In the Pipeline writes Incompetence, Avoided? "The world may or may not have been waiting for this, but there's now some theoretical support for the Peter Principle" pointing to an article in MIT's Technology Review, Why Incompetence Spreads through Big Organizations.
"Now Pluchino and co have simulated this practice with an agent-based model for the first time. Sure enough, they find that it leads to a significant reduction in the efficiency of an organization, as incompetency spreads through it. "
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