The Peter Principle

Remember when Microsoft was on top of the world and Nokia was reigning over the cell phone universe? Funny also that these two companies have now chosen to melt-down together! Most business cycles that start with birth, blooming and decay.

Very few companies are totally immune to that. They are so focused on being what they are, and doing precisely what got them there, that they forget that the world around keeps on turning and keeps on changing. To paraphrase some of the tenets of the Peter Principle, “Anything that works will be used in progressively more challenging applications until it fails.”

In other words, there is a huge appeal to use what has worked before, even when it may exceed its effective scope. Add to this value analysis, poorly chosen employees, “yes people”, big egos, and you soon have a shooting star melting into the blue yonder. Thanks for this principle and the new breath of life it keeps on giving us!