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posted by martyb on Friday June 15 2018, @02:57PM   Printer-friendly
from the I'm-not-competent-enough-to-judge dept.

Three authors at the Harvard Business Review briefly discuss the Peter Principle by dealing with a quantifiable data set. That principle is the one which states that people are promoted to rise to their particular level of their incompetence. At the end they propose several possible solutions or work-arounds.

The Peter Principle problem arises when the skills that make someone successful at one job level don’t translate to success in the next level. In these cases, organizations must choose whether to reward the top performer with a promotion or to instead promote the worker that has the best skill match with a managerial position. When organizations reward success in one role with a promotion to another, the usual grumbles ensue; the best engineer doesn’t make the best engineering manager, and the best professor doesn’t make the best dean. The same problem may apply to scientists, physicians, lawyers, or in any other profession where technical aptitude doesn’t necessarily translate into managerial skill.

[...] While the Peter Principle may sound intuitively plausible, it has never been empirically tested using data from many firms. To test whether firms really are passing over the best potential managers by promoting the top performers in their old roles, we examined data on the performance of salespeople and their managers at 214 firms. Sales is an ideal setting to test for the Peter Principle because, unlike other professional settings, it’s easy to identify high performing salespeople and managers — for salespeople, we know their sales records, and for the sales managers, we can measure their managerial ability as the extent to which they help improve the performance of their subordinates. The data, which come from a company that administers sales performance management software over the cloud, allow us to track the sales performance of a large number of salespeople and managers in a large number of firms. Armed with these data, we asked: Do organizations really pass over the best potential managers by promoting the best individual contributors? And if so, how do organizations manage around the Peter Principle?

[...] Both solutions can be implemented as part of the performance evaluation process. One approach, embedded in evaluation regimes like the ninebox, asks raters to decouple evaluating future career potential from prior job performance. People who score highly on future career potential can be rewarded with promotion to management roles and stock options to retain them until their potential can be realized. People who score highly on prior job performance can be rewarded with bonuses, promotions up an individual contributor track, or recognition. The process should be designed to recognize and reward excellence in one’s role without necessarily changing one’s role.

Incentive pay, dual career ladders, and thoughtful performance evaluations can recognize that people contribute to the success of the organization in different ways. But it seems that, at least in sales, companies nonetheless reward sales talent by promoting top sales workers into management.


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  • (Score: 4, Insightful) by urza9814 on Friday June 15 2018, @06:03PM (2 children)

    by urza9814 (3954) on Friday June 15 2018, @06:03PM (#693615) Journal

    Look at your crew of techies. Find the one that is, in addition to doing their own job, regularly helping the other techies. In fact, they often seem to enjoy that mentoring work more than coding themselves, and are well-regarded by their peers for all that work. That's your real team lead right there, regardless of what their job title says they are, and if you're their boss you'd do well to change their job title and salary to reflect that.

    OH GODS NO!

    That might be a good manager...or it might be someone who loves what they already do. I'm on the testing team, but I'm regularly writing entire programs for our developers, I'm helping the Unix team understand how Unix works, I'm helping the monitoring team develop new monitoring tools, I'm helping the managers manage firewall issues...but if they give me one more promotion in the management direction I'm gonna walk out and be looking for a new job the very same day. I help everyone with code and technical stuff because *that's what I love to do*. Half the time I'm doing it to procrastinate on more managerial type work. If you make me a lead, you remove that part of my job and replace it with more spreadsheets and reports, and if you do that I am OUT OF HERE.

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  • (Score: 2) by Gaaark on Friday June 15 2018, @09:17PM

    by Gaaark (41) on Friday June 15 2018, @09:17PM (#693717) Journal

    Yeah, that's what i fear: the paperwork, the meetings, the slog, the BS. BS thrown at me, i can take and deal with accordingly.

    Having to throw BS downhill because it rolled down to me? Fuck that.

    BS and paperwork, etc, will kill me everytime.

    --
    --- Please remind me if I haven't been civil to you: I'm channeling MDC. ---Gaaark 2.0 ---
  • (Score: 2) by JoeMerchant on Friday June 15 2018, @11:29PM

    by JoeMerchant (3937) on Friday June 15 2018, @11:29PM (#693761)

    Check if your organization has a "principal" or other technical (non-managerial) promotion title - if they do, take it. (I took mine, annual bonus increased by 50% and pay bumped 15%, job description essentially unchanged.)

    If they don't have such a promotional track and the place is small, suggest it. Maybe even research a couple of companies in your area where you could advance on such a track and mention that these other places have the tech-track for promotions... not a threat to leave, just an "on notice" to management that you know what's going on in the world around you - usually your management does too, sometimes they will just assume you don't and let you rot at lower pay as long as you are willing, and on rare occasions your management doesn't even know what the competition really pays for people with your skills and experience.

    --
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