The "Peter principle" rests on the assumption that organizations are rational meritocracies, and will reward people that are competent at their given task. And those organizations may (still) exist, but they are not the norm, at least not in my experience. I propose another, more important, principle as an explanation for the obvious incompetence of many managers: Competent people are a source of pain to higher level…
Competent individuals often question practices like these and are either coerced into submission or shown the door. This leads to a gradual subversion of the corporate culture, transforming what was once agile, resourceful, and, importantly, truthful into a culture of internal lies and self-deception. "Everyone lies on this report, so you must too. Everyone exaggerates their evaluations, so you must as well. Everyone inflates sales predictions by many multiples; you must do the same." Rewards given under the de-facto misaligned system favors the incompetent. This further estranges competence from leveling.