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The Peter Principle, a great management tool | ToolsHero

Experience is not everything

Experience is not everything
Experience is a good thing, but this does not automatically make an employee the best person to be promoted to a more responsible job.

Before promoting an employee, the company should know the employee's level of knowledge, skills and ambitions. They should know if that person really deserves that spot. 

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The Peter Principle, a great management tool | ToolsHero

The Peter Principle, a great management tool | ToolsHero

https://www.toolshero.com/management/the-peter-principle/

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Key Ideas

Promotion of Position = Demotion of Value

When a person is promoted, they usually turn to different responsibilities and roles which requires completely different skills and insights.

Later on, the company will notice that they made a mistake in choosing the right person but will not want to admit it. As a result, the position will be maintained but will either end up unfilled due to voluntary resignation or imminent dismissal of the person.

Experience is not everything

Experience is a good thing, but this does not automatically make an employee the best person to be promoted to a more responsible job.

Before promoting an employee, the company should know the employee's level of knowledge, skills and ambitions. They should know if that person really deserves that spot. 

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The Peter Principle

It describes what can happen when an employee does well in one job and is subsequently promoted. She/he does well in the new role and is promoted again. This continues up and until the em...

Avoiding the Peter principle
  • Commit to continuous learning: heading off to a career thinking you’ve learned all you needed to know for the next 40-50 years is a sure way to find yourself stuck in a position you cannot move beyond;
  • Be mindful of what you are good at: there are certain career fields each of us know we are not best suited for.
The Peter Principle

Also known as The Peter principle of Incompetence, it claims that people who do their job well are promoted to positions of greater responsibility, and so on, until they reach a position in whic...

Dilbert Principle

The Dilbert Principle refers to the idea that incompetent employees are being promoted to prevent them from causing harm, since higher level positions don't need to be involved in the production of the company, while people that perform well are retained to production jobs, to keep the company going forward.

The Dilbert Principle is just a variation of the Peter Principle and critics think that this principle is only valuable for amusement. 

Dilbert

Is a famous comic strip created by  Scott Adams that shows a humorous look in office life, but also manifests lessons on behavioral economics.

In a series of cartoons published throughout the 1990s, he coined the term the Dilbert Principle. The concept was so successful that in 1996 the book “The Dilbert Principle” was created, which became very successful and it ended up selling over a million copies.

The Peter Principle and Occupational Incompetence
The Peter Principle and Occupational Incompetence

Peter J. Lawrence, whose 1969 bestseller “The Peter Principle” satirically provided many insights on the hows and the whys of incompetents working among us, is now being taken more serious...

Different Competencies

The skills that made a great performer excel, the aggression and the drive, did not translate well when the same performer was in charge of a team, where other skills like people management come into play.

The best teacher of the school cannot be simply promoted as a school principal.

Hiring The Right Person

A manager wouldn’t be able to handle a team of specialists (like Doctors or Scientists) efficiently, without any direct experience. This makes excelling at the current role a huge requirement for anyone being hired as a manager.

A fine balance between the two aspects is required while hiring, with one option being to change the hierarchy of the company itself. The person can be promoted without a typical career ladder, and continue to do his current role, which he is doing well.

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