Book Notes #34: The Peter Principle by Laurence J. Peter and Raymond Hull

Title: Peter Principle: Why Things Always Go Wrong
Author: Laurence J. Peter and Raymond Hull
Year: 1972
Pages: 192

The Peter Principle is a book written by Dr. Laurence J. Peter and Raymond Hull, first published in 1969, that presents the concept of the “Peter Principle”, which states that in a hierarchy, members are promoted based on their success in their current role, rather than their ability to perform the tasks of the next level, and eventually, they rise to their “level of incompetence.”

Have you ever looked around your workplace and wondered how certain people ended up in charge? Or maybe you’ve felt the weight of a promotion that looked great on paper but didn’t fit in real life. If so, you’re not alone—and you’re not crazy.

The Peter Principle puts a name to this strange, frustrating pattern: people get promoted until they’re no longer good at their jobs. It’s funny, it’s sharp, and it’s uncomfortably true. But it’s also eye-opening in the best way.

This book helps us understand why hierarchies fail—and how we can protect ourselves from falling into the same trap.

As a result, I gave this book a rating of 8.0/10.

For me, a book with a note 10 is one I consider reading again every year. Among the books I rank with 10, for example, are How to Win Friends and Influence People and Factfulness.

3 Reasons to Read The Peter Principle

Book Overview

We’re taught to climb. From school awards to career ladders, the message is clear: move up, get promoted, aim higher. Success, we’re told, is linear. But what if the very system that pushes us upward is the reason things start to fall apart?

That’s the provocative idea behind The Peter Principle by Laurence J. Peter and Raymond Hull. On the surface, it’s a funny little book filled with office anecdotes, awkward promotions, and quirky organizational behavior. But don’t let the light tone fool you—this book delivers a sharp, unsettling insight into how hierarchies really work. And once you see it, it’s hard to unsee.

At the heart of it all is a deceptively simple observation: in a hierarchy, every employee tends to rise to their level of incompetence. You do a good job, you get promoted. You keep doing a good job, you get promoted again. But eventually, you land in a role that requires skills you don’t have. You can’t perform well anymore—but you don’t get demoted. You just stay there, stuck. That’s your final placement. And that’s where you remain.

It sounds absurd. But as Peter walks you through story after story—teachers turned supervisors who forget how to speak to adults, engineers promoted to managers who freeze in meetings, brilliant technicians made miserable by paperwork—it starts to feel disturbingly familiar. This isn’t theory. It’s your office, your school, your government agency. It’s everywhere.

What makes this book brilliant is how it mixes humor with painful truth. Peter doesn’t scold or moralize. Instead, he observes. He shows you the principal who can’t deal with parents, so he hides behind policy. The manager who avoids making decisions, so he builds a maze of meetings and memos to keep busy. The quiet competence of those still in roles that match their abilities—and how they carry the whole system on their backs.

As you move through the chapters, the book slowly shifts from funny to unsettling. Because you start to realize this isn’t just about work—it’s about how we define success. We reward visibility, ambition, and conformity. But we rarely ask the most important question: Is this person actually good at the next job?

And that’s where the book gets deeper. Peter explores how people behave when they know, even subconsciously, that they’re no longer performing. Some become rigid. Others retreat into routine. Some get sick. Some get political. They don’t want to fail—but the system has placed them in a position where failure is almost guaranteed. So they manage appearances. They follow rules. They give long speeches full of empty phrases. All of it is a shield.

The most human parts of the book are the chapters where Peter describes what it feels like to be in that position. The anxiety. The guilt. The overcompensation. And the slow slide from confidence to caution to passivity. These aren’t bad people. They’re victims of a system that confuses performance with potential.

But it’s not all bleak. One of the most surprising and delightful ideas in the book is what Peter calls “creative incompetence.” If you know promotion might lead you somewhere you don’t belong, why not stay put? And if the system won’t let you say no, maybe you “accidentally” forget to wear a tie to the interview. Maybe you misplace that important form just often enough to avoid being “management material.” It’s satire, yes—but it’s also strategy. It’s a quiet form of rebellion from people who know exactly where they do their best work.

The book ends with a bigger idea—maybe too big to fully digest in one go. Peter extends his principle to evolution itself, suggesting that species can evolve traits so specialized that they become incapable of adapting. In other words, success taken too far becomes its own downfall. And if we don’t recognize that, we might be building not just dysfunctional teams—but fragile societies.

What makes The Peter Principle so effective is that it doesn’t try to fix the system. It just shows it to you—clearly, sharply, and with just enough humor to soften the blow. It doesn’t promise a solution. But it does offer awareness. And in a world full of status games, performance reviews, and endless upward mobility, that awareness is quietly radical.

You might never look at promotions—or the people giving them—the same way again.

Chapter by Chapter

Chapter 1 – The Peter Principle

The author explains the central idea that drives the entire book: in any hierarchy, every employee tends to rise to their level of incompetence. This is the Peter Principle. It’s a bold claim, but the chapter sets it up with a mix of personal observation, real-world cases, and a touch of humor.

Laurence J. Peter begins by sharing his own disillusionment. As a young teacher, he believed that those in higher positions were more knowledgeable and capable. But the more he worked in the education system, the more he noticed that many people in charge didn’t seem competent at all. Principals were more concerned with blinds being aligned and flowerbeds staying untouched than with actual learning outcomes. Superintendents were preoccupied with not offending anyone or filing paperwork correctly. It seemed like the job of educating children was nowhere near the top of their priorities.

He thought maybe this was just a local problem. But as he moved through different systems and even across provinces, he saw the same thing: people in positions of authority who couldn’t do their jobs effectively. That’s when he began to suspect a pattern. The incompetence wasn’t random. It was built into the way organizations worked.

This led to the big idea: in a hierarchy, people are promoted based on how well they do their current job—not on how well they might do the next one. So, someone good at a technical job might be promoted to management, where the skills required are entirely different. If they’re not good at that new role, they stay stuck there—unable to be promoted further, but also unable to perform effectively. They’ve reached their “level of incompetence.”

