I get it: the job market is tough, you're continuing to be ghosted by employers (lame), and your inner critic is screaming at you, "What’s wrong with you? Can't you get a job?!”
I've spoken to several people this week who are so frustrated with the job search that they told me that they will take "just any job.” It doesn't matter whether it's a startup or public tech company, or if it's in a specific domain where they add significant value or "alpha."
When I hear this, I can't help but screech in the back of my mind. The first couple of questions I ask people, and the questions that you should ask yourself are:
What is the framework that you're using to evaluate prospective employers?
What are the top 10 companies you’re targeting to work at and why?
Do you have an investment framework that you're using?
How much runway do you have before your financial situation necessitates getting a job? (i.e. do you need to find just any job to pay the bills right now? Or can you be more patient to find the right opportunity?)
Most people answer that they either have a framework loosely defined in their head, are primarily waiting for companies to reach out to them, or that they haven't thought about their employment as an investment decision.
After a 30-minute conversation, I'm able to talk people off the ledge and help them turn their frustration and desperation into motivation.
Are you wondering how to simplify your job search?
Let me introduce the concept of defining your "circle of competence."
What is a "Circle of Competence"?
The term circle of competence was first introduced by Warren Buffett and Charlie Munger – the duo that ran Berkshire Hathaway for almost 60 years (RIP Charlie Munger).
Why should you care about what Warren Buffett has to say? Well, he's unarguably the most successful investor in the world.
What Buffett has prescribed for years is to identify areas in investing where you have an outside advantage, stay in those areas, and don't worry about things that are outside of that circle.
Here’s how Charlie Munger explained it:
"I think about things where I have an advantage over other people. I don’t play in a game where the other people are wise and I’m stupid. I look for a place where I’m wise and they’re stupid. You have to know the edge of your own competency. I’m very good at knowing when I can’t handle something."
The term circle of competence was borrowed from another person, Ted Williams, a Hall of Fame baseball player who wrote a book called the "Science of Hitting.” In it, he had a picture of himself at bat and the strike zone broken into 72 squares. He said if he waited for the pitch that was in his sweet spot he would bat .400. If he had to swing at something on the low corner he would bat .235.
As a consequence of using this approach, Ted Williams found himself as number 11 on the best batting averages of all time list.
How to Use Your Circle of Competence to Simplify Your Job Search
The question every employer is trying to understand is, what is your circle of competence? You can frame this two ways.
The first way is internal: What do you know that nobody else knows? What is your "alpha?"
In the investment world, alpha is a variable equal to the contribution resulting from the skill of the portfolio manager. In the corporate world, I would define this as a significant technical skill, leadership capability, or domain knowledge that puts you at the top of your field.
What is your technical area of expertise? AI, sales, programming, scientific discovery, program management, product management?
What about your specific domain knowledge? Fintech, healthcare, medical devices, food delivery?
Take a minute to identify what your alpha is and make sure you’re able to convey how you can uniquely help each employer solve their problems.
The second framing is external. What are the top 10 companies that meet your criteria? What level of risk are you willing to take in this next phase in your career?
Are you looking for a "high risk/high return" opportunity? Then focus your search on startups.
But maybe you're in a different phase of your career where retirement isn't looking too far out in the distance. Guaranteed compensation, solid benefits, and stability are more important to you. Your risk profile has changed. Then maybe it's time that you make a pivot from the startup world and target a list of Fortune 500 companies.
Learn More
Are you feeling lost when it comes to your job search strategy? I love working with people to help them identify their strengths, which companies they’re targeting and why, and giving them the tools and skills to stand out in today’s job market.