Harvard Business Review July 30, 2010, 2:31PM EST

Higher Education Is Overrated. Skills Aren't

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There is a world of difference between getting an "A" in robotics class and winning a "bot" competition. MIT's motto isn't Mens et Manus (Latin for Mind and Hand) by accident. Great knowledge is not the same as great skill. Worse yet, decent knowledge doesn't guarantee even decent skills. Unfortunately, educrats and eduzealots behave as if college English degrees mean their recipients can write and that philosophy degrees mean their holders can rigorously think. That's not true. Feel free to comment below if you disagree…

As Atkinson's anecdotes affirm, there's no shortage of "well- educated" college graduates who can't write intelligible synopses or manage simple spreadsheets. I know doctoral candidates in statistics and operations research who find adapting their superb technical expertise to messy, real-world problem solving extraordinarily difficult. Their great knowledge doesn't confer great skill. Nevertheless, you would find their research and their resumes impressive. You should. But focusing on their formal educational accomplishments misrepresents their skill set outside the academy. Academic and classroom markets are profoundly different than business and workplace markets. Why should anyone be surprised that serious knowledge/skill gaps dominate those differences?

Higher education institutions do decently with knowledge transmission. Unfortunately, they do dismally transmitting skills. Pun intended, that's—apparently—not their job. That's also why "human capital" debates and investment policies going forward should weight skills over knowledge. When I look at who is getting hired, purported knowledge almost always matters less than demonstrable skills. The distinctions aren't subtle; they're immense. How do they manifest themselves? These hires don't have resumes highlighting educational pedigrees and accomplishments; their resumes emphasize their skill sets. Instead of listing aspirations and achievements, these resumes present portfolios around performance. They link to blogs, published articles, PowerPoint presentations, podcasts and webinars the candidates produced. The traditional two-page resume has been turned into a "personal productivity portal" that empowers prospective employers to quite literally interact with their candidate's work.

Unsurprisingly, this simultaneously complements and reinforces the employer-side due diligence that's emerged during this recession: firms have both the luxury and necessity to find the best possible candidates for open positions. Yes, they're looking for appropriate levels of educational accomplishment but, really, what they most want are people who have the skills they need. More importantly, they want to actually see those skills—be they written, computed, designed and/or presented. Professional services firms I know now don't hesitate to ask a serious candidate to demonstrate their sincerity and skills by asking them to show how they might "adapt" a presentation for one of the company's own clients. Verbal fluency and presence impresses headhunters and interviewers. But the ability to virtually demonstrate one's professional skills increasingly matters more.

This is part of the vast structural shift in the human capital marketplace worldwide. Firms have the ability and incentive to be far more selective in their hires. But project managers and professionals also have the bandwidth and desire to showcase their skills. The resume is rapidly mutating away from a documentary string of alphanumeric text into a multimedia platform that projects precisely the brand image and substance a job candidate seeks to convey. Did they teach you that in college or grad school? Of course not. Will you learn that by hanging around LinkedIn or Facebook? Probably not.

Is this how human capital markets will become more efficient and effective tomorrow? Absolutely. You've got to have skill to show off your knowledge.