A Practical Tool for Navigating Growth & Change
Running a business means you’re constantly learning, whether it’s adopting AI, new tech, navigating compliance, or developing your leadership team, you (and your team) are going to have to master new skills on the fly, whilst at the same time keeping the wheels turning.
This is where the Conscious Competence Model can help. It’s a simple but powerful framework that helps you understand how people (including you) learn, and why the process often feels clunky and frustrating before it (hopefully, eventually) becomes rewarding.
Where It Comes From
Although often misattributed to Abraham Maslow (of Hierarchy of Needs fame), the model was likely first described by Martin M. Broadwell in 1969 in his paper, Teaching for Learning. It outlines the four psychological stages we go through when acquiring a new skill from total ignorance to unconscious mastery.
The Four Stages of Competence
Let’s walk through the model using the familiar example of learning to drive and then apply each stage to a variety of business-related contexts.
1. Unconscious Incompetence - You Don’t Know What You Don’t Know
At this stage, you’re blissfully ignorant, you have a complete lack of knowledge and skills in a specific area and you’re completely unaware. You may not even recognise the value of developing the skill! Indeed, you may even deny the usefulness of it!
Driving analogy: A toddler doesn’t know they can’t drive, and they probably don’t even care.
Business example: You might not realise your estimating process is costing you margin, or that your leadership style is holding back your team. You’re unaware there’s a better way, and that’s dangerous.
What to do: Stay curious. Encourage feedback and surround yourself with people who challenge your blind spots.
2. Conscious Incompetence - You Know You’re Not Good (Yet)
At this point, you became aware of a gap. You know the skill or behaviour is valuable, but you’re painfully aware that you haven’t mastered it… yet.
Driving analogy: At some point, as a child, you became conscious that you did not know how to drive, however; 1) you now know you don’t know and 2) you also began, probably as a teenager, to appreciate the value of driving, so the desire to learn has was overcome. At some point you started lessons. You stall. You kangaroo down the road. You grind your gears. It’s all very frustrating. Initially, especially if you are anything like me, you will be fully conscious of your incompetence. Not getting things right is absolutely integral to the learning process at this stage.
Business example: You’ve just implemented a new ERP system. It’s clunky. You’re overwhelmed. Mistakes are made. Or maybe you’ve started coaching your managers and realise how hard it is to give feedback well.
What to do: This is the hardest stage. Expect discomfort. Prepare (others) for discomfort. Invest in training. Celebrate small wins, but most of all don’t give up.
3. Conscious Competence - You Can Do It, But It Still Takes Effort
You’ve now got the basics. You can execute the task in hand, but it still requires a lot of focus and energy.
Driving analogy: You can drive, but you are still having to think about every little move. You can now propel the car and get from A to B, but it still makes your brain hurt (there is still heavy conscious involvement) and it’s not yet “second nature”. So, you have probably not passed your test yet!
Business example: You’re now using your new project management software effectively, but it still takes time. Or you might be chairing better meetings, but it’s not yet second nature.
What to do: Keep practising. Build routines. Use checklists. This is where habits are formed, you just need to put the time in.
4. Unconscious Competence - You’re Now on Autopilot
This is the stage where the skill or behaviour is now ingrained. You may not have put the full 10,000 hours in, but it’s there, it’s now so practised it has become “second nature” and can be performed easily and without much thought. Competence is now completely unconscious. At this stage you can probably even teach others.
Driving analogy: You can now drive, you intuitively know when to change gear and can do so whilst chatting to your passenger. You drive for miles deep in thought about something else, or listening to your favourite band, and suddenly wonder, “how the hell did I get to here!”
Business example: You instinctively know how to price a job, manage a difficult client, or coach a team member. You’ve now internalised the now not so new skill.
What to do: Reflect on how far you’ve come. Start mentoring others. Teaching is a great way to deepen your own mastery.
Why This Model Matters for Owner-Managers
In many owner-managed businesses you are often the chief learner AND the chief teacher. Whether you’re:
- Scaling operations
- Introducing new systems
- Developing your leadership team
- Improving commercial discipline
- Navigating succession or exit planning
You’re constantly moving through these four stages, and so is your team.
Understanding this model helps you:
- Normalise the discomfort of learning, for yourself and others
- Coach your team more effectively, by meeting them where they are
- Avoid unrealistic expectations, especially when implementing change
- Build a learning culture, where mistakes are part of progress
How to Use It in Your Business
Here are a few practical ways to apply the model:
- During onboarding: Help new hires understand that feeling lost at first is normal.
- In training: Use the model to set expectations and reduce frustration.
- When delegating: Recognise that your team may be at different stages, and support accordingly.
- For your own development: Use it to track your progress with new skills (e.g. financial literacy, negotiation, digital tools).
All of the ISO standards are making much more of both knowledge and change management and the conscious competence model can assist the time pressured owners, directors and managers in navigating these changes across a whole range learning activities necessary to drive change across your organisation.
Related tools and ideas
- Situational Leadership – for adapting your management style to the competence levels of others
- Johari Window – for understanding self-awareness and feedback
Recommended references
- NLP: The New Technology of Achievement – Charles Faulkner
(A brilliant book on learning how to learn, one of my all-time favourites).
Downloadable references
- None
