Workforce Optimization Consulting

One of the single most important issues in coming years is job transitions. This fascinating research examines not just job adjacency and required skill development for transition, but also bridging, directionality in job migration, and more. Insights include: 📊 The Power of Real-Time Skills Data. Analyzing real-time job posting data provides much more current and granular insights into labor market dynamics compared to traditional occupational classifications and surveys. This is especially valauble during rapid shifts like COVID-19. 🎯 Skills Space Method's High Accuracy. The "Skills Space" method for measuring similarity between skill sets, shown in the diagram, achieved 76% accuracy in predicting actual job transitions. This is impressive for such a complex prediction task and suggests the method captures something fundamental about how people actually move between jobs. 🔄 The Asymmetry of Career Paths. Job transitions are fundamentally asymmetric - it's often much easier to move in one direction between jobs than the other. For example, it may be relatively easy for a Finance Manager to become an Accounting Clerk, but much harder for an Accounting Clerk to become a Finance Manager. 🌉 The "Bridge" Nature of Transferable Skills. Generalist skills act as "bridges" between specialist skill clusters. This provides important insights for career planning - developing transferable skills makes it easier to move between different specialized domains. 🎓 Pathways to Specialized Roles. The analysis reveals clear skill-based pathways into specialized domains, showing how workers can strategically develop skills to transition into complex roles. For example, a Sheetmetal Trades Worker's skillset shows high similarity to an Industrial Designer role, offering a pathway from a high-automation-risk job to a low-automation-risk specialized position. 🆘 Crisis Response Through Skills Matching. The model helps workers displaced by crises like COVID-19 find new roles by identifying transitions that leverage their existing skills, target growing rather than declining occupations, and focus skill development on high-value gaps. This is valuable research. We need much more in this vein, and for this to be applied at all levels of the economy from national and international policy down do individual education.

This chart shows consulting's new playbook. Fewer people, more AI, protect profits. McKinsey stealthy reduced headcount from 45,000+ to 40,000 over 18 months.* No headlines. No mass layoff announcements. They used performance reviews, back-office cuts, and selective dismissals to shed 11% of their workforce. For decades, consulting measured success by headcount growth and hours billed. But that era is ending. Replaced by strategic AI investments, scalable platforms, and leaner operating models. The transition to that reality needs to be handled with care. Mass layoffs signal weakness. They scare clients, trigger talent wars, and invite scrutiny. But gradual erosion through performance management? That's doing the work these firms do best. McKinsey's approach: → Preserve the illusion of stability → Avoid triggering competitive recruitment → Maintain client confidence during transition → Control the narrative through silence They're not hiding failure. They're managing perception while rebuilding the entire operating model. While McKinsey cuts quietly, BCG makes a different bet: → Added 1,000 people focused on AI implementation → AI services now 20% of revenue → 10% growth while McKinsey's growth slows → Greater focus on implementation vs strategy Two elite firms. Both responding to the same reality: the consulting model that worked for a century won't work for another decade. But here's the hidden constraint: partnership structures make radical change nearly impossible. With thousands of partners needing consensus, stealth restructuring isn't strategy, it's the only option when your governance model blocks speed. For consulting leaders: The choice isn't whether to restructure, but how visibly. For consultants: Your firm's headcount strategy reveals its future. Track three signals: where they hire, who they promote, what they cut. Everything else is noise. For clients: You're paying premium fees to firms mid-transformation. Ask harder questions about who's delivering your work. The question that matters: → "What's your strategy when AI makes the current workflows obsolete?" Consulting isn't shrinking, it's bifurcating. One side quietly trims legacy structures. The other loudly bets on AI-driven growth. If you're leading, consulting, or hiring these firms, know which side you're on. Because the middle ground is vanishing quickly. The future of consulting isn't about choosing between people or AI. It's about who builds the system that makes that choice irrelevant. * Financial Times 28th May 2025

