the peter principal and being ready for more responsibility
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The Peter Principal And Being Ready For More Responsibility
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The Most Important Thing You can do In Your Work And…
in your career is to do
what you know. It is fine to try
new things. However, when youtry new things, you need to bevery careful that you remainfocused on the things that youknow and understand. If youventure outside of what you
understand, you are likely to getinto massive trouble and thistrouble can come quickly.
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People Who Do Well In Their Positions Are Typically Rewarded
With…
more responsibility and abetter position.
Eventually, however, this position willexceed a person’s level of expertise. Thisprinciple is called the Peter Principle, atheory originally conceived of in the late1960s by Dr. Lawrence J. Peter. Dr. Peter
Wrote: “In a hierarchically structuredadministration, people tend to bepromoted up to their level of incompetence.” In easier to understandterms, Dr. Peter wrote that “The creamrises until it sours.”
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The Idea Behind The Peter Principle Is That…
in many organizations, people
are going to keep getting thrust upwarduntil they end up failing at what they are
trying to do. What does this mean for you?First, you need to be aware that by excellingat whatever you are doing, you are likely toput yourself in a situation where you willadvance. There is nothing wrong with thisand it is healthy.
However, you need to be ready forthe next step. Second, the worst
mistake you can make is to be thrustinto a position before you are ready
for that position. If you are not readyfor a certain position, it is often wise
to make sure you do not take thisresponsibility before you are ready.
This can end up getting you fired orworse.
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Several Years Ago I Started A Magazine.
At the time, our company had at
least 100 people working in our headquarters, and one day I held a
meeting with various people from thecompany to discuss this magazine. Wehad hired numerous temporary people.We were doing a lot of work in the studentloan business at that time and we hadhired temporary employees who were paid
not more than $10 an hour to catalogue,mail and do various things like this whenneeded.
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One day, I grabbed one of theseworkers and several others and
brought them into the office. At thetime, I did not know who the tempworker was. I just noticed he did notseem that busy.
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“It’s Costing Us Over $300,000 To Get This Issue Out…
and we do not haveanywhere near enoughadvertising running in thisissue to break even!” Ibarked at the group.I instructed the temporary worker that he needed to sell at
least $100,000 in advertising, and told him that he hadthree weeks to do it. Every day or so, he would pop intomy office. One day he got an ad from Citibank. Another
day he got a law school to advertise. I did not listen tohim, I just kept barking orders at him. The poor guy hadnever worked at a job paying more than $10.00 an hour
and here he was all of a sudden being given the incrediblychallenging assignment of hustling up ads for an upstartmagazine. He was uneducated and had applied to stuff
envelopes.
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As He Sold Ads…
I started putting more and morepressure on him to sell even more. I
started yelling at him and telling him he needed to “stopbullshitting” and “start closing.” I banged my hand onmy desk and told him stuff like “now is the time foraction!” I gave him pep talks and walked over to himwhen he was cold calling advertisers and told him whathe was doing wrong.
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One Day The Guy Disappeared.
Someone came into my office andexplained that he had applied to stuff envelopes. The guy had been turnedinto a professional advertising salesperson over night. A funny thinghappened after this guy disappeared. Ihired two girls who were professionalad sales people from anothermagazine. They were each paid
$50,000 a year plus commissions.After six months on the job, countlessmeetings, having hosted a major partyfor advertisers in New York City andmore, they had sold fewer ads than theguy from the mail room had in less
than a month.
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The Guy From The Mail Room…
Was promoted into a position faster, and moreaggressively than probably even his wildest
expectations. This sort of thing happens all thetime, however. It happens in businesses
everywhere. Had he not been promoted, hemight have still been happily employed in themail room. Because he did not say “no,” heallowed himself to be thrust into a positionbeyond his comfort level and he failed. The
thing was, he actually did not fail in this
position. He believed he was failing and quit.He was uncomfortable with the work but he
actually did not fail.He did well and much
better than theprofessional salespeople I
hired later.
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One Of My Most Glorious Seasons In The Asphalt Business Was…
The time I branched out.
I did hot tar work, residential asphaltwork, commercial asphalt work,asphalt patching and I strippedparking lots. I also got into pavingand started doing commercial paving jobs. I purchased compressors tobreak up asphalt. I purchased a
jackhammer. I purchased a dumptruck and did a tremendous amountof work.
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One Day, I Was Doing A Man’s Driveway In Grosse Pointe,
Michigan and…
During the job, the man’s
wife was not allowing him tosmoke inside so he was smoking
cigarettes outside and watchingme the entire time. I was on my“evening shift” at the moment. Iworked so hard in the asphaltbusiness, frequently starting workat 5:00 or 6:00 in the morning,that around 4:00 many days Iwould drop off my exhaustedcrew and go out to do asphaltwork alone. This was one of thosedays.
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I am not sure what was wrongwith me. I think I was trying toget market share. I had somuch energy and enthusiasmfor this work it is hard todescribe. In fact, there weretimes when I was doing somelarge commercial jobs that I
literally did the work all night.
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One Of My Favorite Things To Do When Doing This Work Was
To…
Talk to the owners of the homes.
At the time, Grosse Pointe had a lot of bighomes with a lot of successful executives livingin them. I loved speaking to these men andseeing what they did for a living, the strugglesthey had overcome and more. Since a lot of the work I did was between 6:00 and 10:00 in
the evening, I had the opportunity to see lotsof people, get to know the success secrets of alot of people, as well as the secrets theyprobably would rather I not know.
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exceptionally helpful and usefulinformation. I got to meet the CEOs and high
ranking executives of all the auto companies, andpeople who owned and controlled well-knownbusinesses around Detroit and the world.
