A few posts ago, I mentioned the Peter Principle, and a few readers have asked me to clarify what that is and how to combat it.
The Peter Principle* is the theory that in a hierarchy, every employee tends to rise to their level of incompetence, a point best illustrated by Michael Scott on The Office (or David Brent to those in the UK). Although realistically, both bosses would have been fired long ago by their respective companies, their continued employment not only shows further evidence of the Peter Principle in action, but also that the same incompetence exists among their superiors.
However, after considering my personal experience and reading Penelope Trunk’s book, Brazen Careerist (specifically the chapters on managing one’s boss), I’m not so sure that the Peter Principle can exist for long in any setting.
While the promotion of people past their point of efficacy does happen, it tends to be less frequent. Whether through extensive training, a strong vetting process or required examples of matching core leadership competencies, promotions to managerial positions are made through a more exact and detailed process than being based simply on current performance. And the option of demoting those who show themselves to be incompetent leaders is always open.
As companies become more wary about offering promotions due to expanding costs and shrinking returns, they may alleviate problems within their organizations by adding additional responsibilities or finding new ways to offer employees benefits instead of giving promotions. As a result, promoting employees becomes a greater undertaking and it becomes more critical for them to ensure that they are choosing the right candidates. So in cases where companies do not have room for expansion, the Peter Principle can be a deadly mistake.
While Michael Scott could become a manager in a real-world office setting, it’s unlikely that he would stay as one for long. His standing as an avatar of the Peter Principle would move him quickly from “world’s greatest boss” back to sales.
* Not to be confused with the Dilbert Principle, which states that “leadership is nature’s way of removing morons from the productive flow.”
