Have you ever heard of the “Peter Principle?”
Let’s start with an example: An exceptional Customer Success Manager is promoted to become Head of Digital Customer Success, but lacks knowledge in project management and data analysis. Although some automations are implemented in different channels, they are not coordinated effectively nor is their impact fully understood.
This is the Peter Principle, and it highlights a recurring problem. People are promoted again and again based on past performance. But past performance does not predict future success!
Any new role often has different responsibilities from the previous role. And as a result, the person needs a whole new set of skills.
For example, if the new role is a first-time leadership position, the newly promoted employee must learn how to set strategy; motivate and engage the team; give feedback, guidance, and support; and develop each person’s skills for the future.
They are no longer individual contributors!
Here’s what so often happens as the person struggles: They focus on areas where they previously excelled, avoiding areas where they lack confidence and skill.
Pro point!
When you invest in continuous learning, you create a leadership pipeline. You ensure talent is developing new skills to succeed in their future roles.
Create a continuous learning culture.
Other real-life examples of the Peter Principle include:
The Failed Sales Rep
A successful Sales Rep excelled in their role, developing strong relationships with clients and hitting targets. She was promoted to Sales Manager. Unfortunately, new and untested skills in leadership, coaching, and strategic planning were crucial to the role. She struggled, negatively impacting overall team performance.
The Failed Corporate Trainer
A colleague worked in corporate training programs for years. He was moved to lead the team in designing new curriculum. Despite his expertise with content, he couldn’t prioritize which areas needed attention. Each person in the team championed their own ideas rather than working together to pursue the best ideas. Team morale dropped.
Solution
So what can an organization do, in particular when it comes to a leadership role? After all, a leader is ultimately responsible for the success and well-being of the team.
A relatively clear solution exists:
- Identify the right people: Management should always be identifying the next generation of leaders.
- Provide new opportunities: Challenges result in learning, growth, and the right skills.
- Create feedback loops: Discuss progress in 1:1s, with an eye towards leadership.
- Don’t wait for performance reviews: Feedback once per year is too little, too late.
It’s a proactive approach, and also one which provides greater transparency.
Wrapping Up
Taking a proactive approach, rather than hoping a promotion works out, is how we avoid the Peter Principle.