The **Peter Principle** states that **employees will always rise to their level of incompetence.** In other words, when a person has a set of skills that translates to high competence at their job, this person is often promoted to a new position that requires a different set of skills. If their skill set translates to high competence at this new role, then this person is often promoted to a new position where yet another set of skills is required. Eventually the person will be promoted to a position where their skill set **does not** match the requirements for success at the new role, and they will be incompetent in the new position. Being incompetent, this person will not be promoted again, and will remain stuck at this "final placement or "Peter's Plateau." Or more dangerously, will lose [[Trust]] amongst their team members, and eventually leave the company. This often happens in Sales. A high performing salesperson is promoted to sales manager, but doesn't have the skill set required to be a manager. ### Peter Principle _"The cream rises until it sours"_ ![[Sales Skill Set Example 2.png]] ### Now What This phenomenon always ends at a crossroads where there are three negative paths forward: - **Out:** the person leaves/is removed from the company - **Stay:** the person stays in the current role - **Down:** the person is moved back into previous role (or different role) Each of these paths has its own negative side effects and inputs that often cause the decision to be drawn out longer than it should, and further exacerbate the problem. Choosing which path to take in this situation involves both the individual and management. Each party has negative factors that contribute to the decision, both perceived and financial. **Now you're paying twice for the same mistake.** First, you lost a high performer in their former role. And now you're creating [[Ripples]] in a new area, as trust issues follow observed incompetence. ![[Sales Path 2.png]] ### Problems - Culture lacks advancement track for the [[Individual Contributor]] who does not want or have the skill set for management track. - Culture lacks tools / techniques for properly understanding and identifying skill set of its team members. ### Solutions - Establish prestige and advancement tracks for [[Individual Contributor|Individual Contributors]] to pair with management track. - Openly engage with every employee on this subject, to try and identify where each individual is happiest and in a position to do their best work. ### Related Patterns - [[Onboarding]] - [[Managers of One]] - [[Emotional Intelligence]] ### Further Reading - [The Peter Principle](https://amzn.to/2Otvsdh)