behavioural competence descriptors. The sense of ‘levels’ is

internal to the competence. Levels are applied as a standardised scale, which is used to

rate a person’s performance against the competence. This is an input model focused on

assessing the person against competence requirements for a role in the job architecture.

Translated into capabilities, these legacy competencies can include a list of activities that

help differentiate each performance level for the competency. The aim is to classify

specific skill sets or competencies under different functions to accurately describe and

predict not only the requirements to perform well but also how to standardise job design,

recruitment and training.14

Capabilities focus on capability uplift, which ultimately underpins the organisation's

purpose and enables strategic and cultural priorities. Therefore, each capability sets a

standard that anchors proficiency in a cumulative manner across every level of work.

Depending on organisational needs, capability frameworks will typically standardise from

three to seven levels of work or career progress. As depicted below showing comparative

mapping across different levels of work and learning, approaches using the Human

Capability Standards Reference Framework can accommodate up to seven levels. So

long as the anchors (complexity, autonomy and influence) are preserved for each

capability, the language and number of levels can be customised according to each

organisation’s needs. The anchoring of levels in all frameworks also preserves linkages

and global comparability across standard job architecture models, qualification

frameworks and other scientifically constructed skill, competency or capability

frameworks.15

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Table 2 Capability levels mapped across job architecture (work), career and qualification frameworks

WORKING FUTURES™ HUMAN CAP ABILITY STANDARDS REFER ENCE FRAMEWORK SEVEN PROFICIENCY LEVELS

Level 1 – Follow Level 2- Support Level 3 – Action Level 4 – Guide Level 5 – Execute Level 6 – Improve Level 7 – Shape

Australian Qu alifications Framewo rk Levels & Awards

1-2 3 4 5-6 7 8 9

Certificate I-II Certificate III Certificate IV Diploma, Adv. Dip.,

Assoc. Degree

Bachelor Honours, Grad.

Cert, Grad. Dip.

Masters

Levels of Career, Professional Status, Leadership & Work

Entry Skilled Proficient Paraprofessional Graduate Advanced

Practitioner Senior Practitioner

Individual

Contributor Lead Self Lead Others Lead Operations Lead Function Lead the Organisation

Junior clerical/

production

Established

clerical/

production

Senior clerical/

production

Supervisor/

Paraprofessional

Manager/

Professional Senior Manager Executive

4.5 Prioritise Investment

Due to disruptions to work and technology, employers need to improve the capacity of the

workforce to deliver cultural and strategic outcomes over a three- to five-year period by

pulling as few levers as possible.16 Indeed, the simple principle for any effort to build a

capability framework is to avoid overengineering the framework, specifically the core

priority non-technical human capabilities that apply to all employees or leaders.

Certainly, the framework may be accompanied by or integrate technical skills and

competencies, but a large complex framework that is insensitive to the current level of

organisational maturity must avoid creating a solution with too many moving parts: the

more complex the perceived solution, the harder it will be to sell, fund, execute and

maintain.

The treatment of existing competency or skill frameworks will be determined by

organisational maturity and priorities. If job performance remains the sole focus, then

capabilities may well be a slow burn and initial efforts will focus on high-priority

capabilities that amplify performance. In this context, adding ‘new’ capabilities is a

difficult task. With executive support, a capability framework may be laminated over the

existing job architecture and competency model. The ability to replace technical or

functional skill descriptions or the prevailing ‘rules’ may be much harder, as the strategic

and cultural imperative may be absent. It is harder still to find the commitment to replace

vendors and HR systems supporting the job architecture with standardised solutions

across the talent or employee lifecycle. Unfortunately, these solutions support

transactional HR functions (recruitment, job profiling, performance, training and pay), that

inhibit transformation of the workforce to meet future needs.

Irrespective of the lag before executives embrace a ‘leap forward’, most organisations

have become more oriented towards future needs. From 2020, the highest priorities for

corporate capability frameworks include fostering:

1. Growth in turbulent markets by improving team performance, engagement,

innovation and customer focus;

The Next Normal #4 DRAFT 3.0 13 June 2023

2. Adaptive capacity or ability to change at speed by growing the capacity to learn,

absorb and share knowledge;

3. Customer orientation of brand reputation through improved customer focus,

empathy and communication;

4. Digital and data capability, particularly in relation to improved decision-making,

data analysis, security, storytelling and the customer experience;

5. People orientation through improved cultural alignment, collaboration and

engagement;

6. Deep cognitive capabilities such as systems thinking or innovation through

improving problem solving, critical thinking, creativity and adaptive mindsets.17

Addressing leadership capacity is universal to the above priorities. The nature of

leadership skills and mindset has shifted. Regardless of maturity or transformation stage,

organisations build capabilities sensitive to the capacity of their leaders to translate

organisational purpose into action.

4.6 Align Learning

Capability building requires aligned learning and development solutions. Although

learning is so often the poor cousin of ‘C-Suite’ investment in future success, capability

frameworks provide a compelling raison d’etre for more attention. This attention can lead

to greater buy-in when the investment in learning and development shifts from

measuring learning outcomes to reporting capability uplift.

The cognitive and performance aspects of each capability lends itself to advising

employees and their supervisors as to the best types of development solutions. The

70:20:10 approach is an indicative framework that suggests the best combination of

learning or development experience. The approach encourages greater awareness that

learning and development – particularly when conducted informally in the workplace –

requires the development of both skills and mindsets to optimise performance and

engagement.18 Applied correctly, even informal learning or in-house training can be

aligned with attainment of a human capability standard that can be formally recognised

using a micro-credential that carries a credit into a formal qualification.19

Table 3 shows the 70:20:10 development references that can be used to identify and

discuss when and where peer learning (including coaching) will help an employee

develop the capabilities that they and the organisation will need for their current role or a

future career opportunity.

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Table 3 Capability development and 70:20:10 options

Learn Through Experience

Learn Through Others

Learn Through Education

When should this approach be chosen?

Best for on-the-job informal learning

where the focus is on capability

development through applied

practice; also ideal for mindset and

behavioural development.

Best for peers to coach and transfer

informal (tacit) knowledge or behaviours

that are highly contextual or not captured

in books or manuals. This authentic

experience is ideal for modelling

behaviours and picking up site-specific

cultural nuances, compliance

requirements or performance standards.

Best for formal off-the-job recognised

learning that transfers codified

(explicit) knowledge. This focus is

often ideal for transferring specific

technical skills, regulatory knowledge

and professional-practice

requirements.

How can the leader help?

Identify and leverage job opportunities

that could help team members

develop skills that the organisation will

need in the future, including projects

and secondment opportunities.

Provide challenges, rotations or job-

shadowing opportunities to see how

others interact, build relationships,

behave and apply mindsets.

Become a broker of learning – work within

your network to identify opportunities for

team members to work in other teams or

rotate into roles to gain broader

experience and build their capabilities.

Be the coach or role model for a team.

