2014 Battle Royale: Specialists vs. Generalists

Editor's Note: This originally appeared as a client e-letter last month.

December 23, 2013

Dear Clients and Colleagues:

As the year winds down, here are a couple questions to consider for 2014: Are you a specialist or a generalist? Better yet, do you know when the difference matters?

Here is a personal anecdote to help set the table. A couple months ago, my 1999 Audi A4 developed a unique German engineering problem that involved having to take the dash apart to get to a heating coil system issue. Anyone that has ever owned a foreign born car knows that that type of repair ain't cheap. The certified mechanic who works on a lot of different cars completed the job but failed to re-connect the radio properly. So looking for a better fix, I called the specialist shop that's run by someone who looks like something straight out of ZZ Top. After explaining the issue, he asks, "so who worked on the car? It sounds to me like a wire wasn't re-connected properly." Really? You don't say. It's been great getting reacquainted with my CD collection.

As someone who has heavily specialized for the past 10+ years, my eyes and ears have become super sensitive to marketplace questions falling out of chosen branding specialty. Evidently the rest of the world is not. Specialists are everywhere, at every corner, in every industry. Few know how to converse in language outside of their own specialty. Worse yet far fewer even care while some claim so many industry specialties that they represent masters of none. Generalist CEOs are now being replaced with financial specialists, or highly trained CFOs who excel at finance but often can't speak or connect in every day language. Consulting firms that have specialized their way through the Great Recession now find themselves trying to grow beyond chosen niche, which often never leads anywhere other than back into the niche. A lot of old fashioned ink has been dropped on this subject this year. If you have pay wall access, see of this year's best summations by the Financial Times' Andrew Hill:  http://www.ft.com/intl/cms/s/0/3385b7da-423d-11e3-bb85-00144feabdc0.html#axzz2oJt26ys9. If you don't, try another related piece from Harvard Business Review  http://hbr.org/2013/10/consulting-on-the-cusp-of-disruption/

It's unclear who ultimately will win this post new normal battle. But here are a couple observations to help move a little closer. The first is the old stand by truth: Know where you are and with whom you are speaking. Chances are they don't really care about your niche specialty unless you're a heart surgeon or bankruptcy lawyer, which are two service providers you probably don't want to have to engage with anyway. Generalists also tend to come back into vogue during better economic times. In my view, specialists have to be even better generalists than the generalists themselves, especially in situations like the one outlined at the top. There's really no better time than when someone else besides yourself is in need. And that may be the whole point, which says end on a high note.

Merry Christmas and Happy New Year,

JG