The Peter Principle is a management theory that states the selection of a candidate for a position is based on the candidate’s performance in their current role, rather than on abilities relevant to the intended role.

Thus, employees only stop being promoted once they can no longer perform effectively, and “managers rise to the level of their incompetence.”

Promoting people to their level of incompetence is one of the biggest issues facing businesses and is extremely prevalent in the automobile business.

Dealerships spend thousands of dollars in time and money developing staff members’ “managing skills.” We’ve all observed such people. They are wizards at managing things, processes and resources.

Someone may have been an awesome new car inventory manager. They were great with details, data and were as organized as a flight director at NASA. They can organize a herd of cats, but have zero leadership skills.

One day the big opening occurs and they are promoted. Bam!

Hello “Peter Principle.”

All is not lost. People can actually learn leadership skills. Of course the best way to learn is to have great mentors.

Far too often the person that got promoted is more than likely replacing someone with similar managing skills and little or no leadership mentoring has taken place.

If CEOs and owners would spend as much time, money and energy on developing people’s leadership skills as they do on developing management skills we’d have a lot less Peters to deal with.

That’s all I’m gonna say, Tommy Gibbs