Wegagen Bank has made history by becoming the first company to list its shares on the Ethiopian Stock Exchange (ESX). The announcement was made during the official launch ceremony of the stock exchange, held at the Science Museum in Addis Ababa in the presence of Prime Minister Abiy Ahmed (PhD) and other high-ranking government officials.
#WegagenBank
#ESX
@PatternFin
#WegagenBank
#ESX
@PatternFin
Innovative Electric Car Financing System launched
Utopia Technology has unveiled Ethiopia’s first integrated electric car financing system, the “Utopia Green Fund,” alongside a dedicated app designed to facilitate access to electric vehicles.
This groundbreaking initiative aims to promote sustainable transportation and make electric cars more accessible to the Ethiopian public. #CapitalNews
#UtopiaGreenFund
#EV
Utopia Technology has unveiled Ethiopia’s first integrated electric car financing system, the “Utopia Green Fund,” alongside a dedicated app designed to facilitate access to electric vehicles.
This groundbreaking initiative aims to promote sustainable transportation and make electric cars more accessible to the Ethiopian public. #CapitalNews
#UtopiaGreenFund
#EV
👍1
💰 TOP 10 COMPANIES BY NET PROFIT 2023
This image ranks the top 10 companies globally by net profit (pre-tax #income) for 2023. It highlights their profitability, industries, and geographic distribution, providing key insights into global economic dynamics.
Top 10 Companies by #Profit (2023):
🇸🇦 1. Saudi Aramco Total Refining and Petrochemical Company (SATORP) ($247.4B) – #SaudiArabia
The #oilandgas giant dominates with a profit over double that of the second-highest company, reflecting continued dependence on fossil fuels and Aramco’s strong position in the #energymarket.
🇺🇸 2. Apple ($114.3B) – #UnitedStates
Apple is the most profitable #techcompany, emphasizing its dominance in consumer #electronics and #services, driven by high-margin products like the #iPhone.
🇺🇸 3. Berkshire Hathaway ($100.3B) – USA
Its diversified #investment strategy has secured #WarrenBuffett's company a high-profit position, highlighting the resilience of #financial conglomerates.
🇺🇸 4. Microsoft ($95.0B)
This profit reflects its success in #cloudcomputing, enterprise solutions, and #AI investments, cementing its role as a #tech leader.
🇺🇸 5. Alphabet Inc. ($78.8B)
Google’s parent company profits from advertising and #cloudservices, showcasing its dominance in #digital platforms.
🇷🇺 6. Gazprom ($76.7B) – #Russia
Despite global energy shifts, Gazprom’s profit underscores the enduring significance of #naturalgas exports, especially in Europe and Asia.
🇺🇸 7. JPMorganChase ($63.5B)
The largest U.S. bank by profit, benefiting from rising #interestrates and strong #investmentbanking services.
🇺🇸 8. ExxonMobil ($61.0B)
High profits reflect the continuing importance of traditional energy sources, boosted by high #oilprices in 2023.
🇨🇳 9. Industrial and Commercial Bank of China ($58.9B)
#China’s largest bank, ICBC profits from China’s vast #economy and #globaltrade influence.
🇨🇳 10. China Construction Bank (Asia) ($55.3B)
Its profit indicates the strength of China’s #infrastructure #investments and financial sector.
This ranking reflects the intersection of #innovation, resource dependency, and #financialservices as the driving forces of global #profitability. It showcases how traditional #energy and #emergingtechnology remain critical #economic pillars in 2023.
@PatternFin
This image ranks the top 10 companies globally by net profit (pre-tax #income) for 2023. It highlights their profitability, industries, and geographic distribution, providing key insights into global economic dynamics.
Top 10 Companies by #Profit (2023):
🇸🇦 1. Saudi Aramco Total Refining and Petrochemical Company (SATORP) ($247.4B) – #SaudiArabia
The #oilandgas giant dominates with a profit over double that of the second-highest company, reflecting continued dependence on fossil fuels and Aramco’s strong position in the #energymarket.
🇺🇸 2. Apple ($114.3B) – #UnitedStates
Apple is the most profitable #techcompany, emphasizing its dominance in consumer #electronics and #services, driven by high-margin products like the #iPhone.
