January 7, 2009	Volume 9, Issue 1
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The Paradox of Confidence

by Rick Brenner

Most of us interpret a confident manner as evidence of competence, and a hesitant manner as evidence of lesser ability. Recent research suggests that confidence and competence are inversely correlated. If so, our assessments of credibility and competence are thrown into question.

n 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.

U.S. Secretary of the Treasury Robert Rubin (left) with Federal Reserve Board Chairman Alan Greenspan in discussion before meeting with the House Banking Committee on 20 May 1999, just six months before the work of Kruger and Dunning appeared. They were then both at the height of their power, which both used liberally to resist calls for regulation of new and growing sectors of the financial markets — the very sectors that contributed so much to the financial crisis at the end of 2008. Both men were studies in confidence, and that confidence played a role in persuading officials and the population at large that the U.S. economy was healthy and on course. Yet, on 23 October 2008, under questioning by Rep. Henry Waxman, chair of the Committee on Oversight and Government Reform of the U.S. House of Representatives, former Chairman Greenspan testified, with regard to his "conceptual framework with the way people deal with reality," that, "…I found a flaw, I don't know how significant or permanent it is, but I have been very distressed by that fact." He went on, "I found a flaw in the model that I perceived is the critical functioning structure that defines how the world works…I was shocked." One model of what might have happened to him is that he had discovered the limits of his competence. The fourth factor observed by Dunning and Kruger states that, "Incompetent individuals can gain insight about their shortcomings, but this comes (paradoxically) by gaining competence." If this model applies, one might conclude that by October, 2008, Mr. Greenspan was somewhat more competent than he had been in 1999. Read Mr. Greenspan's complete testimony and view other documents related to the hearing. Photo courtesy U.S. Department of the Treasury.

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. 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? Incompetent individuals, compared
with their more competent peers,
dramatically overestimate their
ability and performanceIn 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 failure 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 over-estimate 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

Read Kruger and Dunning's original paper, courtesy the American Psychological Association.

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Enjoy Your Commute

You probably commute to work. On a good day, you spend anywhere from ten minutes to an hour or two — each way — commuting. What kind of experience are you having? Taking control of this part of your life can make a real difference.

Take Regular Temperature Readings

Team interactions are unimaginably complex. To avoid misunderstandings, offenses, omissions and mistaken suppositions, teams need open communications. But no one has a full picture of everything that's happening. The Temperature Reading is a tool for surfacing hidden and invisible information, puzzles, appreciations, frustrations and feelings.

Coaching and Haircuts

Lifelong learners use a variety of approaches, usually relying heavily on reading. Reading works well for some ideas and techniques, especially for those with limited emotional content. For adding other skills and perceptions, consider a personal coach.

Decisions, Decisions: Part I

Most of us have participated in group decision-making. The process can be frustrating and painful, but it can also be thrilling. What processes do groups use to make decisions? How do we choose the right process for the job?

Decisions, Decisions: Part II

Most of us have participated in group decision-making. The process can be frustrating and painful, but it can also be thrilling. What processes do groups use to make decisions?

See also Personal, Team and Organizational Effectiveness and Critical Thinking for more related articles.

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The Race to the South Pole: Ten Lessons for Project Managers

On 14 December 1911, four men led by Roald Amundsen reached the South Pole. Thirty-five days later, Robert F. Scott and four others followed. Amundsen had won the race to the pole. Amundsen's party returned to base on 26 January 1912. Scott's party perished. As historical drama, why this happened is interesting enough, but to project managers, the story is fascinating. Lessons abound. Read more about this program. Here are some upcoming dates for this program:

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  your calendarAppleton, Wisconsin: September 13, Monthly Meeting, Northeast Wisconsin Chapter of the Project Management Institute.
   
• Download to
  your calendarWeston, Wisconsin: September 14, Monthly Meeting, Northeast Wisconsin Chapter of the Project Management Institute.
   
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  your calendarCrowne Plaza Hotel, Cromwell, CT: September 15, Monthly Meeting, Southern New England Chapter of the Project Management Institute. Register now.
   
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  your calendarFort Wayne, IN: September 22, Monthly Meeting, Northeast Indiana Chapter of the Project Management Institute. Register now.
   
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  your calendarOverland Park Convention Center, 6000 College Blvd., Overland Park, KS 66211: October 4, Professional Development Day, Kansas City Chapter of the Project Management Institute. Register now.
   
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  your calendarMITRE, in Bedford, MA: February 15, 2011, Monthly Meeting, Boston SPIN.
   

