Unleashing Human Capital: Navigating Industry 5.0 Through Skill-Based Organizations and Frugal Innovation to Foster Resilience and Regeneration

Abhinav Agarwal
The Frugal Company
Published in
3 min readDec 3, 2023


In the fast-evolving landscape of Industry 5.0, organizations are challenged not only to adapt but to thrive in the face of uncertainty. One key aspect that holds the potential to transform organizations into resilient and regenerative entities lies in recognizing and utilizing hidden and underused human capital. By aligning organizational purpose, skills, and company processes, skill-based organizations can pave the way for resourcefulness, agility, and frugal innovation, ultimately contributing to a robust and sustainable future.

Mapping the Untapped Potential:

Traditional hierarchical structures often overlook the wealth of knowledge, skills, and experiences hiding within an organization. Skill-based structures dismantle these silos and place emphasis on individual competencies and aspirations. This approach not only empowers employees but also enables organizations to map hidden human capital, identifying untapped talent and fostering a culture of continuous learning.

Hidden within the organizational structure are often untapped skills and talents. Skill-based organizations prioritize the identification and utilization of these latent potentials. By implementing robust mapping strategies, organizations can uncover expertise that may be underutilized or unrecognized. This process involves a comprehensive evaluation of employees’ skills, experiences, and passions, ensuring that the right people are in the right roles to contribute optimally.

Skill based organizations for a regenerative organizational culture

Effectuating a Collaborative Culture:

Drawing inspiration from effectuation principles, where individuals leverage their existing resources and knowledge to craft a desired future, skill-based organizations create a climate conducive to co-creation and collaboration. By recognizing and utilizing the unique expertise of each team member, organizations can tap into collective intelligence and foster a greater sense of ownership and purpose.

Unlocking Agility and Resourcefulness:

Frugal innovation, characterized by achieving more with less, provides a powerful framework for resource-constrained environments. By adopting a “do-more-with-less” attitude, organizations can empower individuals to identify and implement creative solutions using readily available resources. This fosters a spirit of resourcefulness and agility, enabling organizations to adapt to unforeseen challenges and create sustainable value.

Aligning Organizational Purpose and Skills:

Resilience and regenerativity thrive when there’s alignment between an organization’s purpose and the skills of its workforce. Skill-based organizations ensure that every individual’s contribution resonates with the broader organizational mission. This alignment fosters a sense of shared purpose, driving motivation, and increasing the overall adaptability of the organization.

Frugal Innovation for Resourcefulness:

In the face of resource constraints, frugal innovation becomes a critical approach. Skill-based organizations embrace frugality by optimizing existing resources and finding inventive solutions to challenges. This mindset not only enhances resourcefulness but also cultivates a culture of continuous improvement, making the organization agile and adaptable in the ever-changing business landscape.

By identifying transverse teams that have the best adapted skills to solve a given problem as well as identifying micro-learning opportunities to upskill people with the minimum effort for maximum impact.

Capitalising on knowledge, expertise and processes:

https://ligamen.com/ is a french innovative startup specialised in mapping skills ontology facilitates the mapping of knowledge, expertise, skills and processes in organizations and is the ideal tool to analyse which skills and expertise are essential to the organization, which skills need to be capitalised upon, which skills can be outsourced, automated and in which future skills to invest. An essential consideration with the implementation of AI is to consider which skills have value added and are dignified jobs for people and wht should be automated.


Building a resilient and regenerative organization in the face of continuous change requires a shift towards embracing human potential and fostering adaptability. Skill-based structures, coupled with effectuation and frugal innovation principles, offer a promising path to unlock hidden talent, bolster collaboration, and empower individuals to drive a thriving and sustainable future for organizations.

Get in touch on www.frugal-company.com for a demo on Ligamen !



Abhinav Agarwal
The Frugal Company

#Frugal Innovation #Polymath #Minimalist #Biohacker #Ethical Leadership