[CJP Insights] The Peter Principle

Sonia- for our role, we need someone with at least 12 years of experience – often comes the mandate. even 10 years won’t work . Leadership skills is often seen as a function of your grey hairs

Fifty years have passed since the publication of The Peter Principle by  Laurence J. Peter, but its rule still applies today. The Peter Principle states that employees are promoted according to their current progress rather than for the skills and aptitude required for the roles they are being considered for. (while this might not always be the case) 

Past performance may not be an indicator of future performance, says the famous Mutual Fund advertisement. 

But it is a fact that promotions are still largely a reward for past performance.

So, it could so happen that an attribute that made someone successful might not be enough to make them successful in the future (even if their responsibilities change). This may explain why there are still a large number of incompetent leaders 🙂

Individual contributors may often not be great leaders. And thus maybe, great athletes often end up being mediocre coaches (and vice versa)

You should also take an extra look at the people who “may not be ready,” and analyze them on the basis of their ambition, reputation, and passion for your business. 

Often the youngest, most agile, and most confident people turn into incredible leaders, even though their track record may not be the best. 

Mark Zuckerberg had almost no business experience before he started Facebook. 

Steve Jobs had not run a large company before Apple, yet he had the insights, connections, and drive to make it a household name.

For leadership hiring / promotions , it might be worthwhile to start thinking more about those who can get you where you want to go. In other words, start considering those who have high potential, not just top performers