As we face unprecedented global challenges – from climate change and economic inequality to systemic racism and political polarisation – the next generation of leaders and changemakers need to be equipped with the skills needed to build a more just, equitable, and sustainable world.
This is why traditional learning is under scrutiny.
Career progress is rarely measured by academic achievements or technical prowess alone. Instead, meaningful impact is the true goal of the successful. This reframed view of success is changing how businesses assess talent and evaluate potential.
At the heart of this shift are what were once dubbed "soft skills”, skills which are now being thought of as "impact skills", skills which both business and society desperately lack and desperately need.
Impact skills are what drive change and innovation
Essential for the challenge of helping workers, organsiations and society adapt to change, impact skills encompass a broad spectrum of abilities, ranging from communication and collaboration to critical thinking and emotional intelligence.
Consider, for example, communication skills in social change. From the grassroots activist mobilising their community to fight injustice to the corporate leader advocating for sustainability within their business, effective communication transforms ideas into action and inspires others.
Similarly, the ability to collaborate across disciplines and cultures is essential for addressing complex challenges that defy simple solutions.
Critical thinking and problem-solving skills are indispensable in navigating the complexities of the modern world, enabling individuals to analyse information, evaluate evidence, and make informed decisions in the face of uncertainty and ambiguity.
Emotional intelligence – the ability to recognise and regulate emotions in oneself and others – is increasingly recognised as a determinant of success in both personal and professional contexts, influencing everything from leadership effectiveness and team dynamics to interpersonal relationships and mental well-being.
These skills are as critical for effective innovation and transformative change, as technical ability
Unlocking potential: valuing impact over credentials
Despite the critical importance of impact skills in driving positive change, young innovators often find themselves undervalued and overlooked in traditional education and employment frameworks, even when they have an aptitude for these abilities.
Their potential can be stifled by frameworks that prioritise academic credentials over practical experience and real-world application of knowledge.
This is a missed opportunity for businesses and society at large.
By discounting the insights and contributions of young people, companies miss out on valuable opportunities for growth and innovation. They also perpetuate a cycle of stagnation and complacency that threatens their long-term viability in the face of technological transformation and competition.
However, the tide is turning.
As sectors such as renewable energy, biotechnology, artificial intelligence, esports, gaming, cryptocurrencies and sustainable fashion gain traction, the demand for forward-thinking, agile talent has never been greater. McKinsey & Company research underscores the growing demand for these skills in response to technological advancements and the changing nature of work, highlight the critical role of impact skills in fostering a work environment that can thrive amid these changes (McKinsey & Company).
Innovative partnerships for impact skills development
In a world where outcomes measure success, individuals who possess impact skills are uniquely positioned to drive positive change and make a lasting impact on society. In addition, they’ll benefit from career success.
As businesses embrace impact skills, it is imperative for educational institutions to adapt and evolve accordingly. These institutions serve as the foundational pillars upon which the future of our society and economy rests, so it's essential that they equip students with the skills and mindset needed to thrive in a rapidly changing world.
The traditional model of education, with its emphasis on standardised testing and rote memorisation, often falls short in nurturing the full spectrum of impact skills. To prepare students to drive meaningful change and make a positive impact, formal educational institutions must be bolder and more creative in their approach.
At a time when businesses perceive both the value of impact skills and emerging skills gaps, educational leaders and the bodies that fund them should prioritise experiential learning opportunities that allow students to apply their knowledge and skills in real-world settings, where students can gain hands-on experience and develop critical skills such as problem-solving, communication, and collaboration.
From classroom to career: innovation partnerships will bridge the impact skills gap
One way institutions can respond to the demand for impact skills is through partnerships with more innovative external organisations. This strategy is an established way for businesses to benefit from external impact skills, such as the innovation accelerators hosted by banks such as Barclays and Natwest.
The pressures on teachers are already overwhelming. Why demand even more of them?
Collaborating with external partners brings the theoretical classroom experience to life. For example, new online work experience initiatives that provide a real-world setting to explore impact skills.
Institutions should also foster a culture of creativity and innovation within their campuses. For example by planning initiatives that will actively support and encourage students to think creatively, take risks, and pursue their passions.
Maker spaces, innovation hubs, and entrepreneurship incubators are all strategies that schools and colleges can adopt to solve the problem.
Most often delivered in partnership with external organisations, these approaches work best when they provide students with the resources and support they need to safely explore their interests and turn their ideas into real-world experiences. They provide a much-needed opportunity for safe experimentation, innovation and learning.
Steering education and business towards a greater good
Being bolder and more creative in the pursuit of developing impact skills is not just a matter of staying relevant for the people steering things at the top; with the world on fire, it's a moral imperative.
Both business leaders and education leaders need to step up and move things in the right direction.
Bold change requires courageous leaders and funding to make it sustainable. Now is the time for a more collaborative approach where educators, business people and innovators work together.
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