A Beginner’s Mind

November 19, 2024: The Dunning-Kruger effect is a cognitive bias in which a person lacking knowledge or ability in a particular area tends to overestimate their understanding or competence. In essence, people affected by the Dunning-Kruger effect have an inflated perception of their knowledge or expertise in a subject or domain. They are unable to accurately assess their own lack of knowledge or abilities.

Cultivating a “beginner’s mind” can be an effective way to avoid falling into the Dunning-Kruger effect and reduce the risks associated with overconfidence. The Zen concept of “beginner’s mind” refers to an attitude of openness, eagerness, and a lack of preconceptions when approaching a subject, task, or experience, even when it’s something we’ve done for years. A beginner’s mind embodies the idea of approaching life with the curiosity and freshness of a beginner, regardless of our level of expertise or experience. It can also be fun to think that way. This mindset encourages us to let go of rigid ideas and preconceived notions, allowing for greater learning, creativity, and a deeper appreciation of the present moment.

Essentially, a beginner’s mind means that we’re always learning how to be better in a business that is continually evolving, with changes in regulations, rules, guidelines, lending practices, and technology.

The Oracle at Delphi proclaimed Socrates to be the wisest man in Athens. Socrates interpreted this as a sign that he was the wisest because he alone was aware of his own ignorance, while others mistakenly believed they were wise.

“I consider myself an average man except for the fact that I consider myself an average man” -Montaigne.