Level of Incompetence

This descriptive item by Laurence Peter in The Peter Principle describes a laterally moving a person who has reached their level of incompetence. The entire book is basically given to highlighting an effect that occurs in all businesses but especially in larger conglomerates whereby people reach their level of incompetence. However it occurs far too often in small and family owned businesses.

So, what is it? Let's say that at your company you have a salesperson doing a great job. They are outstanding, probably the sales leader and loved by your customers. A Sales Manager (or Product Manager or Director of Sales or Marketing Manager, etc.). So, you look no further. This top notch sales person has done an great job, they should be promoted into the opening. Right? Not necessarily. How are his management skills or training? How are his people skills? How well does he interact with all the other departments especially supervision and management of those departments? Success selling is not success managing.

We will describe in more detail some specific ideas from the book, but the basic principle is that just because a person is doing well in one job, it does not mean they will do well in another or in management. That is why, if you are a small or family owned business, management talent should be developed or hired not assumed just because they have done well in one position. If you are training an heir apparent, certainly let him function in all departments. That is good training, but do not assume that they are ready to manage until you have seen them in action.

Many companies, once a person has reached a level at which they are performing well, continue to promote them and then wonder why it did not workout and a previously great employee now must be demoted or terminated because they had reached their level of incompetence. So many companies do this because it is easy. Just promote a person they know. Or, it maintains their philosophy of promoting from within. That is a great idea but make sure the person is management material first before making the commitment. It will save everyone a lot of grief.

What do you think?