Know thy Skill-Set

Personally, I face a challenge like most fresh graduates: I have no clue about the industries that I'm supposed to be passionate about and I do not possess a track record of performing and delivering results on specific tasks.

This poses a chicken-and-egg problem: Companies hire the best candidates who possess skills, aptitude and attitude. A fresh graduate is largely untested (the aptitude to function in a role and position is unclear). The signal of a fresh graduate's suitability therefore is largely inferred by his/her


  •  Understanding about the skill-set required for the function
  •  Passion for the industry


For part (i), there is an underlying rationale: while the fresh graduate may not have a track record of performing and excelling on the tasks associated with a specific function (eg. Strategizing and implementing  a FX hedge as a Treasury Analyst, Performing gap analysis as a Strategy Analyst, etc), it is essential that they must at least understand the skill-set.

As a fresh graduate, you demonstrate a good understanding of the skill-set if you can clearly and thoughtfully articulate details surrounding the skill-set, such as:

(i) The problem situation where the need for this skill-set arises
(ii) The process, tools and resources required to facilitate and carry out the skill-set
(iii) The intended direct outcomes of applying this skill-set
(iv) The limitations associated with this skill-set, which highlights the need to include other skill-sets towards solving a problem.
(vi) The "value-addedness" of this skill set, and how it links to other business functions directly above or below the value chain.

A clear understanding of (i) to (vi), coupled with some background understanding, should allow even a fresh graduate to have some "meat" in business conversation.

By demonstrating in-depth knowledge of the relevant skill-sets for a role:


  • You position yourself as a potential problem solver.
  • You indicate genuine interest to excel in your role.
  • The employer will not need to train you for very long before you can work independently and actively contribute to the team.


I will blog about the "passion" part in my next post. The following will be an example of what it means to have basic knowledge about a skill-set:


Two days ago, I mentioned that I want to expose myself to the following skill sets:
http://angsyblog.blogspot.sg/2013/06/no-clue-to-research-start-acquring.html

Therefore the following will be a demonstration of my knowledge of the skill-set


Whitespace Analysis (Gap Analysis)

(i) Source: http://en.wikipedia.org/wiki/Gap_analysis

Key Phrases:

  • Comparing actual with potential performance
  • Determining, documenting, and approving the variance between business requirements and current capabilities.
  • naturally flows from benchmarking and other assessments
    ie. Benchmarking sets standards against which Gap Analysis is carried out.
  • strategic or operational level (long term vs daily decision-making)

    Results of GAP Analysis are used to
  • measure investment of time, money and human resources required to achieve a particular outcome
  • classify how well a product or solution meets a targeted need or set of requirements.

    Gaps in the Market discovered via
  • portfolio analysis or
  • following consumer trends

    Special Technique: Boston Consulting Group - Growth-share matrix

    Comparing comparing forecast profits to desired profits reveals the planning gap.
    The planning gap can be divided into three main elements:
  1. Usage gap
  2. Existing usage
  3. Product gap

    usage gap = market potential – existing usage

Existing usage = total current market

  • usually derived from market research

    Key Technique: The Nielsen Company - Panel Research
Forecast timescales serve as boundary for expansion plans.


Competitive Gap Analysis: 
Competitor Shares = Total Market Share - Firm Market Share


Product Gap aka Segmentation Gap aka Positioning Gap

  • part of the market a particular organization is excluded from 
  • because of product or service characteristics
  • Objective: Effective Positioning to maximize profits

Gap Analysis is pretty commonsensical:
  1. Identify existing processes and outcomes
  2. Set a desired outcome
  3. Identify changes in processes to attain desired outcome

"changes in processes"
  1. Identify the Gap and document it (research)
  2. Develop and prioritize Requirements to bridge the Gap
  3. Develop means to fill the Gap (solutions to implement)



Gap analysis can also be used to compare existing processes to processes performed elsewhere (benchmarking, best practices of competitors): 
  1. Compare each process side-by-side & step-by-step 
  2. Note the differences. 
  3. Analyze each difference to determine the benefit of incorporating parts of other processes. 
  4. Processes can be combined to create a new one that is superior to either original.



A method of Asset-liability management:

  • To assess interest rate risk or liquidity risk, excluding credit risk. 
  • IRR measurement method  
  • Conveys difference between rate sensitive assets and rate sensitive liabilities over a given period of time. 
  • Works well with fixed cash flows, cannot handle uncertain cash flows. 
  • sometimes used in tandem with duration analysis




Area between the boxes/functions in an organization chart: 
  • Very often no one is in charge or responsible for the White Space. 
  • Important handoffs between functions are happening here
  • Very often the area where an organization has the greatest potential for improvements. 
  • In the White Space things often "fall between the cracks" or "disappear into black holes"
  • resulting in misunderstandings and delays. 
  • To manage the White Spaces is a way to improve process performance of an organization.

Area within a company where the existing corporate culture does not apply
  • where rules are vague
  • authority is fuzzy
  • budgets are nonexistent
  • strategy is unclear 
  • If white space is undefined, then the rest of the corporation operates in what they call "black space."
  • four key challenges to successful white space projects: establishing legitimacy, mobilizing resources, building momentum, and measuring results.


Desired Outcome: 
  • More Leads
  • Expanded pipeline of sales opportunities
  • Improve their chances to reach and exceeding sales goals. 


Existing Process: 
Few salespeople tapping into their current customers effectively. 

Benchmarking: 
  • In their report on sales performance benchmarks, CSO Insights found that, on average, 
  • sales reps are generating over half (52%) of all of their own opportunities 
  • with 24% generated by marketing and the rest from partners and referrals. 
  • almost two-thirds (64%) of all sales managers say that their sales teams need improvement in their ability to generate new leads. 
  • And the majority of sales managers (57%) also say that their teams need improvement in their ability to farm additional revenues from existing customers. 

Identify the Gap (White Space):
  • salespeople find most of their own sales opportunities
  • yet 
  • far too many sellers lack essential lead generation and account management skills.

(a) Existing Belief (Worldview): Sales opportunities emerge only after a customer has established a clear vision of a solution

Solution Required - Sales Training in Value Propositioning:
  • The most successful salespeople recognize that if they can help customers to recognize their pains (critical business issues or potential missed opportunities)
  • and also assist them with their visioning process (helping them to see a potential solution to their problems)
  • they can not only create new sales opportunities, but also do so in a way that favors the seller’s capabilities
  • This powerful method of finding potential deals is called latent opportunity development.

(b) Existing Practice: When serving a customer account, most salespeople spend their time working with people they know on needs they have defined. 

Solution Required: Intentionally identify needs
  • Find undefined needs that they can address 
  • Meeting new people in the account that may have similar needs they can help to solve.

To develop new business in a current account, top sellers perform a “white space” analysis. 

SPI developed a structured methodology to enable sellers to conduct account planning effectively, built upon the solid foundation of white space analysis.


(iv) Source: http://www.innovationmanagement.se/2011/03/07/white-space-mapping-seeing-the-future-beyond-the-core/

(v) Source: http://www.oliverwyman.com/media/Targeting_the_White_Space.pdf


Of course, reading some articles about Gap Analysis will not suffice. In my next blog post, I will analyze the methods employed by Oliver Wyman to carry out their Gap Analysis of Emerging Asia's Wealth Management. This will showcase the insights I gleaned from their analytical process. For more info, read

http://angsyblog.blogspot.sg/2013/06/how-did-oliver-wyman-conduct-their-gap.html

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