The Peter Principle: Is your organization run by incompetent people?

The Peter Principle was developed by Dr. Laurence J. Peter and Raymond Hull in 1969, and asserts that “in a hierarchy every employee tends to rise to their level of incompetence”. In other words, according to this principle, organizations keep promoting employees until they reach their level of incompetence. What are ways to avoid the Peter Principle creeping into your organization?

Everyone in Human Resources is familiar with another principle: “Past performance is the best predictor of future performance.” This is a good rule of thumb, as long as the job role and the environment are not changing significantly. Put your star sales producer into a sales manager position and you might be up for a surprise. Your best leader in solid growth years might not be your go-to person in a turnaround crisis.

So what are your tools to make sure you have competent people in every position? First of all, be clear of what competencies are required for success in each job. When you promote internally, you should be just as specific and demanding as hiring externally.

Second, the 9-box assessment is a wonderfully simple way to discuss among the management, which employees have reached their limit and which ones have a great journey ahead. A 9-box grid categorizes employees based on their current performance (low-medium-high) and their future potential (low-medium-high). Based on these two dimensions, the organization can design targeted development programs for them.

Third, promote learning agility as a competency across your organization. Select employees that are eager to learn and try new things. Promote a culture that is open to feedback and change. Encourage everyone to learn from mistakes instead of looking for someone to blame. This creates an employee base that is less likely to get stuck in their level of development.

Fourth, create talent processes that systematically push new talent upwards. Define key positions and what type of competencies and experience they require. Slate high performers and high potentials for the positions, and intentionally create experiences they need to gain. Let them test their skills before they have to step up. Coach and mentor them until they are ready to move. When it’s time for promotion, they have already proven their competence. The Peter Principle can go and hover above some another organization.

If you need help with 9-box assessment or high potential development plans, contact Liisa Pursiheimo-Marcks at liisa@forteconsulting.biz or at 512-484 8263.

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Who’s in charge of employee development?

When it comes to bad guys in employee development, it is easy to point fingers. There is an employee who is only physically present when it’s time to train, and when discussing career goals, he just shrugs and says ”Dunno…” To counter that, what about that manager who never gives feedback and thinks that training is just waste of time. And to top that, how about those companies whose training budgets are cut to $0, whose departments hoard talent and hold back their top performers. So, where should the big finger point?

Employees?

Learning agility is one of the key ingredients of top performers and leaders of the future. As the amount of information and change increases, it is not enough that we get a degree and then decide we have learned all we need to know. Organizations are looking for lifelong learners; employees who adapt to new situations and know how to find information that doesn’t exist in neatly stacked binders. The concept of the job contract is also changing. A cozy career in one organization is a thing from the past. Forward looking companies manage their talent pipelines aggressively. Employees should manage their own career pipelines with equal vigor. Career development is not a one-way dialogue. Both parties benefit, when their best interests align and are actively managed.

Managers?

Managers are catalysts for growth. They can motivate their team by providing meaningful assignments, gradually increasing in challenge, or they can be boring task masters trying to drum up obedience with strict rules. Good managers provide opportunities to try out new skills while providing feedback and coaching on the way. They know how to conduct a purposeful dialogue around career and development. They celebrate successes and nudge their employees when they veer away from the right track.

Organizations?

Organizations are responsible for the environment and the infrastructure for learning. They provide the process for individual and organizational development plans. They come up with the resources for training, wisely investing more in high performers and strength building. They push for the big picture with workforce planning and for the long view with succession planning. Organizations also ensure the quality of managers who play a critical role in employee development.

So who’s in charge? Without the employee’s initiative, the manager can’t push a noodle. Without the manager’s insight and support, it’s hard to develop on the job. And without the organizational learning environment, it just wouldn’t be a priority for anyone.  To reap the full results, we need the full contribution of all three.

If you need help with gearing up your managers for better career and development discussions, or improving your organizational development processes, contact me at liisa@forteconsulting.biz or 512-484 8263.

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Social media trends and talent implications

I attended the Austin Tech Fair today, and some of the panel discussions inspired me to summarize a few thoughts around how talent requirements are being shaped by social media trends.

Social media changes how relationships are built and how collaboration works. The connectivity brings people together in a new way we are learning to embrace. Some of the competencies listed today were virtual collaboration skills, cultural competence, ability to process information and continuous learning agility.

Virtual collaboration skills become increasingly important, as teams work together across geographical and organizational boundaries. We are expected to command the technology that enables us to edit documents, facilitate discussions and coordinate projects between multiple locations. With the virtual nature of the work comes the challenge of forming authentic relationships without face-to-face contact. Those who know how to overcome this barrier will lead productive teams and successful customer interactions.

I raised a question to the panel whether they think the technology will replace some of the face-to-face interaction and what the implications might be. Scott Ingram, the Sales Director of Bazaarvoice and the founder of Network in Austin, responded that instead of replacing, the technology will complement the face-to-face interaction. In between the in-person meetings, social media enables us to keep up-to-date on the lives of our connections and thus form deeper relationships than otherwise possible.

Social media connects people across national boundaries as well. As the geographical distance becomes a non-issue, cultural competence and international business acumen increase in value.

David Armistead from Social Web Strategies pointed out the current challenge of the information overload. The talent imperative is the ability to filter and process information for competitive advantage. A related question from the audience was regarding time management. Dave Evans from Social Web Strategies stressed that one needs to be purposeful with the use of social media and allocate a certain time slot for it and not go over it.

As we are headed towards the new technological revolution, the cyber age, perhaps the most important quality of future talent is learning agility. Lifelong learning, an open mind and reinventing oneself are critical for the workforce. Many of the jobs as we know them today will not be necessary. Many of the jobs of tomorrow don’t yet exist. A career will no longer be a monolithic path, rather it will be like social media; nimble, interactive and ever-evolving.

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