What is a "circle of competence" and how to use it in your work

Have you ever asked yourself the question, what is better - to continue doing what you already know, or to constantly expand the area of ​​\u200b\u200bits knowledge and skills? Some advise to achieve success in your niche, while others, on the contrary, recommend regularly leaving your comfort zone. To figure out who is right, one simple approach will help.

What is the feature of the "circle of competence"

This is a mental model that helps you realistically assess your strengths and weaknesses and thus reduce the risk of failure. Its main idea is simple: each of us has a certain area in which we are experts. Moreover, usually such a zone is located within an even larger circle of subjective, and sometimes exorbitantly inflated faith in one's abilities. The difference is that the "circle of competence" reflects real knowledge and skills, and not our opinion about them.

For the first time this term was used by one of the largest US investors Warren Buffett. He

advisedThe “Circle of Competence” theory will help you make vastly smarter decisions / Insider know your "circle of competence" and clearly adhere to its boundaries. Buffett and he himself followed this principle. Together with his business partner Charles Munger, he only invested in those sectors of the economy that he absolutely understood. Buffett relied on his objective strengths, and this helped him avoid dizziness from victories.

To designate a “circle of competence”, you need to understand in which area you are an expert. Try to analyze your professional path, education and qualifications as unbiased as possible. The process of self-study will allow you to find areas in which you have deep knowledge, and areas in which you understand only superficially.

Why go beyond your “circle of competence”

Buffett and Munger believe that staying within your "circle of competence" is the key to success. When you know exactly your strengths and avoid unfamiliar areas, it reduces the risks. If an opportunity is out of your circle, you should simply refuse it. Then you will definitely not face failure. In addition, when you clearly know your strengths, it gives you a competitive advantage and does not allow you to make annoying mistakes.

However, in some situations, stepping out of your “circle of competence” is a great idea. Of course, this is risky, but it allows you to discover something new and experiment. After all, you can't make an omelette without breaking eggs.

In 2015 scientists decidedI. Sidhu, P. de L'Etraz. Effects of Comfort Zone on Entrepreneurship Potential, Innovation Culture, & Career Satisfaction / Berkeley explore how staying in your comfort zone all the time affects entrepreneurs. The researchers suggested that if business people feel comfortable in their seats, this will keep their emotions on a neutral, free from anxiety level and ensure steady progress. However, it turned out that such a state rarely benefited entrepreneurs. The authors of the study explained this by the fact that a person's business potential is much more related to the ability to put up with the unknown than with the area of ​​\u200b\u200bhis knowledge.

In other words, if your goal is to avoid risk, it's worth staying within your "circle of competence." But if you want to innovate and change, you need to go beyond this mental model. Trampling in one place will only block your creativity and ability to generate fresh ideas.

How to use your “circle of competence” to its full potential

To do this, you need to find a balance between an honest acceptance of your abilities and a strategic desire to expand your horizons. And this is where it will come in handy Pareto principle, according to which 20% of efforts give 80% of the result. Only in a slightly modified form: 80% of the time to work within your “circle”, and 20% to give to the study of unknown areas.

Here's what else you can do to get the most out of your "circle of competence."

Ensure progress is predictable

Clearly define the limits of your "circle". By devoting 80% of the time to understandable tasks, you will be able to consistently move forward. This way you will continue to achieve success in your career and personal life and create a solid “airbag”.

push the boundaries

Don't forget that 20% of your time can be spent on new interesting ideas with a higher degree of risk. Learn, build skills, set ambitious goals, offer to help with projects you don't know much about, all of which will give you the opportunity to build your potential.

Reassess

Leaving your comfort zone creates the foundation for personal growth, which means that your “circle” will gradually expand. Try to periodically launch this process yourself - analyze your abilities and add new things to your “circle of competencies”.

Remember that it doesn't have to be wide for you to be successful. The main thing is to know your limits in order to understand when to stay inside the “circle of competence”, and when it is time to go beyond it.