Provide personalised career development

experiences, such as job shadowing and

on-the-job learning, and take advantage

of mobility opportunities, such as

secondments and temporary

assignments.

Encourage team members to collaborate

and work in peer coaching or mentoring

models that may involve experiments or

activities where they can share

knowledge, learn from failure and reflect.

Match capabilities and levels of

proficiency to level of education. Map

programs to capability uplift and

credentials. This includes in-house or

those available from providers (e.g.

vendors, training or university

providers).

Source funding based on capability

uplift or engagement and ‘back-fill’

resources to allow the candidate to

attend formal learning sessions.

Source self-paced online or

masterclass sessions provided by the

organisation to shorten cycle time to

capability uplift.

4.7 Recognise Attainment

Instead of running learning programs to assess and recognise education or learning

outcomes, many large employers are using micro-credentials20 to validate and recognise

where employees possess a capability to the standard expected at a level of work.

Validation of capability involves assessing capability (skills and mindset) acquired

through structured learning or lifelong learning (including informal and non-formal

learning or experience).21 The attainment of a micro-credential against human-capability

standards can, for example, assure the credential holder of ‘credit’ or advanced standing

into a bachelor or masters degree when entry requirements for the nominated university

and course are satisfied.

Recognition of capability attainment is an important factor for individuals and every

employer. From a talent management perspective, issuing micro-credentials that

recognise desirable capabilities makes the credential holder more employable. This

affects existing employees, contractors and graduates or other potential recruits.

Learning outcomes or qualifications no longer need to be the focal point when

recognising outcomes from investing in education or the development of people or

leaders. Instead, learning can become the scaffolding that assists some employees to

acquire the knowledge and confidence required to perform beyond their current level of

capability. Credentialling a person’s ability to perform a capability to an agreed standard

The Next Normal #4 DRAFT 3.0 13 June 2023

affects the perceived time and effort an employer can expect to invest until competent

performance is achieved. This replaces the historical view that a qualification is the only

‘tradable’ credential to confirm both a person’s ability to perform productively and their

long-term potential.

The biggest potential failure of using micro-credentials to develop and recognise

capability is when the credentials have no relevance beyond the current employer. To

overcome this, the level of proficiency for a capability standard must be aligned with the

requirements for a qualification and cover a mix of highly transferable and employable

human-capability standards as well as role-specific technical capabilities. In this way,

credentials may be discrete to an organisation, however, the underpinning capability

(and its recognition) is globally portable and tradable through consistency across

standards expected at a level of work as well as in formal qualifications.22

5. Why Use the Human Capability Standards Reference

Framework?

The capability taxonomy and models that underpin the Working Futures™ Human

Capability Standards Reference Framework (HCS) have been used for over two decades

by organisations, education institutions and professions seeking to build high-performing

future-ready workforces.23

The HCS acts as a Rosetta Stone. It is used across the globe to provide a ‘standard’ to

compare skills acquired through learning, work or experience. The HCS has been used to

help recognition authorities, education institutions, employers, employment agencies and

individuals to identify, compare, verify and recognise skills, knowledge, personal attributes,

qualifications, digital credentials and learning achievements. It provides currency

organisations, governments and professional associations with the ability to determine

their available human capital and the future readiness of their workforce.

Since 2012, core research by the Institute for Working Futures has sought to build

systematic understandings through investigating common language, clusters, groupings

and related definitions of skills, behaviours, competencies and capabilities used by

organisations, educational providers and national agencies that classify jobs and skills.

The main aim has been to find similarities and establish a set of common foundation

capabilities that represent them best. In this regard, a data mining approach harnessing

Latent Dirichlet allocation has been widely used, as it is amongst the most successful text-

analysis models developed within large language machine-learning algorithms.24

The HCS provides a consistent benchmark for older frameworks to confirm gaps or to

accelerate the authoring of new additions. This is made possible because the standards

permit contextual variations in language, evidence and assessment to accommodate the

organisation’s culture and values. However, by preserving the level against which each

capability standard is anchored, the organisational capability framework can

immediately:

• Unlock the comparative benefits of standard job architecture models;

• Improve the profiling of individual’s in terms of mindset and potential;

• Ensure that capability-standard assessment for all work levels takes place within

normal workflow;

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• Access credentials for capability attainment that carry credits into qualification

frameworks;

• Streamline opportunities for professional recognition or personalised career

advice.

The 2023 Working Futures™ Human Capability Standards Reference Framework is the

fourth version and lists the top 13 capability standards found in the core and leadership

domains and dominate profiles for existing and emerging jobs.

Figure 6 Human Capability Standards Reference Framework 2023

The HCS lists a range of essential capabilities for growing the performance and potential

of each individual. It provides a consistent approach for assessing and developing these

capabilities to the agreed standard of proficiency.

Capabilities in the HCS are sorted into four main domains:

The Head domain includes capabilities related to critical thinking, creativity and

adaptive mindset. These capabilities require individuals to challenge and change

existing thinking or practices as well as to be confident, curious, resilient, self-

aware and to continuously learn when faced with adaptive challenges.

The Heart domain includes capabilities related to ethics and empathy. These

capabilities are essential when reinforcing how people emotionally engage in

work, careers and the organisation’s purpose.

The Hands domain includes capabilities related to communication, collaboration,

customer focus, problem solving and data. These capabilities are essential for

working effectively with others, constructing meaningful relationships with

customers and stakeholders, making informed decisions and building high-

performing teams.

The LEAD domain includes the factors of Leadership (L), Engaging and coaching

(E), Agile and innovation (A) and Direction and purpose (D). As the nature of

leadership has evolved and spread across all roles and levels of work, these

capabilities have evolved from a separate leadership capability framework to

become part of the HCS. They focus on how leaders create authentic connections

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with people, inspire and model behaviours, engage others in achieving a shared

purpose, innovate, overcome adaptive challenges and achieve results.

Research confirms that future employability is increasingly emphasising the importance

of human capabilities – or what have been variously classified as indistinct skill groupings

such as transverse, non-technical, 21st-century, enduring, foundation, or soft skills.25 Before

2030, it is expected over two-thirds of job roles will require robot-proof human capabilities

that mix skills with attributes which are deeply rooted in each person’s innate disposition

and cognitive abilities.26 27 28

Research into capability development for organisations and professions has shown that

human capabilities are the non-technical robot-proof skills and mindsets that enhance

the adaptive capacity and responsiveness of an individual, the workforce and, therefore,

the organisation.29 By including human capabilities within the core or strategically critical

capabilities, employers can identify and develop enduring human-centric, future-proof

skills and mindsets that enhance current performances as well as the capacity to adapt

and change.

As indicated in Capability mix by level of work, with over two-thirds of next-generation role

profiles involving these non-technical transverse human and common capabilities, it is

possible to plan and predict the shape of work and career pathways even before they are

given titles.30 The mix of capability standards that are core to all roles (human or non-

technical) or common to a function or work role (e.g. leadership, digital acumen or data

fluency) can co-exist with technical competence or skills.

