APPLYING INDIVIDUAL COMPETENCIES

TO EMPLOYMENT, ENTREPRENEURSHIP,
AND INVESTMENT ACTIVITIES

NIGEL A.L. BROOKS

THE BUSINESS LEADERSHIP DEVELOPMENT CORPORATION

Article reprint
APPLYING INDIVIDUAL COMPETENCIES TO EMPLOYMENT,
ENTREPRENEURSHIP, AND INVESTMENT ACTIVITIES

Some individuals seek employment opportunities for their entire careers,

whereas others seek entrepreneurship and/or business ownership
opportunities, either exclusively or for a change in career from the
"corporate" lifestyle. In both cases, they may also become investors
seeking capital appreciation and cash flows from dividends, fees, interest,
rentals, or royalties. Regardless of whether an individual works for
somebody else or in their own business, or has their money work for them
as an investor, their success is based upon how well they apply their
personal, professional, and enterpriship (entrepreneurship, leadership,
and management) competencies.

Sources of personal income include activities from being an employee, an

entrepreneur and/or a business enterprise owner, or an investor. The
strength of an individual's competencies determines their success or failure
in these activities, and their willingness to learn from failure so as to
enable future successes. Competencies are about domain knowledge in
academic and vocational disciplines, and in the related mental and
physical technical skills. Disciplines are rules of conduct and subject areas
of teaching. Individual competencies comprise personal, professional, and
enterpriship (entrepreneurship, leadership, and management) knowledge
and skills.

Personal, professional, and enterpriship competencies...

Personal competencies are about the self (intra-personal) and how an

individual relates to others (inter-personal). Intra-personal competencies
are both qualitative and quantitative. Beyond the fundamental satisfaction
of human needs, the most basic competencies are the ability to read and
write and to perform arithmetic operations. The ability to manage risk is
essential to survival. Other inter-personal competencies include analysis,
comprehension, logic, mathematics, and reasoning. Inter-personal
competencies include oral and written communications, relationship
building, and participating in and contributing to teams, communities, and
work-places both socially and professionally.

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Performance in an activity is a function of aptitude, ability, and
proficiency. Qualifications are standard conditions or requirements for
performing a role. Aptitude determines the suitability of an individual for
a role; ability determines their expected quality of performance for an
activity; and proficiency defines their level of competence.
Personal and professional competencies determine preferences for values,
attitudes, beliefs, and behaviors, including appearance and
communications; motivation, conflict handling, and stress tolerance;
decision making, learning, occupation, recreation, and relationships; and
fiscal matters.

Professional competencies address domain functional subject areas and

knowledge such as law, finance and accounting, human resources,
information technology, program management, engineering, operations,
and business development in both product-driven and service-driven
industries, and the associated technical skills.

Domain competencies also address subject areas such as arts, cookery,

entertainment, numismatics, philately, and sports from which activities
arise that can be monetized, such as collecting, trading, and investing in
items including art, coins, sports memorabilia, and stamps.

Enterpriship competencies are enabling and embrace the entrepreneurship,

leadership, and management disciplines. Enterpriship competencies
determine how to transform ideas into value, how to set direction that
influences others to follow, and how to apply resources to activities to
achieve results.

Every individual earning income as an employee, as an entrepreneur, or as

an investor must be able to apply personal, professional, and enterpriship
competencies in order to create or respond to opportunities and threats.
Wherever there is crisis, there is opportunity.

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Being an employee...

Being an employee means working for somebody else for income

(although shareholder officers of "Subchapter S" corporations are also
considered employees, even though they are owner-operators). Types of
employment income include wages, salaries, and incentives such as
bonuses, commissions, and tips. Opportunity for ownership may also be
offered to employees through awards of stock options and shares if the
enterprise is a corporation, admission as a partner if a partnership, or
admission as a member if a limited liability company. Benefit packages
may also be available including paid vacations, healthcare, profit sharing,
and retirement plans.

Some employees remain as hourly paid administrative staff or operational

labor throughout their entire careers. Others become salaried professionals
and rise into management and executive ranks with substantial leadership
and managerial roles. In these cases, a component of income is usually
incentive-based according to the performance of the enterprise and an
individual's own area of responsibility. Whereas some employees prefer
the predictability of a fixed wage per hour or salary per year, others prefer
a high variable component with commissions and bonuses commensurate
with their individual or team's performance.

