Keen Observation

To the best of my knowledge no one has highlighted the importance of education vs work experience in the diamond industry for a long time. I think Mordy Rapaport was spot on. It was educational + insightful.

Perspectives
(via Rapaport, Vol.31, No.5, February 1, 2008) Mordy Rapaport writes:

Education has always played an important role in business. Individuals’ job placement and overall success are many times based upon not only their workplace history but also their academic achievements. While I was signing up for business classes recently, I reflected on the study habits of my younger colleagues in the diamond industry.

The debate of education versus actual work experience has become prevalent in today’s fast-paced business environment. There seems to be a desire by individuals entering the workforce to obtain an increasingly higher level of education. Many younger individuals pursue multiple degrees, including MBAs and even PhDs, forgoing real work experience, and entering the business arena at an increasingly later stage of their lives.

The diamond business, however, differs from other industries in that there is a need for industry stakeholders to obtain the necessary knowledge of the product we continuously deal with. While business skills are direly needed, perhaps even more so than in other industries, they come second to an understanding of the product’s physical properties and the industry’s uniquely competitive environment. As a result, many very capable individuals opt out of pursuing a formal education and instead focus on the ongoing demands of their existing business and job priorities.

While both scenarios are understandable, I question whether either is the ideal route to be taken. Working in a vibrant environment with a hectic travel schedule and a large array of opportunities has forced me to consider the pros and cons of education and to prioritize my time accordingly. While gaining the general knowledge derived from the curriculum of today’s business schools is beneficial, I do not believe it to be the determining factor in whether to choose studies over hand-on-experience. Vast knowledge can be obtained from first hand experience in certain fields of work, more than can be relayed by a professor sitting in a classroom. On the other hand, limiting one’s expertise to a single commodity—which in the case of the diamond industry has immense volatility in terms of supply and demand—can be equally shortsighted. While the diamond industry provides a source of revenue for many, the ability to venture out into alternative business propositions should not be discarded.

What is needed is a middle ground. Many Indian acquaintances of mine have been able to capture the positive aspects of both worlds. Beginning work in the diamond trade at a young age, many leave India to pursue studies in some of the finest European and North American institutions. Their decision to step outside of their social circles and attend universities abroad adds immensely to their business sense and capabilities.

So while many younger individuals in our industry have previously not pursued studies in the broad range of business topics available, I believe it is crucial to obtain knowledge that will enable us to position ourselves for success. Many avenues, such as the GIA School of Business, are now available. Previously forced to choose between studies and work, today those within our trade interested in combining the two can select from multiple opportunities. While earning a bachelor’s degree does not determines one’s capabilities, it is certainly something beneficial to possess. Many outside factors not within our control affect the diamond trade today. A person’s ability to understand and counter any such effects will ultimately determine long term success.