A welcome rebound The November Jobs report added further evidence of general economic health, reflecting a labor market that is slowing but not nearly grinding to a halt. After a dismal October payroll report complicated by strikes and weather, hiring rebounded by a better-than-expected 227K jobs with positive revisions adding 56K to the last two months combined. 💡 The Fed was widely expected to cut rates by 0.25% later this month, and this report cements that expectation further.   Key takeaways from the report: ➡️   Private sector employment accounted for 85% of job growth this month, driven by strong hiring in health care and social assistance (72K) and leisure and hospitality (53K)—two sectors accounting for roughly 1/3rd of job openings. Retail trade and transportation/utilities shed some jobs, while manufacturing hiring recovered roughly half of last month’s job losses (which included Boeing strike impacts). ➡️   Wages were stable, growing 0.4% on the month and 4% from a year ago. Wage growth continues to outpace inflation, contributing to further gains in household purchasing power. ➡️   Mixed signals from the two surveys do cast some fog on the overall signal here. In the survey of households, labor force participation ticked down and unemployment rose by 161K, a very different picture from the establishment survey’s growth of 227K. This kind of discrepancy is, unfortunately, a new norm. Since last December, household employment shows a decline of 42K, compared to payroll growth of nearly 2 million. Over time, improved data should narrow this gap, and in the meantime, we continue to lean on the “mosaic” of labor market indicators. ➡️   Unemployment may be back at its July level, but it’s not stoking the same fears. When unemployment hit 4.2% in July, it rang alarm bells on recession and inclined the Fed towards a jumbo 50bp cut. Since then, data has shown above-trend GDP growth, jobless claims remain muted, job openings are elevated and ISM purchasing manager surveys suggest employment is modestly improving. ➡️   Still, the uptick in the U-6 unemployment rate bears watching, as an increase in underemployed and discouraged workers could signal underlying labor market strain.   Altogether, stability in wages and the uptick in unemployment tilts the scales further towards a December cut, which markets have upgraded to a ~90% probability following this report. We will watch for progress in CPI after a recent stalling out in disinflation next week, but the bar seems high for a pause. More broadly, despite a shallower easing cycle, above-trend growth, real wage gains, and earnings breadth should provide support for a continued equity rally into the new year.

Are you measuring what matters in your organization? A comprehensive measure of organizational effectiveness includes much more than profit margins and growth rates. The market and media often celebrate companies that show rapid financial growth or high profitability, leading to a cultural bias towards these metrics as signs of success BUT the tide is slowly turning- more businesses are recognizing the long-term value of a holistic approach to effectiveness and success. Many more businesses are embracing the concept of the "Triple Bottom Line," which measures success not just by financial profit ("Profit"), but also by the company's impact on people ("People") and the planet ("Planet"). HOWEVER 🚨 There is more work to be done! The prioritization of non-financial elements of organizational success can get pushed aside when financial pressures hit or quick results are valued. You have probably heard the phrase "What gets measured gets managed". This is generally true. Quantifying and measuring non-financial aspects of effectiveness, such as employee well-being, social impact, and workplace culture, is hugely important but remains challenging. 💡 Here's some straightforward steps to move you towards a more holistic approach to measuring success: 𝐒𝐭𝐚𝐫𝐭 𝐰𝐢𝐭𝐡 𝐜𝐥𝐞𝐚𝐫 𝐠𝐨𝐚𝐥𝐬: Define what holistic success means for your organization. This could include specific targets related to employee well-being, social impact, and environmental sustainability. 