Simulation Pearls• There are increasing calls for healthcare professionals to fulfill their social contract with society and ensure competence of all professionals in order to maintain the privilege of self-regulation. Competency-based education (CBE) offers promise, as an outcome-based model of education, to help address the gap between actual and desired performance.• Simulation-based education (SBE) curricula should be based on needs analysis. Prior to designing, clear goals should be defined to measure the success of the training program.• Specific learning objectives, instructional strategy, simulation technology, training environment, and debriefing models should be carefully selected based on the level of learner.• Challenges to CBE include defining learning objectives that are not excessively comprehensive, trainees focusing on milestones rather than achieving excellence, administrative logistics, instructor expertise and availability, and cost.• Optimal education will require a change in our current approach to assessment. Assessment needs to be programmatic and conceptualized as part of instructional design with a shift away from assessment of learning to assessment for learning.• SBE is increasingly used for high-stakes, summative purposes such as local program-based examinations, achieving certification, and demonstrating ongoing competence to maintain certification.