Aug
09

Poor Promotions

Research shows that high-performing sales representatives are more likely to be promoted into management. For example, a doubling of sales boosts the probability of promotion by 15% above baseline. But the new manager’s pre-promotion doubling of sales is also associated with a 7.5% reduction in the sales performance of each of the new manager’s subordinates. The Peter Principle, or the notion that one rises to one’s level of incompetence, lives!

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