Tag: Personal Development

Skills are better together.

But, are you connecting the right ones?

As part of my ongoing skills anthology, it makes sense to unpack what is the real value of our skills. I mean, we spend so much time talking, investing and building them, we should get clear on the value they bring, right?

To help us on this journey, a very tasty and long (they’re always long!) research paper from 2023 called “What is the Price of a Skill? The Value of Complementarity”.

It investigates the economic value of skills in the context of complementarity, which refers to how well a skill can be combined with other skills, ideally of high value to benefit each of us.

Don’t worry, I’m not going to regurgitate everything it says.

Instead, I’ve distilled what I feel are the best insights for you to know, explore and apply in your work.

At a glance, this research tells us

• The value of a skill is relative and depends on the skill background of the worker
  
  
• An analysis of 962 skills found that most skills have the highest value when used in combination with skills of a different type.
  
  
• The report also examines the value of Artificial Intelligence (AI) skills, which are found to be particularly valuable, increasing worker wages by 21% on average due to their strong complementarities and rising demand in recent years.

How can you calculate the value of a skill?

💵 The million-dollar question.

As always, the answer is incredibly contextual. Let me unpack that with the guidance of the report.

The authors propose a method that attaches a market value to skills based on market demand and supply as well as their complementarity with other skills.

That means straightforward and logical. I like it!

Let’s move beyond the surface and get a bit nerdier with this. The report echoed one word continuously “complimentary”. The authors defined this through 3 aspects:

1. Number of Complements. The number of adjacent skills should be positively related to a skill’s value.
   
   
2. Diversity of Complements. The diversity of adjacent skills should be positively related to a skill’s value.
   
   
3. Value of Complements. The value of the adjacent skills should be positively related to a skill’s value.
   
   

Key Takeaway:

The value of a skill is higher if it can be combined with a diverse set of other skills of high value.

In sum: A network of the right skills is vastly more valuable than one skill alone or a mixture of competing skills.

The one skill to rule them all

Of course, this skill doesn’t exist.

But, unsurprisingly, AI is making a strong case for the future.

As if the word of the year couldn’t boost its appeal even further, the report authors found:

We show that skills needed to construct and maintain AI, which is widely considered to be a major breakthrough technology, have significantly higher skill values than the other skills in our dataset—With a premium of 21 %, AI skills are far more valuable than the average skill in our sample (4 %). AI skills have an above average number of complements of large diversity, since AI technologies enter more and more domains for knowledge work. Furthermore, we track the development of skill values over time and find that AI skills, such as Deep Learning and Python have been gaining in value significantly in recent years. Our model allows us to ascribe these changes to an increase in demand relative to supply.

AI is here to stay and we can’t (and shouldn’t) ignore it.

How you can use these insights

Firstly, let’s cover what you can take away as an individual investing in their skills for the future.

1. Identify your complementary skills
2. Focus on AI Skills (delegation and collaboration)
3. Understand Skill Value
4. Utilise skill stacking and develop T-shaped skills (see the section below on ‘tools’)
5. Always look to reskill and upskill

How to identify your complementary L&D skills

This is something I’ve covered in detail before.

My 2023 article on the 7 skills L&D teams need to succeed will help you explore this in detail.

Yet, everything should be contextual for you. My article explores what I see as the baseline for a modern L&D pro.

Your role will no doubt have nuances that I cannot know or directly account for.

I’d recommend you check out the ‘tools’ section below to explore both the concept of skills stacking and T-shaped skills. These will both help you identify what could be some of the most valuable skills to complement and build a high-value skill network.

How to use these insights to inform your 24/25 L&D strategy

Ok. Let’s turn you into the smartest L&D pro in the room in the coming year’s strategy session.

Here’s 4 actions you can take based on this research:

1/ Develop the concept of a complementary skills network

Your workforce won’t organically think of skill development in this way.

We’ve been taught about skills and hear tons about skills-based organisations. But very little on how to structure our own skills network.

→ This can be a simple educative piece through an article or email series.