To make his case, Peter brings in real examples from a variety of settings:

• A maintenance foreman, friendly and cooperative, gets promoted to superintendent but continues agreeing with everyone, causing chaos and delays because he can’t make firm decisions.
• A talented mechanic gets promoted to shop foreman, but his perfectionism and hands-on habits jam the workflow and frustrate everyone.
• A beloved general becomes a field marshal but can’t handle diplomacy or strategy, eventually withdrawing from leadership altogether.

The pattern is clear: people are often promoted until they land in a role they can’t handle, and there they stay.

This is where Peter introduces the actual Peter Principle: “In a hierarchy every employee tends to rise to his level of incompetence.” And because of that, over time, most positions in an organization tend to be filled by people who aren’t good at their jobs.

But work still gets done, Peter notes, thanks to the people who haven’t yet been promoted to their own level of incompetence. They’re the ones who are still competent—and they carry the organization on their backs.

By the end of the chapter, the idea feels surprisingly intuitive. Once you see it, you can’t unsee it. From businesses to governments to schools, this quiet force seems to be shaping everything. And perhaps most provocatively, it means that success can actually lead to failure—not because someone changes, but because the system keeps pushing people upward until they break.

This chapter sets the stage for the rest of the book. It doesn’t just describe a quirky organizational flaw—it uncovers a structural problem that affects almost everyone. And the scary part? Once someone hits their level of incompetence, they’re likely stuck there.

Chapter 2 – The Principle in Action

This chapter takes the Peter Principle from theory to reality, showing what it looks like in everyday organizations. Now that we understand the idea—that people rise to their level of incompetence—Laurence J. Peter shows us how it actually plays out, especially in schools, but also in other sectors like the military and service industries.

He starts by zeroing in on the school system of “Excelsior City,” using it as a case study to examine a typical hierarchy. We’re introduced to teachers, principals, and administrators who have all, in one way or another, reached positions they’re not equipped to handle. The results are sometimes comical, often frustrating, and always telling.

One example is a teacher named Miss Ditto. She was a perfect student—always followed instructions, never stepped out of line. Naturally, she teaches the same way: by the book, to the letter, no deviation. One day, when her classroom floods due to a burst pipe, she keeps teaching because she didn’t hear the emergency bell. Her rigid obedience to rules makes her unable to respond to a real situation. She’s not promoted—not because she breaks the rules, but because she can’t think beyond them. She’s stuck at her level of incompetence.

Then there’s Mr. Beeker, a science teacher who was fantastic with students and experiments but terrible at paperwork. Once promoted to department head, his job shifts to ordering supplies and keeping records, which he fumbles badly. He orders Bunsen burners for three years in a row but forgets to order the tubing needed to actually use them. He was great as a teacher, but a disaster as a manager. He didn’t change—the job did.

The same pattern repeats at higher levels. B. Lunt, a well-liked assistant principal, gets promoted to principal but can’t handle the demands of external relations, politics, and community involvement. R. Driver, an even higher-up, turns out to be so autocratic and inflexible in meetings that he alienates everyone around him. G. Spender, the superintendent, is smart and polished—but clueless about finances. He wastes money on teaching machines and TV systems that nobody needs or knows how to use.

Even staff promotions—where someone moves from a “line” role to a more specialized advisory role—follow the same trend. Take Miss Totland. She was a fantastic primary school teacher but is now a supervisor of teachers. The problem? She talks to adults the same way she talked to five-year-olds—slowly, cheerfully, and condescendingly. It annoys everyone. Her communication style doesn’t fit the new job, and she’s now seen as ineffective.

These stories all hammer home the same idea: competence in one role doesn’t guarantee competence in the next. In fact, success in one job often leads directly to failure in the next, simply because the skills don’t transfer.

Peter also makes a clever observation: in every hierarchy, “the cream rises until it sours.” It’s a funny line with a sharp edge. We’re trained to expect that good performance leads to promotion—but the system never stops to ask whether someone will be good at the next thing. And so, time after time, we see capable people pushed into roles that turn them into bottlenecks, micromanagers, or dead weight.

The chapter ends by challenging the reader to look around their own organization and see who has reached their level of incompetence. And even more uncomfortably—to look in the mirror and ask: Have I?

In short, this chapter makes the Peter Principle feel real. It’s not just a theory—it’s everywhere. And once you start noticing it, it’s impossible to unsee.

Chapter 3 – Apparent Exceptions

In this chapter, the author addresses a natural question: “Aren’t there exceptions to the Peter Principle?” As you read through the examples in the previous chapters, it’s easy to think of people who don’t seem to fit the pattern. So Peter takes time to break down what might look like exceptions—but actually aren’t.

He introduces several clever terms for these “false exceptions,” and each one reveals more about how hierarchies work under the surface.

First up is the “Percussive Sublimation.” This is when an incompetent employee is “kicked upstairs.” They’re promoted—not because they deserve it, but to get them out of the way. On paper, it looks like a promotion, but it’s really just a way to move a problem somewhere else.

Peter points out that these moves don’t actually solve anything. The employee still contributes little or nothing of value, but now they just do it in a different (often more distant) office. However, these pseudo-promotions serve three key purposes: they help management save face, maintain employee morale (because it gives the illusion of upward movement), and keep potentially dangerous or disgruntled employees close—rather than fired and possibly working for a competitor.

Then comes the “Lateral Arabesque.” This one’s sneaky. Instead of a vertical promotion, the employee is moved sideways into a new role with a fancy title but no real responsibility. It’s a way to sideline someone without technically demoting them. Peter gives the example of a man who was moved from office manager to “coordinator of interdepartmental communications” where he simply filed copies of memos—an impressive title, but no impact. Larger organizations are especially good at this kind of quiet maneuvering.

Then there’s “Peter’s Inversion.” This one’s particularly interesting. It refers to cases where people in an organization seem competent to outsiders, but are actually just good at playing the system. These employees don’t focus on results—they focus on appearances. They follow the rules, fill out the forms, show up on time, and never question authority. From the inside, their behavior is rewarded as “competent.” But from the outside, they’re seen as robotic or unhelpful.