🇺🇸 3. Berkshire Hathaway ($100.3B) – USA
Its diversified #investment strategy has secured #WarrenBuffett's company a high-profit position, highlighting the resilience of #financial conglomerates.
🇺🇸 4. Microsoft ($95.0B)
This profit reflects its success in #cloudcomputing, enterprise solutions, and #AI investments, cementing its role as a #tech leader.
🇺🇸 5. Alphabet Inc. ($78.8B)
Google’s parent company profits from advertising and #cloudservices, showcasing its dominance in #digital platforms.
🇷🇺 6. Gazprom ($76.7B) – #Russia
Despite global energy shifts, Gazprom’s profit underscores the enduring significance of #naturalgas exports, especially in Europe and Asia.
🇺🇸 7. JPMorganChase ($63.5B)
The largest U.S. bank by profit, benefiting from rising #interestrates and strong #investmentbanking services.
🇺🇸 8. ExxonMobil ($61.0B)
High profits reflect the continuing importance of traditional energy sources, boosted by high #oilprices in 2023.
🇨🇳 9. Industrial and Commercial Bank of China ($58.9B)
#China’s largest bank, ICBC profits from China’s vast #economy and #globaltrade influence.
🇨🇳 10. China Construction Bank (Asia) ($55.3B)
Its profit indicates the strength of China’s #infrastructure #investments and financial sector.
This ranking reflects the intersection of #innovation, resource dependency, and #financialservices as the driving forces of global #profitability. It showcases how traditional #energy and #emergingtechnology remain critical #economic pillars in 2023.
@PatternFin
Most CEOs use these metrics.
Few actually understand them.
Let’s break it down:
1️⃣ ROI: Return on Investment
• Formula: ROI = (Net Profit / Cost of Investment) * 100%
• Good for: Simple, one-off projects or campaigns.
• Caveat: It ignores the time value of money, so it’s not great for long-term investments.
2️⃣ ROIC: Return on Invested Capital
• Formula: ROIC = EBIT (1-Tax) / (Long-Term Debt + Equity - Non-Operating Cash)
• Good for: Evaluating how efficiently a company uses its invested capital.
• Caveat: If a company has large non-operating cash, this number might look artificially strong.
3️⃣ ROE: Return on Equity
• Formula: ROE = Net Income / Equity
• Good for: Investors who want to know how well their equity is being used.
• Caveat: Be cautious—excessive leverage can inflate ROE, making it seem better than it is.
4️⃣ ROCE: Return on Capital Employed
• Formula: ROCE = EBIT / (Long-Term Debt + Equity)
• Good for: Measuring profitability and efficiency in capital usage.
• Caveat: It doesn’t account for the cost of debt, which can make it less reliable for heavily leveraged companies.
5️⃣ ROA: Return on Assets
• Formula: ROA = Net Income / Total Assets
• Good for: Understanding how effectively a company uses its assets to generate profit.
• Caveat: ROA tends to look lower for capital-intensive industries because it includes depreciation.
The takeaway?
No single metric tells the whole story.
• Use ROI for campaign or project analysis.
• Use ROIC to measure long-term efficiency.
• Use ROE to evaluate equity returns for investors.
• Use ROCE to understand capital efficiency.
• Use ROA to assess how well assets are being used.
@PatternFin
Few actually understand them.
Let’s break it down:
1️⃣ ROI: Return on Investment
• Formula: ROI = (Net Profit / Cost of Investment) * 100%
• Good for: Simple, one-off projects or campaigns.
• Caveat: It ignores the time value of money, so it’s not great for long-term investments.
2️⃣ ROIC: Return on Invested Capital
• Formula: ROIC = EBIT (1-Tax) / (Long-Term Debt + Equity - Non-Operating Cash)
• Good for: Evaluating how efficiently a company uses its invested capital.
• Caveat: If a company has large non-operating cash, this number might look artificially strong.
3️⃣ ROE: Return on Equity
• Formula: ROE = Net Income / Equity
• Good for: Investors who want to know how well their equity is being used.