Use what we’ve discussed so far to educate people on not only the acquisition of the right skills. Teach them how a network of complementary or connective skills is a worthwhile long-term strategy for future-proofing a career.

2/ Highlight complementarity in L&D programs

It’s no good educating teams on the power of complementary skills and your solutions/resources/programs not aligning with this.

Make it clear how your solutions link to other skills. Showcase which of these works best with other things you’ve built. If you make it so simple to build a complementary skill network, people’s behaviours will change.

3/ Promote AI Skill development

No shock or horror here.

Given the increasing value of AI skills, prioritising the development of AI skills among teams is a no-brainer. Especially given their strong complementarities and rising demand, which the research suggests leads to an average increase in worker wages by 21%.

You can get my step-by-step guide to crafting an AI skill-building strategy for your organisation here and access my zero-cost library of AI for L&D insights on the website.

4/ Communicate the value of skills

Building on the first point.

Your people probably aren’t going to get this concept the first time around. Like any change in patterns of thinking, you have to say the same thing a hundred different ways, a hundred different times.

One way to guarantee this hits home is by leveraging financial outcomes.

The better your skills the more money you can command. Think of skills as the currency we each grow across the career marketplace. Companies pay top dollar for the best on the market.

⚒️ Connective skill-building tools

1. T-Shaped Skills: An incredibly popular methodology and one I still find much use in sharing. Get full details on what, why and how to apply in your work here.
   
   
2. Skill stacking: A model not too dissimilar to others I’m sharing here but one less formal than what you expect for the corpo world. Learn more.
   
   
3. The power of combining skills: A helpful set of insights to approach the skill algorithm.
   
   
4. A collection of modern skill-building strategies: Everything from Ikigai to the 3 E’s skills framework.

📊 Useful Charts

The value of AI skills

The most profitable skills tend to have a higher exposure to AI.

Combine and grow for value

The main idea is that combining skills from different areas is more beneficial, as illustrated in Figure A. Similarly, Figure B demonstrates that having a range of skills within the same field also adds value.

Final thoughts

• The value of a skill is strongly determined by its complementarity, meaning how well it can be combined with other skills
  
  
• The value of a skill is relative and depends on an employee’s skill background
  
  
• AI collaboration and delegation skills are the most in demand today
  
  
• Design L&D solutions that enable intelligent connective skill-building

Get more from the skills anthology:

1. The 5 skills that matter for the future of work and how to build them
2. How to close the skills gap
3. A deep dive into workplace skills technology

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Before you go… 👋

If you like my writing and think “Hey, I’d like to hear more of what this guy has to say” then you’re in luck.

You can join me every Tuesday morning for more tools, templates and insights for the modern L&D pro in my weekly newsletter.

Ok, we kick off our series at the most logical place.

The beginning. Of course!

Now we’ve solved that mystery, let’s get serious (or as serious as my brain will allow me)

I hope you’ve noticed the weekly report breakdowns in Tuesday’s edition. I mean, I’m really hoping. Otherwise, I might be heartbroken.

→ At this point, I’ve analysed nearly 20 reports on the Future of Skills.

Yes, riveting, I’m aware.

My goal is to unpack the key insights with you. I aim to equip you with the stuff you actually need to know and how to apply it in your work and career.

Our first stop is getting to the good stuff immediately.

The 5 skills that matter in the Future of Work

I hate presentations where you wait an hour or two for the answer.

That’s not how I work, so here’s the headline data you need to know.

From my report crunching, these 5 skills appeared in the top 10 of every single one I read.

We can call these the top trending skills across the dataset.

If you take only one thing away from today’s conversation, let it be this:

→ Double down on these 5 skills to go far in your career.

Simple, right?

And… maybe an even more important takeaway, the future is certainly human-powered.

Trust but verify: The data behind this

The last year of report breakdowns has given me a Sherlock Holmes worth of investigative material.

I’m not going to list every single report. I highly doubt you’ll delve into them as it’s my job to make it easier for you after all. However, these are the 5 companies from which I’ve pulled the most insights with their large reach.

• Microsoft
• Boston Consulting Group
• McKinsey & Company
• World Economic Forum
• Bain & Company

You’ve probably seen breakdowns from these in past editions.