For The Most Part, However, What I Learned Was…
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On This Particular Evening, The Man Smoking While He
Watched…
Me do my work explained to me thathe owned a giant construction
company that built small strip mallsaround Detroit. For me, jobs like thiswere great because they alwaysended up leading to even more work.I loved meeting business ownersduring my work in the evening
because if they owned a business Iwould do whatever I could to get thisbusiness as a client.
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The Discussion Turned Out Well.
The man was in the processof rebuilding a smallbuilding in a city called
West Bloomfield, around 70miles away. He asked me to go over and give him an
estimate for ripping out the existing parkinglot, building a giant divider going through theparking lot, putting curbs in and striping the
parking lot. It was a huge task he had inmind and I was certainly very enthusiasticabout the entire job. The only problem wasthat I had never ripped up a parking lot, builta parking lot, or done any paving. I knewvery little about paving at this particular
point in my life.
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“If you work with me you are going to bevery successful in the asphalt business,”
the man told me. It was clear from ourdiscussion that I needed to ensure that I dida good job with this asphalt at all costs.
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When I Arrived At The Work Site To Give An Estimate…
it was the most professional job Ihad ever been involved in.
This was a large project and being veryprofessionally run. There were foremen andvarious men in hard hats running around withengineering schemata. They sat me down in atrailer they had brought to the constructionsite and reviewed various architectural planswith me. They spoke about thinks like “pitch”and “elevation” and “grade.” I had no ideawhat the hell any of them were talking about.
“You say you want me to rip outthe parking lot?” I asked.
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They Looked at Me Like I Was Crazy
The guys going over the engineering
schemata seemed like they wereengineers. Here I was, standing herein shorts with tar all over my face,
and at the time was around 22 yearsold. It must have been a really sorry
sight.
I gave an estimate of $1,500 to dothe entire project.
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This Estimate WasInsane
This Estimate WasInsane
In fact, the estimate should have been morelike $20,000 for the entire project. I did notknow this at the time, however. I had no
idea because I was doing something I did notunderstand. My estimate was accepted and I
was assigned a construction manager whosetask became to call me every day until the
work was done.
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It Must Have Been A Sorry Sight The First Day I Pulled Up To The
Job
I had 4 guys driving a ChevySuburban who were towing a smallcompressor behind the truck. I had
another couple of guys towing a BobCat, which is a small bulldozer. I
was driving a 30 year old dump truckthat barely made it to the job site.When we got there, probably 60 or
70 other people were busy withvarious tasks involved in building.
There were people in hard hats andpeople with engineering documents
spread out on tables.
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I Directed My Men To Take The Compressor And Start Breaking
Up the Parking Lot
I was not sure what else to do. For the entire daywe used sledge hammers and the jack hammer(which is why we had the compressor) to break
away at the asphalt. We picked up load after loadof the parking lot and put various pieces of it in the
dump truck.
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We Broke A Gas Lineunderneath the parking lot with the
bulldozer. It was a complete
disaster. I still remember the workerlifting out the piece of asphalt withthe gas line still attached to it. Hewas completely oblivious to themagnitude of what was going
on. Because our work was such an
unprofessional operation (my workerswere doing things like dropping giant
pieces of asphalt on their feet byaccident, and then hopping around inpain, etc.) a small crowd of workers
had gathered to watch us with
expressions bordering betweenamusement and shock.
Around 1:00 In The Afternoon…
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When We Ripped Up The Gas Line, Though, Everything Changed
Men started screaming, someone cut
all of the power to the building and it was so muchcommotion I did not know what had happened.Some guy charged the driver of the Bobcat andpractically knocked him out of the bulldozer. Thefire department was called, and within momentsthe gas company arrived.
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Everything worked out okay afteran hour or two. I was given a cell
phone and it was the guy who hadgiven me the job.
“You need to bemore careful
reviewing plans,”he told me. “Thegas line wasclearly indicated
there.”
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Did not know how to readplans.
He told me that they would deduct thecost of redoing the pipe from the $1,500
they were going to pay me.
The Last Thing I Wanted To Tell Him Was That I…
That evening, as I was driving my dump truck back to where westored all the equipment in Detroit (we called it “the Yard”) and
I realized I did not know where to take all of the brokenasphalt. I figured there must be a dump of some sort where I
could take everything. As I was driving down the streets of Detroit, I looked around me from side to side and realized therewas row after row of abandoned houses and lots. Mattressesand large piles of trash were on many of the lots. I took all the
asphalt and dumped it in an abandoned lot.
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When I Got Home That Evening I Realized That…
I had spent more than $1,500 on
the job already and I was alsofacing a deduction due to burstinga gas pump. Over the next severaldays I spent thousands more onthe job and eventually, like the guyin the mail room, I too did not
show up for work.
I called the guy who had hired me:
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“This Is Not A $1,500 job And You Know It…
I have spent close to $10,000 of myown money on this already. This is notfair and you are smart enough to knowthat I was not experienced enough to
do this work and was not giving you the
correct bid.”
The man was unsympathetic. He didnot care that I had made a mistake. I
felt horrible about this for severalyears. I had never abandoned a job or
quit something, but I had gotten in wayover my head. You want to be motivated. You want to succeed. You want to take onnew tasks. But you never want to get ahead of yourself and take on
work you are incapable of doing. What ends up happening when youdo this is you sabotage everything. You end up losing your job or,
even worse, your competence.
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But there is nothing wrong with onlyrising when you are ready and have agood understanding of the challenges
before you. Do not take on moreresponsibility or work than you arecapable of before you are ready.
You Want to Rise…