Lawrence Peter and Raymond Hull first introduced the Peter Principle in 1969. Since then, it has been often discussed in the area of leadership. In 2018, researchers analyzed sales workers' performance and promotion practices and found that high-performing sales reps were more likely to be promoted, regardless of their managerial potential which led to high costs to the businesses.

The Peter principle research

People will advance in their careers because they have high skills in a specific task. But when they are promoted, these skills are often irrelevant to the new job. For example, a sales rep may be able to sell well, but when they are promoted to sales manager and don't receive training, they may not have the necessary skills to manage other people and might even be despised by their team. As a result, they may work harder to compensate for their lack of skills.

How the Peter principle work

People who are successful in big hierarchical organizations are promoted again and again until they reach a level of incompetence.  Then they never get promoted again and are stuck there for life.

The Peter Principle

The Peter Principle argues that people who have success in big hierarchical organizations are promoted until they reach their own "level of incompetence”. Here they are often stuck for life. Let´s look at the story about David and Diana, two graduates, who first met at a sales training. They were so proud to have gotten a job in which they could actually help people. Little did they know, that they had joined one of the most dangerous organizations in modern America. A special thank you to our patrons: Avigail, Badrah, Cedric Wang, Eva Marie Koblin, Denis Kraus, Don Bone, John Zhang, Julien Dumesnil, Mathis Nu, and all the others!!! You keep us going! If you want to join us, visit http://www.patreon.com/sprouts Read the entire script here. Sources: https://en.wikipedia.org/wiki/Peter_principle#The_Peter_Principle https://www.nber.org/papers/w24343 http://www-siepr.stanford.edu/Papers/pdf/00-04.pdf https://igormroz.com/documents/netflix_culture.pdf https://en.wikipedia.org/wiki/Richard_Sackler https://drugabuse.com/oxycodone/history-statistics/ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2622774/ http://documents.latimes.com/oxycontin-press-release-1996/

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The Peter Principle argues that people who have success in big hierarchical organizations are promoted until they reach their own "level of incompetence”. Here they are often stuck for life.

Let´s look at the story about David and Diana, two graduates, who first met at a sales training. They were so proud to have gotten a job in which they could actually help people. Little did they know, that they had joined one of the most dangerous organizations in modern America.
 
A special thank you to our patrons: Avigail, Badrah, Cedric Wang, Eva Marie Koblin, Denis Kraus, Don Bone, John Zhang, Julien Dumesnil, Mathis Nu, and all the others!!! You keep us going!
If you want to join us, visit http://www.patreon.com/sprouts 
 
Read the entire script here.
 
Sources:

https://en.wikipedia.org/wiki/Peter_principle#The_Peter_Principle
https://www.nber.org/papers/w24343
http://www-siepr.stanford.edu/Papers/pdf/00-04.pdf

https://igormroz.com/documents/netflix_culture.pdf

https://en.wikipedia.org/wiki/Richard_Sackler
https://drugabuse.com/oxycodone/history-statistics/
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2622774/
http://documents.latimes.com/oxycontin-press-release-1996/

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