About Peters, Dicks and Booms…

My friend’s father gave her the best advice I’ve ever heard any parent give a young person when she graduated from college and prepared to enter the work force. It was: “Get ready to be disappointed, people are stupid!”

Truer words have never been spoken. I remember when I was young and naïve, I assumed ‘experts’ and other people in positions of authority, like say, my bosses in various jobs, journalists, cops, doctors, politicians, etc. had attained their ranks, titles and other powers because they were smart, capable, skilled and earned their credentials through hard work. Boy, was I dumb.

I’m jealous that my friend started her career with a level of enlightened cynicism that usually takes years to cultivate. I’ve been privileged to be educated by and work for some brilliant people, but they are comparatively rare in my experience. Sure, not everyone is ‘brilliant’, but I’m starting to get the impression that just being competent is sadly rare.

Here’s why; it seems to me the farther you go up any chain of command people stop paying attention to quality performance and longevity in a position and start paying more attention to politicking, covering their ass, and building an exit strategy. I know, this is hardly news to many readers, but it’s worth writing about anyway.

Why do I draw this conclusion? First, there’s the Peter Principle that states, "In a hierarchy every employee tends to rise to his/her level of incompetence." For example, the excellent factory worker or salesperson that gets promoted to management even though they have no clue how to manage. It’s a well-known phenomenon anyone who has ever had a job has probable experienced it.

Second, there’s what I call the Dick Principle, which might have already been postulated by someone with a PhD in organizational behavior or some other worthy social science. If it has I ask my faithful readers to please let me know so I don’t falsely claim any credit. The Dick Principle states, “Hierarchies tend to be filled with so many examples of the Peter Principle who attempt to prevent their incompetence from being exposed through negative behavior (lying, sabotage, bullying, stealing credit for others' work, hiding mistakes, etc.) that qualified individuals are dissuaded from wanting to rise in the hierarchy”. In short, this means a lot of worthy candidates elect out of an organization or opportunities to lead because they are completely turned off by their superiors and their organization’s culture.

The Dick Principle seems to be particularly strong in politics. How many citizens look at the US Congress or Chinese Communist Party and say to themselves “There’s no way I want to join that group of assholes”? But it happens in many corporations as well, when’s that last time you heard someone say “I hope I stay with my employer (name any Fortune 500 Company) until I retire because I find its leadership so inspiring”?

Third, there’s what I will call the Big Boom Theory, which is not to be confused with the Big Bang Theory and cosmological arguments based on Einstein’s physics, or a romantic encounter with a sizable member of the opposite sex. Rather, this is a theory on how organizations expand and implode, much like the universe or a large ugly boil.

My Big Boom theory states, “There is a tendency in any boom market for incompetent assholes to become even more abundant at the top of an expanding organization’s hierarchy and eventually the organization falls apart because of a critical mass of short-sighted negative behavior.” This is obvious, when a market, industry or organization is expanding at a dizzying pace the promotion of incompetence is accelerated; therefore their negative behavior is more widespread and insidious. In this model, the incompetents running an organization engage in dangerous short-term thinking and expose their organization to risk.

The Peters and Dicks engage in short-sighted dangerous behavior because they aren’t kidding themselves, they know they are incompetent, so they might as well get as much as they can and cash out quickly before they are canned. However, when everyone around you is just as bad as you are then you will probably never be exposed as a hack. Therefore the bad behavior and risk within the organization increases exponentially until it collapses in the face of rejection from the market, legal liabilities and government inquisitions.

When I think of the Big Boom a few examples come to mind. There’s the financial industry (AIG, Lehman Brothers, et al.) the automotive industry (GM, Toyota, etc.), and the entire print news media industry that failed to meet the challenge of the Internet even though they had over a decade to figure it out, etc.. But of course the list is endless.

So… we have Peters (incompetent leaders), Dicks (leaders who are assholes because they are incompetent), and the Big Boom (organizations that sow the seeds of self destruction in prosperous times because they fill up with incompetent assholes). Now let’s talk about China.

This is a booming market where foreign managers are frequently posted for two to three year tenures and multinationals are localizing as quickly as they can. Hmmm… seems to me there’s lots of potential for Big Booms. As most business leaders in China will tell you, finding and retaining qualified staff is a critical challenge in developing the long-term success of their organization. Here’s a few example the types of talent in China’s job market.

There’s he Tsinghua MBA graduate who brings a Hello Kitty pencil box to a job interview and has plenty of raw intelligence, but she’s never held a job a day in her lif and she expects to enter your company at middle management. Then there’s the codger who still drinks tea out of an old Nescafe jar but is connected with half of the departments in the ministry that regulates your business, he wants to be paid handsomely for reading the newspaper all day because, you know, his value is his guanxi.

And of course, there’s the laowai; they come in many forms. Newbies know everything about their industry and nothing about China, by the time they really start to be worth their fat expat packages they are on their way home again, or to a market that has better quality of life, because not everyone likes to breath air you can shovel. But there’s also the Chinahands, of course these are my preferred group of people, I am one of them, not an elite member but I reckon I’m somewhere between Padawan and Jedi Master. You have to be careful of Chinahands because being able to fluently recite the Dao De Jing and Quotes from Chairman Mao in Mandarin, or just their sheer number of years in the market, although impressive, doesn’t qualify you for a lot of jobs, even if they are offered to you at boozy backyard barbecue in Shunyi or over martinis at the Glamour Bar.

I’m not kidding myself; I’m not a genius. Although sometimes after a dozen shots of tequila I think I’m Superman, but with the mojo of John Shaft andrapier wit of Lenny Bruce. Yeah, that’s right, I’m ‘special’ that way. But I think I’ve leaned a thing or two after ten years working in China and now being roughly midway through my career. With all the Peter’s, Dicks and the potential for Big Booms there are a couple of things I try never to forget.

First, there’s no point lying to yourself or others about your capabilities, eventually someone will call you out, and reality, like payback, is a bitch. A bad reputation is a social disease, it’s fun and easy to get, but maybe impossible to recover from.

Second, as far as I know there’s only one solution to protecting your organization against Peters and Dicks and the catastrophes they create, and that’s culture. Organizations that have postive cultures don't let these guys run things. Peter’s need to be identified and their upward progress halted and Dicks need to be pulled out before they impregnate the organization with their bad seed. And when the good times are booming vigilance is even more important, because it’s the exuberance of a wild party that creates the hangover and other unintended consequences, not sober reflection during austerity.

So, when you are thinking about your organization in China, ask yourself “Has this 20-year boom allowed a lot of Peters and Dicks to slip in”? Sooner or later you might feel the pain.