Welcome back to the Corporate Politics 101 series! In my previous post, I updated the infamous Peter Principle for the 2020s. Whereas employees used to rise to their level of incompetence, now they leave and perform the role badly for a different company! Project managers and middle managers unite…and become lateral hires.

In this post, I’ll look at a corollary to the previous one. Since lots of bad managers hop ship to a different company, competence tends to drop as one looks up the corporate hierarchy.

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I think quite a few old timers know about the Peter Principle. But for anyone who doesn’t, the basic idea is that people keep getting promoted for doing a good job until they get to a level in the corporate hierarchy where they can’t do a good job. And so, they stagnate at that level. Stated simply, the Peter Principle says that people ‘rise to their level of incompetence.’

Neat trick, right?

Does it still work in the 2020s? Sort of. The major difference now is that people rarely stick around at the same company long enough to fulfill the Peter Principle. At the very least, they spend only a few years at their level of incompetence. Maybe they stick it out for 5-10 years. And then they make a parallel move to a new company!

That shows the need for an updated Peter Principle. When people hit their level of incompetence, they go to a new company and perform the job incompetently over there.

What’s fun about today’s corporate world is that HR plays directly into this. By requiring years of experience in a job to get hired into that job, HR discourages good employees from applying for a promotion into a job they might do well. Instead, they hire experienced, but mediocre, middle managers and project managers.

Go figure.

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