Hiding Hand Principle

Hiding Hand Principle

The Hiding Hand principle, a concept introduced by economist Albert O. Hirschman in his 1967 book, "Development Projects Observed," describes a paradoxical phenomenon in the planning and execution of complex projects, particularly in development.

The core idea is that when people decide to undertake ambitious projects, they tend to systematically underestimate the difficulties, costs, and potential problems they will face. Simultaneously, they systematically overestimate their own capacity and resources to solve unexpected issues that might arise.

Peter principle

In management theory, the Peter principle states that the selection of a candidate for a position is based on the candidate's performance in their current role, rather than on abilities relevant to the intended role. Thus, employees only stop being promoted once they can no longer perform effectively, and "managers rise to the level of their incompetence." 

The Peter principle was coined by educator Laurence J. Peter in 1969.