
Why do competent employees become incompetent managers? The 1969 #1 bestseller that coined "The Peter Principle" - people rise to their level of incompetence - remains shockingly relevant today, revolutionizing how organizations view promotion and hierarchy.
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Ever wondered why so many people seem terrible at their jobs? It's not your imagination. When Laurence J. Peter published "The Peter Principle" in 1969, he captured a universal truth that resonated so deeply it became embedded in our cultural lexicon. Even Warren Buffett cites it as a key insight for evaluating management. The principle is devastatingly simple: "In a hierarchy, every employee tends to rise to his level of incompetence." This explains the widespread inefficiency we encounter daily - we systematically promote people until they can no longer perform effectively. Through studying hundreds of cases across various fields, Peter discovered that promotions are typically based on performance in current roles, not aptitude for new positions. Once someone reaches a position exceeding their capabilities, they remain stuck there indefinitely, creating a workplace where "in time, every position tends to be filled by someone incompetent to perform its duties." The actual productive work gets accomplished only by those who haven't yet reached their level of incompetence.
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