• Caveat: Be cautious—excessive leverage can inflate ROE, making it seem better than it is.
4️⃣ ROCE: Return on Capital Employed
• Formula: ROCE = EBIT / (Long-Term Debt + Equity)
• Good for: Measuring profitability and efficiency in capital usage.
• Caveat: It doesn’t account for the cost of debt, which can make it less reliable for heavily leveraged companies.
5️⃣ ROA: Return on Assets
• Formula: ROA = Net Income / Total Assets
• Good for: Understanding how effectively a company uses its assets to generate profit.
• Caveat: ROA tends to look lower for capital-intensive industries because it includes depreciation.
The takeaway?
No single metric tells the whole story.
• Use ROI for campaign or project analysis.
• Use ROIC to measure long-term efficiency.
• Use ROE to evaluate equity returns for investors.
• Use ROCE to understand capital efficiency.
• Use ROA to assess how well assets are being used.
@PatternFin
የባንከሮች ነገ?
➡️ <<……….. እኔ ሥልጠና ስሰጥ ነው የምውለው፡፡ በተለይ የማሠለጥነው የባንክ ባለሙያዎችን ነው፡፡ ከስቶክ ማኔጅመንት እስከ ታች ድረስ ብዙዎቹ የካፒታል ማርኬትን በሚፈለገው መጠን እንደማያውቁ ነው፡፡ እነሱ ፋይናንስ ላይ ሆነው ካፒታል ማርኬትን በዚያ ደረጃ ካልተረዱ፣ ከፋይናንስ ውጪ የራቀ ሰው ምን ይሆናል የሚለውን ሳስብ ብዙ ክፍተቶች እንዳሉ እገምታለሁ፡፡……….>> Dr Dakito Alemu Kesto
➡️ <<….. ሌሎች የባንክ አሠራር ሥርዓቶችም አሉ፡፡ ለምሳሌ እንደ ኢንቨስትመንት ባንክ ያሉ የባንክ አሠራር ሥርዓቶች ማምጣት የሚቻልበት ሁኔታ መፍጠር ከተቻለ፣ በአብዛኛው ብድር ሰጥቶ ገቢ ከማግኘት ይልቅ አገልግሎት ሰጥቶ ገቢ የሚኘበት ሁኔታ ይኖራል፡፡ እንዲህ ያለው አሠራር ሪስካቸውንም እንዲቀንስ የማድረግ ዕድል ይሰጣል፡፡ ገቢያቸውንም ያለ ሥጋት ለማስቀጠል ያስችላቸዋል፡፡ ስለዚህ ባንኮች ስትራቴጂካሊ መሄድ አለባቸው ብዬ ከማምንባቸው ጉዳዮች አንዱ ከብድር ወለድ ገቢ ውጭ ያሉ አሠራሮችን የበለጠ የሚያሳድግበት የአሠራር ሥርዓት ማምጣት ነው፡፡ ለዚህ ደግሞ ትልቅ አጋዥ የሚሆነው የቴክኖሎጂ ፕላትፎርም ነው፡፡ የኢትዮጵያ የባንክ ኢንዱትሪ የተለመደ አሠራር ማሻሻል አለበት የምልበት አንዱ ምክንያት እዚህ አካባቢ ያለው ሁኔታ ነው፡፡ ከዚህ ባሻገር የሠለጠነ የሰው ኃይል ከማፍራት አንፃር በበቂ ሁኔታ እየተሠራበት አይደለም፡፡ ብቁ ባለሙያዎችን የማፍራት ችግር አለ፡፡ ዩኒቨርሲቲዎቻችን ለዘርፉ የሚሆን የተሻለ በቂ የሰው ኃይል ለማፍራት የሚያስችል ያን ያህል የተለየ የሥልጠና ዘርፍ የላቸውም፡፡ ከዚህ ቀደም የባንክና ኢንሹራንስ ዘርፍ ላይ ሥልጠናዎች ነበሩ፡፡ አሁን ግን ካለው ችግር አንፃር ባንኮች በተለያየ ዘርፍ የተመረቁ ባለሙያዎችን ወስደው የራሳቸውን ሥልጠና ሰጥተው ነው የሚያበቋቸው፡፡ ሰርቲፋይድ የሆነ የባንክ ባለሙያ ከመፍጠር አንፃር የኢትዮጵያ የባንክ ኢንዱስትሪ አሁንም ውስንነት አለበት፡፡ በሌሎች አገሮች የባንክ ሠራተኛ ባንክ ውስጥ ገብቶ ለማገልገል ሰርቲፋይድ መሆን ይጠበቅበታል፡፡…………>> Henok Kebede Tadesse
