“Arrogance vs. Overconfidence vs. Earned Confidence”
Dear Bank of Prairie Village Shareholders and Clients ~
Last month, I wrote on the importance of Empathy in business. I noted Empathy is a word they do not (but should) teach you in business school.
I received several positive letters from business leaders I admire and respect. Most agreeing Empathy should be taught in business school.
However, I did receive a letter from a long-retired, but very respected Kansas Banker and Bank Owner. He is roughly 90 years old.
The Banker noted, “Although Empathy should be taught in business school and is very important in business, perhaps you should also write on its converse~ The Curse of Arrogance. ~ As it too should be taught in business schools.”
The Banker further noted, “In almost every failed business situation I have witnessed Arrogance on the part of one or both the parties was the primary cause.”
When this Banker gives advice, I’ve learned to listen closely. It generally contains insights one never hears in classrooms, business meetings, consultant conferences, or conventions.
I printed and placed this Banker’s advice on my desk. I’ve stared at it all month.
Stating “Arrogance as the bases of all his witnessed business failures” is a very bold statement. What was this Banker really trying to convey?
Arrogance is defined as “Conceit, Haughtiness, and Egotism.” Yes, I can see where 1) arrogance, 2) conceit, 3) haughtiness and 4) egotism will ultimately lead to business failure. For that matter I see it often led to athletic and life in general failures.
However, well-earned self-confidence is a very necessary business success requirement. How does one balance this conundrum? Confidence is necessary. Arrogance is poison.
The difference between Confidence and Arrogance can be a very fine line on a continuum.
This brings one to the ultimate question~ what is the difference between 1) well-earned confidence, 2) overconfidence and 3) arrogance?
If Empathy and Confidence are key success requirements, at what point do Empathy and Confidence slide down the continuum into the lethal realm of Overconfidence and Arrogance.
Most people view “Overconfidence” as a temporary state of misjudgment. By contrast “Arrogance” is viewed as a permanent character defect. I disagree with this standard view.
Rather, I believe overconfidence and arrogance as both being temporary states of misjudging the situation at hand.
I have seen even the most modest successful professionals be temporarily arrogant in various situations.
This “out of one’s nature” arrogance occurs when one underestimates a challenge, situation or an opponent. Such underestimating leads to unearned false confidence- which in turn, rationalizes not fully preparing for the challenge.
One can never forget the 2007 Appalachian State upset over Michigan in the Big House in front of almost 100,000 people. Within recent years we have watched minor power conference teams knock off Notre Dame at Notre Dame stadium and at Texas A&M on Kyle Field. Yes, I have watched Bucknell, Bradley, & Texas El Paso knock off my beloved Jayhawks in the NCAA Tournament.
In each of those above nightmares, the apologetic home team sports announcers have summed up the upsets, as the Blue Blood team being “overconfident” and underestimating their seemingly weak opponents.
Frankly, the announcers were being too damn apologetic. The defeated Blue Bloods were flat out arrogant on that particular day.
Remember in my view, there is no such thing as overconfidence. At any moment you are either 1) not confident, 2) confident or 3) arrogant.
Saying Confidence is good ~but Overconfidence is bad~ is ridiculous. The distinction is so nebulous as to be unexplainable and indiscernible. (It’s like saying driving “buzzed” is good, but driving “really buzzed” is bad.) The statement makes no sense.
There needs to be a bright red line. Either someone (or team) 1) lacks confidence, 2) has confidence or 3) is arrogant.
Once recognized, one can learn to dial back the overconfidence factor in arrogance to the necessary and earned level of earned confidence.
Batting slumps materialize when an otherwise confident and successful batter goes from being confident to becoming overconfident (i.e. arrogant) and then to losing all confidence when trying to dial back his overconfidence.
Would a batting coach not be more illustrative and effective if he simply told the batter “To lose the arrogance and simply get back to being self-confident- based on his pre-slump successful work ethic and practice regimen?”
In my mind, Self Confidence is a mental state earned thorough preparation, practice and discipline. Conversely, Arrogance- is a “supposed mental mastery” of a skill or trait, that has not rightfully been earned through preparation, practice and discipline. Confidence is the result of work. Arrogance is the result of short cuts and ill-preparation.
I learned this distinction when studying for college exams. In college, most exams are based on rote memorization. In history classes you memorize facts and dates. In business and accounting you memorize formulas, and in tax classes you memorize concepts and Internal Revenue Code Sections.
Rote memorization is simply a skill. If religiously practiced, it can be mastered. In college I was forced to develop an elaborate, memorization regimen - which depending on the exam subject- took from one to several hours to complete.
So long as I put in the required preparation hours and meticulously followed the memorization regimen~ I could walk into an exam room enjoying well-earned confidence and achieve successful results.
However, whenever I became arrogant and thought I was smart enough to “just wing it” without the required preparation ~ I inevitably lost my confidence during the exam ~ which produced what I considered to be failing results.
Now in my business career, I’ve realized the collegiate Confidence vs. Arrogance conundrum remains equally applicable. Whenever, I fail to do the work necessary to justify earned confidence and attempt to “just wing it” ~ the gravity of temporary arrogance inevitably leads to what I consider failed results.
Any business professional generally understands what is necessary to win a client’s confidence and business. Equally, a professional knows what it takes to keep the client consistently satisfied and to maintain their trust. (Preparation, discipline, execution and hard work are key.)
However, if you become overconfident and believe you can “just wing it” and achieve a client’s trust without engaging in the necessary preparation or ensuring consistent satisfaction~ you’ve crossed the line into temporary arrogance.
Business failure/lethality will follow. You will first lose one client, and then another, and then your business. The same with your business partners, vendors, and bankers.
The key is to be open and frank with yourself. If you meticulously complete your preparation, you have earned the right to be confident in going into a situation. However, if you suddenly believe you can “just wing it,” ~and start skipping preparation requirements, you are arrogant.
After long staring at “The Banker’s” advice, I now understand his point.
The basis for any business failure stems from arrogance i.e. a “just wing it” over-reliance on hope and luck- as opposed to earned confidence resulting from preparation, hard work and discipline.
Yours in enjoying an “Arrogant-free Summer”- no matter how tempting and alluring the preparation short cuts!
Dan Bolen ~ Chairman
Bank of Prairie Village
913~707~3369 Cell
“The Bank of Prairie Village ~ Home of Blue Lion Banking” ~ cited March 2020, April 2021, April 2022, April 2023 and April 2024 by the by the Kansas City Business Journal as one of the “Safest Banks in Kansas City for Your Money.”
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