The Peter Principle: How to avoid the Over-Promotion trap
The Peter Principle: How to avoid the Over-Promotion trap
written by Senthil Kumar G
What is this Peter Principle?
The Peter Principle states that in organisations with hierarchy, people rise or gets promoted to the level of their incompetence. In general, people get promoted to a new role based on how they performed in their previous role; however, the abilities required of their new role may be completely different, and possibility, ill-suited for them, and eventually, they will struggle, and the organisation as a whole will suffer as well. Actually, the principle was presented as a satire by its creator Laurence J. Peter, when it was first published in the book 'The Peter Principle' in 1969.
But this is real, and is happening. Recently in a 2018 publication 'Promotions and the Peter Principle', three professors - Alan Benson of the University of Minnesota, Danielle Li of MIT and Kelly Shue of Yale, studied the performance of 53,035 sales employees at 214 American companies from 2005 to 2011. During that time, 1,531 of those sales reps were promoted to become sales managers. Consistent with the Peter principle, the researchers found that high-performing sales employees were more likely to be promoted and that they were also more likely to perform poorly as managers (lack of managerial potential), leading to considerable costs to the businesses.
We can see this happening in organisations around us. A Junior software developer who performed well as a fresher gets promoted to a Senior Developer role, and later based on this excellent performance as a Senior developer, gets promoted to a Project Manager. But the abilities required for a Manager role are not just software development, but more of people skills. How can we handle this scenario? At first, Leaders and HRs have to be conscious of Peter principle whenever considering the promotion of a candidate, and shouldn't take a promotion calls merely based on the performance of the previous role, but rather look for competency for the new role.
Peter principle started right from our school days. In most schools, the student who scored first rank/top score, is made the class leader, clearly falling trap to Peter Principle. This continues even in Higher Education Institutes. Even in my under-graduation college (College of Engineering Guindy, Anna University), I can nominate myself for Student Chairman role and contest elections, only if I have the highest CGPA (Cumulative Grade Point Average, ie High Percentage in your academic studies). And this principle seems to be present everywhere, and create havoc.
Practical Challenges:
In organisations with hierarchy, there is an unsaid rule to promote people who are performing well. But in some fortunate situations, the best performing employee can still be a good Manager, and perfectly suited for the promotion. If that is the case, celebrate the occasion and go ahead with the promotion. But how can we tackle situations where the best performing employee is ill-suited for the new role he/she is promoted to? Option 1: we can create a separate growth track in their field of expertise. For instance, a technical leadership track that doesn't require people management. Option 2: You can offer higher pay, without promotion. Option 3: we can still go ahead with the promotion, if he/she possesses a growth mindset. Because people skills are not some mystery skills and these can be learned and put into practice, provided the person has the right attitude and a growth mindset, and of course, the right amount of training.
Finally, when it comes to promotion, being aware of Peter principle is the most critical action, and it will lead to a thoughtful decision. Remember, the best worker may not always be the best candidate for Manager.
Share your learning
ABOUT THE AUTHOR
Senthil is a Scientific Researcher turned Serious Game Designer, and a Game based Learning Facilitator, and is passionate about creating meaningful games that help people unleash their potential through play.
He is a mental model evangelist, and writes articles, focussed on powerful mental models and frameworks, in a simple language.
The Peter Principle: How to avoid the Over-Promotion trap
The Peter Principle: How to avoid the Over-Promotion trap
written by Senthil Kumar G
What is this Peter Principle?
The Peter Principle states that in organisations with hierarchy, people rise or gets promoted to the level of their incompetence. In general, people get promoted to a new role based on how they performed in their previous role; however, the abilities required of their new role may be completely different, and possibility, ill-suited for them, and eventually, they will struggle, and the organisation as a whole will suffer as well. Actually, the principle was presented as a satire by its creator Laurence J. Peter, when it was first published in the book 'The Peter Principle' in 1969.
But this is real, and is happening. Recently in a 2018 publication 'Promotions and the Peter Principle', three professors - Alan Benson of the University of Minnesota, Danielle Li of MIT and Kelly Shue of Yale, studied the performance of 53,035 sales employees at 214 American companies from 2005 to 2011. During that time, 1,531 of those sales reps were promoted to become sales managers. Consistent with the Peter principle, the researchers found that high-performing sales employees were more likely to be promoted and that they were also more likely to perform poorly as managers (lack of managerial potential), leading to considerable costs to the businesses.
We can see this happening in organisations around us. A Junior software developer who performed well as a fresher gets promoted to a Senior Developer role, and later based on this excellent performance as a Senior developer, gets promoted to a Project Manager. But the abilities required for a Manager role are not just software development, but more of people skills. How can we handle this scenario? At first, Leaders and HRs have to be conscious of Peter principle whenever considering the promotion of a candidate, and shouldn't take a promotion calls merely based on the performance of the previous role, but rather look for competency for the new role.
Peter principle started right from our school days. In most schools, the student who scored first rank/top score, is made the class leader, clearly falling trap to Peter Principle. This continues even in Higher Education Institutes. Even in my under-graduation college (College of Engineering Guindy, Anna University), I can nominate myself for Student Chairman role and contest elections, only if I have the highest CGPA (Cumulative Grade Point Average, ie High Percentage in your academic studies). And this principle seems to be present everywhere, and create havoc.
Practical Challenges:
In organisations with hierarchy, there is an unsaid rule to promote people who are performing well. But in some fortunate situations, the best performing employee can still be a good Manager, and perfectly suited for the promotion. If that is the case, celebrate the occasion and go ahead with the promotion. But how can we tackle situations where the best performing employee is ill-suited for the new role he/she is promoted to? Option 1: we can create a separate growth track in their field of expertise. For instance, a technical leadership track that doesn't require people management. Option 2: You can offer higher pay, without promotion. Option 3: we can still go ahead with the promotion, if he/she possesses a growth mindset. Because people skills are not some mystery skills and these can be learned and put into practice, provided the person has the right attitude and a growth mindset, and of course, the right amount of training.
Finally, when it comes to promotion, being aware of Peter principle is the most critical action, and it will lead to a thoughtful decision. Remember, the best worker may not always be the best candidate for Manager.
Share your learning
ABOUT THE AUTHOR
Senthil is a Scientific Researcher turned Serious Game Designer, and a Game based Learning Facilitator, and is passionate about creating meaningful games that help people unleash their potential through play. He is a mental model evangelist, and writes articles, focussed on powerful mental models and frameworks, in a simple language.