Creating the modern organization

Blending the best of disruptive technology and human ingenuity

Today, change is the only constant, a relentless force that demands continuous adaptation from organizations worldwide. To stay afloat in the ocean of a dynamic environment and drive the bottom line of creating profits-driven growth in a world of perilous narrow margins, leaders must radically transform how their organization operates to meet the new challenges of the business. Such a shift requires not only preparing and training the current workforce to be more adaptive, but also supplementing your workforce with more flexible contingent workers, as well as shifting the perspective of the jobs themselves to key opportunities to use emerging technologies, accelerating progress. The outcome will be a highly skilled, agile workforce, aligned with business goals and equipped not only to survive in a tumultuous phase, but also to strategically transform to a proactive, thriving future.

A deeper dive into workforce restructuring

Successful transformation requires a cultural shift within organizations, demanding a reevaluation of how talent is assessed, developed, and deployed. The process is underpinned by robust data analytics that guides mapping of existing skills against future needs, ensuring alignment between talent management strategies and the organization's strategic direction. Integrating predictive and prescriptive analytics can inform strategic workforce plans, and mitigate talent risks, which enables organizations to make the right decisions, with the right data, providing:

1

Enhanced agility: Organizations can more swiftly respond to market changes if the workforce is trained on the latest technological advancements, adopts a skills-based mindset, and is committed to continuous learning.

2

Dynamic team formation: Skills-based strategies allow for the creation of dynamic, cross-functional teams that can be quickly realigned to meet evolving project demands and organizational objectives.

3

Fostering innovation: Assembling teams with complementary skills encourages knowledge sharing and cross-pollination of ideas, leading to innovative solutions.

The need for technological adaptation

In tandem with restructuring, technological advancements unlock the potential to create new roles, requiring new skills, and transforming the essence of existing jobs. However, allowing technology to impact the workforce without a strategic plan can lead to inefficiencies, a disconnect between talent and organizational goals, and ultimately, missed opportunities.

The strategic implementation of technology and automation can also unlock significant efficiencies and scalability. Tools such as Microsoft 365 Copilot can alleviate administrative burdens, optimize workflows, and empower team members to focus on complex, value-added tasks. At the same time, getting full value from artificial intelligence (AI) tools and other emerging technologies requires workforce reorganization and a shift to a skills-based talent strategy.

To step up to the plate, provide your workforce with access to cutting-edge tools, as well as opportunities for mobility, flexibility, and stretch assignments, to help secure the next generation of leaders and talent through opportunities. Deliberate models incorporating technology into operational procedures provide integration that adds to your success, rather than provide inefficiencies. With this step, you will begin to evolve the workforce in service of new products and services that will ultimately accelerate your organization’s growth.

Solutions

Leverage the right technology and automation tools:

  • Identify targeted investments in enabling technologies that enhance workforce efficiency and have potential for scalability.
  • Install automation tools and generative AI (GenAI) to streamline workflows, eliminate redundant tasks, and foster a leaner way of working.
  • Integrate GenAI and automation methodologies across the enterprise to drive organizational transformation.
  • Reshape your workforce and operating models as you optimize and implement new technologies

Reconsider your workforce planning:

  • Critically examine the organization's structure and roles defined today to create a baseline of your workforce. This is the foundation or starting point to better understand where your organization will need to shift in the future.
  • Design to identify opportunities for streamlining operations and redefining the organization’s service delivery model.
  • Evolve toward more agile, less hierarchical models to facilitate quicker decision-making, encourage a culture of collaboration, and empower your people.
  • Adopt a model that can help the entire organization adopt consistent practices, clarify roles and responsibilities, mitigate risks, and ensure compliance.
  • Enable cross-functional teamwork to reduce hierarchical layers and foster a more collaborative and agile workforce.

Adopt a skills-based talent approach to both upskill and reskill your workforce:

  • Embrace a skills-based talent strategy that focuses on individual skills and competencies rather than formal educational backgrounds or job titles.
  • Accelerate your digital labor by understanding how skills evolve with new technologies
  • Identify new skills required for growth and expansion through a readily available learning academy that expands opportunities for fast-tracking learning paths.
  • Integrate predictive and prescriptive analytics to inform strategic workforce plans, mitigate talent risks, and support decision-making.

How to sink or swim in the ocean of change: Driving sustainable growth

The shift towards a skills-based talent strategy marks a significant departure from traditional hiring and workforce management practices, therefore requiring a significant cultural shift, as well as a reevaluation of long-held beliefs and practices and a willingness to experiment with new models of work and collaboration. This transformative process involves not only the adoption of new technologies or the restructuring of teams, but also a fundamental shift in the way organizations perceive, develop, and utilize their talent.

For successful and continued growth driving the bottom line, consider implementing a skilled and data-driven approach across the organizational structure. Utilize clearly defined performance metrics to motivate behaviors and demonstrate the value of program changes. With this aim, organizations can foster a culture of continuous improvement and champion innovation, with leaders embodying the agility, foresight, and strategic acumen required to navigate the complexities of workforce restructuring, key drivers of not only introducing positive changes to an organization and its structure, but also maintaining it in the face of change, challenges, and barriers.

Conclusion: First steps on the journey

The adoption of a skills-based approach to talent management and organization design is a multifaceted journey that requires strategic vision, robust planning, and a commitment to continuous adaptation and learning. The transition requires not only the adoption of new technologies like GenAI and automation tools, but also a fundamental transformation of the perception, structure, and execution of the way organizations operate. This future focus demands ongoing reassessment and adaptation to ensure organizations are not merely surviving but also thriving in a landscape defined by rapid change. Transformation is not without its challenges, but the potential rewards—increased agility, innovation, and competitiveness—are immense.

Companies looking to get started on the journey toward a skills-based organization utilizing emerging technologies will want to ask themselves:

  • Who do we want to be as an organization and what is our vision for our people?
  • What are the key roles to equip talent with the skills to transform?
  • What tools and resources do we need to get there most effectively?

In a volatile world of ambiguity, the willingness to reimagine, transform, and adapt will distinguish success from failure for the workplace and its leadership. Are you ready to take the first steps?

How KPMG Human Capital Advisory Services can help

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KPMG Human Capital Advisory Services can provide your organization with innovative, multi-faceted people solutions and insights and drive accelerated, sustainable business performance. Harness our expertise with enterprise organization transformation, innovative talent strategies, HR, payroll, learning function optimization and implementation of all enabling technologies to develop a future-ready workforce that fuels growth and success for your organization. Embrace the future with KPMG Human Capital Advisory and experience a more innovative approach to building an agile, future-ready organization.

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John Doel
Principal, Human Capital Advisory, KPMG US

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