Imagine this: You’ve spent years studying, honing your craft, and delivering great outcomes. Then you’re promoted to a new position, are unable to meet expectations, and begin wondering how did you go from star performer to hitting an invisible ceiling of competence?

This is the essence of a concept introduced in 1969 by Laurence J. Peter and Raymond Hull in their book “The Peter Principle.” The authors did a great job of delivering a serious message blended with a touch of humor. They argued that people rise to their “level of incompetence.” But is it inevitable? I argue that this isn’t a universal law but a failure in preparedness, one that companies and individuals can overcome together.

The pitfall

It is often the case that the Peter Principle strikes individual contributors (e.g., engineer, designer, mechanic) who transition into management roles. Many are unprepared for the change, since it requires a new set of skills. Consider a person who works with technology, manufacturing, problem-solving, then struggles to incorporate effectiveness, outcomes, empathy, and other leadership traits. Those don’t come naturally, not because of incompetency, but because of unpreparedness.

Before we proceed, let’s unpack four interconnected concepts.

• Professional development.
• Compensation and recognition for a job well done.
• Career growth and promotions.
• Enablement.

The Peter Principle speaks mostly about the last item on the list: enablement. How prepared is a person to do his/her job, especially after a promotion?

Recognition missteps and preparedness gaps

A common mix-up is to see a promotion as the outcome of a job well done. Doing a job well is rewarded with a raise, bonus, stocks, and so on. It is the financial recognition to reflect quality work at a person’s professional level. A promotion, however, signals something different—it is a lagging indicator of someone already consistently operating at the next level. Too often, a person’s past success is conflated with future potential, assigning him/her to a new role, neglecting preparation.

The downside of not being enabled in one’s job is that the person doesn’t struggle alone; their team, quality, deadline, and the company endure the consequences. And if this happens across the organization, middle management will swell with people who are unable to meet the expectations of the job, causing frustration to mount both up and down the hierarchy.

Picture a machine with gears lacking proper lubrication. It might limp for a while, but it will inevitably overheat, grind to a halt, and break. For a company, this means slower execution, declining quality, and a higher risk of being leapfrogged by competitors. Saving on training managers won’t save any costs—it’s penny-wise and pound-foolish—trading the long-term success of the company for a short-term questionable gain. Training managers is as important as many other critical investments; without it, unnecessary and avoidable friction is added to the system.

Another casualty of the Peter Principle are top performers who are held back for promotion because: One, they’re deemed too valuable at their current roles; instead, less competent people are allowed to climb the corporate ladder. Two, there is no one else trained to do the job as well as he/she does. The latter is another reason why senior employees should mentor more junior ones; the quality of the work is maintained, and they can advance in their careers.

Escape velocity

How do we escape the Peter Principle? It begins by acknowledging that this is a two-way street. People must want and be willing to learn. This means being an apprentice again, perhaps a fast-tracked one, but an apprentice nonetheless. Learning and deliberate practice of these different skills and expectations from the job become a necessary condition to be enabled to be successful as a leader.

The invisible ceiling doesn’t have to be a dead end. It’s a new challenge in a person’s professional career, but is far from being unsurmountable. With a combination of training, company participation, and an individual’s willingness to learn, the Peter Principle may become a historical concept. Your goal isn’t just to rise, but to thrive.