Circle of competence
This article is part 5 of the ‘Good Thinking Series’ be sure to follow to read the entire series.
After receiving the Nobel Prize in Physics in 1918, Max Planck went on tour across Germany. Wherever he was invited, he delivered the same lecture on new quantum mechanics. Over time, his chauffeur grew to know it by heart: “It has to be boring giving the same speech each time, Professor Planck. How about I do it for you in Munich? You can sit in the front row and wear my chauffeur’s cap. That’d give us both a bit of variety.” Planck liked the idea, so that evening the driver held a long lecture on quantum mechanics in front of a distinguished audience. Later, a physics professor stood up with a question. The driver recoiled: “Never would I have thought that someone from such an advanced city as Munich would ask such a simple question! My chauffeur will answer it.
This brings us to today’s good thinking tool and favorite of Warren Buffett called “Circle of competence”
What is the circle of competence?
Everyone on the basis of their skills and particular knowledge has a circle of competence. What lies inside this circle you understand very clearly; what lies outside, you may only partially understand.
How do you know when you have a circle of competence?
Within our circles of competence, we know exactly what we don’t know. We are able to make decisions quickly and relatively accurately. Knowing this distinction between what you know and don’t know is important because it ensures you won’t make mistakes unnecessarily which can be easily avoided. It’s not terribly important how big the circle is. But it is terribly important that you know where the boundary is. You have to stick to your circle of competence.
If there are things you don’t understand rather than making guesses about it you should rely on someone who knows. For things outside your circle of competence, you can have mentors, read books, understand what science and research say about achievement in the particular topic you are working one.
Second and equally important is to expand your circle of competence in fields of interest. While you have outside sources to rely on for specialized knowledge. But when it comes to your interest and you want to make a career you need to go deep and make the circle as big as possible. And then continue updating your knowledge. If you studying computer languages you not only need to learn all the basic languages but also keep yourself updated on the new ones developing and be updated if you want to build a reputation of best in your chosen field.
Knowing & staying in your existing circle of competence avoids costly mistakes. Depending on sources with a bigger circle of competence ensures you don’t miss out on good opportunities. And expanding your own circle of competence in chosen fields will make you create a unique path of achievement for yourself.
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PS: Here are the links to articles of the rest of the Good thinking series. Enjoy :)
Do you really understand the world?
What new skills you are working on lately to expand your circle of competence?