Leading Fearlessly: Beyond the degree: The power of experience capital
I remember the day I was promoted to managing director at the investment firm where I’d worked for several years. Although my MBA degree had prepared me for elements of the job, it had certainly not guaranteed advancement. Moving up required developing a track record of hitting numbers, building client relationships, earning new securities licenses and, frankly, proving myself with my colleagues. I’d built credibility through on-the-job experience, a currency far more valuable than any diploma. This, as academic research now clarifies, is referred to as “experience capital.”
Studies, including those recently highlighted in a new Harvard Business Review article called “How Women Can Win in the Workplace,” reveal that education and technical skills are merely a starting point, getting women only halfway to their full earning potential. Given the persistent gender pay gap, where women continue to earn less than their male counterparts, it is crucial to address every opportunity to maximize their full earning potential by acquiring additional knowledge, skills and wisdom through practical experience. This experience capital is the true differentiator.
This isn’t just anecdotal. Researchers emphasize that building this capital requires strategic choices, especially for women. While the authors of the Harvard Business Review article say their research shows that women aren’t earning the same amount of experience capital as men due to multiple systemic issues that must be addressed, they assert: “In the meantime there’s plenty that women can do to help themselves.”
One thing we can do is actively and strategically seek opportunities for growth. A recent World Economic Forum “Future of Jobs” report found that analytical thinking, creative thinking, and AI and big data will be top in-demand skills by 2027, but it emphasizes it is also increasingly critical to have leadership skills, social influence and the ability to work with other people: “The traits that make us human, make us able to relate with each other and to get innovative, creative things done in the workplace.”
The authors of the HBR article also urge women to target what they term the “power alley”: leadership roles and positions with profit and loss responsibilities. These roles provide significant influence and accelerate the accumulation of experience capital.
While we can take steps to develop our skills, finding the right company that will support and recognize this experience capital is paramount. An article called “Women leaders make work better. Here’s the science behind how to promote them” from the American Psychological Association says companies should focus on identifying leaders early on, establishing mentorship and sponsorship programs, supporting women in joining professional organizations and focusing on allyship. Look for companies that make these actions a priority and demonstrate strong learning cultures, clear competitive strategies, internal mobility and a commitment to developing all team members.
Formal education will always be critical in providing a foundation for career development. But we can’t stop there. Leaders must cultivate environments where skill development and experience capital thrives, and it is up to us to pursue and embrace those experiences.
I turned to local leaders and asked them to share how they are strategically building experiences and investing in themselves:
Ardis Kelley, CPA, interim CEO, Iowa Society of CPAs
The more we know, the more we grow – and the more we expand our opportunities for success. Building experience capital isn’t just about deepening expertise in our trained skills; it’s about stretching beyond them. By taking risks, embracing the unknown and stepping into roles beyond our comfort zones, we position ourselves to reach higher career goals. The ability to adapt, think broadly and apply our knowledge in new ways makes us more competitive and future-ready. Women who intentionally seek diverse experiences – whether by leading cross-functional projects, pursuing strategic opportunities or tackling unfamiliar challenges – create their own pathways to success and open doors to even greater possibilities.
Liz Lidgett, owner and art adviser, Liz Lidgett Gallery + Design
First and foremost, I work on being comfortable with being uncomfortable. The experiences where I am uncomfortable help me grow as a business owner and leader. Second, I have tried to use the resources available to me as a business owner in Des Moines. I have gone through the Goldman Sachs 10KSB program, the Greater Des Moines Leadership Institute, and have applied for grants when available for specific opportunities such as going to the SXSW conference with the Partnership. Each experience has helped me grow my perspective and ability level while helping me meet people through a large range of industries. The biggest investment I make for myself and my business is allocating my time for growth opportunities and time to work on this business versus in it.
Lacy Miles, executive vice president, treasury management and cashier, Community State Bank
The best way I’ve been able to build experience within my career is to be uncomfortable and advocate why I’m the right person for the opportunity. It’s also critical to ask questions and have humility. I used to be fearful that my questions weren’t good enough or made me look senseless, but in reality, it shows engagement and allows me to be educated and have a better understanding.
When I make investments in myself, I ensure they align with my core values. Not compromising my values has kept me focused and arrow pointed in the right direction. I’m finding now, as I’m further into my career, that investing in others is more rewarding for me. My wins are farther away in my current role and take longer to achieve. Celebrating the team wins keeps me motivated and I couldn’t imagine this journey without them.
April Sauls, senior human resources business partner, Des Moines Water Works
Experience capital is so important! I have always believed that there are skills gained and lessons learned at every job throughout your life that can be carried forward. The key to optimizing your experiences to achieve career goals is mastering the ability to tell your story and illustrate the relevant connections from where you have been and where you would like to go. I try to increase my chances of success by gaining skills that will be helpful or required to advance and focusing on areas that I know I am not the strongest in currently. I sign up for classes, in-person training, webinars, but most importantly, I try to absorb firsthand knowledge from admirable professionals who embody sound leadership, integrity, humility, discernment and tenacity.
Heather J. Schott, director of diversity, equity and inclusion, Krause Group
One of the most valuable lessons I’ve learned is that the skills that got me here won’t be enough to solve the next business challenge. That’s why I approach each day with a growth mindset — seeking opportunities to be curious, challenge norms and learn from diverse perspectives.
My career has been a journey across industries and disciplines, from earning a mathematics and business degree to spending nearly two decades in IT and financial services before pivoting into diversity, equity and inclusion leadership. As a gender-nonconforming woman in business with roots in farming, I’ve come to realize my superpower is innovation through disruption – whether that means reimagining business strategy, creating more inclusive workplaces or driving equity in unexpected spaces. I stay sharp by reading, listening and surrounding myself with other thought leaders. The work of inclusion and progress is never done, and I’m committed to learning every day.
Suzanna de Baca is a columnist for Business Record, CEO of Story Board Advisors and former CEO of BPC. Story Board Advisors provides strategic guidance and coaching for CEOs, boards of directors and family businesses. You can reach Suzanna at sdebaca@storyboardadvisors.com.
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