You’ve probably worked with people whose skills were clear to everyone but themselves. Their hesitation slowed them down, not their lack of ability.

It’s the hidden truth most organisations overlook, confidence isn’t simply the byproduct of competence. Often, it’s the other way around.

When you believe you can do something, you try more, fail faster, and learn quicker. The belief becomes the catalyst for the skill.

This is what psychologists call the confidence-competence loop, and it’s one of the most powerful (yet underused) levers for performance, growth, and resilience.

In today’s environment, where adaptability and speed matter more than polished perfection, building this loop isn’t optional. It’s your competitive advantage

Competence is necessary, but without confidence, capability sits unused or under-leveraged.

Most leadership development focuses on building skills, technical knowledge, frameworks, repeatable processes. But if people don’t believe in their ability to apply those skills under pressure, the investment stalls.

Consider these dynamics:

• Underconfidence kills initiative. Employees second-guess themselves, waiting for more evidence, more validation, more permission.
• Overconfidence without competence is brittle. It leads to poor decisions and unearned risk-taking.
• Balanced confidence fuels sustainable performance. It’s a self-reinforcing loop that grows as people act.

“You don’t rise to the level of your goals. You fall to the level of your beliefs.”

Example:
Many organisations invest heavily in training but see little behavioural change. Why? Because they haven’t built the belief that it’s safe to try, fail, and learn. The skill is there. The permission to use it isn’t.

Confidence and competence are reciprocal. One fuels the other in a continuous cycle.

The Loop Looks Like This:

1. Belief
   I think I can. This generates willingness to take action.
2. Action
   I attempt the task. This creates real-world experience.
3. Evidence
   I see I’m capable. Successes (even small ones) build proof.
4. Increased Belief
   I know I can. Confidence strengthens.
5. Higher Performance
   I tackle bigger challenges. The cycle accelerates.

Over time, this loop becomes a growth flywheel, one that not only builds competence but also develops resilience when setbacks happen.

Example:
Think of elite athletes. They train skill, but they also invest heavily in confidence: visualisation, mental rehearsal, positive reinforcement. They understand belief is a performance accelerant, not fluff.

Confidence isn’t simply an individual trait, it’s shaped by the environment leaders create.

Here’s how leaders can build conditions for the loop to thrive:

✅ Normalize Learning, Not Just Outcomes
Reward attempts and progress, not just wins.

✅ Spot and Challenge Self-Limiting Beliefs
Help team members reframe “I can’t” into “I’m learning to.”

✅ Anchor Feedback to Evidence
Instead of vague praise (“good job”), show specifics (“your preparation made this presentation strong”).

✅ Model Vulnerability
Show your own growth curve openly, share moments when you were learning, too.

✅ Give Small, Early Wins
Confidence compounds from early evidence of success.

Example:
Consider a new manager who is skilled but hesitant. A leader who gives them a “safe to try” project (small stakes, clear support) will likely see their belief and performance grow faster than one who overloads them with criticism or ambiguity.

Confidence requires the safety to try, fail, and try again.

Amy Edmondson’s research on psychological safety shows that teams with high trust outperform others, because people are willing to experiment without fear of ridicule or reprisal.

Signs Your Team Lacks Psychological Safety:

• People rarely admit mistakes.
• New ideas get shut down quickly.
• Only a few voices dominate discussions.
• Everyone waits for permission.

How to Rebuild It:

• Acknowledge mistakes yourself.
• Celebrate learning moments, not just outcomes.
• Encourage curiosity over blame.
• Set clear expectations about experimentation.

Example:
When Satya Nadella took over Microsoft, he shifted the culture from “know-it-all” to “learn-it-all.” That cultural reset gave employees the confidence to try, iterate, and own their growth.

Consistent practices make confidence a system, not a mood.

Try These Tactics:

🔹 Wins & Learnings Rounds
In team meetings, ask everyone to share:

• One recent win
• One thing they’re learning

🔹 Confidence Journals
Encourage employees to track:

• Challenges attempted
• Results achieved
• What they learned about their capabilities

🔹 Stretch Assignments with Guardrails
Design projects that push comfort zones but include structured support.

🔹 Peer Recognition Systems
Create rituals where colleagues call out each other’s contributions.

Example:
Google’s Project Aristotle showed that high-performing teams paired psychological safety with visible progress markers, building belief through shared momentum.

In a world that moves too fast for perfection, the confidence-competence loop is your secret weapon.

The leaders and teams who thrive aren’t always the most polished or experienced, they’re the ones who believe they can, so they do.

Belief fuels action. Action builds capability. Capability reinforces belief.

It’s time to stop thinking of confidence as a bonus trait and start treating it as the foundation for sustainable performance.

Ask yourself:

• Where are my people waiting for permission to act?
• What evidence am I helping them collect to strengthen their self-belief?
• How am I showing that learning matters as much as results?

Because when you build environments where confidence grows, capability always follows.

👉 Take the Leadership Capability Scorecard and get a free personalised confidence insight report.