➡️ <<………. ከውጭ አገሮች የተለያዩ የቴክኖሎጂ ውጤቶችን ልታስገባ ትችላለህ ነገር ግን ያ ብቻውን ምንም አይሠራም፡፡ ይኼንን በአግባቡ መጠቀም የሚችል ሰው ኃይል መገንባት ያስፈልጋል፡፡ እናም በዋናነት በሥራችን ባሉ ተቋማትም ጋር ሆነን ወደ ባንኮች ለመቅረብ የፈለግንበት ምክንያት ወይም ለመሙላት ያሰብነው የትኩረት ከባቢ አቅም ግንባታ ላይ ነው፡፡ በሴክተሩ ላይ ያሉ ሠራተኞችን አቅምን መገንባት ያስፈልጋል፡፡ ምክንያቱም ቀጣዮቹ ዘርፉን የሚረከቡትና የሚመሩት አካላት ስለሆኑ፡፡………..>> Akash Mahendra Bhavsar
Compiled by Biniyame K.
@PatternFin
➡️ <<……….. እኔ ሥልጠና ስሰጥ ነው የምውለው፡፡ በተለይ የማሠለጥነው የባንክ ባለሙያዎችን ነው፡፡ ከስቶክ ማኔጅመንት እስከ ታች ድረስ ብዙዎቹ የካፒታል ማርኬትን በሚፈለገው መጠን እንደማያውቁ ነው፡፡ እነሱ ፋይናንስ ላይ ሆነው ካፒታል ማርኬትን በዚያ ደረጃ ካልተረዱ፣ ከፋይናንስ ውጪ የራቀ ሰው ምን ይሆናል የሚለውን ሳስብ ብዙ ክፍተቶች እንዳሉ እገምታለሁ፡፡……….>> Dr Dakito Alemu Kesto
➡️ <<….. ሌሎች የባንክ አሠራር ሥርዓቶችም አሉ፡፡ ለምሳሌ እንደ ኢንቨስትመንት ባንክ ያሉ የባንክ አሠራር ሥርዓቶች ማምጣት የሚቻልበት ሁኔታ መፍጠር ከተቻለ፣ በአብዛኛው ብድር ሰጥቶ ገቢ ከማግኘት ይልቅ አገልግሎት ሰጥቶ ገቢ የሚኘበት ሁኔታ ይኖራል፡፡ እንዲህ ያለው አሠራር ሪስካቸውንም እንዲቀንስ የማድረግ ዕድል ይሰጣል፡፡ ገቢያቸውንም ያለ ሥጋት ለማስቀጠል ያስችላቸዋል፡፡ ስለዚህ ባንኮች ስትራቴጂካሊ መሄድ አለባቸው ብዬ ከማምንባቸው ጉዳዮች አንዱ ከብድር ወለድ ገቢ ውጭ ያሉ አሠራሮችን የበለጠ የሚያሳድግበት የአሠራር ሥርዓት ማምጣት ነው፡፡ ለዚህ ደግሞ ትልቅ አጋዥ የሚሆነው የቴክኖሎጂ ፕላትፎርም ነው፡፡ የኢትዮጵያ የባንክ ኢንዱትሪ የተለመደ አሠራር ማሻሻል አለበት የምልበት አንዱ ምክንያት እዚህ አካባቢ ያለው ሁኔታ ነው፡፡ ከዚህ ባሻገር የሠለጠነ የሰው ኃይል ከማፍራት አንፃር በበቂ ሁኔታ እየተሠራበት አይደለም፡፡ ብቁ ባለሙያዎችን የማፍራት ችግር አለ፡፡ ዩኒቨርሲቲዎቻችን ለዘርፉ የሚሆን የተሻለ በቂ የሰው ኃይል ለማፍራት የሚያስችል ያን ያህል የተለየ የሥልጠና ዘርፍ የላቸውም፡፡ ከዚህ ቀደም የባንክና ኢንሹራንስ ዘርፍ ላይ ሥልጠናዎች ነበሩ፡፡ አሁን ግን ካለው ችግር አንፃር ባንኮች በተለያየ ዘርፍ የተመረቁ ባለሙያዎችን ወስደው የራሳቸውን ሥልጠና ሰጥተው ነው የሚያበቋቸው፡፡ ሰርቲፋይድ የሆነ የባንክ ባለሙያ ከመፍጠር አንፃር የኢትዮጵያ የባንክ ኢንዱስትሪ አሁንም ውስንነት አለበት፡፡ በሌሎች አገሮች የባንክ ሠራተኛ ባንክ ውስጥ ገብቶ ለማገልገል ሰርቲፋይድ መሆን ይጠበቅበታል፡፡…………>> Henok Kebede Tadesse
➡️ <<………. ከውጭ አገሮች የተለያዩ የቴክኖሎጂ ውጤቶችን ልታስገባ ትችላለህ ነገር ግን ያ ብቻውን ምንም አይሠራም፡፡ ይኼንን በአግባቡ መጠቀም የሚችል ሰው ኃይል መገንባት ያስፈልጋል፡፡ እናም በዋናነት በሥራችን ባሉ ተቋማትም ጋር ሆነን ወደ ባንኮች ለመቅረብ የፈለግንበት ምክንያት ወይም ለመሙላት ያሰብነው የትኩረት ከባቢ አቅም ግንባታ ላይ ነው፡፡ በሴክተሩ ላይ ያሉ ሠራተኞችን አቅምን መገንባት ያስፈልጋል፡፡ ምክንያቱም ቀጣዮቹ ዘርፉን የሚረከቡትና የሚመሩት አካላት ስለሆኑ፡፡………..>> Akash Mahendra Bhavsar
Compiled by Biniyame K.
@PatternFin
📢 Here's a look at the top exports of African countries 👀
Via #Afridigest
