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I have to admit that while this principle makes intuitive sense, it seems to be assume that promotion and competence are so simply related. A few people are the "rock stars", but for most, in organizations I've been in, it seems like being promoted (or winning grants or otherwise getting power and money) is so competitive that it becomes its own sub-job requiring a lot of your bandwidth, thus probably reducing your competence.

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In smaller companies (in germany) what I often observe is a combination of your latter point (it being its own sub-job thus reducing competence) and simply being in a company at the right time without any possibility of somebody challenging them.

I feel like actual competition is severely lacking leading to people not having an reward for success or consequence for failure.

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