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The Peter Principle : Why Things Always Go Wrong

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In the first chapter of the book, after a few examples of his principle in action, Laurence Peter proposes his Peter principle: "In a hierarchy every employee tends to rise to his level of incompetence." He proceeds to take the reader on a journey through the nascent field of "hierarchiology," defining the necessary terms as he goes along. He provides superb insight into why the hierarchies and bureacracies of the world are so inefficient and are becoming increasingly so, why successful people are often unhappy in their jobs and why the most talented people often proceed through their careers without material reward. Peter's observations are funny, but alarmingly true. An excellent resource for the armchair sociologist - highly recommended.

It's interesting yet perplexing, that when I studied Public Administration (yawn), we studied German economist and sociologist Max Weber, but never once, did our courses include the work of Laurence Peter. They should have.

The "Peter Principle" was written in 1969, but you'll realize immediately it's still very accurate and useful today. Many anecdotes and case studies may remind you of yourself, someone, or some people you've worked with. There are illustrations, diagrams, charts, graphs, and the ever-present Bell Curve. There are too many good things in this book to list. It's also a quick and easy-read.

The author's background is very relevant to the credibility of this book, which in my opinion, is a true classic. Laurence J. Peter received an Ed.D from Washington State University and had extensive experience as a teacher, counselor, school psychologist, prison instructor, consultant, and university professor. (I don't know much about the other author, Raymond Hull.) Here a a couple of concepts from the many things in the "Peter Principle."


Push & Pull:

Two different ways to "move up." No reason to go into detail, but a person pushing upward usually will not get the result of a person who's "pulled up from above." My favorite quote in the "Peter Principle" is on the "Push & Promotion" chapter on page 63:

"Never stand when you can sit; never walk when can ride; never Push when you can Pull."


Judging the competence of an employee:

Outsiders usually don't judge your performance. In general, your superior does. So if you have a:

Competent superior:

If a superior is competent they evaluate his/her subordinate by the usefulness of work. Performance. Output.

Incompetent superior:

If a superior is incompetent they will often judge the subordinate by "behavior that supports the rules, rituals, and forms of the status quo. Promptness, neatness, courtesy to superiors...." This is evaluating input, not output.


Creative Incompetence:

Most of us have witnessed and perhaps experienced a happy and talented person doing well at what they do in the workplace. Because of his/her optimum performance they're offered a promotion. A raise, yes. But also more stress, more time consumed, more responsibilities, and often new duties and skill-sets needed at the new position.

Some employees understand that in their particular circumstances the negatives outweigh the positives of a promotion. When realize they are next in line, or close to getting that promotion they don't want, they have (at least 2) options:

One, carefully refuse the promotion, while vocalizing that he/she is still committed and dedicated to the company, etc. This is called "Peter's Parry," and is not recommended by the author for most (but not all) employees.

The second option for the employee to avoid advancement, is not by refusing promotion but by intentionally doing minor and forgivable mistakes that will cause him/her to never be offered a promotion, but retain the current position. This is ---> Creative Incompetence. The author offers some techniques in the sub-section of this chapter for successfully executing Creative Incompetence. Peter states it's important that one conceal the fact that they want to avoid a promotion.

Again this book is almost 40 years old. Some of the individual (worker) values and the corporate climate has changed since then. But in private, public, and non-profit organizations, we see many of Peter's situations today. Too many.


HEALTH & HAPPINESS AT ZERO PQ:

When someone reaches his/her level of incompetence (called Peter's Plateau) the Zero PQ - Zero Promotion Quotient - 0% chance of a promotion exists. Understanding when one reaches the point of Zero PQ is very important. Many employees don't recognize when they hit it, and sometimes when an employee hits the ceiling he/she thinks it's incompetence, inferier skills, or lack of production, when it might actually be politics. They think they are not working "hard enough," or good enough. This person pushes harder by working longer, skipping breaks, and going the extra mile. These are the symptoms of ---> Final Placement Syndrome.

Have you ever witnessed or even experienced Zero PQ at work?

In organizations (i.e., hierarchies) people get promoted as long as they continue to be competent. Eventually they are promoted to a position in which their skills are not adequately applicable for their new position. Therefore other employees at the same level or below carry out the tasks, because these "other employees" have not hit their level of their incompetence, yet.