While the continent is resource-rich — holding a third of global mineral reserves, ~12% of oil reserves, and ~8% of natural gas reserves — this natural wealth doesn't benefit the masses.
Why?
One reason is that raw materials dominate Africa's exports, creating jobs and economic value abroad instead of on the continent.
The map below highlights Africa's three dominant export patterns:
• Energy titans: Nigeria, Angola, and Algeria drive their economies through petroleum
• Mineral powerhouses: West Africa's gold belt, Botswana and Namibia's diamond wealth
• Agricultural leaders: Côte d'Ivoire (cocoa), Ethiopia (coffee), Kenya (tea)
This resource wealth without significant value addition/creation offers one major lesson for founders and executives:
💡 Controlling resources isn’t enough; what matters is whether you can capture the value those resources create.
@PatternFin
Via #Afridigest
While the continent is resource-rich — holding a third of global mineral reserves, ~12% of oil reserves, and ~8% of natural gas reserves — this natural wealth doesn't benefit the masses.
Why?
One reason is that raw materials dominate Africa's exports, creating jobs and economic value abroad instead of on the continent.
The map below highlights Africa's three dominant export patterns:
• Energy titans: Nigeria, Angola, and Algeria drive their economies through petroleum
• Mineral powerhouses: West Africa's gold belt, Botswana and Namibia's diamond wealth
• Agricultural leaders: Côte d'Ivoire (cocoa), Ethiopia (coffee), Kenya (tea)
This resource wealth without significant value addition/creation offers one major lesson for founders and executives:
💡 Controlling resources isn’t enough; what matters is whether you can capture the value those resources create.
@PatternFin
📢 #Jasiri is calling all aspiring entrepreneurs! Join Cohort 8 of the Talent Investor Program.
We believe businesses can be a force for good. 💪 Since 2021, we've empowered 227 responsible entrepreneurs across Rwanda 🇷🇼, Kenya🇰🇪, and Ethiopia🇪🇹 to create high-impact businesses.