𝐄𝐧𝐠𝐚𝐠𝐞 𝐬𝐭𝐚𝐤𝐞𝐡𝐨𝐥𝐝𝐞𝐫𝐬: Talk to employees, customers, and community members to understand what aspects of your business matter most to them. Their insights can help shape your holistic success framework. 𝐂𝐡𝐨𝐨𝐬𝐞 𝐫𝐞𝐥𝐞𝐯𝐚𝐧𝐭 𝐦𝐞𝐭𝐫𝐢𝐜𝐬: Based on your goals and stakeholder feedback, pick metrics that are meaningful and manageable. For example, employee satisfaction can be measured through regular surveys, while environmental impact can be tracked through energy consumption or waste reduction metrics. 𝐔𝐬𝐞 𝐞𝐱𝐢𝐬𝐭𝐢𝐧𝐠 𝐟𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤𝐬: Look into established frameworks (like GRI or B Corp standards for sustainability; Gallups Q12 Engagement Survey for employee engagement or the Denison Organizational Culture Model to measure workplace culture). There are existing frameworks for most known elements of organizational effectiveness so it's just a matter of looking into them. 𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐞 𝐢𝐧𝐭𝐨 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧-𝐦𝐚𝐤𝐢𝐧𝐠: Ensure that these holistic metrics are part of regular business reviews and decision-making processes, not just side projects. 𝐑𝐞𝐩𝐨𝐫𝐭 𝐭𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐭𝐥𝐲: Share your progress openly, including both successes and areas for improvement. Transparency builds trust and credibility. 𝐂𝐨𝐧𝐭𝐢𝐧𝐮𝐨𝐮𝐬 𝐥𝐞𝐚𝐫𝐧𝐢𝐧𝐠: Be prepared to adapt and refine your approach as you learn what works and what doesn't. This is a journey, not a one-time task. #organizationaleffectiveness #measurewhatmatters #leaders

Over the past 10 weeks, I’ve interviewed 35 talent and learning leaders at Fortune 1000 companies for a report I’ll be releasing this fall. One of my favorite questions has been the very first one: 𝐖𝐡𝐚𝐭 𝐚𝐫𝐞 𝐲𝐨𝐮𝐫 𝐭𝐨𝐩 𝐭𝐡𝐫𝐞𝐞 𝐩𝐫𝐢𝐨𝐫𝐢𝐭𝐢𝐞𝐬 𝐫𝐢𝐠𝐡𝐭 𝐧𝐨𝐰?” With 105 priorities and counting, the responses vary widely given differences in industry, scope, and role (VP of Learning, talent, talent management, leadership development) but here is a slice of what has been shared so far: ➡️ AI and work transformation: Clarify what AI means for the workforce, its implications for roles, and how teams can adopt it to accelerate development and efficiency. ➡️ AI Coaching Pilot: Launch an AI-powered coaching pilot program across the organization to scale leadership development support. ➡️ Generative AI Upskilling: Upskill employees and leaders to effectively use generative AI in day-to-day work ➡️ Future of Work & Workforce Planning: Prepare for disruptions to job architecture by integrating human and digital workforces. Rethink responsibilities, structures, and collaboration models. ➡️ Change management: Embed change management capabilities at all levels, particularly around AI adoption. ➡️ New leadership Behaviors: Equip leaders with new capabilities to thrive in a changing environment, including adaptability, resilience, and the ability to lead in an AI-augmented workplace. ➡️ Skills and Career Paths - Creating paths by prioritized skills in our organization ➡️ Rethinking the Function: Redesign the talent and learning function to reflect disruption caused by AI ➡️ Change Leadership: Navigate a period of executive turnover and transition by stabilizing the leadership team, clarifying roles, and building confidence with functional business leaders. ➡️ Facilitating Connection: Partnering with our employee experience and workplace teams to use in-office team days for learning and connection ➡️ Linking Performance and Development: Redesign performance processes to connect directly to development, helping employees understand what growth means in practical and tangible terms. ➡️ Manager Development: Continue to strengthen manager capability and resources, ensuring managers are equipped to drive performance and support employee development ➡️ VP and SVP Development: Support and accelerate the growth of new vice presidents and senior vice presidents as they step into expanded leadership roles. ➡️ Building a Leadership Bench : Develop and execute a strategy for strengthening the leadership bench, with a focus on preparing our Top 200 leaders ➡️ AI/Learning : Using AI internally within the learning function and focusing on key skills in AI for client-facing practitioners ➡️ Academies For AI/Data Roles: Developing and rolling out an academy for our AI & Data Product Employees I’d love to hear your perspective: What stands out most to you about this list, or what themes are you seeing in this list?