Figure 7 Capability mix by level of work

Common capabilities include skills, behaviours or capabilities that are usually critical for

strategic success but not core to all employees at all levels, e.g. leadership, risk

management, data analysis, project management and sustainability. This is a fast-

growing group, as companies are seeking to promote talent mobility across professional

or functional domains as well as to support flatter structures that use cross-functional

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teams or agile squads and chapters. Research has indicated that capabilities in the

common domain use language that is already classified in the technical or functional

domain. Data collected over the past decade suggests that common capabilities include

those that have previously been or may in the future become core capabilities.31

Knowing both human core capabilities and the cross-functional common capabilities

that apply to an organisation, such as defined in the Common Capability Standards

Reference Framework listed in the table below, helps to predict future work profiles and

proactively organise talent and learning requirements.

Table 4 Common Capability Standards Reference Framework 2023

Digital Acumen

Risk Management

Able to use digital technology to undertake workplace tasks and

outcomes.

Enhances and assures the organisation’s management of risk and related

governance requirements.

Data Fluency

Project Management

Systematically analyses and investigates data to find patterns or extract

improved knowledge or insights.

Plans and manages projects to efficiently targets and requirements.

Cybersecurity

People & Performance Management

The ability to protect IT infrastructure, systems and/or the business from

cybersecurity risks and threats.

Manages performance and the capability development of individuals and

groups in order to build individual and organisational success.

Lifelong Learning

Governance

Able to identify and continuously develop one’s own knowledge, skills and

personal attributes such as mindset and motivation.

Able to build and operate within robust governance system, structure and

processes.

Cultural Awareness

Change Management

Able to engage others with sensitivity and regard for diversity and the

social or cultural differences influencing behaviour.

The ability to envision, lead and champion change projects. This includes

modelling positive attitudes to change and inspiring others to accomplish

change.

Resilience & Courage

Sustainability

The ability to successfully adapt and cope when faced with adversity,

disadvantage, stress or anxiety.

The ability to adapt and act sustainably, particularly with regards to the

environment conditions and how choices today can affect future

generations.

Judgement and Decision Making

Process Improvement

Analyses information and data to makes judgments and well-informed,

effective, and timely decisions.

Improves process efficiency and enhances the overall quality of products,

services or systems.

Results Orientation

Relationship Selling

Takes action to maximise and effectively focus effort and resources to

achieve superior results and outcomes.

The ability to build customer relationships and actively works with each

customer to sell products and services that continually meet their needs

and desired outcomes.

Teamwork

Workplace Safety

Builds and cooperates with others in a team to deliver the planned

outcomes.

Understands, encourages and implements the principles of integrated

workplace health and safety.

Financial Fluency

Supply Chain Management

Able to access, manage and interpret relevant financial information to

support and control performance.

Able to identify and manage external suppliers to ensure successful

delivery of products and services required by the organisation.

Innovation

Coach & Mentor

Stimulates and promotes innovation. This includes being able to identify

and address root causes and connections between situations that may

hinder innovation or limit efforts to transform thinking and practice.

Conducts and oversees coaching and mentoring to raise performance,

improve mindsets or confidence, and unlock the future potential of

individuals.

6. Achieving Buy-In

Securing sufficient resources to undertake a systems level, organisational-wide effort to

build workforce capabilities and capacity uplift requires executive support and

perseverance.32 Without a ‘burning platform’ issue – for instance, unknown consequences

of workforce disruption or rapid sustained change that threatens viability – gaining buy-in

is difficult. This section examines some ‘fulcrum’ issues, upon which the organisational

commitment to take a systemic approach to delivering core technical purpose can be

levered to become more collaborative, customer focused and responsive to change.

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Earlier in the paper, it was confirmed that a capability framework must deliver capacity

building across eight dimensions spanning strategic maturity and workforce readiness.

Gaining buy-in to a capability framework can also be examined against the same

dimensions used to assess organisational strategic maturity and workforce readiness.

Remembering that capability building is a systems-level activity, gaining buy-in against

any of these dimensions can be linked to the organisation’s purpose and wider strategic

and cultural imperatives.

As depicted in Table 5, advocacy and buy-in will vary with the strategic maturity and level

of overall workforce readiness. In understanding what a capability framework can

realistically achieve, we must consider the priorities influencing executive level decision-

makers.

Table 5 Critical questions about capability building mapped to organisational maturity and readiness

Dimensions

Level of Strategic Maturity & Workforce Readiness

Awareness Progressing Advanced

Strategy

Do we have an up-to-date

mission statement and ability

to deliver our goals?

Do we have the capacity to

deliver growth targets and

transform to meet our future

Objectives & Key Results?

Can we measure whether

employees in disparate teams and

models of work have mindsets and

personal dispositions aligned with

the organisation’s purpose?

Culture &

Engagement

Can we get more reliable

insight into how we can recruit

people who fit our culture?

Can we determine a baseline

showing whether our workforce

has the mindset and disposition

to support our culture and

values?

Can we use existing culture

auditing, employee engagement,

Employee Experience or brand

reputation results to prioritise

changes to leader or employee

mindsets?

Structure

Can we measure the skills and

knowledge of people against a

role description from our job

architecture?

Can we determine a baseline

showing whether our workforce

has the skill to support our

strategy?

Can we rapidly select and

reconfigure employees’ roles and

activities across roles, functions,

projects or missions?

Innovation

Can we isolate activities that

promote knowledge capture,

sharing and use to stimulate

innovation or improvement?

Can we stimulate more rapid

innovation and experimentation

to drive knowledge creation and

new market opportunities?

Can we build a culture of

continuous experimentation and

rapid innovation through

appropriate behaviours and

mindsets?

Capabilities

How do we identify, develop

and assess both skills and

behaviours in relation to

outcomes in specified job

profiles?

Can we identify and report a

baseline regarding capabilities

that deliver cross-functional

outcomes across all job roles?

Beyond the technical skills

described in the job architecture,

can we predict and adapt our

workforce to meet critical future

strategic or work requirements?

Leadership

Can we identify high-potential

managers or leaders with the

potential to succeed into

executive roles?

Are our managers able to grow

technical performance and

promote employee engagement,

motivation and team

development?

Are leaders actively developing the

potential of individuals to perform

today and engaging them in a

career pathway where they can

flourish?

Talent

How do we assess and profile

the full potential of individuals

at the point of hire?

How can talent be seen as a

strategic function enhancing the

HR lifecycle (hire, development,

performance, learning and

reward)?

Is talent management actively

seeking to mobilise internal talent,

build EX and create external career

corridors to fill future workforce

shortages?

Learning

Can we identify and map a

person’s learning needs to

either a skill or behavioural

solution?

Can we identify a person’s

learning and development

(70:20:10) needs to the specific

capability and level of

proficiency required for a job?

Can we develop both a person’s

skills (what) and mindsets (how)

to not only perform in a role but

also to learn and grow to fill future

talent needs?

