That pressure often pushes new leaders into a risky space—not what they don’t know, but what they think they know. It’s not ignorance that causes most leadership mistakes. It’s assumed competence.

This is where the Circle of Competence becomes one of the most valuable tools you can use as a leader.

The Three Circles Every Leader Navigates

The concept of the Circle of Competence was popularized by investor Warren Buffett. It’s a powerful framework for understanding where your knowledge is solid—and where risk lives.

Imagine three overlapping circles that represent how you operate as a leader:

1. What You Know

This is your strength zone.

It includes the skills, knowledge, and situations you can confidently handle based on experience, training, or clear policy.

Leader’s Stance: Confidence
Example: You know how to run a fire drill or respond to a biting incident because you’ve done it before or followed clear protocol.

2. What You Think You Know (The Danger Zone)

This is where most leadership mistakes happen.

In this zone, we assume we know the right answer, skip questions, and act too quickly—often out of pressure or fear of looking unsure.

Leader’s Stance: Risk
Example: Guessing how to handle a custody pick-up dispute without reviewing the court order or policy.

3. What You Don’t Know

This is not weakness—it’s wisdom.

Acknowledging what you don’t know and choosing to ask, check, or learn protects you, your team, and your program.

Leader’s Stance: Wisdom
Example: Saying, “I’m not sure, but I’ll find out and follow up,” when asked about subsidy rules.

Strong leadership isn’t about staying in the first circle.
It’s about staying out of the second one.

You Don’t Need to Know Everything to Lead Well

Many leaders feel pressure to have all the answers—especially when imposter syndrome shows up. That pressure can lead to overcompensating, guessing, or pretending.

But the strongest leaders don’t operate from ego.
They operate from clarity.

They:

Know their strengths
Own their gaps
Create space to learn

This isn’t about being passive or indecisive—it’s about being intentional.

Every time you pause to ask, check, or learn, you build two things that matter more than appearing confident:

Trust: People respect honesty—even when the answer is “I don’t know yet.”
Credibility: The danger zone shrinks, and mistakes decrease.

Avoiding the Danger Zone

Early in leadership, the What You Know circle is often smaller—and the What You Think You Know circle is larger. That’s normal. The risk comes when fear of looking inexperienced keeps you from slowing down.

Pretending has a cost.
Clarity protects you.

To shrink the danger zone, practice these habits:

Listen first: Gather the full story before responding
Ask, don’t guess: Confirm policy, history, or protocol
Use the pause: Say, “Let me double-check before I answer,” or “I’ll find out and follow up.”
Reflect weekly: Ask yourself, “Where did I assume this week?”

These small pauses prevent big problems.

Creating a Culture of Clarity

Your leadership stance shapes your culture.

When your team sees you prioritize getting it right over looking right, you create:

A culture where questions are safe
Mistakes that are teachable—not shameful
Learning that’s expected—not hidden

That’s how you build a confident, capable team—and avoid cultures of blame, cover-ups, or fear.

Reflection Prompt

Take a moment to reflect honestly.

Where are you spending most of your time right now:
What you know, what you think you know, or what you don’t know?
What is one habit you could practice this week to shrink your danger zone?

Pausing for clarity isn’t weakness.
It’s leadership.

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