“In a hierarchy, every employee tends to rise to his level of incompetence.”

Laurence J. Peter – Canadian Educator and Author

What is the ‘Peter Principle’?

It is a concept in management developed by Laurence J. Peter, a Canadian educator who wrote a book in 1969 called The Peter Principle. His theory was that people in a hierarchy tend to rise to a level of incompetence. This was primarily due to their success in previous jobs however the skills in the previous job do not translate into the skills required in the new job. For example, a great engineer will be promoted from working as an engineer to management, where they do not possess management or leadership skills.

A variation of the Peter Principle is the Dilbert Principle. This is a satirical concept of management developed by Scott Adams the creator of the comic strip Dilbert. Here incompetent employees are intentionally promoted to prevent them from causing harm. In other words, getting them out of the way so they do not interfere with outcomes.

We have all worked for organisations where it would appear that both these ‘principles’ are at work!

Perhaps we are living proof of the Peter or Dilbert Principle?

I can certainly remember working for and with such managers. From the Managing Director’s son who got lost coming to work after living in the city for over 12 months to the Managing Director’s brother, who needed a phone call each morning to make sure he was at work. These were more probably cases of nepotism in combination with the Peter Principle.

A slight deviation from the Dilbert Principle is promoting ‘problem’ employees to get them out of the way. In an earlier career I worked for a manager who treated his staff appallingly and was not respected by them. Senior management knew this, so they removed the problem from the factory floor and promoted him! Another manager who I reported to, and was incompetent was offered a promotion and sent overseas to get him out of the way. He was later dismissed.

Managers will claim they always seek to hire people who are smarter than themselves. In many instances this does not happen, as this threatens their careers or dents their egos. Instead, they hire less capable people, so they are not threatened from below.

The Peter Principle can lead to disaster if an incompetent person is in a position of authority. The mismanagement of the COVID pandemic by public health officials in Victoria which resulted in hundreds of preventable deaths when the virus ‘escaped’ from hotel quarantine is one example. In an earlier blog senior management in a transport business caused the death of innocent people when a truck crashed into their car.

Can you think of examples of both the Peter Principle or the Dilbert Principle in your work life?

So how do organisations solve these problems?

I will cover this in a future management blog.

@thenetworkofconsultingprofessionals