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6.1 Strategic Maturity

6.1.1. Gaining Buy-In: Strategy

Capability building can directly contribute to strategic goals and support efforts to raise

strategic maturity in several ways:

• Adaptive capacity: by embracing non-technical transferable capabilities,

organisations can build a workforce that is resilient and capable of adapting to

change. Measuring adaptive capacity is interwoven with measuring leadership,

learning and the absorptive capacity resident in an organisation.33

• Brand reputation: organisations that prioritise people and create a positive work

culture are more likely to have a positive brand reputation. This is reflected in

increased trust and loyalty scores in Pulse, Net Promoter Score (NPS) or similar

customers surveys. It may also be built into the employee value proposition (EVP)

and surveying of potential recruits.

• Ethical, sustainable and socially responsible business practices: organisations

that are people centric are more likely to prioritise ethical, sustainable and socially

responsible business practices. This can lead to a more sustainable and socially

responsible business model, which is increasingly important to potential recruits,

employees, customers and shareholders. Measurement can be reflected as an

outcome of capability deployment through ratings and surveys used for

‘environmental, social, and governance’ frameworks and standards; people

metrics such as employee diversity, health safety/environment records,

community engagement and board composition; or physical metrics such as

attainment against carbon emissions, energy consumption or peer benchmarking.

• Workforce capacity: this involves dashboard tracking of overall human capital

value of the workforce and the Future Readiness Index. This includes reporting the

baseline on available workforce capabilities to executives as well as the levels of

deployed capacity and latent potential, the number of existing staff with the

potential to succeed into roles that are being created or face shortages and the

uplift in transferable human capabilities and technical competencies by person,

work role, level, function and the organisation.

• Future readiness: this is embedded in adaptive capacity and the ability to raise

workforce capacity. The best aggregate metrics include meeting targets for

employee attainment of priority capabilities and resulting credentials and the

number of employees holding strategically vital capabilities at defined levels of

proficiency, which allow them to advance to critical areas of talent shortage,

leader roles or projected work roles being created in the future workforce.

• Customer experience: organisations that prioritise human capabilities are better

positioned to meet the needs and expectations of their customers. By

understanding and empathising with customers, organisations can design and

create human-centric products and services. The outcomes from capability uplift

in this area are as diverse as the data that can be collected, such as improved

results in the customer satisfaction score, net promoter score, customer effort

score, response times, levels of service, churn rates, customer relationships and

retention scores.

• Human capital value: human capital value (HCV) is often used to provide an

aggregate perspective on the value of the organisation’s available workforce

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capacity. It is the sum of the Current Productive Capacity plus the Potential

Productive Capacity held by employees in a workforce.34

The HCV can be visualised in a capability dashboard. The capability dashboard is a

powerful tool used by executives and senior people as well as culture or capability

professionals to effectively manage and optimise workforce development. Insights in this

area can help strategic decision-makers to make informed decisions, prioritise

investment in capability development and track results. These results can be configured

to illuminate current performance as well as future readiness.

6.1.2 Gaining Buy-in: Culture and Engagement

Culture and engagement involve forming human relationships around a purpose that

provides a compelling sense of shared futures and shapes strategy – one that is

underpinned by the formation of a cultural identity that attracts recruits and raises

employee engagement through aligned beliefs, values and mindsets.

Culture and engagement:

• Cultural survey results;

• Employee engagement/employee experience results;

• Number of employee separations expressing a lack of development, leader

behaviours or engagement as reasons for exiting;

• Number of leaders with profile results identified as reinforcing desired mindsets,

behaviours and cultural fit;

• Numbers of recruits with profile results identified as reinforcing higher potential

mindsets and cultural fit with employer and area of work;

• The effect of leadership and credentialled learning on overall EVP as well as

employee satisfaction or experience measured through approved pulse or similar

surveys.

6.1.3 Gaining Buy-In: Structure

Capability frameworks play an important role in terms of organisational structure. They

include:

• The capacity to adopt flatter structures or agile methodologies. Flatter

organisations are typified by a need to move beyond upward promotion through

rewards and recognition, such as globally portable credentials, improved

professional status and tangible linkages of development to promotion and career

pathways.

• The number of cross-functional or transferable capabilities that enhance:

o The number of individuals or teams acquiring technical skills or capabilities

required to participate, collaborate and innovate in new models of work

and/or new structures, processes or methodologies.

o The number of internal recruits mobilised (ready) or appointed vacancies,

particularly those classified under critical shortage. This can be observed

after redesigning internal promotion, talent mobility and personal

development approaches to reward and foster employee engagement in

lateral movement across functions, missions, groups or career trajectories.

• Number of employees ready to fill new or emerging roles.

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6.1.4 Gaining Buy-In: Innovation

As mentioned, human beings are creative and innovative, and, by prioritising people,

organisations can tap into the full potential of their workforce, drawing on their collective

wisdom to experiment, learn and generate new ideas and solutions. Although innovation

and experimentation are complex and multifaceted concepts, typical metrics may

consider the following:

Innovation and creativity:

• Research and development spend;

• Number of patents or registered intellectual property;

• Number of research personnel;

• Innovation/creativity culture-audit results;

• Speed from idea to product release;

• Number of human-centred design activities or experiments;

• Attainment of nominated capabilities (e.g. creativity, innovation and adaptive

mindset) represented by micro-credentials issued in aggregate and at certain

levels of proficiency.

6.2 Workforce Readiness

6.2.1 Gaining Buy-In: Capabilities

First and foremost, finding the few high-priority human capabilities that affect

performance and engagement across the entire workforce requires investment in the few

levers that can be manipulated to deliver success. These are the basis to answering the

following:

• Do we have the workforce capability and mindsets willing to adapt, learn and

rapidly shift to new work roles or areas of talent shortage?

• How much capability in our existing talent is latent or hidden in the wrong functions

or occupational streams?

• How can we target and use development and career progression (succession) to

raise the employee experience and enhance attraction (through EVP), retention,

recognition and well-being?

The skills and mindsets held by individuals and the workforce are prime indicators with

respect to the capacity available to deliver the organisation’s performance and purpose.

The following are the most common metrics used to measure how investment in

capability building will advance the readiness of a workforce.

• Number of people available to competently fill existing roles (skills auditing and

training needs analysis);

• Succession in terms of number of people ready to fill higher roles or numbers of

internal applications per vacancy;

• The availability of latent talent that could be deployed to fill shortages (employee

and workforce skills and mindsets not being harnessed in existing work);

• Number of employees with a profile indicating a flourishing career if they stay with

the employer or opt to enter areas with talent shortages;

• Conversion rate of latent potential into available capability through developing

and credentialling capability attainment (numbers, proficiency level and type of

capability);

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• Conversion rate of employee with potential using development plans and

succession to move into higher roles.

6.2.2 Gaining Buy-In: Leadership

Leadership development is the most frequent reason for the development of capability

frameworks. Leadership is also the most popular choice when the initial pilot is used to

test and activate a new capability framework.