Work is evolving. The data show us where to focus: => Remote workers aren't thriving. => FIXED ONSITE employees are struggling. New Gallup Global Workplace: 2025 Report shares data to guide where to improve employee experiences and achieve better results. Remote workers need more support--better management and sense of belonging through culture and connection. Hybrid employees are clearly also experiencing high stress which needs addressing. However, notice the data for fixed onsite workers: - Only 19% are engaged - the lowest by far - Only 30% are thriving - the lowest by far FLEXIBILITY is essential for EVERY worker. More autonomy is necessary and possible for ALL onsite workers with different options depending on the role. Flexibility for onsite workers means more: - Shift patterns and options; - Staggered start and end times; - Rotating shifts and compressed workweeks; - Shift swapping; - Floaters and part-time schedules; - Job-sharing to fulfill a full-time role; - Phased retirement and on-demand labor; - Choice of vacation timing. Manufacturing, retail, and hospitality examples: - Land O'Lakes, Inc.: Introduced “flex work” program in 60 of 140 facilities, allowing factory workers to set their schedules vs rigid 12-hour shifts. - RICK STEIN RESTAURANTS: Flexible careers scheme allows staff (all ages and experience levels)to work as little as one shift per week. -Pets at Home (UK): Offers job-sharing and part-time options for store managers supported by manager training and explicit policies. Humans thrive with more autonomy, wherever they work. What greater workplace flexibility can your company offer every worker so that your workforce and business can thrive more?

Feeling Stuck in Your Career? It Could Be a Competency Gap! 🚀 A few years ago, I worked with a team member, who was frustrated about being stuck in his role. He was technically skilled but couldn't figure out why promotions were passing him by. 💥That’s when we turned to competency mapping. 🔍 Together, we identified the key skills his position and future roles required—things like communication, leadership, and strategic thinking—which are critical competencies for growth. While he excelled in technical work, his communication skills needed refinement to step into leadership. By aligning his personal development with these competencies, we created a clear roadmap for his growth. Within a year, he sharpened his communication skills and was promoted to Team Lead. Competencies aren't just about what you’re good at now, but what you need to master for future success. Think of them as the blueprint for your career development. 💡 Key Competencies You Should Focus On: 💢Technical Expertise: Mastering the core skills required for your current role. 💢Communication: Expressing ideas clearly and collaborating with teams. 💢Leadership: Guiding teams and driving performance. 