Many of us know someone who, after having had a fantastic career, is promoted to boss and seems to lose all his or her skills. Their talent, which shone while they were just one of the team, is dulled when they are in charge of the team, so much so that their promotion turns out to be a ‘disservice’ that cuts short their professional growth.

Or maybe we don't just know him or her, but we are that person. We felt like fish in water when we were only accountable for our work, but we shrink and are out of place when we have to organize and be accountable for the work of the whole team.

Well, this phenomenon is more common than you might think, and it has a name: Peter Principle. Also referred to as 'Peter's incompetence principle',  it implies a paradox, as it argues that someone can move up the career ladder until they reach their ‘highest level of incompetence’.

The Peter Principle or the best way to die of success

The crux of the matter is that someone who may be good in one position is not necessarily good in a higher position.  The reason: employees are promoted to positions that require more responsibility and unfortunately not everyone is qualified. Thus, someone who is good in one position starts to be promoted until they reach their maximum incompetence.

The term was coined by Dr. Laurence J. Peter in his 1969 book, ‘The Peter Principle: Why Things Always Go Wrong’. For many, it is a reminder of the dangers that upward mobility in organizations can bring, as many people, when promoted to positions of incompetence, unleash a cascade of inefficiencies and organizational problems. Hence the question: is upward mobility the only way to grow in an organization? No, it is not. 

Rising to Incompetence

At its core, the Peter Principle stems from a seemingly logical premise: competent employees are rewarded with promotions. After all, it's a common belief that if someone excels in their current role, they should be able to handle greater responsibilities at a higher level within the company. However, reality often diverges from this assumption.

Consider this scenario: an exceptional sales representative consistently exceeds targets and garners praise from superiors. In recognition of their stellar performance, they're promoted to a managerial role overseeing a team of salespeople. Yet, despite their prowess in sales, they lack the managerial skills necessary to lead and motivate a team effectively. The result? A decline in team performance, frustration among subordinates, and ultimately, a net loss for the company.

“The most productive worker is not always the best candidate for the manager”, said the researchers of the study “The Peter Principle is real”, quoted by Forbes. “Consistent with the Peter Principle, we find that promotion decisions place more weight on current performance than would be justified if firms only tried to promote the best potential managers”, is one of their conclusions.

There are other ways to grow:

• Diversification of Skills: Rather than solely focusing on vertical advancement, employees can broaden their skill sets horizontally. After all, there are many ways to grow professionally, Taking on diverse projects, collaborating across departments, or acquiring new competencies through training and development programs can enhance one's value.
• Lateral Moves: Sidestepping the conventional path of upward mobility, lateral moves within the company can offer invaluable experiences and perspectives. Transitioning to different roles or departments allows individuals to gain a holistic understanding of the organization, cultivate a versatile skill set, and discover untapped passions.
• Entrepreneurial Endeavors: Embracing an entrepreneurial mindset, employees can explore ventures beyond the confines of their current role. Initiating innovative projects, spearheading cross-functional teams, or championing internal initiatives can showcase leadership potential and pave the way for recognition and advancement.
• Remote and Gig Economy: With the rise of remote work and the gig economy, professionals are no longer bound by geographical constraints or traditional employment structures. Freelancing, consulting, or establishing a side hustle can provide autonomy, flexibility, and diverse experiences outside the confines of corporate hierarchies.
• Embracing Career Plateaus: Contrary to the societal pressure for constant advancement, embracing career plateaus can foster contentment and personal fulfillment. Instead of relentlessly chasing promotions, individuals can focus on mastering their current roles, deepening their expertise, and finding fulfillment through meaningful work.

So, if you are a leader or a manager, don't forget that lateral moves can lead to greater job satisfaction and career fulfillment than traditional vertical progression. There are many examples of successful professionals who achieved recognition and success through unconventional career paths, which do not necessarily imply promotion. So before you promote your star performer, think twice: are you helping him or her grow?