The circle of competence brings more clarity and originality to design.
06/10/2025
Design is better when imagination meets reality. The circle of competence is a principle that creative work is not a performance of knowing everything, but a disciplined practice of knowing where judgment is strongest and where it is not. Buffett frames it simply: success depends less on the size of the circle and more on knowing its boundaries, then operating inside them with conviction. This perspective shifts the designer’s perception from chasing trends to navigating with experience, taste, and method.
The origin of this model is brings back in pragmatic excellence. Buffett and Munger chose understandable businesses; when something was unknowable or too convoluted, it went into the “too hard” pile. Focus on the few areas where skill creates an interest, and let that focus compound into outsized outcomes. In creative work, this means holding a high bar for what to accept, when to explore, and when to pass so energy doesn’t goes to waste across unfamiliarity.
For design, a clear circle betters both process and result. It tells the truth about strengths: what mediums, industries, and problem types produce the most resonance and measurable impact. It names the blind spots, too, not as weaknesses to hide, but as constraints to respect. Munger’s advice is direct: figure out personal limits and play where that edge exists; outside the circle is where overconfidence becomes costly. This orientation protects quality, preserves reputation, and keeps learning intentional rather than accidental.
Creative principles within the circle do not narrow imagination; they heighten it. When the designer stands inside familiar materials, brand systems, narrative structures risk can be taken with care. The unknown becomes a designed experiment instead of a gamble. Staying within the circle is not stagnation; it is the platform from which unconventional choices are made with clarity, because the foundation is stable. Results feel original, not random.
Yet growth demands movement. Circles can expand deliberately: through studied practice, constrained experiments, and adjacent projects that share familiar variables. Farnam Street’s framing is useful competence develops through experience and study so expansion is earned, not declared. The discipline is to draw the boundary, work the edge, then add a new ring only when skill and understanding become repeatable. The circle grows by proof, not by aspiration alone.
When the process risks becoming automatic, the circle offers a test: am I taking risks where I hold an edge, or just chasing novelty? The remedy is targeted exploration adjacent tools, new narratives, fresh collaborators chosen to stretch capabilities without discarding the spine of competence. This keeps work alive and adaptive, while honoring the integrity that clients trust.
This is how you can integrate the circle of competence into design, workflow, and creativity:
[ 1 ] Make the circle with goals and outcomes. Map the engagements and industries where results have been most reliable measurable lifts in brand recall, adoption, or revenue then name the methods and mediums used to get there. Buffett’s guidance is clear: evaluate only what is truly understood; selection is the edge. This codifies the creative lane without locking it. It is important to keep it open with the goals in mind.
[ 2 ] Build a “too hard” principle and an “adjacent next” principal. Place ambiguous, misaligned, or expertise mismatched briefs on the “too hard” shelf to avoid expensive learning on client time. Keep a second shelf for adjacent opportunities that share core variables but extend one dimension format, scale, or platform so growth remains deliberate. This mirrors Buffett’s habit of excluding what cannot be understood at low error‑rates.
[ 3 ] Operate with clear edges in process. State constraints early: what will be done exceptionally, what will be partnered, and what will not be attempted. Munger’s principle know the edge of competency translates to transparent scope and honest collaboration. This strengthens trust and lets the designer focus energy where judgment is most important.
[ 4 ] Use competence to better originality. Within known systems, push for unconventional narrative, unusual material pairings, or distinct motion language, whatever you prefer. Precision boosts courage; the baseline is mastered, so the risk sits on a single, intentional variable. This is how narrow focus leads to distinct signatures rather than generic safety.
[ 5 ] Expand the circle by proof, not promise. Add capabilities only after repeated outcomes under different constraints a new category, timeline, or team. Farnam Street’s lens emphasizes useful knowledge earned through cycles of application; let new rings form after three strong passes, not one lucky break. This keeps growth stable and reputation compounding.
[ 6 ] Maintain a personal ledger of ignorance. Track areas that repeatedly confuse or slow progress and either study them deeply or formalize partnerships. Overconfidence outside the circle is a recurring failure pattern; naming ignorance converts risk into a plan instead of a surprise. This is the discipline that keeps the work honest.
In practice, this principle looks like hustle that creates momentum. Take on briefs where narrative strategy, identity systems, and product‑brand integration align with strengths. Decline misfit projects quickly, then reinvest time into creation, case studies, and learning that expands the next ring with intent. The result is work that feels inevitable, focused, personal, and commercially sound.
The circle of competence is not a fence; it is a living outline. It protects the work, directs ambition, and refines taste. As Buffett says, it is not the size of the circle that matters, but the precision with which the boundary is known. From there, creative growth is clearer, deeper, and more durable.
The inspiration of writing this blog came from the book: “The art of the good life” by Rolf Dobelli. I can highly recommend the book as it teaches you a lot of guidance.