Here's the impact you can be part of:
1. 93 ventures launched across 42 industries
2. 81 active businesses creating positive change
3. Over 2,000 jobs created
4. Over 12,000 individuals impacted
Ready to make a difference? Apply now: jasiri.org/jasiri-talent-…
#Jasiri4Africa
@PatternFin
We believe businesses can be a force for good. 💪 Since 2021, we've empowered 227 responsible entrepreneurs across Rwanda 🇷🇼, Kenya🇰🇪, and Ethiopia🇪🇹 to create high-impact businesses.
Here's the impact you can be part of:
1. 93 ventures launched across 42 industries
2. 81 active businesses creating positive change
3. Over 2,000 jobs created
4. Over 12,000 individuals impacted
Ready to make a difference? Apply now: jasiri.org/jasiri-talent-…
#Jasiri4Africa
@PatternFin
Are hashtag#Insurance hashtag#stocks set to collapse?
LA wildfires have officially spread over 40,000 acres with INSURANCE LOSSES crossing $20 billion. Since the market closed on Friday, ESTIMATED DAMAGES have TRIPLED to $150 billion.
Insurance, power company, and other corporate bankruptcies could emerge from this.
As seen with the PG&E bankruptcy in 2019 after the Camp Fire disaster, these events can create economic ripple effects. E.g many bonds will be downgraded to "Junk" rating in the near future.
Could LA wildfires cause an economic ripple effect?
Source: The Kobeissi Letter
@PatternFin
LA wildfires have officially spread over 40,000 acres with INSURANCE LOSSES crossing $20 billion. Since the market closed on Friday, ESTIMATED DAMAGES have TRIPLED to $150 billion.
Insurance, power company, and other corporate bankruptcies could emerge from this.
As seen with the PG&E bankruptcy in 2019 after the Camp Fire disaster, these events can create economic ripple effects. E.g many bonds will be downgraded to "Junk" rating in the near future.
Could LA wildfires cause an economic ripple effect?
Source: The Kobeissi Letter
@PatternFin
Minimum Capital Requirement!
Sixteen commercial banks require over 45 billion birr of additional investment to meet the 5-billion-birr minimum capital requirement set by the National Bank of Ethiopia (NBE).
Source; Capital Market in Ethiopia
@PatternFin
Sixteen commercial banks require over 45 billion birr of additional investment to meet the 5-billion-birr minimum capital requirement set by the National Bank of Ethiopia (NBE).
Source; Capital Market in Ethiopia
@PatternFin
👍1
#InterestFreeBanking Hijira Bank's net profit rocketed over four times its previous record in 2023/24, posting more than 100 million Br after tax. The Bank showed no signs of slowing its pace, making its mark in the industry and proving its ability to innovate within the ever-evolving regulatory constraints.
Source; #AddisFortune
#Hijrabank
#Interestfreebanking
@PatternFin
Source; #AddisFortune
#Hijrabank
#Interestfreebanking
@PatternFin
👍2
Have you ever heard of the Dunning-Kruger Effect?
David Dunning and Justin Kruger, shared this concept in a 1999 study titled "Unskilled and Unaware of It: How Difficulties in Recognizing One's Own Incompetence Lead to Inflated Self-Assessments." It’s a cognitive bias where people with limited knowledge or expertise in a subject often overestimate their abilities, while those with greater competence tend to underestimate their expertise.
In leadership, this phenomenon can manifest in interesting ways:
1️⃣ Overconfidence in early stages: New or inexperienced leaders might overestimate their skills, believing they have all the answers. While confidence is valuable, overconfidence can lead to poor decisions or resistance to feedback.
2️⃣ Self-doubt in experienced leaders: On the flip side, seasoned leaders—who are acutely aware of the complexities of leadership—may underestimate their own expertise, questioning their abilities more than they should.
Why does this matter?
Great leadership requires self-awareness. Leaders need to balance confidence with humility:
For new leaders: Be open to feedback, recognize the value of diverse perspectives, and remain committed to learning.
For experienced leaders: Remember that your expertise is built on years of hard work. Share your knowledge confidently, even if you feel there’s more to learn.