The Chapters are worthy of listing because they do highlight the points and topics in the book:

1. The Peter Principle
2. The Principle in Action
3. Apparent Exceptions
4. Pull & Promotion
5. Push & Promotion
6. Followers & Leaders
7. Hierarchically & Politics
8. Hints & Foreshadowings
9. The Psychology of Hierarchiology
10 Peter's Spiral
11 The Pathology of Success
12 Non-Medical Indices of Final Placement
13 Health & Happiness at Zero PQ
14 Creative Incompetence
15 The Darwinian Extension

There are numerous sub-chapters within the chapters, as well. This is a practical book with many anecdotes we've seen in real life. The "Peter Principle" can help corporate hierarchical rejectionists and corporate minions alike. A great glossary and chapter index is in the back of this classic.

This book's subject has been described as "satirical sociology". It's a rather short book that consists of made-up stories about administrative and business hierarchies. Some (if not all) of them are based on true events. Mr. Peter has given his characters funny names and the stories make you laugh frequently, but actually the message of the book is very serious. Mr. Peter demonstrates that endless climbing higher and higher is bound to lead your life into a dead end.

The book's fun to read and, in my opinion, delivers really valuable knowledge. It helps you to stand hold to the pressure from the environment that is telling you that when you are not successful with something, you just need to keep trying harder and investing more. Mr. Peter helps you realise why this won't work.

I have heard that some US government institutions are actually applying Mr. Peter's discoveries in their organization.

If you liked "Parkinson's Law", you'll enjoy this book as well. (And vice versa.)

The Peter principle is a small book about hierarchies and how people act within the hierarchy. The peter principle itself states that "in a hierarchy every employee tends to rise to his level of incompetence".

In the beginning, the book explains the law and it's difficult to actually determine the authors seriousness. The points he makes seem valid, at least according my person experiences. However, the way it's written and the some paragraphs clearly suggest a not that serious undertone.

The further you read it the book, the more hilarious it becomes! In chapter 8 the author goes on to prove that Freud had actually reached his level of incompetence. Chapter 12 describes indicators for finding out if you've reached your level of incompetence, all having insane names. In chapter 15 he almost overdoes it when explaining that humans are hard on their way of reaching their level of incompence in the animal hierarchy...

The book is extremly funny and well worth reading. I'd recommend that while reading, now and then put it aside and think about the things Peter has to say. It's hilarious and ... has some truth in it?

With this simple phrase on p.15 of my edition of The Peter Principle he explained nearly every problem the human species has faced as we have entered increasingly complex organizations in the development of our civilization,

In a hierarchy every employee tends to rise to his level of incompetence given enough time and enough levels in the hierarchy

And the more I've thought about it, internalized it, experienced corporate hierarchy... the more I've realized that it explains everything.

A housing bubble caused by artificially low inflation rates? Some blame Greenspan but the reality is that he was just serving above his level of competence. It makes sense. America's colony in Iraq flubbed? Some blame Bush or his subordinates but the reality was that they were serving above their level of competence. We all do from time to time. We all think we are the exception.

As acquaintances enter the work force and through my own witness to the mindset of the low level employee, everyone seems to be focused primarily on ascending to the higher levels. Why? I think it is what we do as a species. It is our fate. I don't mean to dissuade blame from individuals, removing responsibility from personal action. I only intened to explain that we shouldn't expect success, we should expect blindingly stupid failure and then be pleasantly surprised when things aren't flubbed up. That's not being cynical or "realist". It is just recognizing human nature. Incompetence knows no boundaries of time or place.

The Peter Principle when published in 1969 raised a storm because many did not want to accept that they existed at their level of incompetence. Business people didn't take it seriously because it was written tounge-in-cheek with full blown laugh out loud moments. Far different from the bland, dry language they were used to while obtaining their MBAs. I thoroughly enjoyed the book because it is an opportune time for me to examine if I have already achieved my level of incompetence.

While the explanations of the Principle could easily be redundant... (the plot is summarized at the beginning as Dr. Peter states the principle) this book isn't redundant, like a Dilbert cartoon with some acute wisdom. Dr. Peter describes, through various case studies and examples, that every perceived exception to the Principle isn't really an exception at all. Complex hierarchies will see its members achieve the ominous final placement. Someday I too can reach this level.I can get stressed out while making poor decisions. I too can wear the badge of administrative "success": the ulcer.

This might all seem a bit pessimistic. A little defeatist. But not at all. The solution is to focus our species on moving forward instead of upwards. We see our cohorts in groups struggling for status on a, "treadmill to oblivion." But Dr. Peter clearly states that we can rescue ourselves by seeing where this unmindful escalation is leading us. If we focus on the quality of our situation we can achieve previously ignored success without obtaining a literal or figurative promotion.

