How Great Companies Define Competence

Competent leaders. Competent teams. Competent hires.

We hear about competency all the time in business.

But most of the time, when someone uses the term, they’re talking about something else: potential, credentials, personality.

The word “competent” sounds legitimate, even objective. But in practice, it’s often vague and rarely comes with any concrete proof. And that lack of clarity distracts us from what actually matters.

Because here’s the truth: Competence isn’t theoretical. It’s not something you decide based on a résumé, a good vibe, or a conversation. It’s practical. It shows up in what gets done, how well it’s done, and whether it holds up under pressure.

Until someone proves they can consistently deliver, you truly don’t know if they’re competent. You’re just hoping they are. And if you’re serious about building a great company, hope isn't a strategy.

It’s time we stop guessing and start getting real about what competence actually is — and why performance is the only thing that proves it.

Competence Isn’t the Same As Potential

Somewhere along the way, we started treating competence as something separate from results.

We’ll say someone is “really competent” even if they’re not delivering. Maybe they have a strong résumé. Maybe they’re confident in meetings. Maybe they “just need time” or “haven’t had the right support.” We start explaining away the lack of results instead of confronting it. And before long, we’re managing excuses instead of building a team that performs.

We all start with potential. And yes, development matters. But potential is a bet, not a guarantee. Until someone is delivering consistently at the level the company needs, they haven’t earned the label “competent.” Not yet.

This is where many companies get stuck. They confuse promise with proof. They let nice people linger in Seats they’re not equipped to own. They mistake long hours or emotional investment for capability.

But that’s not fair to your team, your vision, or you.

Because when you let underperformance slide, you signal that the work doesn’t really matter. And once that signal’s out there, it’s hard to pull it back.

Performance Is the Only Proof

You can’t spot competence from assumptions. You only know it’s there when you see it in action.

And not just once. Over and over. With real constraints, real stakes, and real deliverables.

That’s why the only thing that truly proves competence is performance. Not potential. Not effort. Not intention. Just output — on time, at the agreed-upon quality, under real-world pressure.

That’s not harsh. It’s just reality. And it’s how you build something sustainable.

Until someone delivers consistently at pace and spec, without needing to be rescued, it’s impossible to know if they’re truly competent.

Here’s where things often break down: Most teams don’t have shared clarity around what great work looks like. Timelines are loose. Quality is up for debate. Autonomy gets handed out unevenly. And then people wonder why things slip.

As founders, it’s on us to define the Work. Not vaguely or aspirationally, but clearly — what needs to be done, how well, and how fast.

That’s why a definition of what “done” looks like, a Scorecard to track outcomes, and clear roles, accountabilities, and responsibilities are essential. Not because they’re red tape but because they bring structure. They make competence visible. They give people something to rise to (or something to fix when things go off track).

Once that structure is in place, performance becomes the proof. You can see who’s consistent and, more importantly, who’s adding value.

Competence in this context isn’t about always being right. It’s about delivering reliably, even when things are hard.

That’s how you stop guessing — how you know who’s ready for more and who’s not.

Competence Is A Shared Responsibility

Competence only means something when it’s tied to outcomes that move the company forward.

It’s not an abstract quality or a personal feeling of confidence. It’s practical and specific. You can see it in the data and real results.

But competence doesn’t fall on one person. It depends on everyone in your organization understanding what great performance looks like in their particular Seat. That clarity is a shared responsibility.

As founders, we lead the way. We define the work, set the standard, and create the structure. But team members play a critical role, too. If they’re unclear on what great looks like and don’t ask, challenge, or confirm, they’re contributing to the confusion.

Because competence isn’t just about being capable. It’s about being capable here, now, in the direction the company is heading. That can’t happen if people are guessing what matters.

Companies thrive when clarity is a two-way street. When leaders create alignment and reinforce it. When team members lean in and take ownership, not just of their day-to-day work but understanding how that work creates value.

That’s how real competence develops. Not from checking boxes, but from staying close to the standards, the outcomes, and the impact.

If you want your people to be competent, you need a culture where clarity is everyone’s job.

Competence Is Earned, Together

Great companies don’t just talk about competence. They build around it.

And in high-performance cultures, you can see it everywhere. Everyone knows what great looks like. Everyone feels responsible for delivering. Everyone holds themselves and each other accountable.

That’s how great cultures stay great as they grow.

Because competence isn’t something you have. It’s something you prove. Not just when things are easy, but over and over again, under real conditions with real outcomes.

This isn’t about chasing perfection. It’s about building consistency. Every team member doing what they say they’ll do. Delivering what matters, when it matters. Owning their Seat, their growth, and their impact.

So if you’re serious about building a company that lasts, start here: Create clarity, raise the standard, and work alongside people who want to prove they belong, not by saying it but by showing it.

Competence isn’t about labels. It’s about results. And in great companies, it’s earned — together.