Lesson 2.1: Skills vs. Agents Decision Framework

🎯 What You'll Learn: When to use skills vs. agents, and how to make the right choice for each task
⏱️ Time Required: 35 minutes
📦 What You'll Build: A personalized decision framework for YOUR workflows

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Riley's Journey Continues

In Week 1, Riley built her weekly-margin-report skill and it's been running beautifully for three weeks now. Her Monday mornings have been transformed, what used to take 4 hours now takes just 18 minutes.

But last week, something interesting happened.

💬 "My margin report was flagging positions at risk, but I wanted more than just a flag. I wanted to know WHY they were at risk, was it the asset class? The counterparty? An unusual exposure spike? I realized my skill could identify problems, but I needed something smarter to analyze them."
— Riley Harper

Where Riley is now:

✅ Week 1 completed - weekly-margin-report skill working perfectly

✅ Saving 3 hours 42 minutes every Monday (£13,875/year)

🎯 Ready to add intelligence to her workflow

By the end of this lesson:

🧠 Riley will understand when to use skills vs. agents

📋 She'll have a decision framework for her workflows

🚀 She'll be ready to build her first agent in Lesson 2.2

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What We're Building in This Lesson

A skill is like giving instructions to your existing team. An agent is like hiring a specialist consultant who works independently.

In this lesson:

Why Riley's skill hit a wall

Skills vs. Agents: The core difference

The business analogy that makes it click

Decision framework with real examples

Preview: Riley's position-risk-analyzer agent

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Key Concept: Skills vs. Agents

The Business Analogy

Think about how you delegate work in your company:

The Core Difference

┌─────────────────────────────────────────────────────────────┐
│                        SKILLS                                │
│  ─────────────────────────────────────────────────────────  │
│  📋 Instructions Claude follows in the CURRENT conversation  │
│  🔄 Same context as you                                      │
│  📝 Repeatable, templated tasks                              │
│  ⚡ Fast - no new session needed                             │
│  👤 Like: "Hey Claude, do this task this way"                │
├─────────────────────────────────────────────────────────────┤
│                        AGENTS                                │
│  ─────────────────────────────────────────────────────────  │
│  🧠 Independent Claude instance with specialized focus       │
│  🔒 Fresh context - isolated from main conversation          │
│  🔍 Complex analysis requiring deep focus                    │
│  🛡️ Risk isolation - mistakes don't affect main work        │
│  👔 Like: "Hiring a consultant for this specific problem"    │
└─────────────────────────────────────────────────────────────┘

Riley's Realization

💬 "My margin report skill is great at WHAT - calculating metrics, formatting tables, flagging risks. But when I wanted to understand WHY positions were at risk, I needed something that could focus deeply on that analysis without getting distracted by formatting. That's when I realized I needed an agent."

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The Decision Framework

When to Use a SKILL ✅

Use a skill when:

Riley's Skills:

weekly-margin-report - Same steps every Monday

format-client-email - Template-based communication

calculate-variance - Standard formula application

When to Use an AGENT 🧠

Use an agent when:

Riley's Future Agents:

position-risk-analyzer - Analyzes WHY positions are at risk

counterparty-researcher - Deep credit analysis

exposure-validator - Checks position data assumptions

The Decision Tree

START: You have a task for Claude
         │
         ▼
    Is it the same process
    every time with a known template?
         │
    YES  │  NO
    ▼    │  ▼
  SKILL  │  Does it require deep
         │  analysis or research?
         │       │
         │  YES  │  NO
         │  ▼    │  ▼
         │ AGENT │ Does it need isolation
         │       │ from current context?
         │       │       │
         │       │  YES  │  NO
         │       │  ▼    │  ▼
         │       │ AGENT │ SKILL
         │       │       │
         └───────┴───────┘

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Exercise: Build Your Decision Framework

⏱️ Total Time: 35 minutes

What You'll Build

📋 A personalized decision framework document that maps YOUR common tasks to skills vs. agents.

Before You Start

You'll need:

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Step 1: List Your Regular Tasks

⏱️ Time: 10 minutes

What you're doing:

Creating an inventory of tasks you could potentially automate or enhance.

Instructions:

Think about your typical week

List 8-10 tasks that involve data, reports, or analysis

Include both simple and complex tasks

Riley's Task List:

## My Regular Tasks

1. Weekly margin report (Monday)
2. Analyze why specific positions are at risk
3. Format client exposure summary emails
4. Calculate monthly variance against limits
5. Research counterparty credit profile changes
6. Validate position data against source systems
7. Generate meeting prep briefs for risk reviews
8. Review ISDA schedule amendments for red flags
9. Create onboarding checklist for new ops analysts
10. Analyze concentration risk patterns by asset class

Your Task List:

## My Regular Tasks

1. [Your task here]
2. [Your task here]
3. [Your task here]
4. [Your task here]
5. [Your task here]
6. [Your task here]
7. [Your task here]
8. [Your task here]

💡 Pro Tip: Include tasks you haven't automated yet. This exercise helps you prioritize what to build next.

✅ Success Check:

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Step 2: Apply the Framework

⏱️ Time: 15 minutes

What you're doing:

Categorizing each task as a skill or agent candidate using the decision criteria.

