DON'T BE A VICTOM OF THE PETER PRINCIPLE

Reblogger Roy Kelley
Education & Training with Realty Group Referrals 16766

Companies make a flawed assumption that because the employee was a great individual performer in the previous job that he or she will adapt and become a leader of the team.

 

Original content by Grant Schneider

If you are growing your real estate business don't make the mistake of not growing your people. This can be a serious mistake. If you simply let people learn on the fly and promote them when needed, then you are setting them up to fail. This is so prevalent that a book called the Peter Principle was written about this phenomenon.

In 1969, Lawrence Peter wrote a humorous book titled The Peter Principle in which he postulated that, in a hierarchy people tend to be promoted to the level of their incompetence. He noted that although this is not planned it is the unintended consequence. Companies make a flawed assumption that because the employee was a great individual performer in the previous job that he or she will adapt and become a leader of the team. Inevitably, according to the Peter Principle, the person ends up being promoted to a job where they are no longer competent. This is referred to as the "level of incompetence". The employee has no chance of further promotion, thus reaching his or her career's ceiling in an organization.

We can see examples of The Peter Principle in many of our businesses. It is most commonly found in the selection and promotion of managers. Let’s use an example. Jane is a very highly performing accountant. She meets deadlines and delivers good and accurate reports for management. She is the right-hand person to the accounting manager. One day the accounting manager leaves the company for another job and management decides to promote Jane to the accounting manager position. Was this the right decision? Let’s find out.

•          What duties was Jane paid to do as an accountant?

•          What duties is Jane now paid to do as accounting manager?

Nothing is wrong with promoting Jane. In fact, we would encourage it. However, if you do nothing more to assist Jane then you are setting her up for failure. The skills that Jane used to perform as an accountant are different than those needed in her new role as manager.

This skill curve below illustrates this point.

 

skillscurve2

  As we can see here, in order to be effective as an individual performer you must utilize about 90% technical expertise with only 10% people skills.

However, at the next level in the organizational structure, the supervisory level, the curve makes its most dramatic shift, and the necessary knowledge and skills you now need to be effective on the job is about half and half. You still need a great deal of job knowledge—to train, to substitute, etc.; but, now your Number 1 responsibility is developing other people—to develop other high performing workers, to teach, to lead, and to manage.

Then, as you can see from the shift in the upper levels, the higher you go in the corporate ladder, the less you need technical skills, and the more you need good, effective management and human relations skills. At the management levels, more behavioral and management skills are required for your success.

Are you promoting and hoping for success? What do you need to do differently?  For a similar post on our web site see  DON'T SET PEOPLE UP TO FAIL.

Do you need help developing skills for leadership?

Contact us to learn more

or call 914-953-4458.

 

Real estate expertise provided by Grant Schneider on ActiveRain

 

Business Coach - Strategic Plans - Sales and Marketing Coach

Grant Schneider- Personal and Professional business coachGrant Schneider - Leadership and Business Coach Creating Successful Business Outcomes

President Performance Development Strategies

- Business Coach

- Business Performance and Strategic Business Plans 

- Sales and Marketing Coach

- Organizational Effectiveness

- Time Effectiveness and Organization

914-953-4458, Armonk NY 10504 grant@pdstrategies.com

Visit my website www.pdstrategies.com for information on how you can obtain quantum leaps in your business performance.

Helping businesses go from "good to great"

 

Perfomance Development Strategies - Westchester NY

Active Rain Top Blogger Award

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Best Practices

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
4,404,964
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for reblogging the post. I hope others will read it too and learn 

Feb 04, 2019 02:25 AM #1
Rainmaker
3,049,344
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

People promotef beyond their abilities are a recipe for disaster.

Feb 04, 2019 03:24 AM #2
Rainmaker
5,066,648
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Sally K. & David L. Hanson 

I could not correct the spelling error in the title since this is a reblog.

Feb 04, 2019 04:22 AM #3
Rainmaker
5,066,648
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Please be sure to leave comments at the original blog by Grant Schneider 

Feb 04, 2019 04:23 AM #4
Rainmaker
3,925,609
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Roy, reblogging any of Grant's post is always a good decision! 

Feb 04, 2019 06:31 AM #5
Rainmaker
4,744,964
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Great re-blog, Roy.  I saw the original post and have experienced this principle numb\erous times in my life.

Feb 04, 2019 06:39 AM #6
Rainmaker
664,357
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

Great reblog. Thanks for resharing, I hope you have a great week ahead.

Feb 04, 2019 09:37 AM #9
Rainmaker
1,749,982
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good evening Roy - thanks so much for the re blog.

Feb 04, 2019 02:46 PM #11
Rainmaker
5,066,648
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Your feedback and your continued support are very much appreciated.

Feb 11, 2019 05:29 AM #13
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
5,066,648

Roy Kelley

Ask me a question
*
*
*
*
Spam prevention