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Pillar POV

Evidence B

Calibration Over Confidence: Understanding Overestimation Delta

Overconfidence is costly. Track Delta and close the gap with prediction practice.

Ueberschaetzung kostet mehr als Unterschaetzung. Verfolge dein Delta und schliesse die Luecke durch Vorhersageuebungen.

Feb 20, 2025Updated Feb 20, 20255 min read

Executive TL;DR

  • Overestimation Delta (self-rating minus reviewer score) predicts downstream failures better than throughput metrics
  • Teams with Delta consistently above +5 see 2.5x more blocked launches and compliance escalations
  • Weekly prediction practice reduces Delta by 40% within 4 weeks—calibration is trainable

Do this week: Predict quality on your next three AI outputs before reviewing them; log the Delta and discuss gaps in your next 1:1

What Delta means and why it matters

Overestimation Delta (Δ) measures the gap between how good you think an output is and how good it actually is:

Δ = Self-rating − Reviewer score

A positive Δ means you overestimate quality. A negative Δ means you underestimate. Both are calibration failures, but positive Δ is more dangerous—it leads to shipping work that doesn't survive scrutiny.

Why overestimation is costly

  • Overestimated work gets shared before it's ready
  • Stakeholders lose trust when quality doesn't match claims
  • Rework costs 3-5x more than getting it right the first time

The threshold bands

| Δ Range | Status | Action | |---------|--------|--------| | 0–5 | Calibrated | Maintain current practices | | 5–15 | Watch zone | Schedule coaching, review prompts | | over 15 | Critical | Freeze workflow, audit outputs |

Teams operating consistently above +5 Δ see:

  • 2.5x more blocked launches
  • 40% more compliance escalations
  • 60% longer time-to-final-approval

Calibration isn't perfectionism. It's risk management.

How to predict: building the habit

Before you review, write it down

This is the core practice. Before you evaluate any AI output:

  1. Glance at it (10 seconds, no deep reading)
  2. Predict its quality on a 1-10 scale
  3. Write the prediction down (paper, notes app, doesn't matter)
  4. Then evaluate properly against your rubric
  5. Calculate Δ = prediction − actual score

The act of predicting before deep review forces System-2 engagement. You can't predict quality on autopilot.

Track Δ over time

A single Δ tells you little. A trend tells you everything.

Log your Δ for 2 weeks:

  • If Δ trends toward 0, you're calibrating
  • If Δ stays high, something in your evaluation is broken
  • If Δ varies wildly (±10 between days), your rubric needs work
"We started logging Δ on a shared board. Within a month, the team's average dropped from +8 to +3. Just making it visible changed behavior."
Team Lead

How to learn from misses

When you overestimate (positive Δ)

Ask:

  • What did I miss in the 10-second glance?
  • What made this output look better than it was?
  • Where did the AI fail that I didn't anticipate?

Common overestimation triggers:

  • Fluent text: AI writes confidently even when wrong
  • Format compliance: Structured output feels professional
  • Novelty: New phrasing feels insightful

When you underestimate (negative Δ)

Ask:

  • What quality did I not expect?
  • Was my rubric missing a dimension?
  • Am I being too harsh on AI output?

Chronic underestimation wastes time. If AI consistently exceeds your predictions, you're over-reviewing.

The calibration log

Keep a simple log:

| Date | Task | Prediction | Actual | Δ | Miss reason | |------|------|------------|--------|---|-------------| | 2/20 | Brief draft | 7 | 5 | +2 | Missed factual errors | | 2/21 | Code review | 6 | 7 | -1 | Undervalued structure | | 2/22 | Summary | 8 | 4 | +4 | Fluent but shallow |

The "miss reason" column is where learning happens. Patterns emerge within 10-15 entries.

Role-based drills

Different roles have different calibration challenges.

For Product Managers

PM outputs often look complete but miss:

  • Edge case handling
  • Stakeholder-specific language
  • Measurable success criteria

Drill: Before sharing any AI-drafted document, predict which section will get the most pushback. Track accuracy.

For Software Engineers

SWE outputs often look functional but miss:

  • Error handling for edge cases
  • Performance implications
  • Security considerations

Drill: Before running AI-generated code, predict how many reviewer comments it will get. Track accuracy.

For Analysts

Analyst outputs often look insightful but miss:

  • Methodology rigor
  • Data quality caveats
  • Alternative interpretations

Drill: Before presenting any AI-assisted analysis, predict the first question leadership will ask. Track accuracy.

Calibration is domain-specific

You can be well-calibrated on code review and poorly calibrated on strategy documents. Track Δ by task type, not just overall.

When Δ stays high: deeper interventions

If Δ remains above +5 after 2 weeks of tracking:

1. Audit your rubric

Your rubric might be too vague. "Quality" isn't a criterion—"All claims supported by cited sources" is.

Rebuild your rubric with a colleague. If you can't agree on what each level means, the rubric needs work.

2. Check your reviewer

Δ depends on both self-rating and reviewer score. If your reviewer is too generous, your Δ looks fine but quality suffers downstream.

Cross-check: Have a third party score 5 outputs. If their scores are consistently lower than your reviewer's, recalibrate the reviewer.

3. Examine your prompt workflow

High Δ sometimes reflects prompt quality, not evaluation quality. If your prompts are generating consistently misleading outputs, you'll always be surprised.

Log your prompts alongside Δ. Look for patterns: which prompt structures correlate with high Δ?

  • Predict quality before deep review (write it down)
  • Calculate and log Δ for every AI output
  • Review your Δ trend weekly
  • Identify your "miss reasons" and look for patterns
  • Run role-specific calibration drills
  • If Δ over +5 persists, audit rubric and reviewer

Apply now: Judgment Mini-Pack

The Judgment Mini-Pack provides structured calibration practice:

  1. Prediction rounds: Score before reviewing on 5 sample outputs
  2. Δ calculation: Automatic tracking and trending
  3. Pattern analysis: Identify your consistent miss types

After the pack, you'll have a 2-week Δ baseline and actionable patterns to work on.

Run the pack in the Analyzer and discuss your Δ trend in your next team retrospective.

Evidence note

Calibration research and internal validation:

  • Δ over +5 correlation with blocked launches: 6-month retrospective, n=34 teams
  • 40% Δ reduction through prediction practice: Controlled intervention, n=23 individuals
  • 2.5x compliance escalation rate: Cross-team analysis of Legal/Compliance data

Evidence level: B (mixed RCTs, internal telemetry)

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Next Steps

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