Find a library of these here ←

The great disruptor: Generative AI

2023 will go down as the year of AI.

Each of the reports I’ve analysed takes in the meteoric rise of this technology and how it influences our modern skills. I don’t believe we can talk about skills this year without those two little letters in AI. The way we live and work is obviously affected by this.

It’s happening whether we like it or not.

The real question is how does it impact the skills we need to succeed?

From my analysis so far my bet is firmly on doubling down on our human skills. With each new report I sink my brain into, this only solidifies the need to tap into our most human abilities.

We must be aware of this societal shift but not consumed by it.

An ominous statement I’m aware.

Deconstructing the 5 skills

Fret not, I’m not going to leave you high and dry with no actionable takeaways.

Let’s dive into each of the 5 skills to unpack what they mean and how you can nurture these in your work.

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1/ Analytical Judgement

This goes beyond merely crunching numbers or drawing conclusions from a set of data. It’s a cognitive process that involves several interconnected abilities:

1. Critical Thinking
   This is the foundational element of analytical judgement. Critical thinking enables you to objectively evaluate information and issues by breaking them down into their core components.
   
   It involves questioning assumptions, identifying biases, and understanding various viewpoints.
   
   
2. Problem-Solving
   Analytical judgement is often employed in problem-solving scenarios. It involves a combination of creative thinking to generate solutions and analytical thinking to evaluate them.
   
   
3. Logical Reasoning
   This is the ability to sequence information in a way that allows for sound conclusions. Logical reasoning often involves the use of frameworks or models to make sense of a complex situation.
   
   Basically, it makes the complex sound simple.
   
   
4. Decision-Making
   Ultimately, analytical judgement is aimed at making informed decisions.
   
   You synthesise all the information you’ve gathered and weigh against the potential risks and benefits, to choose the best course of action.

→ How to Improve

• Explore critical thinking exercises: Seek out different points of view. Be intentional in how you assimilate information to make your conclusions.
  
  
• Get comfy with data: Understanding the basics of data analysis can your thinking processes.
  
  
• Decision-Making frameworks: Familiarise yourself with popular decision-making frameworks like SWOT analysis or the Eisenhower Box to improve your decision-making skills.

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2/ Creative Thinking

I get this one can always sound a bit ambiguous.

Let’s bring some structure to this together.

Creative thinking is not just an innate talent but a skill that can be developed and honed. It’s a cognitive process that allows you to break free from conventional thought patterns and explore new ways of solving problems.

Its various dimensions include:

1. Divergent Thinking
   The ability to generate multiple solutions to a single problem.
   
   Unlike convergent thinking, which aims to find the single best answer to a problem, divergent thinking opens up the field of possibilities.
   
   
2. Innovation
   Creative thinking is closely tied to innovation.
   
   It’s about not just solving problems but doing so in new and unique ways that add value.
   
   
3. Imagination
   The ability to visualise scenarios and solutions that do not yet exist. Imagination allows you to explore ‘what could be,’ providing a playground for your creative thoughts.
   
   
4. Flexibility
   Creative thinking often involves the ability to switch between different types of thought processes and perspectives.
   
   
5. Risk-Taking
   Creative thinking often involves stepping out of your comfort zone and being willing to take risks. This doesn’t mean reckless abandon but a calculated approach to trying something new.

→ How to Improve

• Collaborate with Others: Different perspectives can spark new ideas, so don’t pass up the chance to connect with your fellow humans.
  
  
• Set aside time for creativity: Whether it’s a ‘creative hour’ each week or a day each month, make time for brainstorming and free thinking. I like to partake in a bit of mind-wandering myself.

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3/ Digital Intelligence

I hope this is a straightforward one.

We live in a world dominated, connected and integrated with digital technology. The best way to survive and thrive in it is by understanding how to leverage all of its tools.

You can’t stick your head in the sand anymore because that sand is now a digitally connected landscape.

Your digital intelligence is a blend of technical proficiency, digital citizenship, and cognitive skills.

