“Our employees need to become more competent!” – this is something we hear from leaders and HR professionals almost every day. But what does that really mean? And more importantly: how does competence actually develop? Once you understand how competences emerge, you can foster them more effectively – boosting both individual performance and the long-term success of your organization.
What do we mean by competence?
Before looking at how competences are built, it’s worth clarifying what we mean by the term. Competence is more than knowledge or a single skill. It’s the ability to act effectively in complex, often unpredictable situations – drawing on different resources and creating solutions that work. Competence only shows itself in action. It’s what enables people to be successful in practice, not just in theory.
We typically distinguish between different types: technical competences, methodological competences, social competences, and personal competences. While the content differs, the way they develop follows the same pattern – and understanding that pattern is the key to managing competence effectively.
The four stages of competence development
The process of developing competences follows a predictable path, first described in the 1970s by Noel Burch as the Four Stages of Competence. The model shows how people move from not knowing what they don’t know to being able to perform naturally and effortlessly.
Stage 1: Unconscious incompetence – “I don’t know what I don’t know.”
At this stage, people are unaware of what they’re missing. They either don’t see that they lack a competence, or they underestimate the complexity of the task. A common example: a technical expert promoted to a leadership role assumes management is mostly “common sense” – until they realize how complex it really is.
This is also where the Dunning–Kruger effect shows up: people with little knowledge in a field tend to overestimate their own ability, precisely because they lack the knowledge to see their limitations. Think of the IT specialist who believes project management can be done “on the side,” or the employee who assumes giving a presentation is “no big deal.”
Stage 2: Conscious incompetence – “Now I know what I don’t know.”
The transition to this stage can be painful but it’s essential. People suddenly realize they’re lacking something. This awareness may come from feedback, a new responsibility, or observing others. The insight can be frustrating – but it’s the turning point. Only when people recognize their gaps can they become motivated to learn.
For leaders, this is a crucial moment: support employees in seeing this stage not as a weakness, but as a chance for growth.
Stage 3: Conscious competence – “I can do it, but I have to think about it.”
Here, people have acquired the skills but need to apply them deliberately. They can do it – but only with focus and effort. A new manager, for instance, might be able to run a structured performance review, but still needs to prepare carefully and follow the steps consciously.
This stage requires practice and repetition. Without it, people risk falling back into old habits under stress.
Stage 4: Unconscious competence – “I can do it without thinking.”
This is the goal: the competence is second nature. People perform automatically, even while doing other things. An experienced project leader can spot tension in the team and address it appropriately – often without being aware of their own process.
Ironically, this stage creates a new challenge: experts often struggle to teach others, because they can no longer break down what they do into clear steps. Which is why your best specialists are not always your best trainers.
What this means in practice
- Tailored development approaches:
Depending on which stage someone is in, they need different types of support. In stage one it’s about awareness, in stage two about motivation, in stage three about structured practice, and in stage four about deepening and sharing knowledge. - Feedback as a catalyst:
Feedback is what moves people from unconscious to conscious incompetence. A strong feedback culture is therefore essential. This is why 360-degree feedback can be so powerful – it makes blind spots visible. - Patience and realistic expectations:
Developing competence takes time. The four stages help set realistic expectations and reduce frustration when progress feels slow. - Competence vs. qualification:
You can teach qualifications in a classroom. Competences develop mainly through practice and reflection. That’s why training alone isn’t enough – people need real opportunities to apply what they’ve learned. - The role of leaders:
Leaders play a central role in developing competences. They need to recognize where their team members are on the journey – and provide the right kind of support. That means less “command and control,” and more coaching and development.
And of course, leaders themselves must keep learning. In a fast-changing world, even experienced managers regularly find themselves back at stage one in new areas.
Competence doesn’t just happen
Competences develop according to recognizable patterns. Once you understand those patterns, you can guide the process more intentionally – aligning both individual growth and organizational goals.
The Four Stages of Competence provide a simple yet powerful framework for navigating this journey. Investing in competence development is ultimately an investment in your organization’s future. Because at the end of the day, it’s not technologies or strategies that make the difference – it’s people, and their competences, that drive success.
Do you have questions about competence development in your organization? Reach out to us – we’ll be glad to help you build a systematic approach to competence management.
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