Peter calls this kind of person a “professional automaton.” They often rise through the ranks simply because they follow all the rules and rituals—even if they don’t actually accomplish anything meaningful. In a way, they’ve inverted the original purpose of the organization: instead of the system serving the public, the public exists to serve the system.

The next supposed exception is what Peter calls “Hierarchal Exfoliation.” This happens when someone is so far outside the norm—either too competent or too incompetent—that they’re forced out of the organization entirely. That might sound like an exception to the Peter Principle, but it’s not. Peter argues that super-competent people are just as disruptive to a hierarchy as incompetent ones. They threaten the system because they don’t play by its unwritten rules, and they make others look bad. So, ironically, both the worst and the best performers often get pushed out—not promoted.

There are examples here of teachers who do too well, inspiring kids to learn more than the curriculum allows. Instead of being rewarded, they’re seen as troublemakers and dismissed. It’s a painful reminder that success, if it doesn’t fit the mold, is often punished.

Lastly, he introduces “The Paternal In-Step.” This one’s about nepotism and favoritism. Someone is placed directly into a high-level role—not because they earned it, but because they know the right people. This can happen in family businesses, but also in politics and public administration. It seems to violate the Peter Principle because it skips the usual promotional path, but it still fits the rule: eventually, the person hits their level of incompetence. They just start higher up.

Throughout the chapter, Peter makes one thing clear: what seem like exceptions to his principle are usually just clever organizational maneuvers or special cases that still lead to the same result. In other words, the Peter Principle still holds—just with a few detours, sideways moves, or creative disguises.

The key lesson here is that hierarchies have built-in ways to look like they’re working, even when they’re not. Whether it’s by inventing new titles, burying incompetence under layers of bureaucracy, or punishing those who stand out too much, the system always protects itself.

Chapter 4 – Pull & Promotion

This chapter dives into one of the biggest drivers of career progression in any hierarchy: “pull.” Peter defines it simply as “an employee’s relationship—by blood, marriage or acquaintance—with a person above him in the hierarchy.” In other words, it’s not always talent or performance that gets you ahead—it’s who you know.

He opens with an example that sets the tone: in Excelsior City, the newly appointed superintendent of schools promotes his own son-in-law to music supervisor, despite the fact that he’s hard of hearing. People protest, not necessarily because of the hearing issue, but because this kind of promotion breaks the unspoken rules of seniority. The message is clear: in a hierarchy, people may tolerate incompetence—but they hate it when someone skips the line.

Peter calls this Peter’s Paradox: it’s not incompetence that frustrates people—it’s unfair advantage. The truth is, people will accept an incompetent boss if that person got the job “fairly.” But if someone leapfrogs the hierarchy through connections, resentment kicks in fast.

Then comes the practical side: how to actually get pull. Peter isn’t just analyzing—it almost feels like he’s giving tongue-in-cheek advice for how to use the system to your advantage. He lays out five steps for aspiring “pullees”:

1. Find a patron. This is someone higher up who can help you rise. But it’s not always obvious who has influence. Your direct manager might be at their own level of incompetence, so their support won’t help. You need to identify who actually holds power—and get close to them.
2. Motivate the patron. People don’t help others for no reason. You have to make it worth their while—either by providing value or making them look good. Peter doesn’t spell it all out here (he leaves this as a test), but the message is: don’t expect handouts.
3. Get out from under. If the person above you is stuck at their level of incompetence and won’t move, you’re stuck too. Peter calls this “Peter’s Pretty Pass”—when your path is blocked by someone who isn’t going anywhere. The solution? “Peter’s Circumambulation”—finding a different path around them, either by changing departments or roles.
4. Be flexible. Don’t tie yourself to one patron forever. Once they’ve taken you as far as they can, find a new one. Loyalty won’t get you promoted—mobility will.
5. Get multiple patrons. Here, Peter introduces “Hull’s Theorem”: the more patrons you have, the stronger your pull—because they validate each other’s opinions about you. They talk, reinforce your reputation, and create momentum for your promotion.

There’s an almost playful tone to this section, but the message underneath is serious. Pull is powerful. It can override seniority, ignore performance, and catapult people up the hierarchy. But it’s also dangerous: it creates perceptions of unfairness, weakens merit-based systems, and reinforces the Peter Principle by promoting people into roles they can’t handle.

Peter ends the chapter with a catchphrase: “Why wait? Escalate!!!” It’s cheeky, but it captures the spirit of the chapter. If you want to rise in a hierarchy, don’t just rely on your work—learn how the system really works.

And more often than not, that means mastering the art of pull.

Chapter 5 – Push & Promotion

While the previous chapter was all about being pulled upward by others, this one flips the perspective and explores “push”—the internal force that drives a person to climb the hierarchy, whether they’re ready or not. Peter defines push as “the sum of those inner drives which impel an employee toward higher rank in the hierarchy.”

Where pull is about who you know, push is about who you think you are—or want to be. It’s ambition, restlessness, ego, and sometimes insecurity, all rolled into one.

Peter points out that push is often seen as a good thing—especially in Western societies, where ambition is praised. But here’s the twist: push can drive someone straight into their level of incompetence. Just like pull, it doesn’t guarantee success—it just accelerates the path to failure.

He gives several examples of pushers:

• The teacher who gets tired of the classroom grind and dreams of a cozy office with less chaos and more status. She pushes for a promotion to a supervisory role, not because she’s good at leading other teachers, but because she’s tired of the noise and mess of teaching.
• The shop assistant who grows bored of their routine and believes a bigger desk and fancier title will bring satisfaction—only to find the new job is even more stressful and less enjoyable.

Push is often based on fantasy. People imagine the next level will be better, easier, or more fulfilling. But once they get there, they realize the reality doesn’t match the dream. Now they’re stuck in a job they don’t enjoy—and can’t escape from.

Peter also highlights that push can come from status anxiety. People don’t want to seem like they’re standing still. So they chase promotions just to keep up appearances. In some cases, this is driven by competition—seeing coworkers move ahead lights a fire under someone, even if they’re not ready for more responsibility.