Leaders do not ‘suddenly’ emerge once they fill leader job role. As research has shown,

leadership attributes do not appear when a person reaches a more advanced level of

career progression.35 Therefore, future-ready organisations must assess everyone on

recruitment or at early career stages to confirm whether their mindset and behavioural

profile confirm high leadership potential.

Leadership capability uplift can be measured using the following approaches:

• Levels of leadership training involving leadership content and programs tailored

for each required leadership capability at every level of proficiency and career

progress.

• Spotting latent leadership potential relates to the number of employees with a

profile indicating they can flourish in a leadership role or career. This assumes the

execution of an unbiased scientific assessment of each person’s mindset or

behaviours, rather than reliance on objective supervisor opinions expressed

through a performance-review process. Raw measurement may include numbers

of high-potential employees (HIPOs) in a leader program or with their own

development linked to a leadership succession plan.

• Credential hidden or unrecognised leadership capability by tracking the number

of existing employees performing well in roles requiring certain leadership

capabilities or finding those who have completed prior learning or have

experiences that can be credentialled.

• Total leader capability uplift relates to the number of employees that have

achieved leadership capabilities and the resultant credentials and qualifications.

This measure requires leadership programs have content and assessment that

produce a tangible capability uplift.

• Behavioural change of leaders is another way to measure leadership capability

uplift. This can include tracking using oblique measures, such as culture auditing

and satisfaction or engagement of employees, in a leader’s area of responsibility.

It could include measuring the number of leaders with capability profile results

identified through the completion of a scientifically validated and predictive

assessment profile and a subsequent report (reported by individual, area, level,

group or organisational wide).

• Regard for personalised development by tracking the number personalised

development plans by leader/area of operation. This can be integrated into a

leader’s performance-review targets.

• Performance evaluations where an individual’s current leadership skills or

competencies are assessed against role requirements to identify areas where they

need to improve their leadership capabilities.

• Leaders as coaches can be promoted by having leaders credentialled for

satisfying the coaching and development capability. This approach confirms

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leaders who can coach employees and develop each person’s skills and mindsets

to the agreed standard.

• Succession planning is another way to measure available leadership capability by

identifying and developing HIPOs who can move into high-level leadership roles in

the future. The number of existing HIPOs ready to move into higher roles is a

common way to measure success and avoid costs associated with recruiting

talent external to the organisation.

6.2.3 Gaining Buy-In: Talent

Employees who feel valued and supported by their organisation and leaders are more

engaged, perform better and stay longer.36 By focusing on human capabilities and

creating a positive work culture, organisations can improve the 4Rs (recruitment,

retention, reskilling and recognition), leading to a more stable and productive workforce.

Talent shortages – Mobilising talent

Creating a talent marketplace is all about bridging talent supply and demand. With the

help of artificial intelligence (AI), the aim is to find hidden talent and boost efforts to

identify and retain talent who are at risk of leaving their employers.37 This is achieved in

internal talent marketplaces by accurately profiling technical skills and human

capabilities held by an existing employee to establish whether an improved career

pathway, development assignment or growth opportunity exists. The candidate can then

be nudged towards these opportunities.

In a reverse use of the internal talent marketplace, companies faced with critical areas of

talent shortage can deploy talent platforms with sophisticated AI and machine learning to

find suitable candidates. Many of the candidates may not possess all the technical skills

but do have a strong match to all other capabilities. This approach can overcome the

costs associated with sourcing an external candidate who may have the technical skills

but lacks the required human capabilities and associated cultural fit and thus may take

greater time and investment to achieve competent performance.

Recruitment:

• Number of applicants with a profile that satisfies the competency and capability

requirements. This confirms the need to recruit for mindset, potential and cultural

fit, not just skills, qualifications and prior experience;

• Number of applicants with profile and a career explorer report confirmed as

having long-term potential in the organisation. This raises EVP and deliberately

expresses personalised regard for development that results in access to

credentials and qualifications that can be achieved at work;

• Numbers of applications per vacancy;

• Applicant-to-hire ratio.

Retention:

• The number of people on long-term personal development plans spanning more

than one level of career or work;

• Number of HIPOs identified with ability, engagement and aspiration to rise to

succeed into leadership or senior positions.

Reskilling:

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• Number of employees with latent potential exceeding that deployed in their

current role, career or level of work;

• Number of employees developing their latent potential to raise their demonstrated

level of proficiency in a capability targeted by the organisation as being core to its

overall purpose and success;

• Number of employees attaining capability uplift in total and by level or area of

work;

• Career corridors leading people with misaligned capability from an existing

function or area of the business to an area where critical talent shortages or

vacancies sought by the employee exist.

Recognition/reward

• Number of employees credentialled for capability attainment and achieving credit

towards qualifications mainly acquired through learning or work experience;

• Number of employees achieving professional-development points and improved

status with their profession through work and learning;

• Number of people with ‘tickets’ or compliance and regulatory outcomes through

capability attainment;

• Satisfaction or engagement of learners;

• Learning and development participation rates;

• Learning completions and percentage opting to obtain the credential;

• Success ratio of applications for assessment for a credential;

• Credential attainment over time and by group;

• Educational qualifications attainment by group.

6.3 Gaining Buy-In: Learning

When considering gaining buy-in and elevating the strategic and cultural contribution of

learning, it is important to reorient the purpose of learning. No one should reduce the

perceived value of learning as a corporate capability. However, gaining the attention of

senior decision-makers is often enhanced when learning advocates can find the burning

platform where the skills and competencies focussed on job roles:

• Fail to promote movement of workers across functions;

• Are so numerous they dilute focus and are very hard to maintain;

• Emphasise performance that any competitor can replicate;

• Ignore employee engagement or wellbeing;

• Do not reflect the cultural values or ‘how we do it here’;

• Establish learning and development approaches locked into vertical disciplines

that are misaligned with emerging work design and career pathways; and

• Cannot measure the value of the person beyond their current work role.

Vocational providers cover the technical skills required in classified occupations and job

roles, and, in this context, schools and universities are under increasing pressure to play a

greater role in preparing graduates for work. This includes developing attributes that allow

graduates to better adapt to work roles that do not conform to existing disciplines.

Unfortunately, the delays in graduates becoming role productive have been lengthened

due to horizontal misalignment between graduate disciplines and job shortages.38

Students who gain employable human capabilities and mindsets through integrated

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learning, bootcamps, internships or work placements can become attuned to the

workplace culture and are highly productive.39

Some areas were beyond the scope of this white paper. The ensuing Next Normal White

Paper no. 5 will examine the factors that are essential for successful corporate learning in

a world typified by increased complexity and technological disruption. A world where the

behaviours and mindsets of employees are the driving force behind innovation and

growth.

7. Conclusion

This paper is the fourth in the Next Normal series. Based on over 30 years of practice, six

unequivocal insights were offered for organisations seeking to develop a capability

framework:

1. Prepare your capability framework to ensure it sets standards and expectations

that meet the organisation at its current level of maturity.

