Daily Leadership Thought #76 – Beware of the “Peter Principle”
We’ve all heard about the “Peter Principle” formulated by Dr. Laurence Peter and Raymond Hull. In short, it states that in a hierarchy, every competent employee tends to rise to their level of incompetence, and from that point on, they will reach a ceiling in terms of how far they can advance in the organization. I’ve seen this happen countless times. In my experience, many individuals who reach this point face termination or decide to leave on their own. Unfortunately, many companies perpetuate this process through unwise promotions and a formulaic mindset about career paths and compensation. Employees who were once happy and self-confident become stressed out and lose their confidence as they attempt to pursue a canned definition of success at work.
I encourage leaders of companies to think in terms of depth, not just breadth, when it comes to their employees. Not everyone is made to continually climb the ladder of success or assume increased management or leadership responsibility. What we need to do is a better job of understanding the true value of individual contributions and motivations across every level of the business. There is value in all work, and everyone has the potential to excel in certain aspects of their job. Expertise woven throughout the organization’s entire fabric is the surest pathway to success. It is also the safest way to manage risk and encourage innovation. We also need to understand that sometimes we may ask too much of someone, and we should provide them with a smooth transition when they fail or struggle with increased responsibilities, especially if they have given their best effort. Why would we knowingly push someone out of the company who has a record of accomplishment and loyalty? Sadly, it happens every day.
Related articles
- Why Job Titles And The Promotion Process Actually Matter (businessinsider.com)
- The Dennis Principle (ourdinnertable.wordpress.com)
- The Peter Principle (empwaynek.wordpress.com)
- The Peter Principle (probings.wordpress.com)
- Promoting incompetence (inspiringscience.wordpress.com)