And there’s another wrinkle: sometimes people push themselves up because of guilt. A person may feel they owe it to their family, their boss, or even their younger self to “do more.” But again, that pressure doesn’t ensure they’ll be any good at the next job. It just increases the likelihood of misfit.

What makes push so tricky is that it’s invisible. Unlike pull, which involves networking and favors that others can see, push is internal. It’s about motives, dreams, and self-deception. And that’s why it’s so powerful—it can feel noble and personal, even when it leads to disaster.

Peter sums up the difference neatly: Pull gets you the chance. Push makes you take it.

But without the actual competence to match the new role, the result is still the same: promotion to a level where you can no longer perform. Whether you’re pushed or pulled, you still land in a role that becomes your ceiling.

This chapter is a reminder that ambition—while admired—needs to be paired with self-awareness. Otherwise, the very drive that gets you noticed can also be the thing that derails your career.

Chapter 6 – Followers & Leaders

This chapter turns the focus to the dynamic between leaders and followers—and how the Peter Principle affects both sides of the equation. Peter starts with a sharp observation: if most leaders have risen to their level of incompetence, then what about the people they lead? And more importantly, what makes someone a follower instead of a leader?

He begins with a quote: “Without followers, a leader is just a man taking a walk.” It’s clever, but also deeply revealing. Leadership isn’t just about position or authority—it’s about having people willing to follow. But in the hierarchy, those followers aren’t always there because they want to be. Often, they’re stuck under leaders who can no longer lead effectively.

Peter breaks down two kinds of followers: the passive and the active.

Passive followers are the classic rule-followers. They avoid responsibility, don’t question decisions, and are happy to blend into the background. They’re not necessarily incompetent—but they’re content to stay within their comfort zone. These are the people who never rock the boat and never seek promotion. They’re “safe” but unremarkable.

Then there are the active followers. They’re ambitious, engaged, and often more competent than the people above them. But because of the Peter Principle, they eventually reach their own level of incompetence—or worse, they’re blocked by someone who already has. These are the ones who burn out, get frustrated, or leave the organization.

Peter explains that many so-called “leaders” aren’t really leading—they’re simply occupying a leadership position. Their authority comes from the hierarchy, not from vision, courage, or skill. This is where the Peter Principle becomes most visible: people who are technically “in charge” but aren’t actually capable of guiding others.

He also introduces a subtle but powerful idea: many people avoid leadership not because they lack skill, but because they’ve seen what happens to those who accept it. They’ve watched competent people get promoted into roles they hate or can’t handle, and they choose to stay put. These “non-leaders” might be the most competent people in the organization—but they refuse to take the next step because they understand what comes with it.

There’s also a section where Peter reflects on loyalty. He suggests that loyalty to an incompetent leader often forces followers to become incompetent themselves. If your boss is bad at their job and you try to cover for them, adapt to them, or avoid upsetting them, you start acting in ways that go against good performance. Over time, this drags everyone down.

And here’s where it gets even more interesting: sometimes followers are promoted not because they lead, but because they obey. The system rewards those who don’t challenge authority. So you end up with a chain of command full of obedient—but ineffective—people. And because real leadership is threatening to the hierarchy, it often gets pushed aside.

Peter’s takeaway is that the Peter Principle doesn’t just affect individuals—it shapes the entire structure of leadership. It explains why so many organizations feel stagnant, uncreative, and bureaucratic. Real leadership is rare—not because it’s hard to find, but because the system isn’t built to recognize or reward it.

In short, this chapter challenges the romantic idea of leadership. It shows how hierarchies reward compliance over competence, and how even the most promising followers can end up trapped under someone else’s incompetence—or their own.

Chapter 7 – Hierarchiology & Politics

This chapter dives into the “science” Peter humorously calls hierarchiology—the study of hierarchies and how they actually function, especially when politics comes into play. It’s one of the most revealing chapters because it exposes the often hidden—but very real—mechanics of power, influence, and control in organizations.

Peter starts with a simple but brutal truth: the higher someone rises in a hierarchy, the more energy they devote to preserving the hierarchy itself. Once a person reaches their level of incompetence, their focus naturally shifts away from innovation, creativity, or even productivity. Instead, their main concern becomes protecting their position.

This is where politics becomes a survival tool. Since competence can no longer help them rise, and they can’t go back down without losing face, these individuals become experts in organizational maneuvering. They focus on appearances, alliances, rituals, and bureaucracy—all the tools that help them stay in place without actually doing the job effectively.

Peter calls this stage “final placement.” It’s the point at which an employee can’t go any higher and has no intention of going lower. So instead of performing, they learn how to maintain the illusion of performance.

He offers examples of behaviors that define this stage:

• Creating complex paperwork or procedures to look busy
• Attending endless meetings without outcomes
• Obsessing over titles, office size, and protocol
• Blocking others’ promotions or ideas to avoid competition
• Emphasizing loyalty over results

One striking observation Peter makes is that incompetence is often masked by excessive formality. People who aren’t good at their jobs might cling to rituals—like dress codes, structured agendas, or long-winded memos—to seem competent. In contrast, those who are actually doing the work tend to be more relaxed, informal, and focused on results rather than appearances.

Then comes a crucial idea: the power of vocabulary. Peter notes that as people rise through the hierarchy, their language often shifts from direct and simple to abstract and vague. Instead of saying “the students are failing,” an administrator might say, “We are experiencing a transitional learning curve in alignment with pedagogical realignment.” It sounds smart, but it says nothing.

This kind of “semantic fog” is used to avoid accountability. The more abstract the language, the harder it is to measure real outcomes—and the easier it is to defend poor performance. It’s not failure, it’s “suboptimal alignment with strategic outcomes.”

Peter also explains that hierarchies naturally resist change. People at the top have the most to lose, so even if the system isn’t working, they’ll fight to preserve it. This explains why innovation often comes from the outside—not from within the hierarchy itself.

And here’s a twist: political skill can be a form of competence—but only if the goal is self-preservation. That means a person can be entirely ineffective at their actual job, but still brilliant at staying employed, appearing busy, and avoiding blame. In the eyes of the system, that counts as “success.”