2. Build the organisation’s DNA into capability standards by ensuring they align with

purpose and use long-term strategic goals and cultural values to shape skill and

mindset outcomes.

3. Keep an eye on the talent lifecycle to ensure the approach being used amplifies

efforts to grow priority capabilities from recruitment through to retention, reskilling

and recognition.

4. Profile each employee to identify mindset and latent potential using a scientifically

validated instrument.

5. Anchor each level of proficiency and assure learning or experience contributes to

demonstrable capability uplift that can be recognised with a credential carrying a

credit into a formal degree.

6. Remember, capability building is a continuous process. The aim is to enhance the

generative adaptive capacity of the workforce and thus of the organisation, not

only to perform but to learn and adapt to meet future contingencies.

The most important insight into activating a capability-building activity is the need to

challenge the industrial-age metal model that the value of a human resource is only

evidenced through a person’s ability to be productive within a defined job. This form of

short-term thinking promotes transactional talent and HR processes tied to standardised

job architectures and job performance models that pay no regard for the latent potential

within each person beyond the role they fill. It is only when capability frameworks boost

engagement, mobilise talent and develop aligned mindsets that an organisation can

liberate the available workforce capacity and supercharge the delivery of their strategic

and cultural ambitions.

The Next Normal #4 DRAFT 3.0 13 June 2023

8. Glossary

Capabilities

Description

Capability

Framework

A capability framework is an integrated model defining the essential skills, knowledge and

personal abilities, such as mindset and behaviours, required by a workforce to deliver the

capacity required by an organisation or entity (e.g. a profession) to deliver its long-term

strategic purpose. The capability framework will establish a standard of performance and

personal disposition for each capability, competency or attribute across scientifically

anchored levels of proficiency.

Core Capabilities

Core capabilities detail the essential factors that drive success across functions and roles.

They establish the critical skills, knowledge and human behaviour or mindsets required for

each individual to grow the organisation’s current capacity to perform and enhance its

capacity to adapt to meet future needs.

Leadership

Capabilities

These are the capabilities required by organisational leaders to achieve outcomes, which are

encapsulated in the long-term strategic objectives and cultural values. Although they are

cross-functional common capabilities, it is not uncommon for previously classified leadership

capabilities to become core to the entire workforce, e.g. problem solving and adaptive

mindsets.

Common

Capabilities

Common capabilities are the skills, knowledge and personal attributes required across many

but not all job roles or functions at most levels of work. Leadership capabilities may be

common but, typically, the category includes technical competencies or capabilities that

extend beyond their professional or functional domain and have relevance to many

employees in the organisation. They are usually identified because they are critical for

strategic success or to enhancing the mobility of workers between functions, e.g. risk

management, project management, sustainability and data analytics.

Technical

Capabilities

These are specialised technical skills, knowledge or competencies required for a particular job

role, function or profession. They capture technical skills or behaviours that are unique and

required by an incumbent of a job role to achieve the expected standard of performance.

Competencies

These include the defined skills, knowledge and, in some approaches, the attitude or

behavioural attributes required by a person to work effectively in a job role, function or

vocation.

Skills

Skills are the granular building blocks defining areas of expertise required to perform defined

tasks and activities. They can be aggregated into skill sets, competencies or capabilities.

Activities & Tasks These are the defined output within a job or responsibility; they are used to orient and sort the

requirements for skills and learning.

Mindset Mindsets are an individual’s inner dispositions and attitudes, usually typified by acceptance of

other beliefs, cultural values and ways of thinking.

Behaviour Behaviour is the way people act.

Proficiency Levels Proficiency levels are demonstrable standard for capabilities defined at different levels of

complexity, autonomy and influence.

The Next Normal #4 DRAFT 3.0 13 June 2023

Endnotes

1 As cited by Sacks, O. (1997). Scotoma: Forgetting and Neglect in Science. In R. B. Silvers (Ed.), Hidden Histories of

Science, pp. 141–188, London: Granta, page 167.

2 Lowisz, S. (February 10, 2020). Why purpose is crucial for organizations in 2020, Forbes. Retrieved 2 Febrary 2023

at https://www.forbes.com/sites/forbeshumanresourcescouncil/2020/02/10/why-purpose-is-crucial-for-

organizations-in-2020/

3 The definitional issues are covered in greater detail in the first paper in this Next Normal series. Bowles, M.

(March 1, 2023). Capabilities and the next generation of work, Next Normal 1, Institute for Working Futures &

Capability.Co. Available at http://capability.co.

4 Bowles, M. (1999). Human Capability Development, Sydney: Andermark, page 27.

5 Bowles, M. & Lanyon, S. (2017). Demystifying Credentials, Melbourne: Deakin University.

6 Bowles, M. (May 1, 2023), Capability building and organisational adaptive capacity, Next Normal 3, Institute for

Working Futures & Capability.Co. pages 4 & 6. Available at http://capability.co.

7 Bonchek, M. (December 12, 2016). How to Discover Your Company’s DNA. Harvard Business Review. Retrieved 10

May 2023 at https://hbr.org/2016/12/how-to-discover-your-companys-dna

8 Adaptive capacity is covered in Next Normal No. 3, Bowles, 2023. Available at http://capability.co.

9 Bowles, 1999, page 144.

10 Whetten, D.A. & Godfrey, P.C. (Eds.) (1998). Identity in Organizations: Building Theory through Conversations,

Thousand Oaks: Sage Publications.

11 Spencer, L.M. & Spencer, S.M. (1993). Competence at Work: Models for Superior Performance, New York: John

Wiley & Sons, Inc.

12 Capability.Co (2023). Capability Playbook, Sydney.

13 Colemam, J.S. (2009). Social capital in the creation of human capital. Chicago Journals, 94, 95-120.

14 Boyatzis, R. (1982). The Competent Manager: A Mode for Effective Performance, New York: John Wiley & Sons,

page 13.

15 Original reference framework was issued in 2012, Capability.Co (2023). Human Capability Standards Reference

Framework 2023, Fifth Edition, Enterprise edition, Sydney. Available at https://capability.co/human-capability-

standards.

16 Bowles, March 2023, Next Normal No. 1, page 9

17 The Institute for Working Futures (May 2023). Authoring Capability Frameworks, Capability.Co Masterclass,

Melbourne.

18 Jennings, C. (1996). Working Smarter using Informal Learning and the 70:20:10 Framework, Duntroon

consultants. Retrieved 1 May 2023 at http://communautesdepratique.org/wp-

content/uploads/2015/08/Jennings-Working-Smarter-and-the-70-20-10-framework.pdf

19 Bowles, M., Brooks, B., Curnin, S. & Anderson, H. (May 2023). Application of microcredentials to validate human

capabilities in a large telecommunications organisation: Strategic transformation to a future-ready workforce.