By applying this principle to our everyday experience, we witness many byproducts. For example, the applied Peter Principle approximates that employees in a hierarchy, "do not truly object to incompetence, they merely gossip about incompetence to mask their envy of employees who have pull." ... with pull being the ability to develop a relationship with someone above you in the hierarchy who can pull you up with them. How poignant. We decry good `ol boy networks but rarely focus on the one thing that could break them up, changing our focus from output to input. I can put in a 40-50 hour work week but would I be more productive if I worked 30-35 hours? We may never know because a full-time job insists that I work 40-50 crushing and life imbalancing hours. Society has focused on input in this situation. Can we think of a better solution to this situation? I'll apply Peter's Bridge to this question: if you can't think of a better solution you have already reached your level of incompetence.

Although the observations made in the Peter Principle are obviously applicable to corporate environments, Laurence Peter made some other candid observations of society in these pages. Such as, exposing our modern caste system on p.64 and p.83 of the 2009 edition:

...we have a class system, it is based not on birth but on the prestige of the university one has attended. The graduate of an obscure college does not have the same opportunity for promotion... but as college degrees become the prerequisite for more jobs, soon everyone will have access to his or her level of incompetence.

...with incompetent handling, the test system is only a disguised form of random placement. The purpose of testing is to place the employee as soon as possible in a job which will utilize the highest competence level on his profile. Obviously, any promotion will be to an area of less competence.

Brilliant stuff that has played out over the last 30+ years just as Dr. Peter predicted.

The author hit the nail on the head when he discovered this principle! After years of pondering whether it's just me or if there really is such a thing as companies with huge percentages of incompetent managers, I finally feel relieved to know that I was not 'just imagining' things. The book made me take a hard look at myself and question whether I had reached my own level of incompetence, and based on the case studies in the book I started analyzing what WOULD make me reach my level. One thing I would have like to read more about is how those of us who have not yet reached their level of incompetence, can better manage the struggle with those who have reached their level and make our work days miserable.

This book is a satirical look at our highly achieving society. Work hard and you end up being incompetant. The authors make up a number of names for conditions and symptoms to attempt to say the choices you have in life are incompetancy or enjoyment through diversions. I started off reading it as a "real" social psychological work with testimonials and cases. By the end, the absurd diagnoses, which all of us show to some degree, made me realize that I believe the authors are just trying to say don't take your career too seriously.

GREAT BOOK EVEN IF I'M READING IT BY THE SECOND TIME AFTER 30 YEARS PLUS.
THIS RE-EDITION MUST BE READ BY THE CURRENT CEO'S THAT WERE STILL IN DIAPERS WHEN THE BOOK WAS FIRST PUBLISHED.

Look at the bell-curve. Not the controvertial book by Herrnstein and Murray, but the statistical bell curve used in grading and whatnot. The bell curve proves two things:

1) One half of the people you meet--that is every other person you meet--is below average.

2) Only 1/4 of the people you meet are really smart--those of the upper quartile--and in a democracy they will always be out voted.

Our hope is in that upper 25%, yet they will always be in a minority, with the lesser 75% of us misunderstanding them, or dragging them down.

Now you see how this book makes sense!

Keep in mind that a theory is only as good as it's data. Luckily, we can verify the Peter Principle rather easily. Just look around your workplace, and look at what goes on. You will see the Peter Principle in al it's glory.

A painfully true book!

If you have ever reflected (whether in detached bemusement or disgust) on the sheer incompetence which seems to pervade your world, from your place of employment, to the businesses from which you purchase your everyday goods and services, to the financial and political spheres, you will very likely enjoy this book. Even if you know its basic premise, this little tome is worth a read. Though the work was first published more than forty years ago, hardly any part of it is dated. Quite to the contrary, the arrival of the latest edition in 2009 could not have been more timely. Indeed, some of its insights, for example the power of information technology to magnify the effects of incompetence, astonish, now more than ever, by their prescience. My favorite chapter explains the tendency of our political system to propel to the top politicians with minimal governing skills. You will probably find some agreement with Prof. Peter's observations on this point, whatever your political stripes. Finally, while its nomenclature and "case studies" are over the top, the book is, in my view, very funny, much as it is meant to be. One tip: read the introduction and the glossaries first; it'll add to the overall experience.