Have you experienced customer service from someone who was rude and not good with dealing with people? Have you noticed the quality of your favorite smartphone brand decline with each new release? Or maybe you’re beginning to suspect that your boss is incompetent and unfit for his job?
These scenarios might be the result of the Peter Principle, which can negatively affect businesses, regardless of whether they’re big or small.
What is the Peter Principle?
The Peter Principle is a concept suggesting that, in most top-down corporate organizations, employees are promoted until they reach a position that exceeds their abilities. This usually happens when promotions are based solely on an employee’s performance in their current role, or their seniority, without considering whether they’re qualified for the new one.
Lacking the necessary skills, the employee becomes overwhelmed as they struggle to adapt. Eventually, they remain stuck in this final role because they’re unable to achieve the same results that led to their promotion in the first place.
Developed by Canadian educator Dr. Laurence J. Peter in 1969, who explored the theory in his book The Peter Principle: Why Things Always Go Wrong. While the book was originally written as satire, the Peter Principle continues to be a valuable tool for understanding how hierarchical organizations operate.
Examples of the Peter Principle
Let’s introduce you to Kelly, who’s worked as a high school teacher for over twenty years. She’s promoted to principal but lacks organizational skills and knows nothing about creating a school curriculum.
Now there’s Dylan — who goes from flipping burgers at a fast food restaurant to being a shift supervisor. However, Dylan isn’t used to being in a leadership role and struggles with managing schedules and ensuring there are enough workers for each shift.
While Kelly and Dylan excelled in their previous roles, they lacked the experience and skills required to succeed in their new positions.
How the Peter Principle Affects Businesses
When employees are promoted to positions they’re unprepared for, it can damage a business’s reputation and erode consumer trust. This can manifest itself in several ways:
- Poor leadership and decision-making — which can lead to issues projects being delayed, mismanaged budgets, or an inability to solve problems.
- Reduced productivity as the whole team may struggle to meet goals or stay focused.
- High turnover as competent employees leave due to poor leadership or low morale.
- Dissatisfied consumers when projects or services fail to meet their expectations.
- Lack of innovation and growth leaders resist change and cling to the status quo.
How to Avoid the Peter Principle
Even if you’re experiencing the Peter Principle at work, it’s not the end of the world! There are a few strategies to can help turn things around:
- Provide skills training for employees when they are promoted to ensure they are qualified for the position.
- Make sure the training focuses on specific skills that are relevant to the new role.
- Assess the job skills for all candidates, especially when it comes to internal promotions. Just because a sales representative is good at their job doesn’t mean they will be an effective manager.
- Encourage employees to be honest with themselves about what they can and cannot handle in their careers.
It’s tempting to offer or accept a promotion for convenience or monetary reasons, but it’s not worth the stress and chaos that come with triggering the Peter Principle.