By the end of the chapter, Peter has built a picture of how hierarchies operate not as engines of progress, but as machines of self-protection. Competence may get you in—but once you’re in, it’s politics that keeps you there.

This chapter is a wake-up call for anyone who’s ever wondered why good ideas die in meetings, why change feels impossible, or why the most “successful” people often seem the least connected to the real work.

Chapter 8 – Hints & Foreshadowings

In this chapter, Peter explores the subtle signs that someone is approaching—or has reached—their level of incompetence. These aren’t dramatic breakdowns or public failures. Instead, they’re quiet, often overlooked behaviors that start to show up as a person begins to struggle in a role they’re not suited for.

He starts by introducing a key idea: most people don’t crash immediately when they reach their final placement. The shift is gradual. They continue to look competent for a while, but if you pay attention, you’ll notice the clues.

One major clue is the “substitution of technique.” This happens when a person, unsure how to handle a task, replaces real performance with an unrelated—but visible—activity. For example, a principal who can’t manage teachers might spend all day rearranging the filing system. Or a department head who’s uncomfortable leading might obsess over spreadsheets no one asked for. These substitutions create the illusion of busyness, but nothing really gets done.

Peter also talks about “reversion.” That’s when a person in a new role starts acting like they’re still in their old job. A classic case is the promoted teacher who now supervises others but keeps slipping back into teacher mode—correcting papers, rearranging bulletin boards, or meddling in classroom details—because that’s what they know how to do.

Then there’s “transference.” This is when people try to shift the stress of their incompetence onto someone else. A struggling manager might blame their team for every delay. A nervous executive might lash out at assistants or start micromanaging, hoping to feel some sense of control.

Peter paints a picture of people who feel trapped. They can’t go back, they can’t go forward, and they don’t know how to succeed where they are. So they start showing behaviors that are defensive, evasive, or misdirected. They cling to routines, exaggerate small wins, and avoid tough problems.

Another subtle signal is “language inflation.” Someone unsure in their role might start speaking in grand terms to cover up their lack of real insight. Meetings become full of jargon, circular logic, and empty enthusiasm. It’s not intentional deception—it’s a way to protect themselves from being found out.

And then there’s the emotional side: anxiety, irritability, even apathy. As a person senses their own growing incompetence, they might get defensive, zone out, or start withdrawing from real challenges. Some people become aggressive and controlling, while others retreat and “coast” until retirement.

Peter doesn’t mock these people—he sees them as victims of the system. The hierarchy pushed them upward until they broke. Their coping mechanisms, however strange or unproductive, are just ways of surviving.

This chapter is important because it teaches you to notice the early warning signs—both in others and in yourself. It’s not about pointing fingers. It’s about recognizing that incompetence isn’t always dramatic. Often, it’s quiet, subtle, and hidden behind layers of well-meaning behavior.

By understanding these hints and foreshadowings, we start to see how the Peter Principle operates day to day. And we start to realize just how widespread it might be.

Chapter 9 – The Psychology of Hierarchiology

In this chapter, Peter takes us deeper into the emotional and psychological effects of reaching your level of incompetence. If earlier chapters focused on behaviors and structures, this one explores what it actually feels like to be stuck in a role that no longer fits.

He begins by asking a powerful question: What happens inside a person who senses they’re no longer competent—but can’t say it out loud? The answer, as it turns out, is a range of emotional responses that go far beyond stress or frustration.

The most common feeling, Peter says, is anxiety. It’s the constant sense that something’s wrong, that you’re faking it, that any moment someone might expose you. This leads to a second feeling: guilt. People may start to blame themselves for not being better at the role, even if the promotion was never a fair match in the first place.

To cope with this internal pressure, people develop what Peter calls “final placement syndromes.” These are patterns of behavior designed to manage the discomfort of incompetence.

Some people become perfectionists. They focus on tiny details—paper alignment, font size, grammar in memos—because it’s something they can control. Others go the opposite way and become procrastinators, constantly delaying decisions to avoid doing something they’re unsure about.

Then there are compensators, who try to offset their professional shortcomings with personal displays—fancy cars, name-dropping, or expensive clothes. These external signs of success help mask the internal feeling of failure.

One of the most fascinating parts of the chapter is Peter’s take on authority behavior. He explains that when people feel insecure in their competence, they often double down on authority. They bark orders, demand respect, and insist on titles—not because they’re strong leaders, but because they’re scared. Their confidence is fragile, and control becomes their way of holding it together.

There’s also a category Peter calls “verbalizers.” These are people who talk endlessly—especially in meetings—not to share ideas, but to hide their lack of clarity. They use buzzwords, repeat the obvious, or speak in circles, hoping no one notices that they aren’t actually saying anything new.

Peter isn’t being cruel here. He makes it clear that these behaviors are survival strategies. People don’t choose incompetence—it happens to them. They’re promoted for doing one job well, then expected to perform another with entirely different skills. When they fail, the system rarely supports them. Instead, it encourages silence, denial, or image management.

The chapter also offers a poignant insight: many people suffer quietly because they believe they’re alone. They think everyone else has it together, and they’re the only ones who are struggling. In reality, most people in a hierarchy are in the same situation—just managing it differently.

Peter ends with a subtle challenge: recognize the psychological toll of hierarchies—not just the organizational dysfunction, but the human cost. If we don’t, we’ll keep promoting people into misery—and calling it success.

This chapter adds real depth to the Peter Principle. It’s no longer just about bad promotions or inefficient systems—it’s about what happens to people’s confidence, mental health, and self-image when they’re pushed past their limits.

Chapter 10 – Peter’s Spiral

This chapter brings to life a powerful metaphor: Peter’s Spiral, which shows how incompetence doesn’t just stop with one person—it spreads. As individuals are promoted to levels where they can no longer perform effectively, they trigger a chain reaction. More positions are created to support or compensate for their shortcomings, and soon a whole layer of the hierarchy becomes ineffective.

Peter kicks off the chapter by reinforcing something important from the previous one: most incompetent people don’t want to destroy their organizations. On the contrary, they often try very hard to keep things running, because they know—perhaps unconsciously—that their job security depends on the system’s survival.

