In the fast-paced world of business, leadership, and personal development, we are often told that competition is the driving force behind success. We hear stories of individuals and organizations who rise to the top by outsmarting, outworking, and outperforming their competitors. While this external competition can provide temporary wins, there’s a deeper, more sustainable path to excellence—competing internally. As James Clear aptly puts it,

“Compete externally and you compare. Compete internally and you improve.”

The Perils of External Competition

External competition is ingrained in our society. From a young age, we are taught to compare ourselves with others—our classmates, colleagues, or even strangers on social media. It’s all about who scores the highest, who earns the most, who leads the largest company, or who gets the most recognition. But when we compete externally, we inevitably fall into the trap of comparison.

Comparison has several toxic side effects. First, it leads to feelings of inadequacy. No matter how accomplished we are, there will always be someone better at something. External competition highlights our shortcomings rather than our strengths, causing us to fixate on what we lack. Over time, this constant pressure erodes our self-esteem and limits our ability to grow.

Second, competing externally fosters a scarcity mindset. It frames success as a zero-sum game: if someone else is winning, it must mean we are losing. This mentality leads to unhealthy behaviors like jealousy, anxiety, and burnout. It pushes us to focus on short-term victories rather than long-term improvement.

Finally, external competition stifles creativity. When we are so focused on beating others, we lose sight of what truly matters. We become imitators rather than innovators. Our energy is spent reacting to others’ moves instead of exploring new possibilities or defining our own path.

As renowned management thinker Peter Drucker once said, “The only way to predict the future is to create it.” But if we are constantly measuring ourselves against others, we relinquish the ability to create our future on our own terms.

The Cost of Comparing

The drive to compare ourselves to others is deeply embedded in the way society views success. Leaders are often evaluated by external metrics like revenue, growth rate, or market share. These metrics, while important, don’t tell the full story of a person or organization’s potential. When leaders focus on these external markers, they miss opportunities for internal development.

In fact, many organizations that seem successful externally may struggle internally. Employees may be disengaged, innovation may stagnate, and the company culture may become toxic due to relentless external competition. These issues often go unnoticed until they manifest in performance declines, leadership turnover, or worse, company failure. What once seemed like success can quickly unravel when internal competition is overlooked.

Individuals, too, face similar pitfalls. When we measure our worth by external achievements, we often neglect the internal progress that leads to true fulfillment. Philosopher Søren Kierkegaard described this struggle, noting that “comparison is the root of anxiety.” When we look outward, we allow others’ achievements to dictate our sense of self-worth. The more we chase external validation, the more hollow our achievements feel. The focus should be on effort and self-improvement rather than external outcomes.

Competing with Yourself

If external competition brings comparison, distraction, and dissatisfaction, how can we achieve lasting improvement? The answer lies in shifting our focus inward. Internal competition means striving to be better than we were yesterday. It requires that we compare ourselves only to our past performance and potential, not to others. This kind of competition is constructive, allowing us to grow at our own pace without the need to measure up to someone else’s standard.

One of the key benefits of internal competition is that it fosters continuous improvement. When you compete with yourself, every setback becomes an opportunity for growth rather than a threat to your self-worth. You don’t dwell on the fact that someone else did better; instead, you ask how you can improve your own performance. This creates a growth mindset, as defined by psychologist Carol Dweck: the belief that talents and abilities can be developed through effort and learning.

Internal competition also nurtures creativity and innovation. When you are not bound by the need to outdo others, you are free to explore new ideas and take risks. Rather than copying competitors, you focus on charting your own path. As a result, your work becomes more original and aligned with your own values.

Moreover, internal competition leads to a more sustainable kind of motivation. External rewards like money or recognition can only push you so far. But when you compete internally, you find intrinsic motivation—the desire to improve because you value the process, not just the outcome. As management expert Stephen Covey said,

“Motivation is a fire from within. If someone else tries to light that fire under you, chances are it will burn very briefly.”

Strategies for Embracing Internal Competition

To cultivate internal competition, consider implementing the following strategies:

1. Set Personal Benchmarks
   Instead of comparing yourself to others, set personal goals based on your unique aspirations. Define what success looks like for you—not just in terms of achievements but in terms of personal growth. Ask yourself what skills, habits, or mindsets you want to develop.
2. Track Your Progress
   Keep a record of your efforts and improvements. This could be through journaling, creating milestones, or using tools like habit trackers. Monitoring your progress helps you celebrate small wins and identify areas for growth.
3. Practice Self-Reflection
   Regular self-reflection helps you stay focused on your internal journey. At the end of each day, ask yourself: “Did I do better today than I did yesterday?” This practice shifts your mindset from competing with others to striving for personal progress.
4. Embrace Failure as Feedback
   When competing with yourself, failure is not a sign that you are less than others. Instead, it becomes valuable feedback that helps you adjust and improve. Remember that setbacks are part of the process of growth, not a reason to give up.
5. Prioritize Learning Over Outcomes
   Internal competition places more emphasis on the learning process than the result. Focus on developing new skills, gaining knowledge, and becoming more resilient. The outcomes will follow naturally when you prioritize growth over comparison.

Choosing the Right Kind of Competition

The way we approach competition can either limit or elevate us. Competing externally, as James Clear suggests, leads us down the path of comparison, stress, and short-term thinking. In contrast, competing internally helps us foster self-awareness, resilience, and long-term growth. True success comes not from outpacing others but from continuously improving ourselves.

As I reflect on the wisdom of these insights, I am reminded of a simple yet profound realization:

“When you compete with others, you race against their standards. When you compete with yourself, you rise to your own potential.”