Tag: avoiding poor business results

What is the Peter Principle Costing You?

December 1, 2015 | By | Add a Comment

Who have you over-promoted, and why? “The Peter principle is a special case of a ubiquitous observation: Anything that works will be used in progressively more challenging applications until it fails. Thus, employees only stop being promoted once they can no longer perform effectively, and ‘managers rise to the level of their incompetence.’” (Wikipedia) In other words, there is a tendency among managers to promote leaders based on past or current performance, rather than evaluating a candidate’s potential to perform effectively in their intended role. This use of history as a predictor of future performance is not effective and reflects an unsophisticated way to manage people, yet we all do it. Are business executives good judges of ability and fit? […]

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