The Peter Principle is a well-known principle which states that people are promoted up to their level of incompetence. It was formulated by Dr Laurence J. Peter in his 1969 book The Peter Principle: Why Things Always Go Wrong, and in my 20 years of continuous improvement and change management experience in a wide range of industries, I have often heard it used by people referring to colleagues or their management.

So is it true? Are we doomed to be promoted to our level of incompetence?

First of all, the principle is more anecdotal and observational than rigorously scientific. It is a hypothesis based on observations of organisational behaviour rather than on empirical scientific research. And I have seen many situations where people are promoted on the basis of their performance in their current roles, only to end up in positions where their skills and abilities are insufficient to handle the increased complexity of their new responsibilities.

A real-life struggle

I remember a business unit manager in a factory in France who had started as a worker on the assembly line and over time had been promoted to group leader, line manager and finally business unit manager. He knew all the technical details of the product, could show the workers what to do if necessary, and ran his unit efficiently. One day the company changed, it became a matrix organisation, and he suddenly had several managers to report to in English. His product hadn’t changed, his technical role hadn’t changed, but the complexity of his role as a business unit manager had skyrocketed. He became lost, struggled with the new organisation and began to resent it. He was criticised for not adapting and his motivation plummeted. He eventually retired, feeling despondent and bitter at the lack of recognition for his years of service.

The Peter Principle is about how we deal with complexity. We all can manage a certain level of complexity. Sometimes we can stretch that capacity and other times we have reached our limits. Imagine you are competing in the 100m sprint. Some of us can jog all the way to the end and others may be close to a Hussein Bolt performance. Context matters, you could be competing in the school parents’ race or training for the Olympics. Either way, you know what you are signing up for.

It’s different in the workplace. Your recruitment process may have been flawed (you thought you were signing up for a jog and they expect a record performance), your management may not be providing the support and training you need to move from jogging to running, or simply the business context has changed, and you are being asked to perform new tasks with a different level of complexity.

The three struggles I have observed in organisations:

Increased complexity at higher levels: As individuals are promoted, they often face more complex and nuanced challenges. Their previous roles may not have prepared them for the intricate demands of higher-level positions, leading to inefficiencies and poor decision making.

Skills mismatch: The Peter Principle highlights a common problem where employees are promoted based on their past success rather than their ability to manage the complexity of higher-level roles. This mismatch can result in leaders who struggle with the strategic, operational or interpersonal demands of their new positions.

Leadership development challenges: Organisations may struggle to identify and develop leaders who are able to cope with increased complexity. Effective leadership in complex environments requires a different set of skills from those required for lower-level positions.

A turn around

I was coaching a senior manager who supervised 600 people. She relied on a team of managers. One of them had an excellent track record and had been promoted to a higher position. However, my coachee was receiving complaints about this manager from his teams. He was irritable, rude, angry and disruptive. She had conducted several performance reviews with him and was ready to fire him as he was jeopardising an already tense business situation. The only thing holding her back was his past performance and behaviour.

I met with the manager and interviewed him about his role. I assessed him using the Cognitive Process Profile framework and found that he was stretched beyond the level of complexity he could manage in his new role. It turned out that he was very unhappy, stressed about his job, worried about losing his job and on the verge of a breakdown.

We discussed the situation together and my coachee suggested that he be moved back to a more operational role, similar to his previous one. As she said this, he gave a sign of relief and his whole body released tension. Two months later he was back to his old self, had a happy and high performing new team and was doing wonders for the company.

How do we match our abilities with our job role?

I mentioned that I used the Cognitive Process Profile (CPP) framework to assess the skills of the struggling manager. That was a hunch, and we don’t need to rely on hunches!

The Cognitive Process Profile is a sophisticated computer-based assessment designed to evaluate an individual’s cognitive functioning. It was developed by Cognadev and is widely used in a variety of professional settings, including leadership development, HR functions and career planning.

I believe it is particularly powerful when tailored to a job role or work environment.

Overview of the CPP

The CPP is not a conventional test with right or wrong answers. Instead, it presents individuals with an unfamiliar task that requires them to explore, analyse, structure and transform information while monitoring their problem-solving processes. The assessment tracks these cognitive processes to produce a detailed profile that includes cognitive styles, information processing skills, problem solving strategies and learning potential.

Key features and Use

Cognitive styles and preferences: The CPP identifies how individuals prefer to think and approach problems. It categorises thinking styles, which can help in understanding how people engage with different types of tasks and environments.

Information Processing: The assessment looks at how efficiently and effectively an individual processes information, which includes their ability to structure and transform data.

Learning potential: One of the outstanding features of the CPP is its ability to assess not only current cognitive abilities, but also the potential for future learning and development.

Workplace application: The CPP is widely used for talent selection, succession planning and leadership development. It helps to place individuals in roles that match their cognitive strengths and to identify areas for personal and professional growth.

Benefits

The CPP provides detailed feedback, integrated with development guidelines, to help individuals and organisations make informed decisions about career paths, leadership roles and training needs. It also allows individuals to work at their own pace and level of cognitive complexity, making it a personalised assessment tool.

In summary, the CPP is a dynamic and flexible assessment that provides deep insights into cognitive functioning that can be used for professional development and effective leadership.

In summary

Don’t let the Peter Principle dictate the career paths of your key people. People in the wrong place in your organisation will:

  • Reduce organisational effectiveness: Leaders who are not well suited to managing complex systems or navigating intricate relationships can create bottlenecks, misalignments and reduced productivity.
  • Influence decision making: Leaders who have been promoted to their level of incompetence may struggle with strategic decision-making and risk management.

Their inability to effectively manage complexity can lead to poor decisions that affect the organisation’s performance, costing you money and increasing risk.

Assess your key people’s skills and abilities with the Cognitive Process Profile to ensure they’re in a role that matches their strengths. Provide coaching to support their growth, the CPP will help you identify areas of growth to focus on.

For personalised guidance and to explore how the CPP can benefit you, contact us today to strengthen your journey towards managing complexity and achieving high performance results.