In this post, we’ll unpack all you need to know about the circle of competence, defining exactly what it is, why it’s important, the 4 different levels, how to identify and build it and more.
What Is Circle of Competence?
Circle Of Competence (COC) is a mental model for understanding the degree of an individual’s ability within a specific skill.
Why Knowing It Is Important
Knowing your Circle Of Competence is important because it allows you to channel your time and energy more effectively, leading to more successful outcomes.
“I think about things where I have an advantage over other people. I don’t play in a game where the other people are wise and I’m stupid. I look for a place where I’m wise and they’re stupid. You have to know the edge of your own competency. I’m very good at knowing when I can’t handle something.” ― Charlie Munger
The 4 Levels Of Competence
There are four levels of competence. The first level is unconscious incompetence which refers to when you don’t know that you don’t know something. The second level is conscious incompetence which refers to when you do know that you don’t know something. The third level is conscious competence which refers to when you do know something but can’t execute it automatically. The fourth level is unconscious competence which refers to when you do know something and can execute it automatically.
Recognising where you stand in these levels across different skills can help you better understand the edges of your Circle Of Competence and what you need to do to achieve the next level.
How To Find It
Identifying your Circle Of Competence starts with introspection. It’s essential to be honest with yourself about what you truly know versus what you think you know.
Identify your strengths and weaknesses and consider areas where you have significant experience, education or a track record of success.
Everyone has a COC. However, not everyone is able to identify and therefore focus on it.
“The whole trick of the game is to have a few times when you know something is better than average, and invest only where you have that extra knowledge. If that gets you a few opportunities, that’s enough.” ― Charlie Munger
Know Where It Ends
Equally important to knowing where your COC starts is knowing where it ends. Recognising the boundaries of your COC ensures you don’t venture into territory where you no longer have an advantage. Thus, you’re able to maximise your success.
“If you play games where other people have the aptitudes and you don’t, you’re going to lose. And that’s as close to certain as any prediction that you can make.” ― Charlie Munger
How To Build It
By nature, your Circle Of Competence is not static, but dynamic.
Therefore, the key to building your COC is to maintain an ethos of lifelong learning by adopting a Beginner’s Mind. In doing so, you gradually expand your COC and as a consequence, the success of your outcomes.
Summary (TL;DR)
Circle Of Competence is a mental model for understanding the degree of an individual’s ability within a specific skill.
There are four levels of competence; unconscious incompetence, conscious incompetence, conscious competence and unconscious competence.
The key to building your COC is to develop the habit of lifelong learning by adopting a Beginner’s Mind. In doing so, you gradually expand your COC and as a consequence, the success of your outcomes.
