DON'T BE A VICTIM OF THE PETER PRINCIPLE

Reblogger Debbie Reynolds
Real Estate Agent with Platinum Properties TN Broker: 208698

This is a great post and has some serious consequences that could result if the advice is not taken.

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

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- Business Performance and Strategic Business Plans 

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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.

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Rainmaker
3,361,305
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Debbie. I have this one all but memorized. Grant sums it up well! Enjoy your day!

Nov 28, 2018 05:02 AM #1
Rainmaker
1,717,914
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

Anything that Grant Schneider writes is worth reposting.  Thanks - since I  missed it when Grant wrote it! 

Nov 28, 2018 05:31 AM #2
Rainmaker
3,690,542
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Debbie. This is a terrific and I believe Grant has it down. Now off to tell him.

Nov 28, 2018 05:40 AM #3
Rainmaker
5,117,220
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, Debbie Reynolds this is a great selection for a reblog....but everything provided by Grant is "top shelf"...

Nov 28, 2018 06:47 AM #4
Ambassador
1,655,466
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I read the book when it came out and one can spot numerous examples of this.

Nov 28, 2018 07:30 AM #5
Rainmaker
1,990,508
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Debbie - I appreciate the re blog.  One thing I find too is that first line supervisor think that have to show their staff their worth by knowing all of the individual duties.  Not so.

Nov 28, 2018 08:21 AM #6
Ambassador
1,926,397
Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Debbie Reynolds  Grant always writes great posts missed this one

Nov 28, 2018 09:39 AM #7
Rainmaker
3,300,181
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Excellent....and no surprise...growing into a position...sometimes.

Nov 28, 2018 06:09 PM #8
Rainer
411,819
Dan Hopper
Keller Williams Realty Downtown LLC - Denver, CO
Denver Realtor / Author / Advocate/Short Sale

Great advice from GRANT SCHNEIDER , now, we as real estate professionals can take this to our level... and that is working neighborhoods or certain properties that limits OUR competency, impacting the propert service to the buyer / seller communities, thus making us incompetent (Peter principle)

Nov 29, 2018 08:34 AM #9
Rainmaker
5,499,696
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much, Debbie, for sharing this excellent reblog selection.

Nov 29, 2018 10:18 AM #10
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Debbie Reynolds

Your Dedicated Clarksville TN Real Estate Agent
Clarksville and Real Estate are my specialities! May I help you?
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