Your circle of competence: should you stick within it or step outside of it?
Curated from: nesslabs.com
Ideas, facts & insights covering these topics:
5 ideas
·1.94K reads
23
Explore the World's Best Ideas
Join today and uncover 100+ curated journeys from 50+ topics. Unlock access to our mobile app with extensive features.
The circle of competence
The circle of competence model states that everyone has an area, or circle, of expertise. However, the circle of objective competence may be surrounded by a larger circle of subjective, and often over-inflated, belief in your ability.
Your circle of competence represents what you really know, versus what you think you know.
40
663 reads
The circle of competence: a mental model
- A circle of competence is a mental model that helps mitigate the risk of failure associated with overconfidence by having a realistic view of your strengths. The term was first coined by Warren Buffett, one of the world’s most successful financial investors.
- Alongside his business partner Charlie Munger, Warren Buffett found success in only making financial investments in sectors that he had a comprehensive grasp of. In this way, Buffett avoided overconfidence in his knowledge or abilities, and instead relied on objective competence.
33
367 reads
Discovering your circle of competence
To determine your circle of competence, you have to understand where your true competence lies, without allowing subjective beliefs to create undue assurance in your abilities.
To determine the breadth of your circle of competence, you need to have an honest look at your background, training, qualifications, or personal familiarity in a subject.
33
322 reads
Stepping outside of your circle of competence
If your goal is to avoid risk, you should stick to your circle of competence; however, if your goal is to innovate, you will be better off stepping outside of your circle so you can come up with non-obvious solutions.
Never stepping outside the boundaries of your circle of competence may stunt your creativity and ability to discover new ideas.
32
310 reads
Make the most of your circle of competence
To take advantage of your circle of competence is to find a balance between honestly acknowledging your capabilities, and strategically striving to expand your knowledge and horizons.
- Ensure predictable progress. Define the limits of your circle of competence to ensure progress.
- Push your boundaries. Acquire new skills, set ambitious goals, offer your help on a project you are unfamiliar with.
- Reassess your circle of competence. By leaving your comfort zone for just one-fifth of the time, there is potential for learning, growth, and behavioral change.
35
279 reads
IDEAS CURATED BY
"I think the next best thing to solving a problem is finding some humor in it." -Frank Howard Clark
Weston A.'s ideas are part of this journey:
Learn more about creativity with this collection
The importance of perseverance
How to embrace failure as a learning opportunity
The power of innovation and creativity
Related collections
Similar ideas
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates