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How Important Is Industry Familiarity? April 17, 2014

Posted by Tim Rodgers in job search, Organizational dynamics, strategy.
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I’m once again “between jobs” and “in-transition,” and I’ve been spending a lot of time looking at job postings. Every position seems to emphasize the preference or requirement for applicants with industry experience. It’s easy to imagine that many applicants are immediately eliminated from consideration without it.

I understand why familiarity with an industry is valued in a candidate. Different industries are characterized by different combinations of suppliers, internal value delivery systems, channels, competitors, and customers. People who work in the industry understand the relationships between these elements, and that understanding is an important consideration when setting priorities and making decisions. It takes time to learn that in a new job, and people who already have the experience don’t need to go through a learning curve and theoretically can make a more-immediate impact.

Industry familiarity doesn’t seem to be something you can acquire through independent study and observation; you have to actually work in the industry. This means that your preferred candidates are likely going to be people who have worked at your competitors, or possibly your suppliers, channels, or customers, depending on how broadly you define your industry.

This leads to a question I’ve been puzzling over: what are the unique characteristics of an industry that are true differentiators? What really distinguishes one industry from another, and what is the significance of those differences when considering job applicants?

In my career I’ve worked at a defense contractor, several OEMs in the consumer electronics industry, a supplier to the semiconductor manufacturing industry, and most-recently a supplier to the power generation and utilities industries. Different customers, different sales channels, different production volumes, and different quality expectations and regulatory environments. Some of the suppliers were the same, but most were different. Some produced internally, and some outsourced. Some of these companies competed on cost, some on technology. My modest assessment is that I’ve been successful in all of these industries.

Industry experience provides familiarity, but is industry experience an accurate predictor of success in a new job? What skills are really needed to succeed, and how transferable are a person’s skills from one industry to another? Could a unique perspective derived from a diversity of experiences be more valuable than industry familiarity? These are the questions that should be considered when writing a job posting and evaluating applicants.

 

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