BY Kathy Crosett
Leaders and entrepreneurs need major confidence to manage their business. They realize that their team members, investors, suppliers, and customers are relying on them. You, and your developing leaders, also need competence.
Do you know the difference?
How Confidence Helps Your Organization
Confidence, especially in the sales world, matters. Over 50% of sales professionals we surveyed reported that confidence is the top characteristic that determines success. 56% of surveyed sales managers agreed.
When sales professionals believe their solution is right for a client, their corresponding confidence contributes to closing a deal.
Confidence matters in all parts of running an enterprise. A business leader must be confident enough to persuade investors to buy into their vision. And they need to convince prospective employees to join the team.
The Limits of Confidence
But too much confidence can be a problem. In their research, David Dunning and Stav Atir have studied the pitfalls of overconfidence.
More than a few leaders know “just enough to be dangerous.” They believe in their ability to “fake it until you make it.”
The researchers confirmed these truths and exposed the trouble with overconfidence. They found that organizations headed by individuals who over-relied on confidence and skimped on competence fell short of expectations.
How do developing leaders become overconfident? The tendency may be linked to their climb up the corporate ladder. As they take a broader view of the organization, they are no longer able to track details.
They may retain expertise in a specific area or two. But when researchers tested entrepreneurs, they found a tendency to believe they had expertise when they didn’t. It’s this “self-perceived expertise” that can bring down an organization.
Building a Team of Experts
Being aware of any tendency toward self-perceived expertise is critical for organizational leaders. If you suspect that you or your senior leaders lack expertise, take a test. The results will speak for themselves.
Sometimes it's obvious that you lack expertise, or even competence, in a specific subject matter. Accept the truth. You should also promise not to make critical decisions based on faulty knowledge. You could invest the time and money to hone your expertise.
Or you could choose an option that will strengthen your team. If one of your senior leaders has the interest in becoming a subject matter expert, encourage them.
For the best outcomes, canvas the developing leaders in your organization. One or more of these individuals likely possesses the expertise your organization needs.
Don't rush into making a promotion based on what an employee claims they can do. It’s easy to be swayed by confidence and personality, especially if you’re in a hurry to solve a problem.
Training for Competence
Internal Candidates
Ask your internal candidate to take an unbiased assessment that will demonstrate their expertise. If the results are disappointing, but show potential, encourage your team member to take training.
And don't limit the training to a specific subject matter. If the employee shows potential as a future leader, require them to take managerial training. Great managerial skills don’t come easily to most people.
External Candidates
You may need to look outside of the organization for the expertise and competence you need. It’s critically important to find a person with the right skills. Being a good fit with the team and the organization is also mandatory.
If you are conducting an outside search, a psychometric assessment will give you plenty of information to work with. The results will indicate a candidate’s natural strengths and their motivations. They will also flag areas of concern.
These concerns aren’t necessarily showstoppers. They are an indication that the hiring manager should ask candid interview questions before making a job offer.
Many developing leaders are not born for the role. With the right guidance and training they can become confident and competent. And as an expert in a specific area, they can increase the value of the leadership team.