Here’s a more nuanced look at its various components:

1. Technical proficiency
   Understanding how to operate various digital tools and platforms, from basic software like Microsoft Office to more specialised tools like Adobe Creative Suite or programming languages.
   
   
2. Digital literacy
   Beyond just knowing how to use tools, digital literacy involves understanding the “language” of these tools.
   
   This includes everything from understanding user interfaces to interpreting data analytics.
   
   
3. Protect your data
   With the increasing number of cyber threats, a key aspect of digital intelligence is understanding how to protect oneself and your organisation from digital risks.
   
   This includes everything from password management to understanding how to identify phishing scams.
   
   
4. Be good 
   Tech use involves understanding the ethical implications of your digital actions. Think about copyright laws and understand the societal impact of algorithms.
   
   
5. Adaptability
   The digital landscape is ever-changing. New tools and platforms emerge daily. Be an early adopter always.

→ How to Improve

• Experiment: Try new tools and don’t be afraid to fail. You gotta find what works for you and enhances your life and work. Ignore the market.
  
  
• Engage in digital conversations: Blogs, social media and newsletters (like this one) can keep you in the loop of the latest, greatest and most useful stuff you need to know.

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4/ Adaptability

I know this is an overused word both in life and work.

Yet, we can’t deny its importance. Essentially, it’s being a chameleon and moving with change rather than resisting it. A real mind-f**k for our biology.

Although it sounds simple, it’s a more complex interplay of several attributes and attitudes:

1. Emotional resilience
   The ability to stay calm under pressure and maintain a positive outlook despite challenges.
   
   Let’s be real, this is super hard and to be quite honest, I don’t have all the answers to it. We each have our own methods.
   
   
2. Learning agility: Be willing to quickly learn new information and skills, especially in the face of new challenges. This enables you to smoothly pivot in your career.
   
   
3. Open-mindedness 
   We all need to listen to others’ perspectives.
   
   Being willing to change your own views and approaches when presented with new information is hard, yet can be a great unlock for each of us.
   

→ How to Improve

• Embrace Change: Mix up small habits in your daily routine to become more comfortable with change. Take different paths when you go for a walk or go to the gym at a different time. Make the mind build new experiences.
  
  
• Seek different experiences: The more diverse your experiences, the more adaptable you’ll become. This could mean taking on different types of projects at work or travelling to new places.
  
  
• Listen closely: Spend more time actually listening to people rather than considering your response. You’ll be amazed at what you can pick up.

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5/ Social Influence

Don’t get confused.

This has nothing to do with having a large online following or being popular. This is a nuanced skill that involves a range of competencies and attributes.

Here’s a more in-depth look:

1. Communication
   This is the cornerstone of social influence. This is more than talking to fellow humans. It’s about actively listening and being able to read between the lines.
   
   
2. Emotional Intelligence
   Often classed as the ability to understand and manage your own emotions, as well as those of others. A high emotional intelligence can help to navigate social situations effectively, build rapport, and influence people positively.
   
   
3. Leadership Skills
   This isn’t about directing people but inspiring and motivating them to achieve a common goal.
   
   
4. Credibility
   To influence others, you need to be seen as credible and trustworthy. This means shaving a track history of actually doing the things you talk about.

→ How to Improve

• Get comfortable talking: Whether it’s through public speaking, talking to a friend or watching others. Improving your communication is key to increasing your social influence.
  
  
• Build Emotional Intelligence: Practice empathy and active listening to understand others better. Easier said than done, of course.
  
  
• Be consistent: Do what you say you will do and live by your actions not just words.

Final thoughts

Ok friend. Let’s leave it here for today.

Next time, we’ll explore the next 5 year outlook for the skills economy.

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You might also like

• Here’s a better way to build any skill
  
• How AI And New Skills Are Reshaping The Future Of Work
  
• The Optimal Skill Building Algorithm

Before you go… 👋

If you like my writing and think “Hey, I’d like to hear more of what this guy has to say” then you’re in luck.

You can join me every Tuesday morning for more tools, templates and insights for the modern L&D pro in my weekly newsletter.