To illustrate how Peter’s Spiral works, he tells the story of Perfect Pewter Piano Strings Inc. It starts with Mal D’Mahr, a hardworking man who was promoted from handling lead ingots all the way up to general manager. Once in the top role, the stress of trying to meet everyone’s expectations—shareholders, customers, employees, the community—overwhelmed him. He became physically ill, developing ulcers and high blood pressure. His problem wasn’t laziness; he had simply been promoted beyond his physiological limits.

To help, the board appoints an assistant general manager, J. Smugly. Smugly is a mathematical genius and a brilliant engineer—but terrible with people. His social inadequacy leads him to avoid personnel decisions until they become crises. He, too, reaches his level of incompetence—through social limitations.

So, another support role is added: a personnel manager named Roly Koster. He’s emotionally intelligent, perhaps too much so. Every time someone complains to him, he takes their side completely, swinging between emotional outbursts and misplaced loyalties. Now, his incompetence is emotional.

Trying to fix things, the company brings in B. Willder from the factory floor—popular, well-liked, but not intellectually equipped to deal with abstract policies and complex decision-making. His incompetence is mental.

What we see here is the full range of incompetence: physical, social, emotional, and intellectual. And with every new promotion meant to “help,” the organization adds another person who isn’t really suited for the role. Instead of solving problems, it multiplies them.

Peter’s Spiral, then, is the organizational tendency to stack incompetence on top of incompetence in the hope of finding balance. But it rarely works. Instead of becoming more effective, the company becomes more bloated, confused, and inefficient.

Peter delivers this insight with his usual wit: “Incompetence plus incompetence equals incompetence.” Trying to fix one broken part of the hierarchy by adding more parts often just makes the whole thing more unstable.

This chapter is important because it shows that even well-intentioned decisions—like offering help or adding staff—can accelerate the decline of an organization if no one acknowledges the core issue: people being placed where they can’t perform.

It also offers a reality check. Promotions aren’t always rewards—they can be traps. And unless hierarchies develop better ways of matching people to roles based on true capability, they’ll keep spiraling downward, one well-meaning mistake at a time.

Chapter 11 – The Pathology of Success

This chapter takes a sharp turn from the usual celebration of “success” to a bold question: What if success is actually… a disease? Peter provocatively frames certain forms of career advancement as not just flawed—but pathological.

He starts by unpacking the traditional belief that success is always good. Promotions, raises, new titles—they’re seen as rewards. But under the Peter Principle, success often means being promoted into incompetence. And when that happens, what looks like an achievement from the outside becomes a source of stress, failure, and frustration from the inside.

Peter draws an unexpected parallel: he compares the symptoms of career success to medical pathology. Just like a disease affects different systems in the body, career success (when it ends in final placement) affects different parts of a person’s life—emotional stability, personal relationships, health, and happiness.

He introduces a series of “pathologies” tied to the different kinds of final placement:

• Physical pathology: A person is promoted to a role that demands more physically than they can handle. Think ulcers, fatigue, or high blood pressure caused by stress.
• Social pathology: Someone with poor people skills rises to a role where diplomacy and empathy are key—and fails badly, often without realizing why.
• Emotional pathology: The person who gets overwhelmed by pressure, criticism, or decision-making ends up acting erratically—overreacting to small issues or freezing under pressure.
• Intellectual pathology: A promotion requires complex thinking, planning, or abstract reasoning—but the person isn’t mentally prepared. They compensate with rigid procedures, jargon, or avoidance.

Peter makes it clear: the root problem isn’t that people are bad—it’s that they’re mismatched. Their new job requires something they simply don’t have. And rather than helping them grow, the promotion exposes their limits.

He uses vivid metaphors, like “promotional sclerosis,” to describe how hierarchies get clogged with people who can’t do their jobs but also can’t be removed. The organization slows down, communication gets stuck, and innovation dies. It’s not a problem of laziness—it’s the natural outcome of a system that rewards the wrong things.

One of the most powerful parts of this chapter is when Peter flips our usual definition of failure. He suggests that failing to get promoted can actually be a form of success—because it means you’re still doing work you’re good at. In contrast, so-called “successful” people may be miserable, ineffective, and deteriorating inside.

Peter also draws attention to how this kind of “success” affects life outside of work. People who have reached their level of incompetence often take their stress home. Their relationships suffer. Their confidence erodes. They stop enjoying hobbies. In short, they’re not thriving—they’re just surviving.

The final message here is sobering: we need to rethink our definition of success. Instead of chasing promotions for their own sake, we should focus on fit, fulfillment, and actual contribution. Otherwise, we risk turning our careers—and our lives—into something that looks like success on paper but feels like failure in reality.

Chapter 12 – Non-Medical Indices of Final Placement

In this chapter, Peter offers a clever and insightful look at how you can spot someone who’s reached their level of incompetence—not through medical symptoms like ulcers or stress, but through everyday behaviors. These are subtle, sometimes funny, but often very telling signs that a person is no longer thriving in their role.

He calls these clues “non-medical indices”—observable habits, quirks, or changes that suggest someone has hit their ceiling. And once you know what to look for, they’re surprisingly easy to spot.

One of the most obvious signs is obsessive rule-following. When people no longer feel confident in their judgment, they cling to rules and procedures. A manager who can’t make strategic decisions might instead obsess over dress codes, coffee break schedules, or paperwork format. It’s a way to assert control when real control is slipping away.

Peter also notes the rise of overly formal language. When someone starts using inflated job titles, endless acronyms, or vague corporate speak, it often masks uncertainty. They may not fully understand what’s happening—but they know how to sound like they do.

Another giveaway? An obsession with trivialities. Peter describes people who go all-in on organizing their office furniture, color-coding files, or scheduling unnecessary meetings. These aren’t bad people—they’re just grasping for purpose in a role that no longer plays to their strengths.

He also mentions “bad timing” as a classic symptom. A person at their level of incompetence might constantly be late for meetings, misjudge deadlines, or prioritize the wrong tasks. They’re busy—but not effective.

Peter shares a few humorous examples, like the executive who spends weeks planning the office Christmas party instead of dealing with falling profits. Or the school principal who cracks down on minor uniform violations while ignoring widespread teacher dissatisfaction. These aren’t isolated cases—they’re patterns.

