Simply Skills Chat: The commerciality of skills

Mar 20

Written By John Guy

“Your skills are only as good as the system of work enables them to be.”

— Teresa Rose, ConsultHer

Introduction

Teresa draws on her experience from skill transformations at LSEG, the World Bank Group and more to explore with John the evolving role of skills in shaping business strategy, workforce planning and HR’s impact on commercial outcomes.

As organisations navigate rapid technological advancements, including the rise of AI, we dig into the importance of aligning skills investment with business performance. We challenge leaders to view skills development as a core business strategy that impacts revenue, efficiency and competitive advantage.

Highlights

Here’s a few highlights:

  • “Skills are a business problem, not an HR problem. If we don’t align skills investment with business goals, we’re just spending money to lose 90% of it within 30 days.”
  • “HR’s credibility in commercial discussions comes from being data-literate. You can’t walk through the door with confidence if you don’t understand the P&L and how skills impact business performance.”
  • “Two companies can have access to the same talent, the same skills, and the same technology—but one will thrive, and one will struggle. The difference? Culture, leadership, and how they activate those skills.”
  • “L&D has a unique opportunity to be the central intelligence of the business—connecting projects, reducing inefficiencies, and shaping the workforce of the future.”

The commerciality of skills

  • Skills investment must align with business outcomes, impacting both revenue generation and cost reduction.
  • Non-commercial aspects such as management behavior, employee autonomy, and organisational incentives are crucial to skills development.
  • Ebbinghaus' Forgetting Curve: Without reinforcement, 90% of training is lost in 30 days.
  • Skills investment must be systematic, considering broader organisational dynamics.

Skills as a Business Problem, Not Just HR's Responsibility

  • HR cannot drive skills transformation alone; it requires business buy-in and cross-functional collaboration.
  • Skills development should start with business needs rather than generic lists.
  • Leaders should examine the work that drives profitability, efficiency and customer outcomes before identifying necessary skills.

Data, ROI, and Measuring Skills Impact

  • A data-driven approach is crucial for identifying where skills investment will have the greatest impact.
  • HR teams must become data-literate to engage in commercial conversations.
  • Business cases for skills investment should include financial and operational metrics, linking skills to revenue generation, cost savings, and competitive advantage.

AI and the Future of Skills

  • AI is reshaping the skills landscape. Companies need to identify which work might be automated and which require human intervention.
  • HR must proactively engage in AI discussions to shape how AI-driven changes impact workforce strategy.
  • If HR fails to take the lead, decisions will be made around them, rather than with them.

Culture as a Driver of Skills Activation

  • Culture dictates whether skills investments succeed or fail.
  • Toxic leadership and lack of psychological safety erode skills investments as employees either leave or fail to apply new skills.
  • Assess cultural readiness for a skills-based approach before major investments.

Practical Steps for Skills Transformation

  • Start with pilot projects in areas where skills gaps directly impact profitability or customer experience.
  • Identify "green shoots": teams or departments already engaged in skills transformation and expand from there.
  • HR should be connecting business leaders, finance, and operational teams to integrate skills strategy into broader workforce planning.

Skills as an Ongoing Investment, Not a One-Time Project

  • Many organisations are already spending on skills without realising it, but without strategy, much of this investment is wasted.
  • Poor alignment between skills programs and business needs leads to attrition, disengagement and financial loss.
  • Organisations should consider skills investment as part of long-term strategic planning, rather than isolated training initiatives.

L&D's Role in Skills Transformation

  • L&D teams have a strategic role in enabling knowledge sharing and connecting skills initiatives across the organisation.
  • They should act as a central intelligence hub, linking workforce development with business priorities.

Conclusion

HR’s job isn’t to turn the company into a skills-based organisation, it’s to help the business solve real problems using skills as a tool.

  • 🚀 Stop talking HR, start talking business – Frame workforce challenges in terms of productivity, performance, and revenue.
  • 📊 Use skills data, not assumptions – Invest in skills intelligence to make smarter workforce decisions.
  • 🤝 Align with the C-suite – Workforce planning isn’t just HR’s job. Get buy-in from business leaders by focusing on business critical skills.

It’s all about ensuring your organisation has the right skills to execute its strategy.

Click to read about global fintech Finastra's skills journey.