De iis DE CORONA

I’m not talking about beer!

De iis DE CORONA is Latin for Circle of Competence. Since I do not understand Latin (it is not in my circle of competence) I used Google Translate to figure that out.

The Circle of Competence (COC) is a mental map. These mental maps are useful because they crystallize an insight into something referenceable and usable.

For example, in my 10/24/18 newsletter “Genius NOT Needed” I discussed the very useful mental model of “non-stupidity” that Charlie Munger (Warren Buffet’s investing partner) created.

So what is this Circle of Competence thing all about?

Again by Charlie Munger…

“You have to figure out what your own aptitudes are --- And you’ve got to play within your own circle of competence.”

The Circle of Competence mental model can be simplified to:

• Inside circle (#1) = circle of competence/what you know

• Next circle (#2) = what you think you know/fooling yourself

• Outside of circle #2 = what you definitely don’t know

My (professional) Circle of Competence is focused on creating Robust Manufacturing Processes, it includes:

• Efficiently and reliably figuring out if something at lab/pilot scale can be manufactured at commercial scale.

• Efficiently and reliably figuring out if an existing manufacturing method/process can be dramatically improved.

Because my COC is the skills and interest to create robust manufacturing processes, I have to be careful when I am outside that circle. For example, I might think that I know financial planning, but I may be fooling myself. So, professionally, I stick to what I know, which is creating great processes, period.

A sure sign of folks being outside their COC is nitpicking. As Nassim Nicholas Taleb has said, “nitpicking is the unmistakable mark of cluelessness”. Beware of nitpicking on your own part or on others’ parts

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My main learning from all of this is the importance of knowing my Circle of Competence and sticking to it. It can be very dangerous to be outside of my COC for important things.

I get help for important things outside my COC, as I recommend you should. Seasoned process builders understand this concept inherently. For example, they use experts in machine design to help create their processes. They do not quibble with them about machine design approaches, as long as the equipment serves the process needs.

[A grateful acknowledgement…hat tip to Shane Parrish at Farnam Street for all his mental models and discussions. His invaluable blog is at https://fs.blog.]

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CHALLENGE TO READERS

Please think about this Circle of Competence concept…

• Draw your own professional Circle of Competence; be sure to include both circles #1 and #2. Review it with some trusted colleagues: do they agree with you? What did you learn from this?

• Have the key individuals on a team each draw their own Circles of Competence, ideally at the start of a major project. Share these amongst the team for learning and team optimization.

What are your thoughts about this Circle of Competence mental map? I am curious and interested in your thoughts and experiences about this. Please give us a call to see how we can help you build robust and trustworthy manufacturing processes: it is the raison d'être for MPES Consulting.

If you email us, we'll get back to you promptly, thanks.

All the Best,

Marty

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