The Peter Principle basically states that in any organization, people are generally promoted to their level of incompetence, where they stagnate and are eventually fired. The Peter Principle originated from the book “The Peter Principle: Why Things Always Go Wrong,” written by Dr. Laurence J. Peter and Raymond Hull in 1969. Dr. Peter, a Canadian educator and “hierarchiologist,” developed the concept after observing that employees in a hierarchy tend to rise to their “level of incompetence.” The book humorously critiques organizational inefficiencies and became a popular framework for understanding why promotions can sometimes lead to less effective performance at higher levels of an organization.
The Peter Principle can help us navigate our careers effectively.
First, getting promoted is often based on competence in your current role, at least in the initial years. So, do your best in your current role. Most bosses will promote people who are loyal, listen to instructions, and are competent in their work. Of course, in our society, this is not always the case, but in any organization, people need workers who can get the job done, so it is generally a good strategy to do your current job well.
Next, prepare for your next role immediately after you enter a new role. As you climb the career ladder your promotion will be based on fit with the higher role. So, if you head a department, your promotion to CEO will depend on whether the board deems you fit to be a CEO and not necessarily on how you lead your department. The higher roles are heavily bent on the ability to manage a wide range of stakeholders and high levels of emotional intelligence rather than technical expertise. So you may be an excellent director, but you could also be a terrible CEO. So, it is worthwhile to prepare for a higher role through formal education, coaching, executive education, etc., while you are still in your current role.
Also, realize that a promotion may not be the best path forward, especially if the promotion does not fit your skill set. While promotions are generally a good thing, they may turn out to be disastrous. I recall a brilliant colleague who was quickly promoted through the ranks to lead a large unit. The only problem was that he was not very good with people and management stuff like goal setting, motivating his team, communication, etc. Consequently, the team’s performance suffered, and he was fired.
An alternative to a promotion where your incompetence may be exposed is a lateral move within the organization. Instead of fighting to become a CEO, you can choose to lead another department where you can shine. This allows you time to hone your leadership skills before taking on a challenging role. There is also less competition with lateral moves compared to vertical moves. There is only one CEO job in an organization, but you could have hundreds of managers and directors.
Ultimately, what you want to do is find a role within an organization that best fits your personality, temperament, skills, knowledge, and experience. Such a role would be perfect for you and you will enjoy your work and will thrive. Mindlessly climbing the career ladder may lead to disaster when you eventually reach your level of incompetence.
Finally, recognize when you have reached your level of incompetence in the organization. This may be a signal to move on to other interests and passions outside your current organization. Don’t be shy to explore what more the world has to offer. This may be your ultimate calling in life and should not be ignored.
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