Some employees want to be associated with an enterprise that is well

respected for product and/or service innovation; for constituencies served;
for quality, efficiency and effectiveness; for values and guiding principles;
or for sustainability. Others are solely concerned about the income
potential. For some, working for somebody else, especially in a well
established institution creates a sense of pride or duty; for others being
self-employed is more satisfying, and in some cases a necessity because of
shortages of work opportunities, or because of barriers to employment
such as the "glass ceiling."

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Being an entrepreneur and/or business owner...

Being an entrepreneur means starting, developing, and assuming risk for

either an upwardly mobile or lifestyle business enterprise, or performing
as an independent contractor. Upwardly mobile enterprises are aimed at
large markets with local-to-global aspirations. They are started through the
"sweat equity" of founders and are initially financed by angel and venture
capital investors, and may eventually become publicly traded enterprises.
Lifestyle business enterprises are usually owner-operated and form the
heart of "Main Street." They are financed from the owner's capital and
also from secured debt if adequate collateral is available. Unsecured debt
opportunities may be available if guarantors can be provided, or once
steady cash flows have been established. To be successful, a lifestyle
business enterprise usually needs a lot of "tender loving care" from the
owner. However, such care can be a differentiator from large enterprises
through detailed product and/or service knowledge and quality of service
delivery.

Independent contractors are in effect enterprises in their own right and

have to be entrepreneurial in order to find assignments. Individuals and
enterprises who engage independent contractors have a right to control or
direct only the result of the work performed, but not the methods by which
it is accomplished.

Some entrepreneurs want to build an enterprise that is respected; for

others, financial considerations are the motivating factors.
Artists, authors, composers, and entertainers require entrepreneurial
competencies in order to earn sales, fee and royalty revenues from their
work.

Being an investor...

Being an investor means placing excess or leveraged capital for a future

return in assets that either are expected to appreciate in value or produce
income, or both. Assets include durable items such as art, equipment,
furniture, numismatic, philatelic, sports memorabilia, real estate, and
securities (financial instruments representing money, debt, and equity
capital and derivatives).

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Capital can be accumulated wealth or leveraged through borrowings.
Successful investing is about achieving returns through capital
appreciation and cash flows from dividends, fees, interest, rentals, and
royalties commensurate with risk. Short-term gains can be obtained from
trading activities, whereas long-term gains are obtained from buying-to-
hold.

Passive investors primarily buy-to-hold; active investors seek advice,

make decisions for themselves, trade and buy-to-hold, and sometimes seek
board positions to influence the direction of the enterprises in which they
have invested. Buy-to-hold means that investments will be held in a
portfolio until maturity (if applicable), or will be available for sale at some
time in the future. Being an active investor means having analytical and
quantitative capabilities, being willing to take risk, and being able to make
decisions with anticipation and deliberation.

Whereas employees think in terms of wage per hour or salary per year,
entrepreneurs and investors think in terms of returns from capital
appreciation and cash flows.

Some individuals invest in stocks and bonds through employer sponsored

plans, whereas others take responsibility for their own portfolios. Some
individuals start early, sometimes borrowing on margin; others start late
using excess cash. For some, the biggest investment is the one-time
purchase of their home; for others, flipping to gain from capital
appreciation in real estate properties or buying-to-hold for rental income is
a routine activity, as is investing in other assets.

All investors have access to public secondary money and capital markets,
but only accredited high net worth individuals and insiders have access to
private offerings in primary markets. Some successful entrepreneurs put
returns from their own endeavors back into the community by investing in
other early stage enterprises.

Investors can become entrepreneurs by becoming dealers in certain assets

and trading them. For example, collectors can generate revenue by trading
collectible assets in both physical and electronic marketplaces.

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Applying personal, professional, and enterpriship competencies to
employment, entrepreneurship, and investment activities...

Basic personal competencies fundamental to all activities to starting,

building, operating, participating, contributing, and investing in an
enterprise include the ability to communicate and relate to others, and in
the twenty first century, to use electronic devices for written
communication and computations effectively and efficiently. Managing
risk against the reward potential in terms of identifying, assessing,
prioritizing, and treating opportunities and threats is essential to personal
and economic survival.

Professional competencies result from the extent to which an individual

pursues academic or vocational disciplines based upon personal
preferences. Academic disciplines lead to occupations in law, finance and
accounting, human resources, information technology, product and
infrastructure engineering, marketing, and operations. Vocational
disciplines lead to occupations in the trades and crafts, such as clerks,
carpenters, electricians, laborers, mechanics, metal workers, operating
engineers, painters, plumbers, and salespeople. Professional competencies
are fundamental to getting work done.

