Have you spotted the Dunning-Kruger effect in your organization?

Have you ever sat in a meeting and thought, "They really believe they're doing great when it comes to customer centricity, but I experience it completely differently..."? If so, you're not alone.

This thought crossed my mind during a recent conversation with a client exploring whether I was the right speaker for their leadership event. It inspired me to write about something many of us have encountered but may not have a name for: the Dunning-Kruger effect and its impact on customer experience leadership.

What is the Dunning-Kruger effect?

The Dunning-Kruger effect is a cognitive bias that occurs when people with limited knowledge or ability in a specific area overestimate their competence. Meanwhile, those with greater expertise often underestimate their skills, assuming others know just as much as they do.

In leadership, this effect can result in overconfidence and poor decision-making. Leaders affected by this bias may genuinely believe they're excelling - unaware of the gaps in their knowledge or the unintended consequences of their actions.

Here's where it gets real: 68% of managers in a study of 42,000 leaders were found to overestimate their abilities, unknowingly falling into the Dunning-Kruger trap.

The impact doesn't stop there. Research shows that:

• Performance impact: Leaders affected by the Dunning-Kruger effect can reduce team performance by up to 50% compared to teams led by self-aware leaders.
• Decision-making: In a study of 3,000 executives, those in the bottom 10% of leadership effectiveness were 6.2 times more likely to overrate their decision-making skills than those in the top 10%.

Why it matters for Customer Experience.

Now, think about the ripple effect this has on your organization's customer experience. Leaders might assume they've mastered customer-centricity while skipping customer feedback sessions or ignoring data. They might declare, "We're already customer-focused!" even as their teams prioritize internal agendas over customer needs.

This isn't about bad intentions - it's about awareness. And as CX leaders, it's our job to bring this awareness to light.

How to shine a light on the Dunning-Kruger effect

Here are three ways to help leaders and teams recognize blind spots and ignite transformation:

1. Mirror reality
   Use customer journey maps, real feedback, or data to reveal the true customer experience. There's nothing more eye-opening than hearing directly from customers. It sparks meaningful conversations and creates those "aha" moments where awareness begins.
2. Highlight the best-in-class
   Show what top-performing, customer-centric organizations are doing. Comparing your organization's approach to industry leaders encourages reflection and reveals areas for growth. Ask the critical question, "How do we measure up?"
3. Encourage self-reflection.
   Help employees and leaders compare their beliefs about customer-centricity to actual customer feedback in a safe and constructive environment. For example, let them listen in at the contact center, or better yet, bring in an external speaker to guide the conversation. This is where I come in. As a speaker, I create a mix of CX knowledge, self-reflection, and serious fun to help leaders recognize gaps and commit to change.

The leadership challenge

Transforming mindsets isn't easy. It requires persistence, empathy, and creativity. But when those lightbulbs go on, it's magic. Leaders start making decisions rooted in data and customer feedback. Teams align their efforts to truly deliver on customer expectations.

And here's the truth: Sometimes, it takes an outside voice to spark those moments of clarity.

Let's explore if I'm the right speaker for your organization

If you're looking for a keynote, CX game, or executive workshop to challenge your leaders, ignite new ways of thinking, and inspire meaningful action, let's talk!

Whether it's the CX game, a keynote, or an executive CX workshop, we'll dive into the core of customer experience and help leaders see things in a whole new light.

Reply to this blog and we'll discuss your audience, goals, and opportunities to create transformation in your organization.

Because transformation begins with awareness - and awareness begins with that aha moment. Let's create it together.

Until next time, keep spicing up your Customer Experience leadership.

P.S. With 68% of leaders potentially overestimating their abilities, who in your organization needs to see the bigger picture today? Let's make it happen!

*****

Nienke Bloem is often called the Customer Experience speaker in the blue dress. 

She's a global CX thought leader, educator and a global keynote speaker who inspires audiences with best practices and proven methodologies. She leads a speaking practice, a CX game company and a training business; she breathes Customer Experiences and is author of two CX books.

Her two-day Customer Experience Masterclass is known as the best program to prepare for your CCXP and she is the go-to person for CX leaders who want to advance their leadership and bring direct results from their Customer Experience transformation programs. Since 2020, she hosts a CX Leadership Masterminds program and helps leaders spice up their leadership and deliver an engaging CX Story including a solid CX Strategy. Besides, she is a modern-day pilgrim and found the parallel with leading customer centric transformations. 

With her over 20 years of corporate experience, she speaks the business language. Her keynotes and education programs in Customer Experience are inspiring and hands-on. She is one of the few Recognized Training Partners of the CXPA and it is her mission to Make Customer Experience Work and help you deliver business results. Subscribe to her weekly CX Greetz to stay tuned.