Assessment Template:

For each task, answer these questions:

Riley's Assessment:

## Task Classification

### SKILLS (Template + Repeatable)
1. ✅ Weekly margin report
   - Same steps every Monday
   - Template output format
   - Quick execution needed

3. ✅ Format client status update emails
   - Template-based
   - Same structure each time

4. ✅ Calculate monthly variance against limits
   - Formula-based
   - Same calculations

7. ✅ Generate meeting prep briefs
   - Checklist-based
   - Template output

9. ✅ Create onboarding checklist for new ops analysts
   - Standard process
   - Same every time

### AGENTS (Analysis + Specialized)
2. 🧠 Analyze why specific positions are at risk
   - Requires deep analysis
   - Different every time
   - Need fresh perspective

5. 🧠 Research counterparty credit profile changes
   - Deep research required
   - Analysis varies by counterparty

6. 🧠 Validate position data assumptions
   - Critical analysis
   - Need isolation (don't want confirmation bias)

8. 🧠 Review ISDA schedule amendments for red flags
   - Specialised legal/contractual expertise
   - Risk isolation important

10. 🧠 Analyze concentration risk patterns by asset class
    - Deep pattern analysis
    - Fresh context needed

Your Assessment:

Create this same classification for your tasks:

## My Task Classification

### SKILLS (Template + Repeatable)
- [ ] Task: _______________
  - Why skill: _______________

- [ ] Task: _______________
  - Why skill: _______________

- [ ] Task: _______________
  - Why skill: _______________

### AGENTS (Analysis + Specialized)
- [ ] Task: _______________
  - Why agent: _______________

- [ ] Task: _______________
  - Why agent: _______________

- [ ] Task: _______________
  - Why agent: _______________

💬 "Going through this exercise was eye-opening. I realized I'd been trying to cram analysis work into skills, which is why the output wasn't as good. Some tasks genuinely need a specialist."
— Riley Harper

✅ Success Check:

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Step 3: Create Your Decision Cheat Sheet

⏱️ Time: 10 minutes

What you're doing:

Creating a quick-reference guide you can use going forward.

Template:

Create a file called decision-framework.md in your .claude folder:

touch .claude/decision-framework.md

Content to add:

# My Skills vs. Agents Decision Framework

## Quick Decision Guide

**Use a SKILL when:**
- Same steps every time (weekly report, standard email)
- Output follows a template
- Need quick turnaround
- Task is well-defined

**Use an AGENT when:**
- Deep analysis required ("why" questions)
- Need specialized expertise
- Want fresh perspective (no context bias)
- Risk isolation is important
- Research or investigation needed

## My Skill Candidates
| Task | Frequency | Status |
|------|-----------|--------|
| [Task 1] | Weekly | Built ✅ |
| [Task 2] | Daily | To Build |
| [Task 3] | Monthly | To Build |

## My Agent Candidates
| Task | Complexity | Priority |
|------|------------|----------|
| [Analysis Task 1] | High | Next |
| [Research Task 2] | Medium | Later |
| [Review Task 3] | High | Later |

## Decision Tree (My Version)

For any new task, ask:
1. Is it template-based? → SKILL
2. Does it require "why" analysis? → AGENT
3. Do I need fresh eyes? → AGENT
4. Is it risky/experimental? → AGENT
5. Otherwise → SKILL

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Created: [Date]
Last Updated: [Date]

Riley's Completed Framework:

# Riley's Skills vs. Agents Decision Framework

## Quick Decision Guide

**Use a SKILL when:**
- Same Prime Broker portal data processing
- Standard report formatting
- Email templates
- Calculations with known formulas

**Use an AGENT when:**
- Analyzing why positions are at risk
- Researching counterparty credit changes
- Validating data assumptions
- Pattern analysis across exposures

## My Skill Candidates
| Task | Frequency | Status |
|------|-----------|--------|
| Weekly margin report | Weekly | Built ✅ |
| Client exposure summary emails | 3x/week | To Build |
| Monthly variance calculations | Monthly | To Build |
| Meeting prep briefs for risk reviews | Daily | To Build |

## My Agent Candidates
| Task | Complexity | Priority |
|------|------------|----------|
| Position risk analyzer | High | NEXT (Lesson 2.2) |
| Counterparty credit researcher | Medium | Week 2 |
| Position data validator | High | Week 2 |
| Concentration risk pattern analyzer | High | Week 3 |

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Created: [your start date]

✅ Success Check:

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Overall Success Criteria

By the end of this lesson, you should have:

Quick Test:

Open your decision framework file

Pick a random task you do

Can you quickly decide if it's a skill or agent?

Does your reasoning match the framework?

If yes to all four, you've internalized the framework!

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Troubleshooting

😕 "Everything seems like it could be either"

**Why this happens:** The line between skills and agents isn't always clear-cut.

**Fix:** Ask yourself: "Does this task require THINKING or just DOING?"
- **DOING** (following steps, applying templates) → Skill
- **THINKING** (analyzing, researching, reasoning) → Agent

**Riley's tip:** *"If I can write a checklist for it, it's a skill. If I need to actually think about each case differently, it's an agent."*

🤔 "I don't have any agent-worthy tasks"

**Why this happens:** You might be underestimating the value of analysis work.

**Fix:** Look for tasks where you ask "why" questions:
- Why is exposure up sharply this week?
- Why did this margin call get disputed?
- Why is this process taking so long?

These "why" questions are perfect agent candidates.

📊 "My task list is too short"

**Why this happens:** We often don't recognize repetitive tasks as tasks.

**Fix:** Keep a "task diary" for one day:
- Every time you switch activities, note what you were doing
- Include small tasks (checking email, updating spreadsheets)
- You'll be surprised how many there are

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You Did It!

You just built your personal decision framework for skills vs. agents!

What Riley accomplished:

💬 "This framework changed how I think about automation. Before, I was trying to make everything a skill. Now I know that some tasks genuinely need a specialist - an agent. My position risk analysis is going to be SO much better."

The transformation:

Why this matters:

Using the right tool (skill vs. agent) means better results with less effort. It's like knowing when to delegate to your team vs. when to hire a consultant.

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💡 The pattern: "What" tasks → skills. "Why" tasks → agents. Most people see it clearly once they've classified their first 5-10 tasks: skills are your recurring formats and processes; agents are your analysis and diagnosis.

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