Regardless of the academic and vocational training, understanding basic

economic, business, finance, and accounting concepts, and marketing and
sales techniques is essential to success as an executive, entrepreneur, or
investor.

Inter-personal competencies are just as important as professional

competencies because without the ability to relate to other people, it is
very difficult to get anything accomplished in an enterprise on an ongoing
basis. Individuals who have difficulty in building relationships with others
need strong professional competencies to compensate so as to be effective
as individual contributors. Being teachable is extremely important.
Coaching provides guidance on the enabling competencies:
entrepreneurship, leadership, and management; mentoring provides
guidance on the domain competences - guidance on subject matter,
developing functional knowledge and technical skills.

Enterpriship competencies determine the effectiveness of the

entrepreneurial, leadership, and managerial roles played by an individual
whether as an employee, an entrepreneur, or an investor.

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The entrepreneurial role is about creating or acquiring new opportunities
or responding to threats - in effect, enacting change. The entrepreneurial
role is essential when developing new products and/or services and
processes, and improving existing ones. It applies to those who can offer
suggestions that earn and add value. The entrepreneurial role is essential
when changing jobs, when innovating and starting a new enterprise, and
when investing in or divesting from enterprises.

The leadership role is about influencing people through aspirational,

inspirational, and motivational communications. This role is applicable to
anybody who has to entertain, inform, convince, and persuade others. It
applies to those seeking employment opportunities; to entrepreneurs,
business owners, executives or managers seeking employees, customers,
suppliers, and investors; or to proactive members of an investor
community attempting to influence other investors, management teams
including both boards and officers, and other interested parties.

The managerial role is about planning, execution, and control of processes

by any individual who has to achieve results, whether as an employee, an
entrepreneur, or an investor.

Understanding individual competencies...

All individuals must understand their strengths and weaknesses so as to be

able to take advantage of opportunities and respond to threats accordingly.
Effective personal and professional competencies are essential for gaining
entry level positions in enterprises, and the initial promotions thereafter.
However, the enterpriship competencies in entrepreneurship, leadership,
and management disciplines determine long-term success from turning
ideas into value, influencing others to follow direction, and applying
resources to activities to gain results in employment, entrepreneurial, and
investor capacities.

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For more information...

For information about audiobooks, books, earticles, ebooks, and eseminars

offered by The Business Leadership Development Corporation visit
www.etailia.com

For more information about the discipline of enterpriship visit

www.enterpriship.com

For more information about understanding personal styles visit

www.understandingpersonalstyles.com/demo

To assess your individual competencies in thirty minutes or less, claim

your opportunity for instant access when you go to
www.individualcompetencies.com

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About Nigel A.L Brooks...

Nigel A.L Brooks is a management consultant to entrepreneurs, business

enterprise owners, executives, and managers, and the enterprises they
serve. He specializes in developing the entrepreneurial, leadership, and
managerial competencies that build sustainable advantage from vision to
value. He is an author and a frequent speaker.

He obtained his professional experience as a partner at Andersen

Consulting (now Accenture, Ltd.), as a vice president at Booz Allen
Hamilton, Inc. (now Booz and Company), as a senior vice president at the
American Express Company, as president of Javazona Cafes, Inc., and as
president of The Business Leadership Development Corporation. He has
been a contributing editor for the Bank Administration Institute magazine,
and has served on boards of entrepreneurial networks. He was educated at
the University of Exeter, Devon, United Kingdom.

His clients are in the financial services, food services, high-tech,

manufacturing and distribution, pharmaceuticals, oil and gas, professional
services, retail and wholesale, transportation, and government industries.

He has experience in North and Latin America, Europe and Asia-Pacific.

www.nigelalbrooks.com

About The Business Leadership Development Corporation (BLD)...

The Business Leadership Development Corporation is a professional

services firm that works with entrepreneurs, lifestyle business enterprise
owners, executives, and managers, and the enterprises they serve.

BLD develops entrepreneurial, leadership, and managerial competencies

that achieve performance excellence by building sustainable advantage
from vision to value through:

 Strategic Management Consulting

 Executive Coaching and Mentoring
 Professional Training via The Center For Business Leadership
Development (CBLD)
 Motivational Speaking

www.bldsolutions.com

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www.bldsolutions.com
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