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Thursday, July 16, 2020

Re-examining the Peter Principle

A Recent headline on the British Broadcasting Corporation (BBC) news site caught my attention: The Reasons Why People Become Incompetent at Work. An attention-grabber no doubt. It focuses us upon "the peter principle," which many have likely heard, but may not fully understand. The author explains that the principal is attributed to Laurence J. Peter, who reminds us that "competence, like truth, beauty, and contact lenses, is in the eye of the beholder." He then gave us the "Peter principle": "Every employee tends to rise to his or her level of incompetence." 

The article leads us in with the simple question "Why are so many people so bad at what they do?" I would caution that it may also be that we perceive people as being ineffective or inefficient, without ever walking a day in her/his shoes. Perhaps there are challenges to someone's role that we do not personally appreciate or even understand? But, I digress. 

The posit of Mr. Peter began with his perceptions of the "inept behavior" of those around him. One example cited was the refusal of papers he submitted by hand delivery. They were refused because they "had not been registered at the Post Office for safe delivery." Someone was inflexibly following a rule, and ignoring the reality of delivery or receipt. That reminded me of recent posts regarding the "actual delivery of pleadings. See A Unicorn Fax (June 2020) and other posts cited therein. 

As an aside, I broke a rule regarding "paper color" back in the 1990s. In those days, a Florida workers' compensation settlement had to be mailed to the district office, along with 8 copies of the joint petition (sometimes 30 or more pages long). And, you had to include 8 copies of the proposed order on distinctive paper. Some settlements required yellow paper, others required pink or blue. The idea was that the type of settlement was easily discerned. The downside was that copying an order printed on colored paper did not create the best reproductions. 

I vividly recall sending a joint petition package hundreds of miles. Without staff to help me, I had used the wrong color (white) paper for my proposed orders. I recall the postage was over $5.00 in those days. After weeks of waiting for judicial approval, without a phone call or other inquiry, I received the entire package back. The judge's office had not copied my orders onto the right color paper. They had returned the whole package for me to correct. They wasted time and money, but mindlessly their rule. 

The BBC article suggests that we may see "such foolish behavior all around" us, as Mr. Peter did. We may see it in a variety of settings. He explained in a 1969 best-selling book that "most people were promoted based on their current performance." He explained that when hiring it makes more sense to consider whether someone is competent for, suited for, the job that is being filled. Instead, there is an inordinate focus on how the person is performing in their current (or most recent) role. 

He explained that our past or current performance may result in our promotion more than once. Each promotion, he posited might result in a diminished performance, but one which nonetheless supports some further advancement or promotion. The eventual result, according to Mr. Peter, is that we eventually reach a point where our "performance may be so bad that we no longer warrant a further promotion." And, by then we are frankly unable to do the job assigned. We are, at that point, "incompetent."

Of course, most are already familiar with "The Peter Principal." The focus of the BBC is not to merely remind or refresh. The point is focused upon that the principal has received more recent review and study over the past decade. A study of over one hundred companies was conducted using data from companies that all used "the same performance management software." This congruity allowed the scientists to mine data on almost forty thousand salespeople, and the approximately 1,500 who were "promoted to management."

The initial conclusion was fairly obvious. The "best salesmen or women were the ones who tended to be promoted." That premise is founded, of course, on who was most proficient at sales. However, did those people provide effective management? The manager role involves "training and allocating and directing." The role of the manager is not the same as the role of the producer. This study focused on the sales performance of the teams led by those who were promoted.

The outcome of the study did not demonstrate that those who can aptly, even exceptionally "do" can also lead. The study leader concluded that various factors may contribute to the incongruity of a great salesperson not being the best sales team leader. She cites the absence of managerial experience, potential deficits in team dynamics and motivational skills, and the need for collaborative interaction. In leadership, she concludes, "there's a difference in skills required."

I thought of my professional experience when reading this. I have known so many excellent and even exceptional attorneys, adjusters, case managers, doctors, and more. But, I have seen a fair few of these find that managing other people is just not to their individual liking. They are outstanding performers who bring skills and abilities, but they are not well suited to being the manager or leader of an organization. 

This is a topic I have seen periodically raised in business publications. A company is started and nurtured by the founder, whose idea and ideals bring it success. But, then a certain point is reached on the growth curve, and "professional management" is brought in to take the helm. There are those who see that as an insult to, or deriding of, the founder. But, there are those tasks required of management, such as accounting, personnel, and more for which perhaps that founder is just not the best.

The article notes that this is likewise demonstrated in academia. The study leader notes that “the best researcher or the person who's best at teaching may not be the best dean of a school.” There may be real value in determining qualifications, skills, and interests. The best person to lead may not be the best producer or performer, but the person who possesses and hones those skills that suggest success? A great many universities are headed by people with no management training or expertise.

The article warns that there may be motivational issues. Without the potential for promotion based on performance, it is possible salespeople may not perform as well. How does a top performer feel when a less-prolific co-worker is promoted based on perceptions of perhaps untested education or management skills? A shift in that regard could lead to disenchantment and even the departure of top performers from the sales force.

A second study featured in the article concluded that expertise is an important characteristic of management. This study concluded that "a boss’s technical competence" is critical to the team following. The essential question, this researcher concluded, is "whether they (the manager) would be able to do your job if necessary." If the team believes the manager could or even would, there is a greater propensity to follow and support. Thus, the promotion of those with technical skills is perhaps best. 

The article concludes that there is therefore a need for balance. Too much focus on either the past performance or the skill-set analysis can lead to greater challenges. There is, it concludes "clearly a fine balance (required between) the two." One thought, there is likely value in an organization in (1) recognizing the potential for both managerial performance and team reaction; (2) contemplating the role each set of qualification criteria should play in each managerial appointment; and (3) understanding that it is unlikely that any member of any team will be the "perfect" choice, team dynamic suggests that teams are developed rather than simply formed. 

For the young professional, starting out, the question about management should likely be whether that is a goal. If it is, whether long or short-term, it makes sense to strive to be a top performer in terms of the company business. But, it also makes sense to become exposed to the other aspects that may bring value to the managerial role. There may be opportunities to participate in management committee work within an entity. There are always opportunities for further education in a classroom or seminar setting. Finally, there are mentors all around a young professional, if only she/he takes the time to spot them, recruit them, and learn from them.

To be best prepared for that opportunity, it is perhaps best to focus on both the technical performance and the managerial competency.