Peter principle

Popular Terms
Observation that in an hierarchy people tend to rise to "their level of incompetence." Thus, as people are promoted, they become progressively less-effective because good performance in one job does not guarantee similar performance in another. Named after the Canadian researcher Dr. Laurence J. Peter (1910-90) who popularized this observation in his 1969 book 'The Peter Principle.'

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Knowing the Peter principle and preventing employee stagnation can help to increase profits for your business in the long term.
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I really liked the Peter principle idea and incorporated performance improvement plans into my business to prevent people from becoming ineffective once they moved up.
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The peter principle was displayed in the new organization that was developed with new leadership that did not perform well.
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