💢Strategic Thinking: Seeing the big picture and aligning with long-term goals. 💢Collaboration: Problem-solving and creating synergy within teams. 🔑 Key Action Points: 🖊️Identify the competencies needed for your next career step. 🖊️Compare your current skills with those required competencies. 🖊️Develop a plan to close any gaps through learning and experience. Feeling blocked in your career? It might be time to assess your competencies and create a growth plan. 📝 Start mapping your competencies today and take the first step toward unlocking your potential! #CareerGrowth #Leadership #CompetencyMapping #PersonalDevelopment #LifelongLearning #SkillDevelopment #LeadershipSkills #CommunicationSkills #ProfessionalGrowth

You Cut 15% of the Workforce… But the Workload Stayed the Same? Here’s the reality: We were already doing more with less before the budget cut. Now, we’re expected to absorb even more responsibilities with fewer people. Sound familiar? For those of us who’ve been in the workforce long enough, we’ve seen this play out across every industry—tech, government, military, healthcare, you name it. But here’s the problem: Organizations cut headcount without cutting the workload. And somehow, leaders expect the remaining workforce to just figure it out. So, what do you do when you're left holding the bag? 💡 If you're an 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘭 𝘭𝘦𝘢𝘥𝘦𝘳, 𝘤𝘰𝘯𝘴𝘶𝘭𝘵𝘢𝘯𝘵, 𝘵𝘦𝘤𝘩𝘯𝘪𝘤𝘢𝘭 𝘥𝘪𝘳𝘦𝘤𝘵𝘰𝘳, 𝘰𝘳 𝘱𝘳𝘰𝘫𝘦𝘤𝘵 𝘮𝘢𝘯𝘢𝘨𝘦𝘳, this is where your real leadership begins. Instead of waiting for more resources that may never come, here’s how to lead through the chaos: 𝟭. 𝗥𝘂𝘁𝗵𝗹𝗲𝘀𝘀𝗹𝘆 𝗣𝗿𝗶𝗼𝗿𝗶𝘁𝗶𝘇𝗲 🔹 If everything is urgent, 𝘯𝘰𝘵𝘩𝘪𝘯𝘨 is. 🔹 Identify mission-critical tasks—protect what truly matters. 🔹 Negotiate deliverables with leadership. 🔹 Challenge unnecessary work—cut the fluff. 𝟮. 𝗔𝘂𝘁𝗼𝗺𝗮𝘁𝗲, 𝗦𝘁𝗿𝗲𝗮𝗺𝗹𝗶𝗻𝗲, 𝗗𝗲𝗹𝗲𝗴𝗮𝘁𝗲 🔹 Your best leverage isn’t 𝘸𝘰𝘳𝘬𝘪𝘯𝘨 𝘩𝘢𝘳𝘥𝘦𝘳—it’s 𝘸𝘰𝘳𝘬𝘪𝘯𝘨 𝘴𝘮𝘢𝘳𝘵𝘦𝘳. 🔹 Use AI tools and automation for redundant tasks. 🔹 Simplify processes—cut unnecessary steps. 🔹 Redistribute work intelligently—not just to the most competent. 𝟯. 𝗦𝗲𝘁 𝗕𝗼𝘂𝗻𝗱𝗮𝗿𝗶𝗲𝘀 𝗼𝗻 “𝗜𝗻𝘃𝗶𝘀𝗶𝗯𝗹𝗲 𝗪𝗼𝗿𝗸” 🔹 The most valuable people often pick up extra 𝘩𝘪𝘥𝘥𝘦𝘯 𝘭𝘢𝘣𝘰𝘳—mentorship, documentation, problem-solving. 🔹 Make it visible—track it, quantify it, and address the bandwidth issue. 𝟰. 𝗖𝗼𝗺𝗺𝘂𝗻𝗶𝗰𝗮𝘁𝗲 𝗨𝗽, 𝗡𝗼𝘁 𝗝𝘂𝘀𝘁 𝗗𝗼𝘄𝗻 🔹 Leadership needs to know the real impact of reduced resources. 🔹 Frame conversations around 𝘳𝘪𝘴𝘬 𝘢𝘯𝘥 𝘤𝘰𝘯𝘴𝘦𝘲𝘶𝘦𝘯𝘤𝘦𝘴. 🔹 Offer solutions—not just complaints. 🔹 Get buy-in for realistic expectations. 𝟱. 𝗙𝗼𝗰𝘂𝘀 𝗼𝗻 𝗢𝘂𝘁𝗰𝗼𝗺𝗲𝘀, 𝗡𝗼𝘁 𝗕𝘂𝘀𝘆𝗻𝗲𝘀𝘀 🔹 Working more hours ≠ More impact. 🔹 Measure success based on 𝘳𝘦𝘴𝘶𝘭𝘵𝘴, not effort. 🔹 Encourage asynchronous work and flexibility. 🔹 Push back against unnecessary meetings. 𝗕𝗼𝘁𝘁𝗼𝗺 𝗟𝗶𝗻𝗲: If your workforce has been cut, your strategy has to change. 🔥 What strategies have worked for you when dealing with workforce reductions? Drop them in the comments!

