The Paradox of Confidence

In this culture, and others, we value confidence in leaders, mechanics, doctors, generals, and even strangers we've asked for directions. But in all these cases, and more, we're actually seeking expertise, knowledge, and capability — in short, competence.

We usually assume that confidence comes from competence. We apply this assumption personally when we seek health care, investment advice, or other services. But we also apply it at work — when we make hiring decisions, when we evaluate the assertions of superiors and subordinates, and when we get advice from consultants.

Trouble is, the assumption is wrong.

We know this because of the pioneering work of Justin Kruger and David Dunning, who, working at Cornell in 1999, discovered a phenomenon now called the Dunning-Kruger effect. [Kruger & Dunning 1999] They performed experiments that yielded results consistent with these four principles (paraphrasing):

1. Incompetent individuals, compared with their more competent peers, dramatically overestimate their ability and performance.
2. Incompetent individuals are less able than their more competent peers to recognize competence when they see it.
3. Incompetent individuals are less able than their more competent peers to gain insight into their true level of performance.
4. Incompetent individuals can gain insight about their shortcomings, but this comes (paradoxically) by gaining competence.

Taken together, these four factors contribute to an inverse correlation between confidence and competence — exactly the opposite of what most of us assume.

If we can't rely on confidence as an indicator of competence, on what can we rely? In assessing competence, when we do consider factors beyond confidence, we tend to focus on domain-specific content. That helps, but it's not enough. Here are four generic indicators of competence for application in the workplace.

Awareness of limitations

The truly competent understand that their competence is limited — that there are things they can't do or don't know. This knowledge drives a continued desire to learn.

Desire to learn

Curiosity, practice, questioning, and continued study are signs of a drive to enhance competence. It is this drive that established the existing level of competence. Where this drive is weak, competence is questionable.

Constructive response to failure

Responding to Incompetent individuals, compared
with their more competent peers,
dramatically overestimate their
ability and performancefailure in constructive ways is another important way to build competence. This ability is probably essential to building competence.

Ability to assess risk realistically

Realistic risk assessment requires a reservoir of experience — competence — in the relevant domains. Incompetence leads to mis-assessment of risk. The fearful and incompetent tend to overestimate risks; the brash and incompetent tend to underestimate them. Competence tempers both.

I'm not 100% sure that these indicators are necessary and sufficient — probably not. But they've come to me through a lifetime of experience. If you have others you rely on, send them to me and I'll consider adding them to my list.  Top    Next Issue

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More about the Dunning-Kruger Effect

How to Reject Expert Opinion: II  [January 4, 2012]

When groups of decision makers confront complex problems, and they receive opinions from recognized experts, those opinions sometimes conflict with the group's own preferences. What tactics do groups use to reject the opinions of people with relevant expertise?

Devious Political Tactics: More from the Field Manual  [August 29, 2012]

Careful observation of workplace politics reveals an assortment of devious tactics that the ruthless use to gain advantage. Here are some of their techniques, with suggestions for effective responses.

Overconfidence at Work  [April 15, 2015]

Confidence in our judgments and ourselves is essential to success. Confidence misplaced — overconfidence — leads to trouble and failure. Understanding the causes and consequences of overconfidence can be most useful.

Wishful Thinking and Perception: II  [November 4, 2015]

Continuing our exploration of causes of wishful thinking and what we can do about it, here's Part II of a little catalog of ways our preferences and wishes affect our perceptions.

Wishful Significance: II  [December 23, 2015]

When we're beset by seemingly unresolvable problems, we sometimes conclude that "wishful thinking" was the cause. Wishful thinking can result from errors in assessing the significance of our observations. Here's a second group of causes of erroneous assessment of significance.

Cognitive Biases and Influence: I  [July 6, 2016]

The techniques of influence include inadvertent — and not-so-inadvertent — uses of cognitive biases. They are one way we lead each other to accept or decide things that rationality cannot support.

The Paradox of Carefully Chosen Words  [November 16, 2016]

When we take special care in choosing our words, so as to avoid creating misimpressions, something strange often happens: we create a misimpression of ignorance or deceitfulness. Why does this happen?

Risk Acceptance: One Path  [March 3, 2021]

When a project team decides to accept a risk, and when their project eventually experiences that risk, a natural question arises: What were they thinking? Cognitive biases, other psychological phenomena, and organizational dysfunction all can play roles.

Cassandra at Work  [April 13, 2022]

When a team makes a wrong choice, and only a tiny minority advocated for what turned out to have been the right choice, trouble can arise when the error at last becomes evident. Maintaining team cohesion can be a difficult challenge for team leaders.

Embedded Technology Groups and the Dunning-Kruger Effect  [March 12, 2025]

Groups of technical specialists in fields that differ markedly from the main business of the enterprise that hosts them must sometimes deal with wrong-headed decisions made by people who think they know more about the technology than they actually do.

Footnotes

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