From expert to leader: watch out for the ‘Peter Principle’!

Leadership requires serious investment in skill development and mentoring
Nyenrode Business University Amsterdam
Publication date: 7/15/2025
Author:
  • Prof. dr. Bas Kodden LL.M.

We’ve all seen it happen: a talented employee excels in their role, gets promoted to manager... and quickly struggles in the new position. Not because of a lack of effort, but because the new role requires a completely different skill set. This is what Dr. Laurence Peter called the Peter Principle back in the 1960s. It’s still very relevant today. Leadership is a discipline, not just a title.

Bas Kodden portret

Leadership demands different skills

The Peter Principle suggests that people in organizations often get promoted to the level where they become ineffective. Not due to bad intentions, but because success in a technical or operational role doesn’t automatically translate into success as a leader. Managing people - coaching, providing direction, handling conflict - requires a very different set of skills than being a subject matter expert.

Learning to lead

Those who thrive in their new leadership roles tend to be more effective, make better decisions, enjoy their work more, and handle team conflicts more successfully. Leadership is a discipline of its own. It takes character, self-awareness, and real skill. Becoming a good leader starts with developing yourself so you can better support and guide others.

Development and mentoring matter

Leading without training means relying on instinct—and instinct can be unreliable. You can avoid the Peter Principle by viewing leadership as a development journey, not as a reward for past performance. This means investing in skill-building and mentoring early—ideally before someone even steps into a leadership role. It also means fostering a culture where stepping back into an expert position isn't seen as failure, but as a strategic move. As I emphasize in my book The Devil Inside: a demotion isn't defeat—it’s a realignment with your strengths.

Prof. Dr. Mr. Bas Kodden is Professor of Leadership & Management Development at Nyenrode Business University. He is part of Nyenrode’s Faculty Expertise Center for Strategy, Organization & Leadership. His research and teaching focus on leadership, entrepreneurship, and personal development.