Now, let’s address two practical questions:
1️⃣ How do you approach someone with overconfidence?
Start with curiosity: Ask open-ended questions to understand their perspective and reasoning. This can help them reflect on their assumptions without feeling defensive.
Offer constructive feedback: Share observations gently, using examples or data to highlight areas they may have overlooked. Focus on collaboration rather than criticism.
Encourage learning: Suggest resources, mentors, or training that can expand their knowledge and deepen their skills. Helping them grow is more effective than confronting them directly.
2️⃣ How can you speak up more courageously when you have the knowledge and experience?
Trust your expertise: Remind yourself of the work and effort that built your knowledge. Others may need your insights to make better decisions.
Frame your input constructively: Instead of saying, "You're wrong," try "Here’s another perspective we might consider." This makes it easier for others to engage with your ideas.
Practice small steps: Start speaking up in less intimidating scenarios to build confidence. Over time, this will make it easier to share your thoughts in high-stakes situations.
The key takeaway? Leadership is a journey. Recognizing where you (and your team) might fall on the Dunning-Kruger curve—and addressing it proactively—can lead to better growth, collaboration, and decision-making.
Source; Timothy T Tiryaki, PhD (LinkedIn)
Share us your thoughts on the comment section❗️
@PatternFin
David Dunning and Justin Kruger, shared this concept in a 1999 study titled "Unskilled and Unaware of It: How Difficulties in Recognizing One's Own Incompetence Lead to Inflated Self-Assessments." It’s a cognitive bias where people with limited knowledge or expertise in a subject often overestimate their abilities, while those with greater competence tend to underestimate their expertise.
In leadership, this phenomenon can manifest in interesting ways:
1️⃣ Overconfidence in early stages: New or inexperienced leaders might overestimate their skills, believing they have all the answers. While confidence is valuable, overconfidence can lead to poor decisions or resistance to feedback.
2️⃣ Self-doubt in experienced leaders: On the flip side, seasoned leaders—who are acutely aware of the complexities of leadership—may underestimate their own expertise, questioning their abilities more than they should.
Why does this matter?
Great leadership requires self-awareness. Leaders need to balance confidence with humility:
For new leaders: Be open to feedback, recognize the value of diverse perspectives, and remain committed to learning.
For experienced leaders: Remember that your expertise is built on years of hard work. Share your knowledge confidently, even if you feel there’s more to learn.
Now, let’s address two practical questions:
1️⃣ How do you approach someone with overconfidence?
Start with curiosity: Ask open-ended questions to understand their perspective and reasoning. This can help them reflect on their assumptions without feeling defensive.
Offer constructive feedback: Share observations gently, using examples or data to highlight areas they may have overlooked. Focus on collaboration rather than criticism.
Encourage learning: Suggest resources, mentors, or training that can expand their knowledge and deepen their skills. Helping them grow is more effective than confronting them directly.
2️⃣ How can you speak up more courageously when you have the knowledge and experience?
Trust your expertise: Remind yourself of the work and effort that built your knowledge. Others may need your insights to make better decisions.
Frame your input constructively: Instead of saying, "You're wrong," try "Here’s another perspective we might consider." This makes it easier for others to engage with your ideas.
Practice small steps: Start speaking up in less intimidating scenarios to build confidence. Over time, this will make it easier to share your thoughts in high-stakes situations.
The key takeaway? Leadership is a journey. Recognizing where you (and your team) might fall on the Dunning-Kruger curve—and addressing it proactively—can lead to better growth, collaboration, and decision-making.
Source; Timothy T Tiryaki, PhD (LinkedIn)
Share us your thoughts on the comment section❗️
@PatternFin
Property Tax Proclamation!
The house of People's Representatives in it's 4th year, 15th regular meeting has approved the draft proclamation on Property Tax.
The house passed a resolution to endorse the tax law and ratified the draft under proclamation number 1365/2017.
@PatternFin
The house of People's Representatives in it's 4th year, 15th regular meeting has approved the draft proclamation on Property Tax.
The house passed a resolution to endorse the tax law and ratified the draft under proclamation number 1365/2017.
@PatternFin