Hidden Talents, Winning Teams (part 6)
How can you use the "Reverse Peter Principle" to make better decisions?
Last week, we discussed the “Reverse Peter Principle,” a phenomenon in which some people do not “rise to the level of their incompetence” but instead perform better as they rise into more and more challenging situations. We moved on from Derrick White to discuss Winston Churchill and Howard Shultz. Today, we will try to get more practical about what you can do differently based on the Reverse Peter Principle.
First, let’s look at a business example in a company in which both of us have experience: McKinsey.
To become a Senior Partner at McKinsey, you need to succeed as a Partner. To be elected a partner, you must be a highly effective Associate Partner. Before that, you need succeed as an Engagement Manager, an Associate, and an Analyst. If you are an average or below-average analyst, you will not under any circumstances rise to the level of Partner.
But wait. Does what makes a successful Analyst also make a successful Senior Partner? Not really. As described in the previous post, both roles require strong structured problem-solving skills and top-down communication skills. But succeeding as an Analyst mostly involves developing expertise in Microsoft Excel and PowerPoint, rapidly iterating pages based on often vague feedback, and conducting and synthesizing standard research interviews. None of these skills have any relevance at the senior level. They are the consulting equivalent of scoring 1-on-1 against a set defense for Derrick White.
If you think about your company, it is highly likely that a similar thing is happening. There are people who could potentially be great in leadership roles, but who will not get the chance to do so because they fail in skills that are irrelevant to those roles, but relevant to their lower positions.
So what can we take away from this?
In our view, three important things:
Look more broadly for potential leaders. They may be found in unexpected places.
Be humble. Realize that your judgment about who will succeed may be wrong. Getting these decisions right is always an inexact science. Prepare, monitor, and adjust.
Do not assume that the best person at one level will be the best at the next level. Instead, be deliberate about the skills required to succeed at the higher level, and look for and develop those—even if they are not the most important skills at an employee’s current level.
Note that following these tips, while helpful in identifying and preparing leaders, may set you up for grumbling within the organization if not handled carefully and transparently. If Person A has higher performance reviews than Person B, but is passed over for a promotion, Person A could very well feel mistreated and perhaps even discriminated against, putting the company at risk.
To avoid this reaction, be very transparent about the criteria being used to make leadership decisions, the criteria being used to measure performance in the current role, the differences between the two, and the reasons for these differences. For instance, accurate and efficient completion of technical tasks may comprise, say, 70% of an individual’s performance review in their current role, but may have a minimal impact on the decision regarding whether to elect that person to a leadership position. It is important to be transparent about these differences to ensure that technical experts do not feel hard done by if passed over, and can receive adequate growth opportunities to develop and demonstrate the needed leadership skills.
We may wish to look for ways to test the specific skills needed for the next role, within their current role. It is important to be objective about the factual results of these tests. As Nobel-Laureate Daniel Kahneman demonstrated, our ability to predict success based on intuition is severely limited. The more objective we can make the process, the better.
So that is the “Reverse Peter Principle.” With that, we end our sports-related series on how hidden talents can contribute to winning teams. Next week, we will summarize this series and describe how you can make it work for you.
Thanks,
The Impactful Executive Team
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