We all have a portfolio of skills that are used in combination to provide us with our living. Each person listening to this podcast makes their living in a different way, using a different combination of talents, selling them for different rates to different buyers – otherwise known as your employer.
Have you ever thought of your skills as a portfolio? A portfolio is more often associated with investments or creative careers than business careers, but the reality is – we each build our portfolio of skills.
The Merriam-Webster dictionary defines portfolio as a portable showcase of your talents. I guess in the traditional sense, our portfolio is our resume or CV. The strategy behind a portfolio is that you are typically trying to put it together in a way that maximizes its value. For an investor, they are picking the investments that they feel will give them the best return, but that is also diversified. The difference between an investor’s view of their portfolio and your view of your skills portfolio is likely that they are always thinking of it strategically, and you likely haven’t.
What I want to do today is to help you think of your skills in terms of a portfolio and to become more strategic about how you are thinking about them and deploying them. I’m going to give you a very concrete tool for thinking through your portfolio in a way that helps you decide what skills you should invest time in.
If you are signed up for Scale My Skills, our weekly newsletter, the tool is already in your inbox. Otherwise, if you’d like to get a copy of this tool, you can git it for free by signing up for Scale My Skills.
The tool that we are going to talk about is a matrix. On one axis is the question “what skills do I have or am I growing?” On the 2nd axis is the questions “are my skills well received in the marketplace?”
What skills do I have or am I growing?
For every skill you have, you rank it along a continuum based on your level of expertise. Skills that are your strengths go on the high end of the spectrum, and skills that are not your strengths go on the low end of the spectrum.
How well received are these skills in the marketplace?
The market sets different prices for different skills. Understanding the intersection of your skills and how the marketplace values them can give you great insight into the best way you can maximize your portfolio.
So, along the 2nd axis, you are going to rank the skills you have based on the going market rate. Skills that the market doesn’t value go on the low end of the spectrum and skills that they market highly values go on the high end of the spectrum.
Plot them in the Skills Portfolio Matrix
Ok, now that you’ve assessed your skills and what the market will pay for those skills, you are going to plot them in a matrix.
For those skills that you are not good at and the marketplace doesn’t pay well for – there is no reason for you to put effort into developing the skill. At least, not if your goal is to get paid for it.
For those skills that you are really good at but the marketplace doesn’t value highly, these can become sustaining skills. Think of them as an investor thinks of passive income. You may not put a lot of effort into it because the return is low, but the fact that you receive some benefit still has value to you.
For those skills that are a strength and are valued highly, you should consider making additional or continued investment in order to get the most out of the market’s willingness to pay. You should also make sure you are highlighting this skill on your LinkedIn profile and resume or CV. This is the skill that you want to market for yourself.
The point of the exercise is to help you identify the skills that make sense to invest in. Once you’ve identified them, it is a separate step to determine how they fit into your overall goals and priorities. What the matrix tells you about the skills that fall into the high value/ high expertise quadrant is that the investment in them will pay dividends if you decide to pursue them.
And, for those skills that fall into the quadrant for high market value but low skill, these are the more risky investments. Since you aren’t sure the skills is something that can become a strength, the amount of investment you need to make is higher. And, because you are farther away from the expertise, there is more opportunity for failure. You can get into it and find out you don’t have the aptitude. You can get into it and find out you don’t enjoy it. You can get into it and find out it is nothing like you thought it would be. So, it not only requires a bigger investment, it has a higher probability of failure. But, none of those things mean you shouldn’t do it. The payoff at the end may be big enough to be worth the risk.
Again, the point of the matrix is to help you identify the relative risk / reward and then it is up to you to take the next step.
So, I hope I’ve inspired you to take a look at your skills from a portfolio view. When you look at your skill portfolio in total, you want a good balance of skills that are highly developed and highly valued and skills that, if not so highly valued are not costing you in other ways. As you consider where to invest your time and money, you are thinking about the impact to your overall skills portfolio.
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