Mapping Out the Competencies Needed for the Coming Decade
17/09/2021
(This article originally appeared in Ambition, the thought leadership publication by the Association of MBAs (AMBA) – in print and online – and has been republished on this website with the permission of AMBA.)
Hindsight is a wonderful thing, as is foresight – and both have come under intense scrutiny during the recent select committee hearing on the [Ed: UK] government response to Covid -19. Looking back, it is interesting to see how a newly formed government had to function quickly as a team and react to several crises concurrently: global lockdowns, international distribution and limited manufacturing capacity. A lot was at stake in an environment that changed daily, had multiple interlinked elements, and where numerous factors were uncertain.
This is a high-profile example, but just one of many during the pandemic where organisations and teams had to navigate their way through a period of uncertainty and incredible change. It is also one of many instances over the past decade where organisations needed to respond to emerging events beyond their control.
From the impact of digitalisation, through Brexit, to responding effectively to the pandemic, it is clear that the speed at which organisations need to adapt is accelerating. As a result, the skills and competencies required of their people is also shifting.
Changing competencies in the world of work
Competencies have always been important. They support organisations, managers, and employees to understand the behaviours that are key to successful performance in a role. Competencies can provide a framework that informs everything – from hiring, learning and development, and performance-management strategies to company culture.
Significantly, competencies aren’t static. Recent seismic change is likely to cause a shift in terms of which behaviours are crucial at work, and different competencies may emerge over the next decade. While we don’t have a crystal ball, we can make predictions based on research. From analysis into the future of work conducted by the World Economic Forum (WEF) and other sources, combined with the themes we have seen over the past 12 months, the competencies needed for success in the next decade could look somewhat different.
Looking back
To identify which competencies were popular over the past decade, we analysed data from 10,000 360-degree feedback assessments from a variety of organisations around the world. We identified seven competencies that were most frequently included in these assessments:
- Coaching and developing others
- Results focus
- Customer focus
- Teamwork
- Proactive communication
- Organising and prioritising
- Interpersonal sensitivity
(Source: PSI Services 2021)
One observation stands out from this data. Five of the seven competencies most frequently assessed in the past decade reflect people-focused aspects of performance, but only two relate to task-focused factors: results focus and organising and prioritising. Also, there is little representation of competencies which enable agility and effective adaptation to continual change. This strong emphasis on relational aspects, such as teamwork and proactive communication, most likely reflects the substantial growth in collaboration and cross-functional project teams we have seen over the past 20 years.
Research shows that collaborative working now typically makes up 80% of an employee’s work activities. However, over the past few years, there has been increased recognition of the potential risks of over-collaboration. This has been particularly noticeable in the past year, where we’ve seen concerns around the detrimental impact of ‘Zoom fatigue’, caused by back-to-back video meetings, on personal productivity, innovation and wellbeing.
With more companies likely to adopt flexible hybrid-working models, this creates new challenges for how we connect with others on a human level. The competencies individuals require to thrive in this new hybrid environment will need to adapt and change.
Looking forward
So, what could be important over the next decade? Here are seven top contenders which we anticipate could rise to prominence in the post-pandemic, reshaped world of work:
- Critical thinking
- Learning agility
- Digital dexterity
- Building relationships
- Embracing diversity
- Resilience
- Change orientation
(Source: PSI Services 2021)
First, critical thinking is the skill area with the greatest increase in demand from organisations, according to the WEF. Managers will need to be able to appraise data and information swiftly, from a range of sources, quickly understand what is essential for decision-making, and objectively question ideas and assumptions. People will need to combine this with learning agility – to be able to adjust approaches rapidly based on evaluation of outcomes and feedback.
In the new hybrid working world, managers and individuals will need to focus more
on building relationships and how they connect and collaborate effectively. They will also need to seek out and actively embrace diversity to generate ideas and solve business challenges. Alongside this, they will need to ensure people are treated fairly, regardless of their background, and must be willing to advocate and act where this is not happening. This extends to supporting an inclusive climate and involving everyone in the issues that matter to them, whether they are present in the office or not.
At the same time, digital dexterity has become as important as people-orientation. The pace of technology adoption has accelerated as a result of the pandemic, and is only expected to increase. Artificial Intelligence and robotics are likely to impact more jobs, in different ways, in the future. New technology presents opportunities, but also brings new challenges. Employees will need to grasp and leverage new technologies rapidly, either through personal learning or by empowering others to achieve innovations and efficiencies.
Finally, the unprecedented events over the past 12 months have put pressure on employee wellbeing and people’s capacity to deal with change on a personal level. People will need to demonstrate personal resilience (alongside supportive leadership) to cope with setbacks and bounce back quickly. And with the growing impact of digitalisation set to change job requirements, organisational structures and operating models, employees will need to show positive change orientation – accepting what can and cannot be controlled, as well as embracing the opportunities that changes might present.
Whether digital or human focused, all these new competencies signify openness and flexibility – in how we think, harness digitalisation, connect with others, and manage our wellbeing. Together, they provide a robust foundation for people to adapt positively to inevitable change, ambiguity, and complexity, enabling them to go from surviving at work to thriving, and driving business performance.
Uncertain future
None of us can be sure what the future holds; however, it is clear that the work context will continue to be fluid, disruptive and fast moving. If individuals can demonstrate these top seven competencies, alongside other essential competencies for their role, they will be well positioned for successful performance across a wide range of jobs.
As we move into the post-pandemic world of work, organisations should keep these competencies front of mind when updating and evolving their talent hiring and development strategies, in order to help build a fit-for- purpose and future-ready workforce.
This is an adapted version of the article that was published on AMBA’s website, written by Dan Hughes; Director of International Research and Development at PSI Services, and a chartered psychologist. He has more than 23 years’ experience in the research, design, implementation and evaluation of psychology solutions and technology for business, spanning volume hiring, talent assessment, leadership, and people development.
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