The business of leading and managing people is a delicate balance. The Peter Principle and the halo effect is the observation that people tend to rise to “their level of incompetence” in a hierarchy. A management theory that predicates a candidate’s successful performance in their current position is not a true indicator of how they will perform in a new role. When people are promoted that they can become progressively less effective because good performance in one job does not guarantee similar performance in another.