Tag: professional network

The 95:5 Rule

The 95:5 rule

Have you heard of the 95:5 Rule? Based on research by Professor John Dawes, this rule states that at any given time, only about 5% of buyers are actively in-market for a particular product category. The remaining 95% represent future buyers who will enter the market when the need arises.

But what does this have to do with your career? Turns out, quite a bit.

Think of your career journey like a long hike. At any given point, you’re actively exploring a small number of opportunities – maybe 5% of what’s out there. These could be new roles within your company, a promotion you’re chasing, or skills you’re actively developing. This is your “in-market” 5%.

However, the vast majority of potential paths are not yet on your immediate radar. They represent the 95% of future possibilities that will become relevant as your circumstances and goals evolve over time. Just like a hiker can’t see the entire trail at once, you can’t pursue every career option simultaneously.

To make the most of the 95:5 Rule in your career:

  1. Actively invest in the 5% – Give your full energy to the opportunities you’re currently pursuing. Whether it’s crushing your current role, learning a new skill, or interviewing for a dream job, be “in-market” with gusto.
  2. Keep an open mind to the 95% – Don’t get tunnel vision. Keep scanning the horizon for new possibilities, even if you’re not ready to pursue them yet. This could mean attending industry events, growing your network, or simply staying curious.
  3. Trust in the journey – Just like a hiker has faith that the trail will open up new vistas, trust that your 95% of future possibilities will become clearer with each career step. Each role, project, and connection is shaping your path.
  4. Regularly reassess – As the “in-market” 5% shifts, periodically reevaluate your career priorities. Are you still energized by your current focus? Is it time to bring some of that 95% forward into active exploration? Pausing for self-reflection keeps you agile.

By embracing the 95:5 Rule in your career, you can balance active pursuit with open-minded exploration. Focus on the most impactful 5% while trusting that the 95% will continue to reveal new opportunities as you grow. Your career hike may be long and winding, but it’s all part of the adventure.

Bank Failure and the Silver Lining: Personal and Career Development Lessons

The financial industry is a crucial component of the global economy, and the failure of a major bank can have far-reaching consequences. In a recent article by Stanford Graduate School of Business, the failure of Silicon Valley Bank (SVB) was analyzed, uncovering key lessons that can be applied to personal and career development. This blog post will discuss these lessons and how they can help you grow both personally and professionally.

Lesson 1: Embrace Change and Adaptability

The downfall of SVB can be attributed to its inability to adapt to the evolving business landscape. As the financial industry experienced rapid technological advancements and shifting consumer preferences, SVB failed to keep up with these changes. In the context of personal and career development, it is essential to embrace change and remain adaptable. Staying current with industry trends, continuously learning, and being open to new ideas are essential for success in today’s fast-paced world.

Lesson 2: Diversify Your Skill Set and Network

SVB’s downfall was partly due to its over-reliance on a single industry and market. This lack of diversification made the bank vulnerable when the technology sector experienced a downturn. For personal and career growth, it’s vital to diversify your skill set and expand your professional network. Developing expertise in different areas and forging connections with people from various industries will ensure that you remain resilient in the face of change and less susceptible to potential setbacks.

Lesson 3: Risk Management and Preparation

A key factor in SVB’s failure was its inadequate risk management practices. The bank underestimated the risks associated with its investments, ultimately leading to its collapse. In your personal and professional life, it’s crucial to assess potential risks and develop strategies to mitigate them. This includes setting realistic goals, having contingency plans, and being prepared for worst-case scenarios. Effective risk management will make you more resilient and help you navigate challenges with greater ease.

Lesson 4: Ethics and Integrity

The article highlights the importance of ethics and integrity in the banking industry. SVB’s failure serves as a reminder that unethical practices can lead to disaster in the long run. In your personal and professional life, it’s essential to uphold high ethical standards and act with integrity. This includes being honest, transparent, and accountable in all your actions. A strong ethical foundation will not only contribute to your personal growth but also help you earn the trust and respect of others in your professional life.

Lesson 5: Learn from Failure

Finally, the story of SVB’s failure provides an opportunity to learn valuable lessons. Instead of dwelling on past mistakes, use them as a stepping stone for growth and improvement. Analyzing your own failures and those of others can help you gain insights into what went wrong, what could have been done differently, and how you can avoid similar pitfalls in the future. Adopting a growth mindset and learning from failure will contribute significantly to your personal and career development.

The failure of Silicon Valley Bank offers valuable lessons that can be applied to personal and career development. By embracing change, diversifying your skill set and network, practicing effective risk management, upholding ethics and integrity, and learning from failure, you can enhance your resilience, adaptability, and overall success in both your personal and professional life.