Organizational Politics for People Who Hate Politics

Have you ever felt powerless to implement an important new idea? Have you ever been "blind-sided" at a meeting? Have you ever lost two good employees because you could find no way to keep them from attacking each other? These are some of the issues of organizational politics. Many of us have become enmeshed in them from time to time, but we've also known some people who seem to be able to engage and prosper. How is that done? We'll inventory the challenges of organizational politics, and provide tools for anticipating and addressing them. The focus of this program is practical — attendees learn concrete techniques for dealing with the problems that arise in workplace politics, while keeping their integrity intact. Read more about this program. Here's an upcoming date for this program:

• Download to
  your calendarOverland Park Convention Center, 6000 College Blvd., Overland Park, KS 66211: October 5, Professional Development Day, Kansas City Chapter of the Project Management Institute. Register now.
   

Managing Virtual Teams for Real Results

Managing global or dispersed teams is challenging — miscommunications, misunderstandings, and interpersonal conflict all thrive in the typical environment of the distributed team. And they're even more common in global teams, because of time-zone offsets and language and cultural differences. We'll inventory the challenges distributed and global teams face, and provide tools for anticipating and addressing them. The focus of this program is practical — attendees will learn concrete techniques for preventing and dealing with the problems that accompany global and distributed teams. Read more about this program. Here's an upcoming date for this program:

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  your calendarPortland World Trade Center: October 18, Conference, Pacific Northwest Software Quality Conference.
   

Person-to-Person Communications: Models and Applications

When we talk, listen, send or read emails, read or write memos, or when we leave or listen to voice mail messages, we're communicating person-to-person. And whenever we communicate person-to-person, we risk being misunderstood, offending others, feeling hurt, and being confused. There are so many ways for things to go wrong that we could never learn how to fix all the problems. A more effective approach avoids problems altogether, or at least minimizes their occurrence. In this very interactive program we'll explain — and show you how to use — a model of inter-personal communications that can help you stay out of the ditch. We'll place particular emphasis on a very tricky situation — saying no to power. In those moments of intense involvement, when we're most likely to slip, you'll have a new tool to use to keep things constructive. Read more about this program. Here's an upcoming date for this program:

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  your calendarPortland World Trade Center: October 19, Conference, Pacific Northwest Software Quality Conference.
   

Person-to-Person Communication for Project Managers

When we talk, listen, send or read emails, read or write memos, or when we leave or listen to voice mail messages, we're communicating person-to-person. And whenever we communicate person-to-person, we risk being misunderstood, offending others, feeling hurt, and being confused. There are so many ways for things to go wrong that we could never learn how to fix all the problems. A more effective approach avoids problems altogether, or at least minimizes their occurrence. In this very interactive program you'll learn a model of inter-personal communications that can help you stay out of the ditch. In those moments of intense involvement, when we're most likely to slip, you'll have a new tool to use to keep things constructive. Read more about this program. Here's an upcoming date for this program:

• Download to
  your calendarMarist College, 3399 North Road, Poughkeepsie, NY 12601: October 22, Professional Development Day, Hudson Valley Chapter of the Project Management Institute.
   

The Race to the South Pole: Lessons in Risk Management for Leaders

On 14 December 1911, four men led by Roald Amundsen reached the South Pole. Thirty-five days later, Robert F. Scott and four others followed. Amundsen had won the race to the pole. Amundsen's party returned to base on 26 January 1912. Scott's party perished. As historical drama, why this happened is interesting enough. But to organizational leaders and project managers, the story is fascinating. We'll use the history of this event to explore lessons in risk management and its application to organizational efforts. A fascinating and refreshing look at risk management from the vantage point of history. Read more about this program. Here's an upcoming date for this program:

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  your calendarWherever you are: it's a teleseminar: February 2, 2011, Teleseminar, Computer Aid, Inc. (CAI).
   

The Organizational Politics of Risk Management

Organizational politics presents a risk not often accounted for by risk models. It creates one of the many components of risk management risk — the risk that the risk management process itself is inadequate. Political considerations can lead to risk products that seem acceptable but which are fatally flawed; or worse, the risk products are plainly unserviceable, but everyone chooses not to acknowledge the problem. In this program we'll examine how organizational politics influences risk management, and discuss several measures for mitigating its effects. Read more about this program. Here's an upcoming date for this program:

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  your calendarWherever you are: it's a teleseminar: September 1, 2011, Teleseminar, Computer Aid, Inc. (CAI).