Dunning-Kruger Effect for Business Management

A type of illusory superiority, it is a type of cognitive bias in which people believe that they are smarter and more capable than they really are.

Source: Medium

To avoid the Dunning–Kruger effect (or make it less painful):
• Admit the fact that there is something you don’t know and always be ready to improve yourself.
• Set real plans and measure results during the process. Usual retrospectives of the prior period can help you to define zones of your own incompetence at the early stages.
• Hire people for balance. A great team should consist of people with different complementary skills.
• Interact with people smarter than you as much as possible. (Accept the fact that there are people smarter than you).
• Test the water before starting the business. Do not be afraid to get back to the drawing board.
• Do proper market research and update the data on a regular basis. The helicopter view is great but you need to stay tuned for more news.
• Focus your time and efforts on areas where you have the greatest competitive advantages.
• Ask for feedback about your performance and be ready to accept it.

Source: Medium

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