Efforts to improve the skills and capabilities of the workforce often fail because companies don’t really know where the gaps are. McKinsey’s client work shows that one tool to reveal them is a comprehensive survey that allows employees themselves to identify the areas most in need of improvement. A targeted, less costly program—something that’s particularly valuable in the present downturn—can then be rolled out to the organization.

“Identifying employee skill gaps” (May 2009) presents the case of a manufacturing company implementing a major performance transformation program that included significant capability-building efforts. To identify specific areas for improvement, the company surveyed site leaders, middle managers, and frontline supervisors in two regions. As the exhibit shows, their needs were quite different.

Performance transformation programs may also make it necessary to challenge the way people work. “The psychology of change management” shows how companies can successfully modify their employees’ mind-sets (June 2003).