Definition: In a hierarchy, members are promoted so long as they are competent, to their level of incompetence.
Reference: Andy Grove, High Output Management book - the Peter Principle is unavoidable as there is no way to know ahead at what level someone will become incompetent.
Insight: For large organisations the talent at each level will tend towards the most incompetent, as other employees benchmark themselves against the worst performers at the next level.
Insight: Avoiding the Peter Principle requires well constructed and disciplined promotion process.
Insight: In the best karate dojos in order to achieve the next belt you must defeat an opponent on that next level, ensuring that the promoted is never worse than the current group.
Principle: Clearly define the responsibilities at each level and the skills required to perform.
Principle: Clearly define a formal process for all promotions.
Definition: The idea that people at work tend to get promoted to their level of incompetence.
Example: Top salespeople are not always the best sales managers, and the best potential sales managers are not always the best salespeople - who tend to get stuck at that level.
Insight: People tend to advance based on success in previous jobs - but previous success is not always a good indicator for future jobs.
Reference: Dr. Laurence Peter: "in a hierarchy every employee tends to rise to their level of incompetence."
Insight: Perform well and you are likely to get promoted, which repeats until you end up in a job you can't handle.
Insight: In organisations people rise to their level of fear.
Insight: Leadership requires that you be aware of your fears and overcome them, and help others overcome their fears.
Definition: Talented workers will keep getting promoted until they are in over their head, and fail.
Insight: Organisational success tends to lead to growth, but bigger organisations are different to smaller ones - the strategies that lead to success at one size do not necessarily work as the organisation grows.
Reference: Laurence J. Peter: coined the term - "the tendency in most organisation hierarchies, such as that of a corporation, is for every employee to rise in the hierarchy through promotion until they reach a level of respective incompetence."
Insight: In careers people can get stuck in jobs that they are not good at.
Principle: People should continue to do aspects of jobs they are good at, and get paid more over time to do them.
Insight: Employees can find ways to be creatively incompetent - and avoid being promoted to positions where they are incompetent.
Reference: Dr. [Laurence] Peter popularised this principle in the 1096s and suggested that by choosing to appear incompetent at things irrelevant to current jobs, employees can make management believe that they have reached their level of incompetence.
Definition: People keep getting promoted until they reach their level of incompetence.
Key Insights & Principles
Management
In many larger organisations, the talent at each level will tend towards the most incompetent as employees benchmark against the worst performers at the level above themselves.
Success in previous roles does not guarantee future performance in others, and people can get stuck in jobs that they are not good at.
People often rise to their level of fear - leadership requires that you recognise and overcome your own fears, and help others to do the same.
Clearly define responsibilities at each level and the skills required to perform.
Define a formal promotion process.
Identify the aspects of jobs that people are good at, assign responsibilities that match skills, and pay people more over time to do what they are good at.