One of the more poignant points Peter makes is about loss of initiative. People who used to be energetic, creative, or proactive may become hesitant and reactive. They start waiting for orders rather than giving them. They avoid risks. They fear making mistakes because deep down, they already feel out of their depth.

There’s also a social side to it: a decline in interpersonal sensitivity. People at their final placement often stop noticing—or caring about—the impact they have on others. They may become more rigid, dismissive, or even arrogant. This isn’t always due to ego. Sometimes it’s just emotional exhaustion from trying to hold it all together.

And then there’s the ultimate sign: doing nothing at all. Some employees, once they’ve reached their ceiling, simply stop trying. They coast. They show up, but contribute little. It’s not laziness—it’s quiet resignation. They know they’re not the right fit anymore, but the system doesn’t allow them to step down, and no one’s helping them step sideways. So they sit still.

Peter’s point is simple but powerful: these behaviors aren’t random—they’re signals. They’re the emotional and behavioral symptoms of a deeper issue. And organizations that learn to read these signs might just have a chance to intervene early.

This chapter shifts the lens from formal evaluation to human observation. If we pay attention to how people act, not just what’s on their résumé, we might build hierarchies that work better—for everyone.

Chapter 13 – Health & Happiness at Zero PQ

This chapter explores a counterintuitive idea: some people are perfectly happy being incompetent. In fact, Peter argues, these people may be the healthiest individuals in the hierarchy—not despite their incompetence, but because of it.

He introduces a playful but revealing concept: the PQ, or “Position Quotient.” Think of it like a measurement of how far up the hierarchy someone has climbed. The higher your PQ, the higher your rank—and usually, the greater the pressure. Most people strive to increase their PQ, believing it leads to fulfillment and success.

But Peter suggests that a PQ of zero—no rank, no title, no managerial responsibility—might actually lead to the most health and happiness. People with low or zero PQ often avoid the stress, bureaucracy, and psychological strain that come with promotions. They may not be celebrated by the system, but they also don’t suffer from it.

He offers several real-life examples of individuals who either rejected promotions or deliberately sabotaged their chances of advancement:

• A skilled janitor who turned down multiple offers to become a supervisor because he was content doing meaningful, visible work.
• A typist who refused promotions to remain where she could do her job well, avoid office politics, and go home stress-free.
• An office clerk who, after one miserable week in a promoted role, asked to return to his previous position—and was much happier for it.

Peter calls these people “successfully incompetent.” Not because they’re bad at what they do, but because they recognize that climbing higher isn’t always better. They choose fulfillment over status. He’s not mocking them—he’s admiring their clarity.

One fascinating idea is that happiness in a hierarchy often comes from knowing your limits and staying within them. The system may try to lure you upward with better pay, nicer offices, and fancy titles, but that doesn’t always lead to better outcomes. It often leads to stress, loneliness, and eventual burnout.

Peter also suggests that some people may appear lazy or unambitious—but they’re actually wise. They’ve seen what happens to others who chase promotions and end up miserable. Instead of running that race, they slow down, do good work, and enjoy their lives. And in many ways, they are the invisible heroes of the organization—the ones who keep things running without constantly chasing more.

This chapter flips conventional wisdom on its head. Instead of praising those who rise, Peter celebrates those who resist. He offers a quiet but radical message: maybe the best thing you can do for your health, happiness, and even productivity… is to stay right where you are.

By the end, it’s clear that the Peter Principle isn’t just about incompetence—it’s about the cost of ambition, the trap of status, and the freedom that comes from understanding yourself.

Chapter 14 – Creative Incompetence

This chapter introduces one of the most surprising—and useful—concepts in the entire book: creative incompetence. Peter argues that if promotion in a hierarchy leads most people to their level of incompetence, the smartest thing you can do might be… to stay where you are. And to do that, you may need to look a little less competent—on purpose.

Creative incompetence is the art of avoiding promotion by subtly failing at the right things, in the right way, at the right time. It’s not about slacking off or being lazy—it’s a strategic, thoughtful approach to staying in the role where you’re most effective and happiest.

Peter gives several humorous (but oddly wise) examples:

• The teacher who is beloved by students and parents but “accidentally” forgets to file reports or fill out forms properly. The administrators think she’s disorganized and therefore not suitable for a leadership role—so they leave her in the classroom, where she thrives.
• The capable worker who always misplaces their necktie just before promotion interviews or shows up to events slightly underdressed—not enough to get fired, but just enough to be overlooked for advancement.
• The employee who deliberately avoids learning how to operate a specific machine or software, so they’re never considered for the next-level job that requires it.

These people aren’t incompetent at their actual work—they’re intentionally incompetent at symbolic tasks that signal readiness for the next step up the ladder.

Why go to such lengths? Because Peter makes a strong case that being competent in your current job is often far better than being incompetent in a higher one. Promotion, in most hierarchies, isn’t based on actual readiness—it’s based on visibility, conformity, and formal qualifications. So if you want to avoid rising to your level of incompetence, you may need to subtly break those patterns.

He calls it “the method of calculated and purposeful limitation.” In other words, know your strengths, embrace your value, and don’t fall for the trap of always saying “yes” to upward movement.

Peter’s tone here is both playful and deeply reflective. He’s not encouraging sabotage—he’s encouraging self-preservation. If the system is going to push you into a role that doesn’t suit you, sometimes your best defense is to make yourself look like a bad fit—without doing any harm.

It’s a gentle rebellion against the culture of constant advancement. And it invites you to ask a question rarely posed in corporate life: What if not being promoted is actually the smartest move I can make?

This chapter feels like a toolkit—quietly powerful, funny, and slightly subversive. It reminds us that real competence isn’t about chasing titles. It’s about doing great work and protecting the space that lets you keep doing it.

Chapter 15 – The Darwinian Extension

In this closing chapter, Peter expands the Peter Principle beyond organizations and into the natural world—making the bold claim that this tendency toward incompetence isn’t just a human workplace issue, but a kind of universal pattern. He calls this broader phenomenon the Darwinian Extension of the Peter Principle.

