Most organizations will have thousands of different skills. How do we focus on the ones that really matter? We often have to answer this question at Ibbaka. Here are some initial thoughts on our approach. The skills that matter most are the skills used to solve problems.

Skill differentiation highlights the differences between individuals, teams, companies and even geographies or industries. Industries in which innovation is common will show more skill differentiation. Industries going through commodification will see skill differentiation decrease. One of the risks of over reliance on competency models is that it can damp down skill differentiation. An open approach is needed to capture skill differentiation.

One often wants to compare the skills of people, the skills required for roles, the skills of different teams and so on. One important approach comparison is between two companies. This skill differences can give important hints on each company’s strategy and differentiation. Focusing in on key skills can bring differentiation into focus.

Sustainable growth requires an ongoing investment in understanding, developing and applying skills. To do this effectively manage your skills as a portfolio.