International Journal of Information and Learning Technology, https://doi.org/10.1108/IJILT-05-2022-0102.

20 A micro-credential is a form of certification or recognition that has an agreed credit value or advanced

standing within a larger macro-credential (the diploma or degree qualification).

21 Bowles, Brooks, Curnin & Anderson, 2023

22 Capability.Co (May 2023). Human Capability Standards Reference Model, Corporate Edition, Sydney: The

Institute for Working Futures.

23 Capability.Co, 2023.

24 Ihler, A. & Newman, D. (2012). Understanding errors in approximate distributed Latent Dirichlet Allocation. IEEE

Transactions on Knowledge and Data Engineering, (5), 952.

25 George, R. A., Bowles, M., Nouri, N., & Bhargava, R. (2021). Robot-Proof Work Capabilities. In D. Harper (Ed.),

Integration and Application of Business Graduate and Business Leader Competency-Models (pp. 182-200). IGI

Global. https://doi.org/10.4018/978-1-7998-6537-7.ch010.

26 Deloitte Access Economics (2017). Soft skills for business success, DeakinCo., Melbourne.

The Next Normal #4 DRAFT 3.0 13 June 2023

27 Deloitte (2019). The path to prosperity: Why the future of work is human, Building the Lucky Country #7, Deloitte

Insights: Sydney. Available at https://www2.deloitte.com/au/en/pages/building-lucky-country/articles/path-

prosperity-future-work.html.

28 Bughin, J., Hazan, E., Lund, S, et al. (May 23, 2018). Skill shift: Automation and the future of the workforce,

Macquarie Global Institute. Available at https://www.mckinsey.com/featured-insights/future-of-work/skill-shift-

automation-and-the-future-of-the-workforce.

29 Bowles, M., Ghosh, S., & Thomas, L. (January 2020). Future-proofing accounting professionals. Journal of

Teaching and Learning for Graduate Employability, 11(1), 2–23.

30 Deloitte Access Economics (April 2017). Soft Skills for business success, DeakinCo., Melbourne. Retrieved 10 July

2022 at https://www2.deloitte.com/au/en/pages/economics/articles/soft-skills-business-success.html.

31 Bowles, M., Bowes, N., & Wilson, P. (September 2019). Future-proof human capabilities: Raising the future

employability of graduates. International Journal of Business and Social Science, 10(9), 10-20.

32 Bowles, M. (21 May 2020). What happens when the future arrives early?, New Normal No. 1, White Paper, The

Institute for Working Futures: Melbourne. Retrieved 1 April 2023 at https://www.workingfutures.com.au/new-

normal-what-happens-when-the-future-arrives-early-part-1/

33 Next Normal No. 3, Bowles, May, 2023

34 Bowles, 1999.

35 Auvinen, E., Huhtala, M., Rantanen, J., & Feldt, T. (March 4, 2021). Drivers or Drifters? The "Who" and "Why" of

Leader Role Occupancy-A Mixed-Method Study. Frontiers in Psychology, 12:573924. doi:

10.3389/fpsyg.2021.573924.

36 Stein, D., Hobson, N., Jachimowicz, J.M. & Whillans, A. (October 13, 2021). How Companies Can Improve Employee

Engagement Right Now, Harvard Business Review. Retrieved 12 may 2023 at https://hbr.org/2021/10/how-

companies-can-improve-employee-engagement-right-now.

37 Field, E., Hancock, B. & Schaning, B. (April 26, 2022). Stave off attrition with an internal talent marketplace,

McKinsey, Podcast. Retrieved 25 April 2023 at https://www.mckinsey.com/capabilities/people-and-

organizational-performance/our-insights/stave-off-attrition-with-an-internal-talent-marketplace.

38 Salas-Velasco, M. (May 2021). Mapping the (mis)match of university degrees in the graduate labor market.

Journal for Labour Market Research, 55(14), https://doi.org/10.1186/s12651-021-00297-x.

39 Jackson, D., Shan, H. & Meek, S. (2022). Enhancing graduates’ enterprise capabilities through work-integrated

learning in co-working spaces. Higher Education, 84, 101–120, https://doi.org/10.1007/s10734-021-00756-x.

ResearchGate has not been able to resolve any citations for this publication.

Application of microcredentials to validate human capabilities in a large telecommunications organisation: Strategic transformation to a future-ready workforce

Article

Full-text available

May 2023

Purpose The value of transverse skills, including human capabilities, has been acknowledged for a significant period of time by major organisations such as UNESCO and the World Economic Forum. This paper reports on the application of microcredentials linked to the Human Capability Framework in a major telecommunications organisation that has a vision to establish a baseline to develop the levels of capability for both individual employees and the entire workforce. In this case study, capability is evidenced through learning and applied performance specified in a microcredential that carries a credit-entry score into higher education qualifications. The value of the microcredentials lies not in recognising learning outcomes; rather, it lies in an individual's ability to validate their full potential, open sustainable employment opportunities and prepare for emergent new roles. Design/methodology/approach This commentary offers a case study of how a major Australian telecommunications organisation implemented microcredentials that are aligned to the Human Capability Framework Standards reference model. Findings The approach in this case study demonstrates how a company that confidently invests in non-traditional learning approaches that increase the value of human capital can tangibly grow the capacity of the workforce to deliver not only its strategy but also its cultural values. Originality/value The multi-award-winning model described in this case study is novel and clearly informs current research and thinking addressing this topic.

Enhancing graduates’ enterprise capabilities through work-integrated learning in co-working spaces

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Full-text available

Jul 2022
HIGH EDUC

Complex and rapidly evolving work contexts augment industry calls for future-capable graduates that can demonstrate enterprise capabilities such as critical thinking, problem-solving, collaboration, and value creation. Gaps between employers’ expectations and evaluations of higher education (HE) graduates’ enterprise capabilities continue to drive university curriculum renewal. There is a particular focus on work-integrated learning (WIL), a spectrum of industry-student engagement activities which provide valuable opportunities for developing and applying skills and knowledge, including enterprise capabilities. Despite small-to-medium enterprises (SMEs) offering fertile ground for enterprise learning, challenges limit their engagement in workplace-based WIL (internships/placements) due to resource and supervisory constraints. This study explores how co-working spaces may support SME engagement in WIL to develop enterprise capabilities, better preparing HE students for future work. It piloted two rounds of business student internships in the largest co-working space in Western Australia, surveying and interviewing both students and workplace supervisors to gauge development and understand enablers and challenges during WIL. Findings affirmed the synergistic value of SMEs and co-working spaces for fostering students’ enterprise capabilities, particularly communication and critical thinking skills, innovative behaviour, and building confidence. While some of the challenges which impact on SMEs engagement and outcomes in WIL remained, the co-working environment offered unique exposure to entrepreneurial mindsets and rich opportunities for collaboration, networking, and formal training. This study offers important insights on WIL design that increases participation among SMEs, a targeted objective of Australia’s national WIL strategy, and leverages co-working space environments to produce future-capable graduates.