The chapter starts by revisiting the foundation of Darwin’s theory of evolution: organisms adapt to survive. The traits that help a species thrive in a given environment are passed on, while less useful traits die out. But Peter wonders—what happens when the environment changes so much or so fast that the once-helpful traits become liabilities?

Here’s the twist: Peter suggests that, just like individuals in hierarchies, entire species may “rise” through evolutionary success… until they hit their own form of incompetence. In other words, a species becomes so specialized, so adapted to a narrow context, that it can no longer handle change—and that’s when extinction comes.

He draws a metaphor between final placement in a career and final placement in evolution. Just as a person is promoted to a role they can’t handle, a species may evolve traits that serve them very well—until the environment shifts, and suddenly those same traits make survival harder. The very thing that once made them “successful” now limits them.

Peter points out several examples in nature:

• Dinosaurs developed tremendous size and strength—advantages in their time, but a massive disadvantage when environmental conditions changed.
• The saber-toothed tiger, with its exaggerated teeth, may have become so specialized that it couldn’t adapt when its prey disappeared.
• Some insects reproduce so successfully that they overpopulate their environment and starve.

In each case, Peter sees an echo of the Peter Principle—success taken one step too far.

Then he applies this logic to human civilization itself. He warns that technological advancement, if not matched by social or emotional development, might lead humanity toward its own collective incompetence. We build machines faster than we learn how to manage them wisely. We invent weapons without the emotional maturity to handle conflict peacefully. Progress becomes its own trap.

He calls this the “Ultimate Final Placement.”

But rather than ending on a note of despair, Peter offers a subtle form of hope: awareness. If we can recognize the patterns—both in organizations and in ourselves—we might make better choices. We might promote people more thoughtfully. We might design systems that don’t just reward performance, but align people with roles that suit their full humanity.

The final lines are classic Peter: witty, sharp, and deeply reflective. The Peter Principle, he suggests, doesn’t have to be a sentence—it can be a mirror. A way to look more clearly at how we define success, how we structure our systems, and how we take care of one another.

In the end, The Peter Principle isn’t just a book about failing managers or broken bureaucracies. It’s a thoughtful, often hilarious meditation on the limits of competence, the illusions of progress, and the quiet power of knowing where you truly belong.

4 Key Ideas from The Peter Principle

6 Main Lessons from The Peter Principle

My Book Highlights & Quotes

“… Never stand when you can sit; never walk when you can ride; never Push when you can Pull…”

“… Particularly among minor officials with no discretionary powers, one sees an obsessive concern with getting forms filled out correctly, whether the forms serve any useful purpose or not. No deviation, however slight, from the customary routine, will be permitted…”

“… In time, every post tends to be occupied by an employee who is incompetent to carry out her duties…”

“… Work is accomplished by those employees who have not yet reached their level of incompetence…”

“… Employees in a hierarchy do not really object to incompetence (Peter’s Paradox): they merely gossip about incompetence to mask their envy of employees who have Pull…”

“… Man must realize that improvement of the quality of experience is more important than the acquisition of useless artifacts and material possessions…”

“… Or consider Dr. Peter’s counterintuitive claim that in most hierarchies, super-competence is more objectionable than incompetence. He warned that extremely skilled and productive employees often face criticism, and are fired if they don’t start performing worse. Their presence disrupts and therefore violates the first commandment of hierarchical life: the hierarchy must be preserved…”

“… Competence, like truth, beauty, and contact lenses, is in the eye of the beholder…”

Conclusion

Reading The Peter Principle feels like sitting with someone who finally explains why the workplace can feel so upside down. It doesn’t just give you a new way to look at promotions—it gives you a new way to think about your own career choices.

Whether you’re navigating office life, leading a team, or just wondering if you’re on the right path, this book will leave you wiser, more self-aware, and maybe even a little amused.

Because when you understand how things go wrong, you’re in a much better position to make things go right.

I am incredibly grateful that you have taken the time to read this post.

Support my work by sharing my content with your network using the sharing buttons below.

Want to show your support and appreciation tangibly?

Creating these posts takes time, effort, and lots of coffee—but it’s totally worth it!

If you’d like to show some support and help keep me stay energized for the next one, buying me a virtual coffee is a simple (and friendly!) way to do it.

Do you want to get new content in your Email?

Do you want to explore more?

Check my main categories of content below:

• Book Notes
• Career Development
• Essays
• Explaining
• Leadership
• Lean and Agile
• Management
• Personal Development
• Project Management
• Reading Insights
• Technology

Navigate between the many topics covered in this website:

Agile Art Artificial Intelligence Blockchain Books Business Business Tales C-Suite Career Coaching Communication Creativity Culture Cybersecurity Decision Making Design DevOps Digital Transformation Economy Emotional Intelligence ESG Feedback Finance Flow Focus Gaming Generative AI Goals GPT Habits Harvard Health History Innovation Kanban Large Language Models Leadership Lean Learning LeSS Machine Learning Magazine Management Marketing McKinsey Mentorship Metaverse Metrics Mindset Minimalism MIT Motivation Negotiation Networking Neuroscience NFT Ownership Paper Parenting Planning PMBOK PMI PMO Politics Portfolio Management Productivity Products Program Management Project Management Readings Remote Work Risk Management Routines Scrum Self-Improvement Self-Management Sleep Social Media Startups Strategy Team Building Technology Time Management Volunteering Web3 Work

Do you want to check previous Book Notes? Check these from the last couple of weeks:

• Book Notes #126: Inevitable by Mike Colias2025-03-24
• Book Notes #125: Revenge of the Tipping Point by Malcolm Gladwell2025-03-21
• Book Notes #124: Radical Candor by Kim Scott2024-09-04
• Book Notes #123: The Personal MBA by Josh Kaufman2024-05-09
• Book Notes #122: The First 20 Hours by Josh Kaufman2024-05-02

Support my work by sharing my content with your network using the sharing buttons below.

Want to show your support tangibly? A virtual coffee is a small but nice way to show your appreciation and give me the extra energy to keep crafting valuable content! Pay me a coffee: