Most people think that the Peter Principle (employee rises to his level of incompetence) only applies to large organizations. Let me assure you that it is also alive and well within startups. There I see founders and managers who are stalled transplants from large organizations, and technologists trying to run the business.
Forty years ago, in a satiric book named “The Peter Principle”, Dr. Laurence J. Peter first defined this phenomenon. The principle asserts that in a hierarchy, members are promoted so long as they work competently. Sooner or later they are promoted to a position at which they are no longer competent, and there they remain, unless they join a startup to get the next level.
In all environments, the move to incompetence often occurs when competent technical people try to step into management or executive positions, for which they have no aptitude, interest, or training. How many technologists have tried to run startups and failed?
To read the full, original article click on this link: Startup Professionals Musings: How to Avoid the ‘Peter Principle’ in Your Startup
Author: Martin Zwilling