Walmart just eliminated 1,500 corporate jobs while posting $4.6B in profits and 22% e-commerce growth Today we analyzed this striking contradiction at PeopleAtom, and the numbers reveal a deeper story about how America's largest private employer is reshaping work itself. The paradox unfolding: → Record profits alongside strategic workforce reduction → Technology roles targeted despite digital transformation success → "Efficiency" driving decisions over headcount optimization → Wall Street rewards the approach with "Outperform" ratings ⚡️ What HR leaders need to understand: The New Efficiency Equation → Companies are decoupling growth from headcount. Walmart's ad revenue jumped 50% while cutting tech staff, signaling AI and automation are replacing traditional scaling models. Strategic Restructuring vs Cost Cutting → This isn't panic-driven downsizing. The memo emphasized "accelerating decision-making" and "reducing complexities" - pointing to organizational design evolution, not financial distress. Private Employer Ripple Effects → When the largest private employer in America restructures, it sets precedent. Other retailers and tech companies are watching these moves closely for workforce strategy signals. Technology Role Transformation → Even as digital transformation accelerates, traditional tech roles are being consolidated. The future favors hybrid skills and cross-functional capabilities over specialized positions. 🦾 Future of Work Navigation Points: Workforce Resilience Architecture → Build teams that can absorb structural changes without losing momentum. Focus on skill versatility over role specificity. Predictive Workforce Planning → Develop systems that anticipate restructuring needs before they become reactive measures. Use data to stay ahead of efficiency curves. Employee Experience During Transitions → Create frameworks that maintain engagement and productivity even during organizational changes. The remaining workforce performance determines success. This restructuring pattern will accelerate across industries as companies balance human capital with technological capabilities. At PeopleAtom, we're building intelligence systems that help CXOs and People teams navigate these transitions with confidence and clarity. Are you ready for the workforce transformation ahead? Join our waitlist to access early insights on building resilient organizations. Love, Joe

Telco Organizational Latency Is Worse Than Network Latency At Google Cloud, structure was the accelerator. Managers had 10 to 12 direct reports. Most employees sat within 3 layers of a VP. Alignment was not a meeting. It was built into the model. You owned the outcome or you did not. The result was speed, not from hustle, but from architecture. Telcos run on a different blueprint. Most still carry 8 or 9 layers. Manager spans an average 4 to 5. Departments like legal, billing, IT, care, marketing and compliance each protect their domain. But no one owns the full outcome. Work gets fragmented. Accountability disappears into the process. That used to make sense. Technology was modular. Switches stayed in the NOC. Billing systems ran on mainframes. Care followed scripts. Org charts mirrored technology silos. But modern business is horizontal. AI, analytics, and cloud cut across functions. Identity, security, personalization, and observability; none live in one team. Execution flows through the whitespace between roles. And that whitespace is unmanaged. Vertical structures now create drag. Layers multiply decision latency. Teams wait for approvals. Silos fail to align. Every extra step adds delay. The structure itself becomes the blocker. The numbers expose the gap. Meta generates over 1.5 million USD per employee. Microsoft sits at 1.05 million. AT&T is under 600 thousand. Orange is near 370 thousand. To generate 1 billion in revenue, Meta employs 650 people. Orange needs 2,700. That is a structural difference, not just a business model gap. STL reports that 70% of Telcos still follow strict verticals. Boston Consulting Group (BCG) found that digital-native companies launch products 40% faster. Bain & Company data shows flatter orgs double decision speed, even with the same headcount. In some Telcos, a prepaid plan update requires input from 12 departments. Every step adds latency. Every layer compounds it. Strategy may say agile, but structure still runs waterfall. So, how to create an "ultra low latency org chart"?: Eliminate internal SLAs. Replace with shared OKRs tied to real outcomes such as churn, NPS, ARPU, and conversion. Organize around squads, not functions. Each squad owns a product or journey end-to-end, with embedded tech, ops, marketing, care, and analytics. No handovers. No alignment meetings. One goal. One backlog. One accountable unit. Flatten the structure. Limit org layers to 3 or 4. Expand the manager spans to 10 or more. Remove matrix reporting. Push budget, scope, and delivery decisions to the squad level. Embed legal, finance, and compliance into teams or abstract them as internal platforms. Kill approval chains. Replace control with coordination through code, systems, and shared KPIs.