Mapping the (mis)match of university degrees in the graduate labor market

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Manuel Salas-Velasco

This paper contributes to the scarce literature on the topic of horizontal education-job mismatch in the labor market for graduates of universities. Field-of-study mismatch or horizontal mismatch occurs when university graduates, trained in a particular field, work in another field at their formal qualification level. The data used in the analysis come from the first nationally representative survey of labor insertion of recent university graduates in Spain. By estimating a multinomial logistic regression, we are able to identify the match status 4 years after graduation based on self-assessments. We find a higher likelihood of horizontal mismatch among graduates of Chemistry, Mathematics, Physics, Pharmacy, and Languages and Literature. Only graduates in Medicine increase the probability of being adequately matched in their jobs. It may be hypothesized that horizontal mismatch is more likely among those graduates in degree fields that provide more general skills and less likely among those from degree fields providing more occupation-specific skills. Other degrees such as Business Studies, and Management and Economics Studies increase the probability of being vertically mismatched (over-educated). Vertical mismatch preserves at least some of the specific human capital gained through formal educational qualifications. However, some workers with degrees in Labor Relations and Social Work are in non-graduate positions and study areas unrelated to their studies. The paper also shows that graduates in the fields of health sciences and engineering/architecture increase the probability of achieving an education-job match after external job mobility.

Drivers or Drifters? The “Who” and “Why” of Leader Role Occupancy—A Mixed-Method Study

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This study investigated the reasons that leaders have given for their leader role occupancy. By using a mixed-method approach and large leader data, we aimed to provide a more nuanced picture of how leader positions are occupied in real life. We examined how individual leadership motivation may associate with other reasons for leader role occupancy. In addition, we aimed to integrate the different reasons behind leader role occupancy into the framework of sustainable leader careers and its two indicators: leader’s health (occupational well-being) and performance (measured indirectly as followers’ occupational well-being). The survey data consisted of 1,031 leaders from various sectors of working life. Qualitative analysis revealed that leaders mention various factors behind their leader role occupancy, resulting 26 themes. After inductive investigation of the data, theory-driven analysis focused on the sustainable career components (person, context, time) and agency vs. non-agency. Qualitative data was quantitized based on the theory-driven categories for statistical analysis. Based on the these analysis, we found out that only Affective-Identity MTL predicted all of the studied reasons behind leader role occupancy, whereas the other motivation types (Non-calculative MTL and Social-Normative MTL) did not. All of the reasons for leader role occupancy except non-agentic ones were related to both leaders’ own and their followers’ occupational well-being. Leaders with more person-related and agentic reasons for leader role occupancy experienced better occupational well-being. Person- and context-related and agentic reasons behind leader role occupancy associated also with followers’ occupational well-being, but the associations differed from those of leaders’ well-being: person-related and agentic reasons associated with followers’ exhaustion, but this association was not found among leaders. Our study provided important information for practitioners in the field of human resources and development, as it has shown that if the reasons for leader role occupancy mainly reflect circumstances or other non-person-related reasons, the experienced occupational well-being and person-career fit may remain weak. It is necessary to try to support the leadership motivation for those leaders, or to shape the job description in such a way that it can also offer the experiences of meaningfulness from aspects other than self-realization through a managerial role.

Future-proofing accounting professionals: Ensuring graduate employability and future readiness

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Key global and Australasian bodies have reported research suggesting the accounting profession is one of the most vulnerable to disruption through automation and changed business models. For universities seeking to improve the employability of graduates and professional bodies seeking to support professional members on a successful lifelong career, the research presented in this paper reconfirmed the need to reappraise the capabilities that would enhance professional practice and lead to sustained careers. This report presents the findings from a validation process across Australia and New Zealand that includes 2,074 responses to a survey conducted by Chartered Accountants Australia and New Zealand. The report confirms 24 capabilities, including six considered essential requirements for every professional seeking to work in accounting, finance, and related work roles. The findings provide evidence that these capabilities, in contrast to recent reports suggesting employment opportunities for accounting graduates are in decline, can create opportunities for sustainable careers. The validation project and survey results provide unexpected insight into the capabilities of different age groups and professionals at different career stages that are considered important. The paper outlines how this research will not only inform continuing professional education for members but also help refine the design of post-graduate curriculum and continuing professional development.

New Normal: What happens when the future arrives early? N

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M. Bowles

Covid-19 brought the future early. It achieved in three months what research into future work predicted would occur in five years: an immense shift in how, when, and where we work. For everyone it was a massive speed bump. While some employers are still driving along shakily, others have crashed to the side of the road. For the lucky few, it has been a wakeup call to activate future plans earlier. While not every employer had agile future workforce development plans, all their responses provide important insights into best practice and what to avoid on the road ahead.

Future-proof human capabilities: Raising the future employability of graduates

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Full-text available

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While many frameworks have emerged purporting to describe human skills, soft skills, employability skills, or future capabilities, there exists sparse research comparing these frameworks or isolating the most important skills within an Australasian future workforce context. Given the importance of using a skills framework to better analyse and predict future skills demand in the workforce, educators, employers and recruits need to better appreciate the value certain skills will hold over others in terms of future employability. Using a data-driven approach based on text analysis we will analyse the aggregate information contained in existing frameworks to discover the future capabilities. These future capabilities provide a framework and logic that allow us to more flexibly examine the relationship between people and jobs, and to create a taxonomy that allows us to create capability stacks that confirm the requirements for a future learning and work.

Capability Building and Organisational Adaptive Capacity Next Normal #3

Technical Report

Jun 2023

M. Bowles

This instalment of the Next Normal series explores why adaptive capacity is a crucial but widely overlooked (by executives) market indicator of an organisation’s readiness to meet future challenges and opportunities. Future-oriented growth and capability-building strategies will fail unless leaders can raise organisational adaptive capacity. Adaptive capacity is what an organisation does beyond sustaining current performance to boost future competitiveness and its reported shareholder value. It is a central pillar of capability-building strategies and strategic workforce planning, seeking to ensure organisations can identify and deploy the full potential of all employees.

Robot-Proof Work Capabilities

Chapter

Jan 2021

Jobs are changing fast as many firms automate or augment work-tasks. Constant change is the new normal as technology relentlessly infiltrates all industries and businesses. This puts pressure on employees to upskill and stay relevant. While some jobs are relatively immune from disruption, these are in the minority. Most employees will need to continually build the necessary skills and capabilities that will help them safeguard their current careers or shift to entirely new careers or industries. This chapter describes an approach to answer the following question: What are the core work capabilities that students and employees should be learning now to future-proof their careers? The authors apply a prediction of automation and augmentation to work-tasks to model the change to the future workforce and analyse the remaining work skills and abilities required in the future. These future skills and abilities are further grouped to determine 32 future-work capabilities, including 13 digital and data literacies that can be targeted by employees, firms, and governments in L&D programs.

Competence at Work: Models for Superior Performance

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Mar 1993

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