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Leadership Development--Individual

Leadership Development--Organizational

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Business Management Skills


Types of Skills


Striving for success without hard work is like trying to harvest where you haven't planted.

David Bly

In the 50s, Katz wrote a classic article in the Harvard Business Review titled, "The Skills of the Administrator." It would have been better if he would have used a better title such as, "Developing Business Skills or perhaps, "What business skills should you development?" He divided needed business skills into three general areas: human relations, technical, and conceptual.

Skill Development Area 1: Technical Skills

Most people get their first job based on their technical skills (unless one happens to be the daughter of the owner, but that is another story). These types of jobs include traditional jobs such as software programmer, engineer, hair dresser and machinist to the more exotic ones such as web master, systems integrator and beauty consultant. In fact, the U.S. Labor Department's Dictionary of Occupational Job Titles contains over 28,000 different technical skills.

Technical skills does not imply high technology since janitors, telephone operators, and secretaries are included in this are. It may require a degree or just on-the-job training. For example, a story is told about a young man, who was hired to work at a supermarket. He reported for his first day of work and the store manager greeted him with a warm handshake and a smile, gave him a broom and said, "Your first job will be to sweep out the store." "But I'm a college graduate." the young man replied indignantly. "Oh, I'm sorry. I didn't know that," said the manager. "Here, give me the broom, I'll show you how."

Not all technical skills are equally in demand. One of the prime mistakes high school grads and college students make is not understanding the value society places on different technical skills. Some appreciate in value (programmers), while others are in decline (telephone operators and secretaries).

Technical skills can also become obsolete. As any one who is in the software area can attest, their knowledge has a limited shelf life. This is an increasing problem for many companies. Its like needing a workforce running with the computing power of a calculator when one needs a Pentium microprocessor. Just having a sound set of technical skills is not enough for those who wish to move up in the organization—they must also develop other types of skills.


Skill Development Area 2: Human Relations Skills

According to Robbins in his book Training For Interpersonal Skills, “Today’s business graduates have an abundance of technical knowledge. They can do linear programming, calculate a discounted rate of return, develop a sophisticated marketing plan, and crunch numbers on a computer spreadsheet. They’re technically solid, but most lack the interpersonal and social skills necessary to deal with people.” While he made this comment in 1989, it still rings true today.

In fact, in a 2005 study called, Why New Hires Fail, it was pointed out that it's the human relations skills that gets one fired. Top failure areas included: Coachability (26%): Emotional Intelligence (23%): Motivation (17%): and Temperament (15%). Lack of technical skills accounted for 11% of failed new hires.

One of the greatest source of job satisfaction and dissatisfaction is the quality of the relationship an employee has with their boss. If their manager lacks leadership skills, morale goes into the dumpster and turnover sky rockets. One rather humorous example comes from Psychology Today which once reported that, “95 percent of American men estimate they are in the top 50 percent of social skills.”

It has long been known that while top-notch technical skills allow one to be considered for supervision, it's your people skills that allow you to keep the job. Too often, a technical expert gets promoted and then can't get along with others—creating a lose-lose situation for the company and that individual.

Since these are considered to be “soft” skills, managers rarely want to spend hard dollars. Top management’s failure to understand the importance of developing leadership and social skills in the managerial ranks is both penny wise but pound foolish.


Skill Development Area 3: Conceptual Skills

For those that see themselves in the executive ranks or desire to own their own business, another category of skills must be developed. These conceptual skills deal with the ability to use mental heuristics and understand paradigms to solve problems and make decisions. Unfortunately, many individuals lack the ability to successfully solve complex problems.

When the quality movement begin to blossom in America during the 80s, one of the foundation principles taught to employees were the Seven Tools of Quality. These were really very simple techniques such as flow charting and Pareto analysis. When used routinely throughout the organization, this basic tool set was enough to allow companies like GE, Motorola, Toyota and Sony to develop a reputation for high quality that resulted in better profit margins.

At the executive level, these conceptual skills come into play in a different way. Executives must also deal with a rapidly changing environment fraught with risk and uncertainty. They must develop marketing, sales and competitive strategies that are better than their competitors if they hope to get in front of the rest of the pack.

An even more subtle conceptual skill involves developing the ability to find new business opportunities. There’s an old saying that goes, “No opportunity is ever wasted. If you miss it, one of your competitors will find it for you.”

For example, while many people consider Microsoft’s Bill Gates to be a techno geek, he is much more than that. He obviously has a vast knowledge of computer programming or Windows would not have evolved. But it would have only been one operating system among many if he lacked the ability to think strategically.


Conclusion

One can easily see the paint peeling on a building, but it's less easy to see obsolete business skills behind the eyes. Typically, what goes unseen gets neglected.

There is an old story from the Middle East that illustrates this point. One day a neighbor happens to walk by and see his friend Nasrudin looking for something so he asks, "Nasrudin, what have you lost?" "My key," said Nasrudin. "Exactly where did you drop the key?" “In my house." "Then why are you looking here for your key?" "There is more light here than in my house."

Often the key to success lies in areas were one is not looking. It’s important in these days of rapid change, for individuals and organizations alike to grow the business skills required to prosper with the future.

Success usually comes to those who are too busy to be looking for it.

Henry David Thoreau

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