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BUILDERS PERSPECTIVE

In this segment, we are share more of the important stories and content, by builders, and those keen to offer important insights that share new perspectives on a range of topics that benefit our community.

Here’s an interesting read shared with us from Josh Petersel, Founder and Canadian tech supporter. He shares an interesting take on various management theories, taking a deep dive on these tactics and explaining his own theory.

Josh shares extensive notes and collaborative feedback in the full article. Make sure you check it out.

In Summary

The article explores the pervasive issue of managerial incompetence through the lenses of three theories: the Peter Principle, the Dilbert Principle, and Josh’s own Petersel Principle.

1. Peter Principle: Employees are promoted until they reach a role they are incompetent in, resulting in middle management being filled with individuals ill-suited to their positions. While real-life dynamics like growth and reorganization temper this theory, it highlights systemic flaws in promotion practices.

2. Dilbert Principle: A cynical view suggests organizations intentionally promote incompetent individuals into management to minimize harm to frontline productivity.

3. Petersel Principle: This novel concept argues that employees who excel in serving their bosses are promoted, but this skillset doesn’t necessarily translate to effectively serving subordinates. The result is a management layer that may prioritize upward-serving behavior over team leadership, creating a systemic problem where subordinates suffer under self-serving or politically motivated managers.

The article also discusses the broader implications of these principles:

• Competent management is rare due to flawed promotion metrics emphasizing politics over practical leadership skills.

• A focus on "managing up" often undermines team dynamics and subordinate satisfaction.

• Effective management measurement is challenging, with proxies like churn, NPS, and productivity metrics offering limited insights.

Tactics for Addressing the Problem:

• For subordinates: Accept managerial incompetence as a norm, manage upward to build critical relationships, or seek new opportunities.

• For managers: Avoid reinforcing the Petersel Principle by promoting based on consistent and fair metrics, and adopt a growth mindset to improve their own competence.

• For organizations: Diversify reward systems, balance short-term and long-term metrics, and implement macro-level diagnostics like employee satisfaction trends.

Ultimately, while systemic flaws in promotions propagate incompetence, cultivating awareness, adopting fair measurement practices, and striving for effective leadership can mitigate some challenges.

Enjoy Josh’s thoughts? Keep up with him at www.joshpetersel.com 

PARTNER CONTENT

TechExit.io Vancouver: Where Tech Entrepreneurs Learn How To Acquire or Be Acquired

On February 25, 2025, the Vancouver Convention Centre West will host TechExit.io Vancouver, the definitive event for tech entrepreneurs, investors, and industry leaders looking to master the art of acquisitions.

Learn more about the Movers and Shakers of M&A here

What makes TechExit.io stand out is its roster of seasoned speakers—individuals who have successfully navigated complex deals and are eager to share their hard-earned insights.

• Jack Newton, CEO of Clio, has transformed his company into a legal tech juggernaut through strategic acquisitions like Lexicata and Lawyaw. His keynote will highlight how the right deals can fuel growth and innovation.

• Greg Malpass, Founder of Traction on Demand, will share the story behind his company’s sale to Salesforce—offering a rare glimpse into how to position a business for a high-value exit.

• Judi Hess, Former CEO of Copperleaf, will delve into the intricacies of timing and negotiation, recounting her company’s landmark sale to Industrial and Financial Systems (IFS).

• Sarah Miller Wright, President of Certn, will discuss how acquisitions like InterCheck Australia have helped her company expand globally.

• Jason Leeson, President of Squirrel Systems, will offer a case study on securing innovation and growth through acquisition by the Volaris Group.

TechExit.io is where the future of Canada’s tech industry is built—deal by deal, story by story.

Whether you’re exploring how to scale your business, preparing for an acquisition, or simply want to learn from those who’ve done it, TechExit.io Vancouver is the place to be.

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READS AND OPPORTUNITIES

• The Sales Factory is hiring a Business Development Representative
  

• Advice on how this company raised $17m
  

• The brutal truth about fundraising
  

• The balance between ends and means — a great read for today’s leaders
  

PARTNER CONTENT

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