TMBA449: The Peter Principle Revisited

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On this week’s episode, Dan and Ian are going to explore one of the philosophical concepts that they have been talking about increasingly on this show.

The Peter Principle was originally published by Laurence J. Peter in 1969. The basic premise is that every employee or member of an organizational hierarchy will tend to rise to their own “level of incompetence”.

On today’s podcast, we are talking about what this concept means for entrepreneurs, how it applies to us, to our businesses, and what we can learn from it.

We’ll also share some strategies for what to do if you believe that you’ve reached your own capacity for growth.


Listen to this week’s show and learn:

  • What the Peter Principle is and the origins of the concept. (3:31)
  • How you can recognize when you’ve reached your capacity for growth. (8:06)
  • Why many of us may actually be happier working slightly below our competence level. (16:52)
  • Ways to circumvent the Peter Principle. (19:35)
  • What it means to have “Creative Incompetence”. (24:29)

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This week’s sponsor:

This week’s episode is brought to you by our newest product, Dynamite Jobs. Dynamite Jobs is a service that helps entrepreneurs and listeners of this show find top, experienced talent to join their teams.  These types of remote positions can be especially challenging to hire for, and we specialize in making that process easy.  Our process means that you’ll only have to post your job once, and we’ll share it with our community of more than 10,000 established remote workers. If you are looking to hire remote team members, head over to and use code TMBA on the checkout page to get 50% off your first posting.

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Thanks for listening to our show! We’ll be back next Thursday morning 8AM EST. Cheers, Dan & Ian