What is the Peter Principle?

Image by Adrian from Pixabay

The Peter Principle is a concept in management that suggests people tend to rise to their “level of incompetence.”[i] In other words, employees are often promoted based on their success in their current role rather than their potential for success in a higher one. They get promoted one step past their highest level of competence. This continues until they reach a position where they’re no longer competent, as the skills that led to success in their previous roles don’t always translate to the demands of the new position.

For example, a developer who excels at writing code and consistently receives high-performance ratings may be promoted to management — only to struggle because they lack strong leadership skills. Similarly, a brand ambassador who excels at engaging people might be promoted but then fails because they struggle to enforce deadlines, prioritizing positive feedback over accountability.

The Peter Principle has also shown that someone who doesn’t excel in a particular role might actually excel in a different role.[ii] I can personally relate to this. In various roles, I’ve received feedback ranging from “excels” to “underperforms.” However, when placed in leadership roles, I tend to succeed…